Understanding Your Complete Income Picture

Your income landscape evolves throughout your life, from employment earnings and business income to investment returns, pensions, and government benefits. Each source has unique characteristics, tax implications, and timing considerations that affect your overall financial strategy.

At FSW, we start by gaining a thorough understanding of your current and anticipated income sources. This comprehensive view allows us to identify opportunities for optimization, uncover potential gaps, and develop strategies that align your income with your lifestyle needs and long-term goals.

Strategic Cash Flow Management

Effective income planning goes beyond simply tracking what comes in and what goes out. It requires thoughtful coordination of multiple income streams, strategic timing of withdrawals, and proactive management of tax efficiency.

What We Address in Your Income Plan
  • Optimize income timing and sequencing: Coordinating when and how you draw from various accounts and sources to maximize after-tax income and extend portfolio longevity
  • Balance current needs with future goals: Ensuring you can enjoy your lifestyle today while maintaining financial security for tomorrow
  • Create sustainable spending strategies: Developing approaches that support your desired standard of living throughout all life stages
  • Establish emergency reserves: Building appropriate cash cushions to handle unexpected expenses without derailing your long-term plan
  • Coordinate with your investment strategy: Ensuring income needs inform portfolio construction and withdrawal approaches

Income Planning Through Life Transitions

Your income planning needs shift as your life evolves. Whether you’re in your peak earning years, approaching retirement, or navigating life after work, your strategy must adapt.

Pre-Retirement: Building Your Foundation
During your working years, income planning focuses on maximizing what you keep, building savings systematically, and creating flexibility for the future. We help you leverage tax-advantaged accounts like RRSPs and TFSAs while maintaining appropriate liquidity for near-term needs and opportunities.
Transition to Retirement: Shifting Your Approach
Moving from accumulation to distribution requires careful orchestration. We help you navigate the transition from employment income to retirement income sources by coordinating CPP and OAS timing, pension decisions, and portfolio withdrawals to create reliable cash flow while minimizing tax impact.
Throughout Retirement: Sustaining Your Lifestyle
In retirement, your income plan becomes even more critical. We develop withdrawal strategies that balance multiple account types, coordinate government benefits, manage required minimum withdrawals, and adapt to changing spending patterns as you move through different retirement phases.

Tax-Efficient Income Strategies

How you receive income matters as much as how much you receive. Different income sources face different tax treatment: employment income, dividends, capital gains, pension income, and withdrawals from registered accounts each have distinct tax implications.
We coordinate your income sources strategically to:

  • Minimize overall tax burden through income splitting opportunities and optimal withdrawal sequencing
  • Maximize benefits from pension income splitting and tax credits
  • Preserve government benefit eligibility (i.e.,  disability, OAS) by managing income thresholds/tax brackets
  • Time income recognition to align with your tax situation each year
  • Utilize all available tax-advantaged account types effectively

Registered Account Strategies

Tax-advantaged registered accounts form a cornerstone of effective income planning. The key is coordinating these accounts strategically: understanding which to fund, when to contribute, and how to withdraw in ways that optimize your lifetime after-tax income. Your advisor monitors your available contribution room and limits for registered accounts, ensuring you maximize tax-advantaged savings opportunities.

Registered Retirement Savings Plans (RRSPs)

RRSPs provide immediate tax deductions during accumulation years and tax-deferred growth. We help you maximize contributions when beneficial and develop strategic withdrawal approaches that minimize tax impact in retirement. Visit the CRA website for updated information on contribution limits and important dates.

Tax-Free Savings Accounts (TFSAs)

TFSAs offer flexibility throughout your life by providing tax-free growth during accumulation and tax-free withdrawals when you need them. We integrate TFSAs into your comprehensive income plan to enhance after-tax cash flow. Visit the CRA website for updated nformation on carry forward room and contribution limits.

Registered Retirement Income Funds (RRIFs)

RRIFs become crucial in retirement, requiring careful management of mandatory minimum withdrawals while balancing your actual income needs and tax situation. Visit the CRA website for updated information on withdrawals and dates.

Registered Education Savings Plans (RESPs)

RESPs allow you to save tax-efficiently for children’s or grandchildren’s education while preserving your retirement income plan. Government grants enhance your contributions, and strategic withdrawal planning ensures tax-efficient access to funds. Visit the CRA website for current contribution guidelines.

Your Income Planning Partnership

Your income situation is unique: shaped by your career path, family circumstances, goals, and values. We don’t believe in one-size-fits-all approaches.

We invest time understanding your complete picture: where your income comes from, how it will evolve, and how it can best support the life you want to live. From there, we develop customized strategies that integrate with your investment approach, tax planning, retirement goals, and estate plans.

Your financial confidence and security, supported by thoughtful income planning, remains our priority at every stage of your journey.