Canadians not tax smart? Investors tend to think about their non-RRSP returns in before tax dollars

Money Digest, May, 2002

According to a survey of 2,008 Canadians by Decima Research for the Investors Group, most Canadians have not focused on how to maximize income in their pockets.

The survey found that nearly half (46%) of Canadian investors who have more than $10,000 invested outside of their RRSPs are underestimating the impact of taxes on their portfolios by thinking about their returns in before-tax dollars.

The Investors Group/Decima survey also revealed that Canadians with larger amounts of money invested outside of their RRSPs were more likely to be "tax-smart."

Sixty-one per cent of wealthier respondents (those with more than $100,000 invested outside RRSPs) consulted their financial advisor about lowering taxes on their investments in the last year.