Tax-efficient solutions

A lifetime of tax-smart investing

Whether you’re trying to build savings during your working years or access those savings later in retirement, tax-smart solutions are an important part of your financial plan. When it comes to non-registered investing, tax efficiency is half of the equation. The other half is investment quality. At Fidelity, we don’t make you choose one over the other.

Fidelity has the products and services to help you build and maintain a tax-efficient investment strategy – and we can help you work closely with your advisor with a suite of products. We’re an industry leader in the variety of investment classes that we make available for tax-smart portfolio construction, giving you the flexibility to achieve a wide range of investment objectives.

2019 Tax facts sheet
 
2018 tax year reference guide

Corporate Class

During the years leading up to retirement, you’ll want to make sure your savings have good growth potential. For those in their asset accumulation years, Fidelity Corporate Class offers tax-deferred growth through the potential for reduced taxable distributions, which means more money staying in your account to grow. 

It's what you keep that matters.
When corporate classes make distributions, they are in the form of Canadian dividends or capital gains dividends. These forms of income are taxed at lower rates than interest income and therefore can potentially provide investors with higher after-tax ret
Illustration tax rates are based on an average of national 2019 top marginal tax rates, weighted based on population: interest income, 52.0%; dividends, 37.1%; capital gains, 26.0%.


Benefits of corporate class

Tax-efficient growth: The benefits of using Corporate Class
 
Corporate Class Explained

 

Tax-efficient growth: The benefits of using Corporate Class - Chinese version: 節稅增長：使用企業類別的優惠

Corporate class explained - Chinese version: 解釋「企業類別」

Capital dividend account

Capital Dividend Account

Tax-Smart Withdrawal Program

Fidelity Tax-Smart Withdrawal Program® (T-SWP®)

When you reach the point in your life when you want to begin reaping the benefits of your investment plan, you’ll need to consider how best to access your non-registered savings. For those in their retirement and wealth preservation years, Fidelity T-SWP® and T-SWP® Class provide the flexibility to develop customizable and sustainable solutions by generating tax-efficient cash flow.

With T-SWP and T-SWP Class, you can

  • receive tax-efficient monthly cash flow (available in 5% and 8% cash-flow options on a broad range of Fidelity solutions)
  • change between 5% and 8% without triggering capital gains tax
  • turn the cash flow on or off (or adjust it) according to your needs
  • transfer your wealth to a spouse, next of kin and/or charity in a tax-smart way

 

Tax Smart related tools

Try the Fidelity tax calculator
 
Try the Fidelity T-SWP calculator

TWSP related content

See a list of T-SWP payout rates
 
T-SWP explained
 
Questions about T-SWP
 

Talk to your advisor for more information on Fidelity’s tax-smart solutions.

 

According to a proposed change in the Canadian federal tax rules, effective January 1, 2017, switching shares of a class fund to shares of another class fund within a mutual fund corporation will be deemed a disposition at fair market value for tax purposes and will trigger a capital gain or loss. The proposal does not apply to switches between different series of the same class fund.

This information is for general knowledge only and should not be interpreted as tax advice or recommendations. Every individual’s situation is unique and should be reviewed by his or her own personal legal and tax consultants.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus, which contains detailed investment information, before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Read a fund’s or pool’s prospectus or offering memorandum and speak to an advisor before investing. Read our privacy policy. By using or logging in to this website, you consent to the use of cookies as described in our privacy policy.

This site is for persons in Canada only. Mutual funds and ETFs sponsored by Fidelity Investments Canada ULC are only qualified for sale in the provinces and territories of Canada.

198674-v2019729

Close Search