[Video] How To Save Up To $50,000 In Taxes Using AI

Jan. 2, 2024, 10:50 a.m. |Financial Planning |Beginner

It's true. Being smart about how you withdraw from your RRSPs, TFSAs, and taxable accounts can make a $50,000 difference, even for the middle class. In this video, Jin uses a hypothetical scenario to illustrate how AI can help save such an amount.

Jin Money Tax 3

For easy-to-understand explanations of RRSPs and TFSAs, read Jin's free e-book.

To contact Jin about creating your own tax optimization AI, use this form.

Video Chapters:

00:00 Introduction

00:30 How investments are taxed with taxable accounts, RRSPs, and TFSAs

02:30 Traditional rules of thumbs for deciding which accounts to withdraw money from

05:20 How AI can generate more optimal withdrawal schedules

08:23 AI's potential to save even more on taxes

Hypothetical couple scenario assumptions:

Ages: 41 for both

Province: Alberta

Citizenship: Canadians since birth

Final Ages: 85 for both

Starting account balances:

- Taxable: $100,000 each

- RRSP: $100,000 each

- TFSA: $100,000 each

- Total savings: $600,000 (owns no other assets)

Investment portfolio allocation:

- 20% in Canadian stocks with expected return of 8% per year

- 20% in US stocks with expected return of 9% per year

- 20% in Developed Market stocks with expected return of 7% per year

- 20% in Canadian bonds with expected return of 5% per year

- 20% in US bonds with expected return of 4% per year

Investments grow deterministically

Expected returns are 20% lower inside taxable accounts than in RRSPs or TFSAs

Annual savings: $0

Combined CPP payments: $13,200 per year

Inflation: 2% per year

Disclaimer: This video is for educational purposes only. It doesn't constitute advice.


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