The recent increase in the inclusion rate for capital gains highlights the importance of having a good margin of safety in all financial planning. This is explained by portfolio managers and associates Karine Turcotte and Yannick Clérouin in a new video.

For nearly 25 years, capital gains have been taxable at 50%. Thus, you only had to pay taxes on half of your gains. On June 25th, the rule changed: the capital gains inclusion rate increased to 66.7% for the first dollar of gain realized in businesses and for gains over $250,000 for individuals.

This modification forces savers to reflect on its impact and on their retirement planning.

On YouTube, Karine and Yannick discuss the following elements:

– The difference between taxation for individuals and management companies;
– The reason why prioritizing returns is important;
– The strategies to use to mitigate the impact of this change.

Our experts note that financial planning without flexibility exposes you to the risks of inevitable unforeseen events, such as unexpected healthcare expenses or an increase in the inflation rate.

The historical evolution of the inclusion rate illustrates this risk: the rate has previously reached 75% in the 1990s.

Watch the video on YouTube (in French).