Investor's Wiki

T-SWP

 

T-SWP: How To Draw Tax-Efficient Income From Your Investments

 

What is a T-SWP?

T-SWP is an acronym for Tax (Smart) Systematic Withdrawal Program. This program allows you to draw consistent, monthly income from your non-registered investments
while minimizing the taxes paid on this income for the coming tax year.

The T-SWP allows you to withdraw your own invested capital from your investments at monthly intervals without accessing your investment profits (which would be taxable). All RoC (Return of Capital) income is not taxable on your yearly tax return. Capital gains, interest, and dividend returns are held internally in your investment and are taxed upon their eventual redemption.