Here are 4 places you can put your money that are not subject to income taxes. This is not an exhaustive list, but this is a list of places that MOST people can have access to.
- Inside a specially designed MORTGAGE. If you setup your home mortgage as a ManulifeONE mortgage, you are essentially setting up the equity in your house as a giant line of credit. Once you have your house paid off, you can keep putting money in there and it will grow compounded with simple daily interest until you take the money out. When you take the money out to live, it is not considered income according to the government (because it's a loan), so it is not taxable.
- Inside a Tax Free Savings Account (for Canadians, that's what it's called). As Canadians, we are allowed to put in a certain amount into a tax free savings account (TFSA) per year. If you don't put money in one year, it is carried over to the next. Once you put the money into the TFSA, you can invest it into whatever you want (Mutual funds, GICs, Stocks, Bonds, etc) and whatever growth on that money that occurs is not taxable (and the seed money you put in is also not taxable). So this is a great place for wealth to grow tax free, and when you take it out, it's also not taxable (as opposed to having your money in an RRSP which IS taxable when you redeem the money). If you are from another country, ask a financial advisor if you have something equivalent in your country.
- Inside a Specially Designed Whole Life Insurance Policy. A whole life policy, designed the right way, is probably the best place to store your money in order to save for retirement. The way that the policy is setup allows you to take a loan out against the value of the policy. Since the money is a loan, it's not taxable income. You might be thinking, but now I'm incurring loan interest on my retirement income...which is true....but your policy money is still invested as well and is MAKING you more money than the loan is costing you in interest....so in the end you are still ahead, and everything is taken care of when you die and the full death benefit is paid out.
- An actual vault inside your house. The good thing about this is that it's accessible to you at any time, and it's not taxable money....but it's not growing at all....and, in fact, it's shrinking because of inflation and because the goverment keeps printing more money and making the money you have less valuable.