The document discusses using prescribed-rate loans between spouses to split income and reduce tax burden. It provides an example where a high-income spouse loans $400,000 to a low-income spouse at 1% interest. The low-income spouse earns $32,000 in investment income and pays $4,000 interest. This shifts $28,000 in taxable income to the lower bracket spouse, saving an estimated $7,000 in taxes. It urges taking action now to set up such a strategy while interest rates remain low.

1. Planning for Success 2010 Paul Jespers Investment Advisor RBC Dominion Securities Professional Wealth Management since 1901

6. Results: $28,000 $4,000 Net Income from Loan ($4,000) - Interest Expense $32,000 $4,000 Income Jane Walter Annual Tax impact of the Spousal Loan Strategy

9. Take Action NOW ! Paul Jespers Investment Advisor 1500 - 100 king Street West Hamilton, Ontario, L8P 1A2 (905) 546~5840 or (800) 461~0274 [email_address] www.PaulJespers.com