Common Mistakes and Missed Opportunities

You don’t need to make major errors to lose ground financially. In fact, many of the most impactful mistakes in tax planning and investment management are the ones you don’t see—the deductions you never claimed, the strategies you never revisited, the assets placed in the wrong account.

If you have ever looked back at a year and thought, “I wish I had known that earlier,” you are not alone. That feeling often stems from missed opportunities or avoidable oversights. These are rarely failures of discipline or effort. More often, they are the result of not having a clear, coordinated view of your financial picture.

This matters when you are planning how to use your registered accounts, manage retirement income, structure your estate, or respond to shifting tax rules. Recognizing these pitfalls in advance can mean a smoother, more effective journey toward your long-term goals.

Why These Mistakes Happen

The tax system in Canada is complex. Investment decisions are often made in isolation. Life moves quickly. These factors combine to create an environment where even careful savers and planners can miss opportunities to improve their after-tax outcomes.

At Optimize, we see behind the scenes of many different financial profiles. Across those conversations, some patterns emerge—recurring habits, blind spots, and oversights that cost real money over time. The good news is that most of these are fully avoidable with the right awareness and guidance.

Not Paying Attention to Account Types

Many people focus on growing their investments, but overlook how they are taxed. A dollar in a TFSA is not the same as a dollar in a non-registered account or an RRSP. The account you choose can have a bigger impact on your long-term outcome than the investment itself.

Missed opportunities include:

• Holding interest-generating assets in taxable accounts instead of tax-sheltered ones

• Using RRSPs when TFSAs might offer more flexibility and lifetime tax savings

• Not understanding the difference between tax deferral and tax-free growth

Optimize helps ensure that your asset location strategy supports both your current needs and your future goals.

Letting RRSPs Grow Without a Drawdown Plan

RRSPs are powerful tools for deferring tax. But deferral is only part of the equation. Many people contribute steadily for years and then wait too long to begin withdrawals, only to face very large minimum distributions from a RRIF at age 72.

This can lead to:

• Higher tax brackets in retirement

• Clawbacks of government benefits like OAS

• Missed chances to draw income at lower marginal rates earlier in retirement

Ignoring Capital Gains Timing

Capital gains are taxed on only 50 percent of the gain, making them more tax-efficient than interest. But the timing of those gains can make a significant difference.

Common errors include:

• Triggering large gains all in one year without offsetting losses

• Selling at year-end without tax-loss harvesting opportunities

• Forgetting to report the adjusted cost base correctly

At Optimize, we review your investment activity in context—ensuring that gains are realized with intention and integrated into your broader plan.

Underusing Tax Credits and Deductions

Many Canadians are eligible for credits and deductions they never claim. Some are overlooked because they are unfamiliar. Others go unused because the timing or structure of income was not optimized to allow access.

Common examples include:

• Missing the spousal amount or caregiver credit

• Forgetting to claim medical or charitable donations strategically

• Not optimizing pension income splitting where available

We help review your full tax return and identify opportunities to bring your eligible claims in line with your income profile and stage of life.

Treating Tax Planning as a Once-a-Year Task

Tax planning is often seen as something to revisit in April. But many strategies—like contributions, withdrawals, gifting, and asset placement—need to be made throughout the year. Waiting until filing season is often too late.

At Optimize, we treat tax planning as a year-round part of your portfolio and financial roadmap. We connect the dots between strategy, timing, and execution, so opportunities are not missed when it matters most.

Forgetting to Update Your Plan After a Life Change

Changes in income, family structure, employment, or estate wishes all require updates to your tax and investment strategy. Yet many people continue with the same approach they set up years ago, even after major transitions.

Examples include:

• Continuing high RRSP contributions after retiring early

• Not updating beneficiary designations after divorce or remarriage

• Keeping the same risk profile or account mix after a windfall

Life is dynamic. Your plan should be too. At Optimize, we prompt regular reviews and make updates when they are needed—not just when you ask.

Not Coordinating Between Advisors

When your accountant, investment manager, and estate planner are not on the same page, strategies can conflict or be left incomplete. Tax slips may be missing, deductions may go unclaimed, and capital losses may be wasted.

We act as a central financial guide, ensuring that the pieces of your plan are coordinated across your entire team. That way, opportunities are captured and oversights avoided.