Should I follow my broker’s advice and invest in flow-through shares?

Scott has already maxed out his RRSP contributions and his broker is steering him toward flow-through shares as the next tax move. This column looks at whether that's a fit for him or a step too far. Flow-through shares pass certain resource-sector expenses through to investors for a deduction, which can appeal once the usual registered room is used up, but the tax benefit comes bundled with real investment risk and concentration in a narrow, volatile corner of the market. The thinking here separates the tax saving from the underlying quality of the holding and asks whether the deduction is worth what you're actually buying. It's most useful for higher-income earners who've run out of RRSP space and are being pitched more aggressive, tax-driven products, and who want to weigh the incentive against the downside.