You understand how important financial planning its, but not all clients grasp its value. Here’s how to bust eight common myths. Myth #1: Wealthy people don’t need plans They’ve got more money than they can spend. Why do they need a report? Why it’s wrong:…
Leveraging, or borrowing to invest, can be a very effective strategy. When an investor believes his or her potential return on an investment will exceed the cost of borrowing, leveraging can make sense. The benefits are further enhanced when interest paid on borrowed money is…
Frequently incorporated in estate plans for affluent clients, an estate bond is a tax efficient strategy that creates a large and immediate estate value. An estate-bond strategy is also an estate wealth accelerator that allows assets to pass on to heirs or shareholders, tax-free. Typical…
Saying “I do” is perhaps the most rewarding and riskiest investment any individual can make, but according to experts, the stakes for high net worth clients can be exceptionally high, with millions of dollars of assets on the table. From protecting wealth to combining legacies,…
Who says size matters? If you’re looking for the best place in Canada to live, perhaps it’s time to think small. Really small. It’s easy to think residing in a modest-sized town means giving up access to all the services and amenities you need or…
Five years after their introduction, there still appears to be rampant confusion about tax free savings accounts. Not just about the cumbersome rules on replacing withdrawn funds, but about the very nature of the TFSA itself. TFSA withdrawal rule continues to trip up thousands of…
In the world of investing you often hear the word “volatility”. In finance the definition of “volatility” is: “a measure for variation of price of a financial instrument over time” So when we talk about volatility we are really discussing how much the price of…
Business owners tend to pay themselves enough each year to ensure they can maximize their RRSP contributions. Yet given the tax deferral opportunities available to small businesses, Jamie Golombek concludes that leaving funds in the company may make more sense than taking a salary. If you’re…
Canadians are taking advantage of low U.S. house prices to buy vacation homes. Still, you should warn clients that owning property located beyond Canadian borders doesn’t mean it’s outside CRA’s grasp. “Many Canadians who own U.S. vacation homes are unaware that certain events may trigger…
Procrastination and ignorance about tax rules can be a costly combination as the Canadian tax filing deadline approaches, tax experts say. Canadians run the risk of facing hefty penalties or missing out on thousands of dollars worth of tax credits if they wait until the…