Despite the fact that many Canadians say they are putting money aside, the majority are concerned they have not saved enough to sustain them through retirement, according to findings from a Conference Board of Canada report. Key findings: 60% feel they have not saved enough to comfortably…
The income tax system identifies two types of taxpayer: individuals and corporations. But taxes levied at the corporate level are ultimately borne by individuals, so, the dividend gross-up and tax-credit procedure accounts for previously paid corporate taxes when the shareholder/individual calculates personal taxes. The eligible…
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…
When you withdraw money from your RRSPs or RRIFs, you pay tax at your marginal tax rates on the money withdrawn. The only exceptions are when funds are withdrawn under the Home Buyers’ Plan to purchase a first home or under the Lifelong Learning Plan…
The clients you have worked with for many years will have their finances in order as they move into retirement. But new clients who come to you may need help in making a successful transition from their accumulation years to their de-accumulation years. “About 75%…
By Alain Theriault, October 21, 2014 Insurers are denouncing a scheme in which a third party pays the premiums on a life policy in exchange for giving the insured person a loan, often at a higher than average rate of interest. The lender is reimbursed at…
Appropriate tax and estate planning can significantly reduce the tax burden experienced by wealthy families at the time of inter-generational transfers. First and foremost the family and its advisors must ensure that mistakes are not made that can in fact result in higher than expected…
Let’s face it, life insurance does not have the “sex appeal” of other types of financial products available to high-net-worth (HNW) individuals. But most wealthy individuals and business owners have purchased life insurance for the significant benefits these products provide to their overall financial and…
Capital SQUARED utilizes three policy features (cash value, loan option, death benefit) to enhance overall net wealth and reduce the cost of funding annual premiums. This strategy also enables borrowed funds to be tax-deductible within the scope of subsection 20(1)(c) of the Income Tax Act -Canada. The Loan…
More than half (58%) of family businesses are currently seeking external financing to fund their investment plans, finds a KPMG survey. And finding the right strategic investment partner can be challenging. While family businesses create more than 70% of global GDP, many find their fundraising options limited,…