Integrated Planning For Your Business
Most successful entrepreneurs tell us that a well thought out business plan is the foundation upon which their successful enterprise was built. They often also tell us is that they do not apply this same level of dedication and discipline to the management of their personal wealth.
The fruits of your labor should also have a plan that has objectives and targets against which it's performance is measured. Furthermore, this plan needs to be integrated with the other moving parts in your financial life to form a cohesive, all-encompassing strategy that maximizes the efficiency of your wealth, and mitigates any risks to your continued success. Read more about our wealth management process here
Maximizing The Efficiency of your Wealth
Business owners face a unique set of opportunities and challenges when it comes to the accumulation and management of their wealth. As your businesses became more successful, your accountant may have recommended the use of a holding company or professional corporation, or a family trust, among other structural changes to minimize your ongoing tax liabilities and offer some protection from creditors in the event of litigation. This increase in complexity means your other advisors must have a good understanding of the structure you have in place, and the opportunities it present. Our experience in dealing with many of your peers can help us identify where efficiencies can be gained, or taxes can be saved.
Some of these opportunities include:
- Individual Pension Plan (IPP) - Build your own personal pension plan and use your corporate, pre-tax dollars to make tax-sheltered and creditor protected contributions greater than those allowed to a traditional RRSP. read more
- Retirement Compensation Arrangement (RCA) - A supplemental pension plan for business owners and their employees that provides retirement income in excess of pension plan and RRSP limits. read more
- Tax-sheltering or creditor-proofing assets held within the holding company or professional corporation
- Family Trusts - A discretionary trust set up to hold a family's assets or to conduct a family business that can be used for asset protection or to obtain certain tax advantages. read more
Mitigating Risks To Your Continued Success
A successful company is often not the result of the contributions of just one individual, and it's continued success is dependent on the team you put together to execute the business plan. Owners often realize that revenues are directly related to the skills and efforts of these high-value employees. Without the implementation of a sound contingency plan, the death, disability or illness of a key person could impair the growth and stability of the business.
- Key person insurance - A term insurance policy on the life of an owner, director or key employee to compensate for financial losses that would arise from the death of a person who is crucial to the business.
- Business overhead insurance - A disability policy to protect the business from the inability of a key employee to perform his or her essential duties.
- Buy-sell insurance - An insurance policy on the life of each co-owner that provides funds for buying out the ownership interest of a partner when he or she dies or becomes disabled.
- Disability insurance – An insurance plan that provides you with income for a specified period of time, if you are unable to work due to an injury or illness.
- Critical illness insurance – An insurance plan that provides you with a tax-free lump sum benefit, if you are diagnosed with a critical illness such as stroke, heart attack, cancer, kidney failure, Alzheimer's, Parkinson's, etc.
- Read more about using insurance planning to manage your risk here.
