Your Financial Perspective… let’s get started!
Just like a doctor needs to know your complete medical history and symptoms before making a medical diagnosis, we need to be familiar with your complete financial history in order to provide you with a sound financial plan for the future.
The first meeting will serve as a fact finding session. We will be asking a lot of questions of you to find out your Financial and Tax needs and goals which will help in creating your initial plan. The initial plan is presented to you at the second meeting. We will go over all aspects of this plan and show you how we can help you reach your Financial and Tax goals. This written plan is yours to take home.
At the third meeting we will begin to implement the plan.
Group RRSP’s are an employer-sponsored savings program, approved by the Canada Revenue Agency that permits tax deferred saving for retirement purposes. Contributions to a RRSP are tax deductible, and earnings on contributions are sheltered from taxes until they are withdrawn. Employers may wish to enhance the value they provide to employees by offering a Group RRSP in addition to, or in the place of a Group Pension Plan.
Defined Contribution Plans are usually established by an employer on behalf of its employees to provide for their retirement years. With a defined contribution plan, the amount of the employer and employee contributions is fixed while the savings are accumulating. The actual value of the pension is not known until retirement.
Non-registered Savings Plans (NRSPs), are a type of saving vehicle that an employer may establish where employee and/or employer contributions are made on an after-tax basis. This type of plan may be attractive to employers who want to offer another savings vehicle to members who have reached their limit for registered investments.
A well designed group benefits package helps to attract and retain quality people, as part of a corporate compensation package. Benefit packages typically cover a portion of your day to day medical expenses not covered by OHIP. Benefits programs should provide risk management combined with cost containment, features that make best use of dollars being spent. The vast array of options can seem mindboggling, but rest assured there is a program out there for you.
You are a shareholder of a successful, private corporation.You want your business to continue if any of the shareholdersdie. If you die, you want to be sure that funds are available tobuy your shares and provide your estate with the liquidity it needs. You also want to ensure that if another shareholder dies, funds are available to purchase their shares to facilitate an orderly and timely buy-out. There are a number of different ways you could provide for this capital. You could establish a savings plan to accumulate the required funds, or at the time the need arises, you could use personal or corporate cash or borrow funds from a bank.
A life insured Buy-Sell Arrangement is designed to provide the capital needed to facilitate the purchase of shares at death, at the time it is needed. Each shareholder is insured under one or more life insurance policies. Upon the death of a shareholder, the life insurance proceeds are available to provide the cash needed to purchase the shares of the deseased shareholder.
Depending on the structure of the Buy-Sell Arrangement, the corporation may own policies (or a multi-life policy) insuring the life of each shareholder. Or each shareholder may own a policy on the life of every other shareholder. The owner of each policy is also the beneficiary of the policy. If the life insurance is owned personally by the shareholders, when one shareholder dies, the surviving shareholders receive a death benefit which is used to buy the deceased person’s shares. If the life insurance is owned by the corporation, when a shareholder dies, the corporation receives the death benefit. The corporation receives a credit to its capital dividend account (CDA), equal to the excess of the proceeds received over the adjusted cost basis of the policy. The corporation may use the death benefit to buy back the deceased person’s shares directly, or it may pay a dividend to facilitate the purchase of the deceased person’s shares by the surviving shareholders. The Buy-Sell Arrangement presentation captures the value of the shares of your corporation and projects the future value to determine the total funds required to fund a buy-out at death. It also captures the assumptions you choose for alternative methods of funding the buy-out. Using present value calculations to take into account the timing of the cash flows for each alternative, the cost of these alternatives is compared to the cost of funding the buy-out with lifeinsurance. The tax consequences of the chosen buy-sell structure is also shown.
We have prepared a form that will get you thinking about your financial situation as well as offer us a window into where we can help you make the changes that could improve your expected outcome.
When you come in for your first meeting, we ask that you bring the completed form with you.
Please note that you must print off this form, fill it out and email or fax it to us. We cannot guarantee the security of this information using this process. You can download the form here.
However, using this secondary form confirms that your information is secure.
Financial Planning Questionnaire