3 esteemed speakers on a range of topics that will help your business and family wealth navigate through this unprecedented time, and into the future. Mr. Greg Toner CPA, CA discusses tax planning around shares of a business. Mr. Trevor Parry brings his expertise to look at a unique strategy leveraging the bank’s capital. Dr. Tom Deans speaks on the topic of family governance and estate planning
Here’s the problem business owners and their families face
While everyone helps you plan for how to save, very few firms help you plan to use those assets when it’s time. The bigger problem is that your tax rates can be dramatically higher than they should be, and you end up using retirement assets to fund the country, rather than fund your lifestyle.
Here’s how to approach it
The starting point is to evaluate your assets. Every asset should be measured in the following ways:
- Growth rates and the tax implications
- How it is turned into income and the tax implications
- How it is transferred and the tax implications
By assessing them this way, you get to plan on which assets you’ll draw on and in what order, to allow you to have the best use of each of your assets. For example, in most cases registered assets and non-registered investment accounts should be spent over a specific 15-20-year period, depending on income needs and marginal tax rates. The idea is to spend your registered portfolio while you are alive to eliminate a 53.53% tax hit on your final tax return. You can defer taxable income, but deferral is not always the best scenario when you take into account the final estate tax hit.
If you’ve been thinking about using funds out of your corporation for retirement income, you’re going to want to be doubly careful. While current tax legislation on accessing corporate funds is already excessive, there is a double tax scenario on future corporate wealth – you and your family will face two layers of tax. The first tax is a capital gain on the shares of the corporation you own. The second tax is the dividend tax that beneficiaries will pay to access these funds.
Planning how you’ll generate income during retirement is critical. Without it, you risk two things: having less to fund your retirement and having wasted years of effort to fund retirement poorly.
Here’s what’s important
A tax efficient investment growth plan, followed by a tax efficient retirement spending plan, followed by a tax efficient estate plan is the only way to get the full value of a lifetime of effort.
Retirement income planning can help you do just that.
Would You like to spend 45 minutes learning about some serious strategic thinking that could benefit your business and family.
You are cordially invited on October 14th at 4pm to attend a zoom video hosted by Peter Richards Advisory Group, moderated by Peter. We have three esteemed speakers to spend time in an effort to help your family navigate through this unprecedented time.
Dr. Tom Deans (bio) will join us again and he will take questions from me and speak on the topic of family governance and estate planning. Mr. Greg Toner CPA, CA(bio) will discuss tax planning concerning the valuation of shares of a business and the next generation. Mr. Trevor Parry (bio) will bring his expertise to look at a unique strategy leveraging bank capital.
Please email firstname.lastname@example.org to register. All guests will receive a Willing Wisdom Index Code which is a unique estate planning tool.
All the best,
Peter, Darroll and Jeff.
Mr. Greg Toner
I’m combining what I love – working with driven people, finance, and tax to help entrepreneurs and their teams make sense of their business’ financial performance and building understanding on what levers to use to make improvements.
A well-rounded CPA, CA with over a decade of experience working with proprietorships, partnerships, owner-managed corporations, venture-backed start-ups, and high net worth individuals to build tax-efficient financial advisory solutions.
I’m able to leverage a wide range of experience spanning industries including professional services, SaaS, dental, medical, veterinary, construction, real estate, and R&D.
Dr. Thomas William Deans
is the author of the all-time best-selling family business book, Every Family’s Business: 12 Common Sense Questions to Protect Your Wealth.
He now speaks on the international lecture circuit full time. Having delivered more than 500 speeches, he has built a reputation as a thought leader on the subject of intergenerational wealth transfer.
His lectures and books argue that family has emerged as the greatest economic driver of all time. But the question remains: How can wealth be transferred successfully without destroying the recipient and the wealth itself?
It is a question for the times, as the greatest generation of wealth creators move toward death in record numbers. Deans explores the idea that communication is crucial to the success of that transfer, and indeed to the success of individuals, families and communities.
The idea to write Willing Wisdom came from Tom watching his mother’s parents die. One death – his grandfather’s – was comparatively quick. His grandmother’s was a long and slow ten-year decline. Despite the significant wealth his grandparents left for family and charity, it is the conversations they shared that Tom thought about the most many years later.
In the end, when it came down to their last breaths, only the care provided by Tom’s parents, not money or even the promise of money, could purchase the dignified death each experienced.
Tom is not sure when he first became curious about why our culture has lost its inquisitiveness about death and dying, but he does know, having delivered his keynote speech on transitioning family wealth to tens of thousands of people around the world, that this trend is worsening.
We live in a culture that is in awe of wealth and all that it can provide. We also live in a culture that finds it difficult to talk about and contemplate death. The two are inextricably connected.
Tom starts conversations, but rarely does he finish them, leaving that to readers and their families, friends and trusted advisors.
Trevor R. Parry
Trevor is a Tax and Estate Planning advisor offering consulting services through the TRP Strategy Group. He was formerly National Sales Director of a national actuarial consulting company specializing in creating retirement solutions for entrepreneurs and incorporated professionals. In that capacity he was involved directly or indirectly in establishing over 2000 Individual Pension Plans and 400 Retirement Compensation Arrangements, as well as a broad range of other structures and services.
Trevor contributed to the Essential IPP Guide, the Trusted Advisor Survival Kit and Advisors Seeking Knowledge. He has also written for CALU, Advocis and Financial Planning magazine.
Trevor was called to the Ontario Bar in 1996. He holds a Master Laws in Taxation from Osgoode Hall Law School, a Bachelor of Laws from Queen’s University, a Master of Arts in History from the University of Toronto and a Bachelor of Arts from Trinity College at the University of Toronto.
In addition to being an Associate Member of CALU, Trevor is also a member of Advocis holding the CLU designation, the Canadian Tax Foundation, Law Society of Upper Canada, Society STEP, Hamilton Law Association, Royal Canadian Military Institute, and the Albany Club.
Trevor is a regular speaker across Canada speaking on a broad range of tax and financial planning and strategy related issues. He is a vehement defender of entrepreneurial spirit, personal responsibility, free enterprise, free speech and liberty. He lives in Ancaster with his wife Lindsey and his three daughters.
I’m sure you have thought about your family’s wealth during this unprecedented time. Quite possibly you have considered the importance of protecting your assets.
It’s not something that gets everyone fired up, but it is something that’s core to building wealth for now and for the future. That’s why business owners spend time looking at how they are protected and yours is more complex because you’re taking care of business protection and personal protection.
Here are a few things to consider.
For your business, when is the last time you reviewed the ownership, payor and beneficiary of your corporation’s insurance policy(ies)? Have there been changes lately or are you anticipating changes to the business? Transferring an insurance policy may also be beneficial before any tax rules are changed further.
On the personal front, have there been changes lately to any family circumstances which maybe cause for review?
From an estate prospective when was the last time you had a review to make sure your affairs are in order, set up tax efficiently and arranged to benefit your family.
Hope you’re having a good summer,
Pete, Darroll and Jeff
I have had some interesting and rewarding conversations recently.
There is a great deal that has been written about behavioral finance, and although we aren’t an investment firm per se, stewarding our clients’ wealth is central to our work.
“This is a time to think very carefully”Read more
At Strategic Coach®, our business is
helping successful entrepreneurs increase
their sense of direction, confidence, and
capability in all areas of their personal and
business lives. We originally created the
piece below by request from our clients
in response to the climate of fear, anxiety,
and uncertainty that followed 9/11. Since
then, we receive requests for it whenever
times become more uncertain. These ten
strategies keep the focus on opportunities
for growth, progress, and achievement
that arise when the world around us gets
more turbulent. We hope they support your
creative thinking, communications, and
actions as you navigate the months ahead.
Please feel free to share widely.
1. Forget about yourself; focus on others.
Uncertainty can drive people into themselves,
making them feel isolated and helpless. The best
strategy here is to go in the opposite direction,
expanding your connection with others and
focusing on helping them transform their negatives
into positives. The more you contribute in this
fashion, the less you’ll need to worry about
your own situation. You’ll become a source of
confidence for everyone else.
2. Forget about your commodity; focus
on your relationships.
In uncertain times, people become frightened about
the viability of their “commodities”—the things
they sell and the jobs they hold. A more strategic
response here is to disregard your own commodity
and focus on deepening the power and possibility of all your relationships—with family, friends,
team members, suppliers, clients, customers, and
prospects. Every time you strengthen a relationship,
the viability of your commodity will increase.
3. Forget about the sale; focus on
Most people don’t like being sold to at the best of
times. When times are uncertain or scary, they turn
off, hang up, and slam shut. But what people want
at all times is value creation—that is, solutions that
help them eliminate their dangers, capture their
opportunities, and reinforce their strengths. When
you focus on providing these three solutions, the
sales will naturally follow.
4. Forget about your losses; focus on
Things you had and may have taken for granted
sometimes disappear. Some people never get over
this. They keep trying to replay their old games. A
better strategy is to start an entirely new game—
using new ideas, new energies, new tools, and new
resources. As the world changes, opportunities
suddenly become available to achieve far more
than you ever did in the past.
5. Forget about your difficulties; focus on
Things may not be as easy as they once were.
New difficulties can either defeat you or reveal new
strengths. Your body’s muscles always get stronger
from working against resistance. The same is true
for the “muscles” in your mind, your spirit, and your
character. Treat this whole period of challenge as a
time when you can make your greatest progress as
a human being.
6. Forget about the “future”; focus on
The “future” is an abstraction. It doesn’t exist
except as an idea. The only future that has any
reality is the one you continually create for yourself
through each day’s contributions, achievements,
and results. This is an excellent time to ignore
all those experts who never saw the present
circumstances coming. Focus on what you can do
over the course of each 24 hours, and you’ll be the
only expert on the future you’ll ever need.
7. Forget about who you were; focus on
who you can be.
Many people define themselves by external
circumstances. When these abruptly or unexpectedly
change, they don’t know who they are, so they keep
trying to be who they used to be. From now on,
take your cues from the inside—from your dreams,
ideals, values, and operating principles. These need
never change, regardless of the circumstances. Take
advantage of external confusion to become self directed,
self-managed, and self-motivated.
8. Forget about events; focus on your
When things are going well, many people think
they’re actually in control of events. That’s why
they feel so defeated and depressed when things
turn bad. They think they’ve lost some fundamental
ability. The most consistently successful people
in the world know they can’t control events—but
continually work toward greater control over their
creative responses to events. Anytime there is
fear, uncertainty, or discomfort, it’s an excellent
time to focus your attention and energies on being
creatively responsive to all the unpredictable
events that lie ahead.
9. Forget about what’s missing; focus on
When things change for the worse, many desirable
resources are inevitably missing, including
information, knowledge, tools, systems, personnel,
and capabilities. These deficiencies can paralyze
many people, who believe they can’t make
decisions and take action. A strategic response
is to take advantage of every resource that is
immediately available in order to achieve as many
small results and make as much daily progress as
possible. Work with every resource and opportunity
at hand, and your confidence will continually grow.
10. Forget about your complaints; focus
on your gratitude.
When times get tough, everyone has to make
a fundamental decision: to complain or to be
grateful. In an environment where negative
sentiment is rampant, the consequences of this
decision are much greater. Complaining only
attracts negative thoughts and people. Gratitude,
on the other hand, creates the opportunity
for the best thinking, actions, and results to
emerge. Focus on everything you’re grateful for,
communicate this, and open yourself each day to
the best possible consequences.
The “Scary Times” Success Manual
The Strategic Coach® Program offers
successful entrepreneurs a place to
regularly reconnect with these attitudes
and with their own goals and ideals,
regardless of what’s happening in their
businesses, their lives, or the world
around them. For more information, call
416.531.7399 or 1.800.387.3206.
Many people can’t see how much income or savings they’ll need to make ends meet in retirement, but if someone can point them in the right direction, they might just hit the target.
One of Frances Stroh’s earliest lessons about wealth involved a game she
played as a 6-year-old with her father: how to not be kidnapped.
Recently BNN produced an informative three part interview series covering a range of important topics on the subject of estate planning. We have linked them below. Please take a listen and we hope you enjoy it.
As always, if a question arises or topic of interest presents itself please give us a call.