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Financial Planning For Canadian Business Owners

Business owners live complex lives. You have traded the stability of working for someone else, for the uncertainty of controlling our own destiny. Whether you are starting your own business, scaling it, or planning your
Latest Episode6/17/2021

Boomers Retire with David Field and Alexandra Macqueen | E065

Ep. 65
In this episode host, Jason Pereira talks with authors of the book 5th edition of the Boomers Retire - David Field and Alexandra Macqueen.Episode Highlights:1.16: Alexandra says she is a Certified Financial Planner since 2006. Earlier she worked as a financial advisor with an insurance license.1.20: In 2008, Alexandra took a step back and realized what she like about finance is writing about finance. This feeling motivated her to start a job at a small fintech startup, where she co-authored her first book.2.40: David says he is a Certified Financial Planner as well, and this is his second carrier earlier. Prior to this, he was a book and magazine editor. He is an advisor for financial planners and owns his firm papyrus planner.3.58: Jason talks about the challenges that people of this generation face; the challenges are different from previous ones. Jason inquires, “How time has changed?”4.30: Alexandra says Society is getting older. Present challenges throughout as a society require long-term care and providing care for people as we age. But as an individual, there are specific challenges that are unrelated to societal challenges.5.57: Funding retirement is increasingly complex. Business owners never really had defined ownership pension. Retirement is a DIY proposition, explains Alexandra. Nobody has a partner in that, you have to do it yourself.8.09: David throws some light on the changing pension schemes, and now with the increasing number of women in the workforce that is upped the number of people participating in pension plans.9.28: Jason is curious to know about the degree to which the Canadian government is going to support a citizen’s retirement?11.13: Jason shares the rough figures, if someone decides to retire at the age of 65 i.e., ~$20,000/year, and for couple it is roughly $40,000/year.13.56: Jason and Alexandra talk about the importance of making the right decision when it comes to withdrawing the lump-sum pension amount.14.00: The total amount might appear to be lucrative, but withdrawing it completely has its downside like massive tax implications.16.41: Jason asks, “What are the big pitfalls and common problems that occur in defined constitutional pension plans?”18.42: Jason inquires, “What happens when someone has retired, what are the biggest concerns that they have?” “What is the biggest risk that they face?”20.32: Alexandra explains how people can intelligently invest their retirement money and play safe.23.32: Jason says a lot of conversation around retirement is based around income maximization.25.11: David says people spend their lifetime accumulating money, they take risk and very often they take financial advice.30.08: Alexandra and David talk about reverse mortgages.30.23: Jason says the pressing issue for the present generation is that taxes are going to creep-up on properties.32.31: Jason asks in terms of the advice that “If we give boomers, what are the most important thing they should be contemplating at?”32.58: Alexandra advises to think thoroughly about retirement. Figure out how much you will need to live on and where you would want to live. Don’t rely on other people’s assumptions. David hates shortcuts in this industry.3 Key Points:Alexandra explains how as per the OECD Data, Canada always ranks higher as compared to US and other European country’s data?Jason, David, and Alexandra share interesting insights on “How Financial Advisors can play a vital role in helping their clients navigate into and through retirement?”Listeners learn about the importance of financial planning and the risk involved around investing money.Tweetable Quotes:“Retirement is more diffused” - Alexandra Macqueen“Federal politicians’ lose election if they suggest changing the age when people can access their old age pension from 65 to 67”- Alexandra Macqueen“The government is not going to pay for your cruises, it is going to pay for your food and shelter.” - Jason Pereira“Averages means nothing to people.” - David Field“Plan and live your retirement based on what you want to do and not on tax efficiency of your decisions.” - David FieldResources MentionedFacebook – Jason Pereira’s FacebookLinkedIn – Jason Pereira’s LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira’s LinkedInThe Boomer’s Retire BookPodcast EditingTranscript
6/17/2021

Boomers Retire with David Field and Alexandra Macqueen | E065

Ep. 65
In this episode host, Jason Pereira talks with authors of the book 5th edition of the Boomers Retire - David Field and Alexandra Macqueen.Episode Highlights:1.16: Alexandra says she is a Certified Financial Planner since 2006. Earlier she worked as a financial advisor with an insurance license.1.20: In 2008, Alexandra took a step back and realized what she like about finance is writing about finance. This feeling motivated her to start a job at a small fintech startup, where she co-authored her first book.2.40: David says he is a Certified Financial Planner as well, and this is his second carrier earlier. Prior to this, he was a book and magazine editor. He is an advisor for financial planners and owns his firm papyrus planner.3.58: Jason talks about the challenges that people of this generation face; the challenges are different from previous ones. Jason inquires, “How time has changed?”4.30: Alexandra says Society is getting older. Present challenges throughout as a society require long-term care and providing care for people as we age. But as an individual, there are specific challenges that are unrelated to societal challenges.5.57: Funding retirement is increasingly complex. Business owners never really had defined ownership pension. Retirement is a DIY proposition, explains Alexandra. Nobody has a partner in that, you have to do it yourself.8.09: David throws some light on the changing pension schemes, and now with the increasing number of women in the workforce that is upped the number of people participating in pension plans.9.28: Jason is curious to know about the degree to which the Canadian government is going to support a citizen’s retirement?11.13: Jason shares the rough figures, if someone decides to retire at the age of 65 i.e., ~$20,000/year, and for couple it is roughly $40,000/year.13.56: Jason and Alexandra talk about the importance of making the right decision when it comes to withdrawing the lump-sum pension amount.14.00: The total amount might appear to be lucrative, but withdrawing it completely has its downside like massive tax implications.16.41: Jason asks, “What are the big pitfalls and common problems that occur in defined constitutional pension plans?”18.42: Jason inquires, “What happens when someone has retired, what are the biggest concerns that they have?” “What is the biggest risk that they face?”20.32: Alexandra explains how people can intelligently invest their retirement money and play safe.23.32: Jason says a lot of conversation around retirement is based around income maximization.25.11: David says people spend their lifetime accumulating money, they take risk and very often they take financial advice.30.08: Alexandra and David talk about reverse mortgages.30.23: Jason says the pressing issue for the present generation is that taxes are going to creep-up on properties.32.31: Jason asks in terms of the advice that “If we give boomers, what are the most important thing they should be contemplating at?”32.58: Alexandra advises to think thoroughly about retirement. Figure out how much you will need to live on and where you would want to live. Don’t rely on other people’s assumptions. David hates shortcuts in this industry.3 Key Points:Alexandra explains how as per the OECD Data, Canada always ranks higher as compared to US and other European country’s data?Jason, David, and Alexandra share interesting insights on “How Financial Advisors can play a vital role in helping their clients navigate into and through retirement?”Listeners learn about the importance of financial planning and the risk involved around investing money.Tweetable Quotes:“Retirement is more diffused” - Alexandra Macqueen“Federal politicians’ lose election if they suggest changing the age when people can access their old age pension from 65 to 67”- Alexandra Macqueen“The government is not going to pay for your cruises, it is going to pay for your food and shelter.” - Jason Pereira“Averages means nothing to people.” - David Field“Plan and live your retirement based on what you want to do and not on tax efficiency of your decisions.” - David FieldResources MentionedFacebook – Jason Pereira’s FacebookLinkedIn – Jason Pereira’s LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira’s LinkedInThe Boomer’s Retire BookPodcast EditingTranscript
6/10/2021

Expatriating with Justin Abrams | E064

Ep. 64
In this episode host, Jason Pereira, talks with Justin Abrams who is a partner with Kraft Berger LLP. Justin is a tax expert, and he is here to talk about the implication of expatriates.Episode Highlights:1.10: Justin says he is a tax partner at Kraft Berger LLP in Toronto, advising and managing clients.2.38: Jason asks Justin, “From your standpoint what is the first thing people need to consider when leaving the country?”2.40: Justin says that leaving a country depends on what asset you own from a tax point of view.2.54: Canada has a regime that if you owned property when you were a resident, the value accrued should be taxed in Canada. If you were to leave Canada, it has a worldwide taxation system.5.22: Justin talks about the unique tax system that Canada has.6.00: When you leave Canada, everything you own is subject to tax except Canadian Real Property. The reason is non-resident is subject to tax when they sell their property.08.26: One of the interesting things to note is that if you are moving to the United States, one thing that the immigrant can do is sell their property in RSP and then buy it back.10.35: Justin throws light in tax exemption for people who stay and owns property in Canada for less than 5 years.11.17: Jason says, “If you are an individual, then implications aren’t harsh in Canada.”14.34: Jason and Justin talk about “What happens to business owners when they decide to leave Canada?”15.47: If it is a Canada Corporation, nothing happens to the corporation, it remains. Even though you are a resident of United States or Spain. When a non-resident wants to take out the company, there is going to be gains in the underlying value in the corporation.19.52: Justin shares detailed classifications of Canadian Tax Systems and Rates.20.27: Jason inquires, “What are the steps involved in mitigation?”21.20: Justin gives valuable insights on Capital Dividend Account. As part of the mitigation strategy, he also suggests reducing your company’s value before selling it out.24.26: Justin gives real-life examples about how to best save tax.28.04: Jason talks about the triple tax situation that one might fall into.28.14: Jason is curious to know “What happens when people decide to come back to Canada?”29.01: “If you are planning to come back to Canada, you can un-wind or defer to pay tax.”, says Justin. If you are planning to come back, pledge some valuable asset before leaving.31.38: Justin talks about unwinding the departure tax.32.45: Justin says when you leave, Canada any gains in the property would have been subject to tax in Canada.35.44: Jason talks about the importance of planning your exit from Canada properly.37.54: When you leave Canada, make sure the country where you are moving to gives you a cost base.3 Key Points:Jason and Justin talk about the serious tax implications when one decides to leave Canada.If you are a business owner or shareholder and you decide to leave the country. Canada would want the Accrued Value.Jason shares the key takeaway from this episode. If you are leaving the country, you may or may not have tax implications. But if you have substantial wealth, then you will have to pay tax when leaving the country.Tweetable Quotes:“When you leave Canada, everything you own is subject to tax except Canadian Real Property.”- Justin Abrams“You can pledge private company shares if those are the shares that gave rise to the tax.” - Justin Abrams“If we leave the country, we will have to pay 27% tax.” - Justin Abrams“If you are coming back to Canada, you can make it a cashless endeavor.” - Justin Abrams“Taxable Canadian property is taxable if you are a non-resident or not.” - Justin AbramsResources MentionedJustin Abrams: LinkedIn | WebsiteFacebook – Jason Pereira’s FacebookLinkedIn – Jason Pereira’s LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira’s LinkedInPodcast EditingTranscript
5/20/2021

Facilitating Giving with Paul Nazareth | E063

Ep. 63
In this episode of Financial Planning for Canadian Business Owners, the host, Jason Pereira (Award-winning Financial Planner and Entrepreneur) talks to Paul Nazareth (Vice President of Education Development for The Canadian Association of Gift Planners) about charity and financial planning for business owners. He also shares his thoughts about tax benefits.Episode Highlights:01:55: Tax system of Canada benefits the average person way more than the traditional wealth and the American system.02:58: There is one political exception and the other one is for charitable donations.03:31: You do get a really high amount of what you donated as your reduction in your taxes.04:43: Financials Advisors are asking their clients to give tax receipts at the year end.08:55: Jason asks, is it primarily advisors? Is it Lawyers or Accountants? How to go about doing this?09:59: A lot of business owners are very strategic; they're problem solvers by nature.12:13: You're eliminating the capital gains that are owed on securities.15:24: Paul says that their mission is to create a better world through strategic gift planning and they are really trying to help everybody bring that strategy to what they do.17:07: The weird thing about this pandemic is that it's really challenged people on their values and meaning.19:44: What's the mix, you know, what are the issues? Around food security, gender production, women escaping violence, or on economic health.20:38: You're seeing the tax bill and you're finding ways to minimize it.21:32: A lot of organizations are reporting it differently.22:08: People really want to understand how Charity operates? What are you doing with that money? Are you effective?30:34: We're going to set up a cadre of local restaurants. We're going to serve workers.32:02: This is illegal; you can't say it's a donation. You're not giving a tax receipt.32:39: Jason asks Paul – “Where can people reach you?”Key Points:If you really want to make an impact on one thing that really matters to you, let’s have the conversation.There's an inherent incentive for advisors who basically don't have their clients give away money.Unless we take an active position, try to educate ourselves and reinvent our processes, we're not going to be able to really speak to client's needs.Tweetable Quotes:“Canada has the single greatest charitable tax credit system in the entire world.” - Paul Nazareth“So, when you donate something or when you have somebody qualifies for tax credit, a lot of people think that is money they don’t pay in taxes that is not quite right.” - Paul Nazareth“Most people give when they’re asked that’s the danger of fundraising” - Paul Nazareth“I mean, it's just, where do you want to part with money is all they hear as opposed to what matters to you?” - Paul Nazareth“I love to work with business owners on these things because they come at problems in a different way.” - Paul Nazareth“I'm always excited when people meet each other in the middle and say, how can we work together to solve these problems?” - Jason PereiraResources / Links:To learn more go to woodgate.comSubscribe to this podcast on Apple Podcasts, GooglePlay SpotifyFind more episodes at WebsiteYou can even ask Surrey or Alexa to subscribe for youPodcast EditingTranscript
5/13/2021

Corporate Wellness with Anna Spivak | E062

Ep. 62
In this episode, host Jason Pereira talks about a non-financial planning related topic. Today’s episode is targeted towards Corporate Wellness. Anna Spivak is invited to discuss on the stress faced by business owners and how to overcome it.Episode Highlights:01.22: Anna talks about her individual coaching experience. She is actively working with companies to promote overall corporate wellness.03.05: Jason agrees to the points shared by Anna, shares few key statistics, and adds that when it comes to stress, it is not just corporate but a lot many factors from everyday life adds to it.04.11: When dealing with corporates, Anna first likes to dig in and identify their culture, process, likes, and dislikes.04.20: She stresses the importance of making people realize their problems, which they often consider normal.05.13: Companies often don’t keep proper track of employee Absenteeism or Medical Issues, which affects their profits.06.59: Jason enquires, “What are the key pieces that she delivers frequently?”7.13: Anna talks about different approaches to dealing with companies based on the number of employees they have.08.38: Anna talks about the benefits of group programs. She finds it beneficial because it is more like building a community. It boosts morale at the workplace.11.00: Jason and Anna discuss the “How Covid19 has impacted the workplace” “How is Anna helping people in such a situation?”13.15: Since Covid is all over the place, Anna stresses that it is essential to find a solution for working online.15.33: Anna talks about the long-term toll on businesses. A lot of people don’t have the habit of sharing, but it is extremely important.17.15: Jason reveals an interesting statistic that “62% of business owners feel depressed at least once a week.”19.00: Anna and Jason discuss about structuring a balanced life and the importance of that.22.49: Jason talks about divorce rates which were 50% in the US. This percentage for business owner is much greater. Like due to the stress and increased work hours. He asks Anna, “How she coaches people out of it?”23.40: Anna shares her victory cases. She encourages people to break the walls of fear, and there are so many incredible wins on the other side of it.27.34: Jason enquires if she has seen any difference between genders regarding wellness in the workplace.3 Key Points:For Anna, it all starts with an honest conversation, “What is it that they need”. All individuals are different, so she provides a customized solution based Wellness Programs.Absenteeism, Medical Issues, Turnover Rates, Burnout Rates, Not Getting Along are some of the common factors that affect an employee’s mental health and adversely affect the company’s profits.Jason points out 78% of business owners report a form of burnout that percentage increases. He enquires, “How do you deal with such a situation?” “What is the long-term toll of that?”Tweetable Quotes:“Corporate wellness has become a lot more important than before, especially due to the pandemic.” - Anna Spivak“There is no one cookie-cutter solution for all business, different people have different problems.” - Anna Spivak“It is important to voice out thoughts that you are going through and not keep it to yourself?” - Anna Spivak“You can’t leave your business at the door, it is a part of you.” - Jason Pereira“If you don’t take care of your health, it does not matter what number you crunch.” - Jason PereiraResources MentionedAnna Spivak: Email:anna@blueprinttofit.comLinkedIn:@annaspivak,https://www.linkedin.com/in/anna-s-a76b5872/Website:https://blueprinttofit.com/corp-enFB:@annaspivak,https://www.facebook.com/anna.spivak.96/Transcript
5/6/2021

Kids & Money with Susan O'Brien | E061

Ep. 61
In this episode host, Jason Pereira talks with Susan O’Brien Founder and Author of Net Worth Thinking. They especially talk about decisions and discussions surrounding money with smaller kids.Episode Highlights:01.35: Susan O’Brien talks about “How she guides families through deep, meaningful conversations.”01.57: Susan has seen that people want to be independent and want to take care of their families, especially children and grandchildren.04.00: Susan talks about the importance of educating children about money, like “What is money?” “Where it comes from?”04.49: As parents or grandparents, we wait too long to discuss money matters with our kids.06.25: The one thing that Susan found in their consumer society is that kids as young as three are a bit stubborn, and they keep demanding things from their parents. This is something that should be talked about in families.07.32: If you do a quick search in Amazon, there are great fun books about teaching kids the importance of money.08.48: Jason talks about the concept of scarcity and rejuvenation of wealth.09.26: In order to save money, it is about to develop a feeling of abundance.11.30: Jason enquires as our kid gets older, how does the money talk evolve?13.56: Personally, Susan found it challenging to implement money-saving tactics daily, but some parents were successful.14.22: Jason shares a trick that he uses with his son; whatever amount he saves, Jason gives some interest on that. He also shares how one can encourage their kids to share money in charitable causes.15.01: For Susan the sharing part starts without the money. Taking care of each other is important.17.47: Jason and Susan talk about what happens when a kid hits a teen or pre-teen.19.51: Susan shares the importance of keeping conversation non-confrontational.20.46: Kids, when they grow up, are the same person just entrenched in their habits; you are the same as a parent; you need to be consistent about handling them.20.53: Jason shifts the topic to when a child reaches late teen level; when they go to universities.23.20: Susan points out the biggest issue with young people-it is the credit card.25.29: Jason points out that there are many people who don’t want their kids to suffer as they did. Jason is concerned that it may have an adverse effect and not teach the required respect.28.10: Susan points out there are so many important things one can teach their kid by not paying their cell phone bills.29.16: Jason says, “You can’t re-raise your kids, so it is important to plant the tree of value when they are young.”30.14: It is crucial to think about your legacy? What do you want to achieve? How much money is too much for your kids? How much will hurt them instead help them?3 Key Points:Jason and Susan discuss about the youngest age when coaching a child about money should start.Susan shares instances and tricks from her own experience about “How to encourage your child to save money?”Kids nowadays are smart, and it’s important to teach them about the world around them and about the needs of other people as well as themselves.Tweetable Quotes:“It is important to think that how do I teach my kids to be good stewards of money?” - Susan O’Brien“Teachable moments come about in everyday life.” - Susan O’Brien“It takes action to have money, and it also puts a limit to it.” - Jason Pereira“You need to make money and save it; you got to be careful about spending it.” - Susan O’Brien“Starting with the end, prepares you to focus on what’s really important for you.” - Susan O’BrienResources MentionedSusan O’Brien: E-mail:informtaion@networththinking.com|WebsiteTranscript
4/29/2021

The Seven Stages Of Planning with Kam Chari | E060

Ep. 60
In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, interviews Kam Chari. He has 40 years of experience in major insurance companies.Episode Highlights:01.21 – Kam introduces his profile. He talks about his experience in Financial and Tax Planning.02:41 – Kam talks about his book Seven Stages Of Planning. He utilized the time during COVID and jotted down his thoughts.05:32 – He took Shakespeare's book The Seven Ages Of Man as a base and wrote the book. To make the reading enjoyable, he incorporated a similar though process.06:00 – The first stage is basically about parents who will have to act on behalf of their children. He talks about the apparent education saving plan but apart from what other financial planning parents can do?06:50 – He talks about the attribution rule, which means the person who gifted the money will have to pay the tax.07:35 – He adds parents must think about life insurance. It is a saving vehicle.08:07 – He also stresses that it helps to have a critical illness plan. His book has all the details.08:52 – Jason agrees with the attribution plan and cash-rich insurance policy. He can have a ton of money in insurance and then later transfer it to his child. This policy helps in financial planning.09:56 – Jason points The Second Stage is more for the GenX people – the teenagers11:15 – Kam explains the benefits of financial planning from such an early stage.13:17 – Jason points out that the next stage is for the 30+ crowd. He inquired, "What are the key areas they should look for?"14:02 – Kam shares, "It will be much safer to buy Personal Life Insurance to protect the mortgage insurance. This is one of the techniques that is suggested in the book."15:00 – Jason shares Stage 5, and 6 covers a wide range of 45 to 74 years old.16:55 – Kam stresses that planning is essential, younger people should start planning for retirement.17:5 – When it comes to Stage 7, Kam emphasis Lot of planning has to be done when it comes to retirement.23:45 – Jason appreciates several discussions on planning stages but not much on products. It is good that Kam's book addresses that.24:40 – Kam agrees and says that holistic planning is crucial.3 Key Points:Jason and Kam discuss the importance of insurance plans, cash-rich policies, and retirement plans, basically helping people become financially secure.Some of the book's plans do not necessarily mean that it is valid for that particular age group. One can apply in multiple stages.Kam talks about "When to take Canada pension plan and old age security?"Tweetable Quotes:"Wills and power of attorney is essential to update it and make sure it goes to the right hand." - Kam Chari"The earlier the planning for retirement start, the better it is" - Kam Chari"There are different life stages where different things are coming to play." - Jason PereiraResources Mentioned:Kam Chari: https://www.ansafinancialsolutions.com/bookinfo.htmlE-mail: kam@ansafinancialsolutions.comTranscript
4/22/2021

The 2021 Federal Budget with Guest Host, Guy Anderson | E059

Ep. 59
In this episode, host Jason Pereira discusses the Federal Budget with Guy Anderson. He is a portfolio manager mainly focused on financial planning.Episode Highlights:01.37: Jason shares that they have the first budget in two years from this government.02.14: Guy agrees with Jason introduction on the Federal Budget. He says that it was indeed huge, it is $101 billion in new funding initiative.04.10: Jason points out with introduction of child care program, we can expect an expansion in the workforce and also in the number of work hours.05.45: Jason talks about numerous programs that were going to expire in June. They have now been extended. Canada Recovery Caregiving Benefit, Rent Subsidy and Wage Subsidy for Businesses are some of the benefits that were extended.06.51: Jason talks about the $450 million VC funding pool being put together for the next 5 years. Number of start-ups leading by women or people of colour being funded by the VC is extremely low in number.08.10: They discusses the cut in tax for businesses that are working on reducing emission.9.28: Jason shares his views on minimum wage increase. He thinks that this is not a huge headline unlike in the US.10.40: Guy points towards the other side of the it i.e.; increase in hiring programs.11.24: They discuss what the budget means to life science and how that affects business owners.12.00: Guy is a little surprised on the bump-up in the senior security amount.15.42: Jason sees a big boost in the re-sale market of luxury cars.17.22: Guy talks about the vacant home tax. Jason discusses how property tax in this country is low as compared to others.3 Key Points:Jason and Guy discusses the cost benefit of the budget, also talks about the national day care and early child care program.They talk about what the budget means by COVID relief?Jason says “There is not much to talk about tax as the government played a bit safe on that front.” He breakdown the tax breakages and also talks about the new taxes.Tweetable Quotes:“The fact that money is now being allocated to women and people of colour to empower them is a great idea.” - Jason Pereira“Due to COVID, small business have been really hurt.” - Guy Anderson“Enjoy the spending bonanza budget, next one will probably be not so friendly. - Jason PereiraResources Mentioned:Facebook – Jason Pereira’s FacebookLinkedIn – Jason Pereira’s LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira’s LinkedInPodcast EditingTranscript