Financial Planning For Canadian Business Owners

In this episode, Jason Pereira discusses the world of virtual assistants for financial advisors, featuring insights from Andrew Evans, Founder of ROffice. Through their conversation, listeners gain valuable knowledge on how virtual assistants can revolutionize the way financial advisors operate, ensuring efficiency and effective client service. This episode is a deep dive into outsourcing certain business operations to optimize service delivery and business growth. Episode Highlights:00:37 - Introduction of Andrew Evans and the background to the discussion on virtual assistants. Jason outlines the problem of operational efficiency and how virtual assistants could be the solution for financial advisors, facing staffing issues due to fluctuating workloads or regulatory demands. 01:24 - Andrew Evans discusses the founding principles behind ROffice, emphasizing the common staffing challenges within regulated firms and how virtual assistants can help right-size personnel needs. This segment highlights the innovative approach ROffice takes, likening their service to an "Airbnb" for professional capacity, allowing flexibility for businesses to scale up or down as needed.04:16 - Andrew explains how advisors can identify the right time to engage a virtual assistant, using an example involving annual client outreach. This moment in the podcast emphasizes the operational pain points that could be alleviated by outsourcing specific tasks. 06:16 - The discussion delves into how businesses often overlook the potential of virtual assistants in optimizing workload management, focusing on the flexibility and cost-effectiveness of such arrangements. 11:01 - Andrew and Jason discuss how ROffice functions as a marketplace to connect advisors with virtual assistants, including how they manage security and compliance concerns. This part of the conversation is crucial for understanding the operational and security framework that encapsulates the virtual assistant offering.Key Takeaways:Virtual assistants can significantly enhance operational efficiency for financial advisors, allowing them to focus on core activities and client engagement.Identifying tasks that do not require physical presence in the office is the first step toward integrating virtual assistants into your business operations. Working with a service like ROffice offers flexibility and cost-effectiveness, providing a scalable solution to staffing challenges while ensuring compliance and security.The decision to employ a virtual assistant should be preceded by a careful analysis of business needs and potential tasks for outsourcing, ensuring a strategic approach to capacity management. Tweetable Quotes: "Leverage virtual assistants to right-size your personnel needs and focus on what truly matters in your business." - Andrew"Virtual assistants are the middle ground that allows advisors to scale up efficiently without the commitment of full-time hires." - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorPodcast Editinghttps://app.roffice.team/ https://www.linkedin.com/in/andrew-j-evans-218a16265/ 

Jason talks to Richard Parker, owner of the Diomo Corporation. They delve into the critical aspects of buying and selling businesses, focusing on the complexities around what sellers might not disclose and how buyers can navigate these challenges for a successful acquisition. The conversation offers a wealth of insights, drawing from Parker's extensive experience in helping individuals acquire businesses in the lower market.Episode Highlights:00:07: Jason Pereira introduces the episode, setting the stage for an in-depth discussion on the intricacies of selling and buying businesses, with insights from award-winning financial planner and entrepreneur Jason Pereira and Richard Parker.02:11: Richard embarks on a discussion about the critical aspects buyers must consider, including the significance of understanding the future of a business from the seller's perspective, the potential for customer concentration issues, and the overarching theme of whether stability or growth presents a more valuable proposition for the buyer.10:06: Important aspects like key employees and their potential impact on the business after acquisition are discussed. Richard sheds light on the necessity of identifying truly key employees and devising strategies to retain them post-acquisition.12:22: The dialogue transitions to the operational challenges and pitfalls that might not be disclosed by sellers, emphasizing the importance of aligning the business's needs with the buyer's skill set and avoiding the trap of falling in love with the product rather than focusing on the profit.15:48: Richard and Jason discuss the negotiation phase, debunking myths about deal-making and stressing the importance of approaching negotiations with a balanced perspective, focused on constructive outcomes rather than winning every point.18:01: The conversation culminates in a discussion about realistic expectations regarding deal terms, the imperfection of businesses, and the potential for sellers to adjust their expectations based on real market feedback.Key Points:Understanding the future of the business and uncovering hidden challenges are paramount for buyers.Key employees and supplier relationships significantly influence the stability of the acquired business.Effective negotiation requires a balance between strategic firmness and flexibility, focusing on establishing a mutual understanding rather than winning outright.Tweetable Quotes"Growth is very sexy, but stability provides value." - Richard Parker"Fall in love with the profit, not the product." - Richard Parker"Deal-making is not about winning every point but achieving a balanced outcome that benefits the buyer while keeping the seller reasonably happy." - Jason PereiraResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorRichard ParkerDiomo 

Jason Pereira interviews Tim Hewson, CEO of LegalWills, an online platform providing millions of users with a simple and accessible solution for creating legal and compliant wills. Tim discusses the importance of having a will, the challenges of estate planning, and how Legal Wills aims to demystify the process.Episode Highlights:03:00: Recognizing the inadequacies of existing will templates, Tim and his co-founder envisioned an online platform, drawing inspiration from Microsoft Office's user interface to guide users through the will preparation process.08:39: Tim talks about additional estate planning documents, including a Financial Power of Attorney and Living Will, designed for situations where an individual loses capacity, and decisions need to be made on their behalf.11:32: Tim discusses the expansion of LegalWills to multiple countries and the challenges of adapting services for different jurisdictions. He introduces the concept of expatriate wills, allowing users to cover assets in different countries with complementary wills.16:57: Jason reflects on the binary decision people face when choosing between affordable online services like LegalWills and more expensive options for complex legal matters.22:31: Tim acknowledges the challenge of changing the perception that creating a will is only necessary when someone is about to die. He discusses the battle to disassociate the act of writing a will from thoughts of death, emphasizing that estate planning should be a standard part of financial planning.24:28: Jason and Tim emphasize the emotional impact on families left to deal with disorganized estates and stress the importance of creating a will to prevent conflicts and contempt among family members.Key Points:LegalWills aims to simplify estate planning, catering to diverse needs, including those of blended families.Tim discusses the challenge of balancing growth and service quality as Legal Wills has steadily expanded without external funding.The platform has made a positive impact on users and charities, emphasizing the importance of organized estate planning for individuals and Tweetable Quotes:"Writing a will shouldn't be about dying; it's part of financial planning. Organize your affairs while you're well; it's a gift to your loved ones.”"We're on a mission to demystify wills. Losing the legalese can make the process more accessible. It's about clear instructions, not complex language.”"Every person who used our service is better off—over a million users and counting. Helping families and charities with organized estate planning is what keeps us going.”Resource Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira's LinkedInhttps://legalwills.company/https://www.linkedin.com/in/timhewson/?originalSubdomain=caPodcast Editing

Jason talks to Aravind Sithamparapillai, an associate at Ironwood Wealth Management Group. Aravind is known for his unique and novel research on the cost of the Canada Pension Plan, and they will talk about the intricacies of Canada Pension Plan and its often-underestimated value for business owners. During the conversation, Aravind and Jason delve into the comprehensive out-of-pocket expenses for employees, taking into account tax credits and deductions. The dialogue explores the fluctuation in costs depending on income levels and the potential for tax savings.Disclaimers-“investment shop”*Investment services are provided through Ironwood Securities, an approved trade name of Aligned Capital Partners Inc. (“ACPI”). ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Only investment-related products and services are offered through ACPI/Ironwood Securities and covered by the CIPF.-“I do full scale planning”*Aravind Sithamparapillai is an Associate at Ironwood Wealth Management Group. Ironwood Wealth Management Group offers financial planning and insurance services. Ironwood Wealth Management Group is an independent company separate and distinct from ACPI/Ironwood Securities.Episode Highlights:03:20: Aravind acknowledges Jason's content on corporate topics and integration, highlighting the confusion around CPP savings and the realization that the after-tax impact needs closer examination.09:26: Introducing a chart to visually represent net costs for employers, the conversation explores hypothetical examples across various income levels. Emphasis is placed on the significance of taking the entire tax scenario into consideration.14:15: Aravind introduces the concept of the Canada Child Benefit and other income-tested benefits that can be impacted by the choice between salary and dividends. He emphasizes the importance of considering all factors in optimizing total wealth.21:43: Aravind discusses the "light bulb" moment regarding CPP calculations. He explains that when an individual takes CPP, a bonus is calculated on top of the actual CPP rate for that specific year.22:26: The emphasis is on the assertion that the expansion of CPP extends beyond inflation; it encompasses real income growth attributed to the additional growth linked to the average industrial wage.25:21: Jason discusses the importance of considering Old Age Security (OAS) and CPP in retirement planning. He also addresses the common belief that everyone thinks they will live to 100, pointing out the statistical likelihood of living longer as one ages.Key Points:Jason and Aravind discuss the worst-case scenario related to CPP contributions and how the tax savings play a crucial role, reducing the total contribution amount by over a third.The conversation delves into the considerations for business owners deciding between salary and dividends.The discussion emphasizes the importance of benefits of the Canada Pension Plan, including survivor benefits and disability portions in situations where private disability insurance may not be practical.Resources Mentioned:https://www.ironwoodcanada.com/aravind-sithamparapillaiFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn

Jason talks to Ron Butler, the founder of Butler Mortgages and a prominent figure in the Canadian mortgage space. Ron, known for his insightful Twitter presence, discusses the impending "perfect storm" of mortgage renewals and the current interest rate landscape in Canada.Episode Highlights:00:39: Ron describes himself as an experienced mortgage broker with 29 years in the business, highlighting substantial mortgage volume.05:10: Ron explains the impact of COVID, quantitative easing, and selling fixed-rate mortgages at 1.49%. He also talks about the upward trend in rates in 2019, coinciding with economic buoyancy and surging house prices.09:02: Ron addresses the surge in mortgage debt during COVID, particularly with variable-rate mortgages starting at 1.45% and now at 6.2%. He describes the genuine consumer pain experienced by those facing mortgage payment increases, especially those dealing with income changes or additional financial commitments.15:19: Ron mentions the impact of high immigration on the demand for housing and the challenges in obtaining permits for new builds. talks about the significant governmental costs associated with building houses today compared to 25-30 years ago.17:30: Jason asks Ron about what people should be thinking about in preparation for upcoming renewals, 12-24 months out.18:48: Ron advises those with variable rates experiencing negative amortization to make voluntary payments and lump-sum payments to avoid growing mortgages.20:50: Ron highlights that despite talk about longer mortgage terms, the utilization of 10-year terms has never exceeded 3% in Canada, indicating the strong desire for low-interest rates.21:53: Jason emphasizes the strain people put on themselves to negotiate for minimal interest rate improvements, showcasing the demonstrated preference for lower rates.23:26: Ron explains that self-employed individuals often aim to minimize personal tax, resulting in reduced income visibility for mortgage applications. He mentions the government's emphasis on net taxable income as the primary metric for mortgage qualification, regardless of assets or retained earnings.25:28: Ron and Jason discuss the tendency of business owners to prioritize accountants who reduce personal taxation, even if it comes at the cost of Canada Pension Plan contributions.26:16: Jason acknowledges the complexity of tax planning and the compromises involved, such as lower reported income affecting personal borrowing capacity.27:35: Ron encourages listeners to shop around for mortgage renewals, emphasizing the potential savings even if it's only a quarter percent, and cautions against giving the bank more money without reason.Key Points:Ultra-low interest rates led to a surge in mortgage debt, posing challenges for renewals in 2024 and beyond.Business owners may face reduced borrowing capacity at mortgage renewals due to lower reported income for tax planning. Plan wisely.Amid changing interest rates, shopping for mortgage renewals is crucial. Don't settle – explore options and save money in the long run.Tweetable Quotes:Recognize that interest rates are dynamic, and lower rates might be on the horizon by 2025. Understand the potential impact on mortgage renewals.Don't settle for the status quo. Take the time to explore different mortgage options and lenders during renewal periods, even small interest rate differences can result in significant savings.If your mortgage is increasing, take proactive steps to avoid paying interest on interest. Consider prepayment and increased payments to maintain control over your financial situation during renewals.Resources Mentioned:https://www.butlermortgage.ca/

Jason talks to Sandy Pollack, author of the book "Don't Leave a Mess." The focus of the book revolves around estate planning, emphasizing the crucial distinction between financial thinking and financial planning. Sandy delves into the necessity of understanding both concepts to effectively navigate the complexities of financial management.Episode Highlights:01:55: Sandy introduces the concept of estate thinking and planning, emphasizing the need to differentiate between the two. She stresses the importance of careful consideration rather than a quick and efficient approach.03:00: Jason shares his perspective on the urgency some people feel when addressing estate planning and highlights the misconception that writing a will is an ominous sign.08:38: Sandy emphasizes the importance of understanding one's net worth, pointing out that many successful entrepreneurs are unaware of their actual wealth. She underscores the need to comprehend the composition of wealth and addresses illiquidity issues.09:54: Jason adds insight into the delusion some entrepreneurs have about their business's value, emphasizing the significance of realistic valuation for effective tax planning.13:36: Sandy acknowledges the honour of facilitating family meetings and emphasizes the richness that emerges from each generation's perspective, guiding the conversation towards the transformation of wealth into significance.16:17: Sandy delves into collaboration, differentiating it from cooperation. She stresses the significance of sharing information among professional advisors for a holistic approach to planning.21:59: Sandy recounts the importance of addressing family dynamics through personalized letters and meetings. She emphasizes the power of relationships, clarity, and understanding within families.28:29: The discussion shifts to individuals who inherit wealth without having their own businesses. Jason wants to explore how this inherited wealth affects the estate planning process.33:21: Jason expresses concern about the unrealistic expectations being fostered and questions whether people are led to believe that billionaires are lacking the minimum effort required.35:13: Sandy introduces the emotional factors associated with estate planning, including guilt and shock. She emphasizes changing the narrative from "passing down" to "passing wealth to."36:13: Sandy emphasizes the three keys to managing wealth: save some, spend some, and share some. She talks about the positive attributes of money and its potential to make a significant impact, such as eradicating hunger, promoting literacy, and providing scholarships.Key Points:Estate planning isn't just about passing down wealth; it's about passing wealth to the next generation with intentionality and wisdom.Being a steward of inherited wealth involves not just managing it but also imparting financial fluency to the next generation.Money has the power to do exceptional things; beyond financial security, it can create a lasting impact on society.Tweetable Quotes:"In estate planning, it's crucial to address emotional factors like guilt and shock, not just financial aspects, fostering a healthy family legacy.""Financial literacy for young adults is essential; amidst misinformation, parents should teach about saving, spending, and the purpose behind wealth.""Estate planning goes beyond documents; it involves collaboration, communication, and transparency among advisors for client clarity and confidence."Resources Mentioned:https://www.dontleaveamess.ca/