Financial Planning For Canadian Business Owners

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: 

1. Alexandra explains how as per the OECD Data, Canada always ranks higher as compared to US and other European country’s data?
2. 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?”
3. 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 Field

Resources Mentioned

• Facebook – Jason Pereira’s Facebook
• LinkedIn – Jason Pereira’s LinkedIn
• Woodgate.com – Sponsor
• LinkedIn – Jason Pereira’s LinkedIn
• The Boomer’s Retire Book
• Podcast Editing

Transcript