As you begin the transition from being fully involved in your business to retirement, you need to maximize the benefits the government has given to you. These are rewards that society awards to people like you who provide jobs, products and services that fuel our thriving economy. Recent changes in the Capital Gains Exemption (CGE) have given you a $750,000 tax free doorway (double that if your spouse is an equal shareholder) and using a Holding Company makes it easy to manage your tax liability by putting dividends to work for you. We can help to manage these with your current advisory team.
Furthermore, other avenues such as Charitable Giving Strategies and Flow Through Shares can further your ability to reduce your tax burden while helping others and building a legacy.
So you've accumulated an abundance of wealth, now you need to protect it. Similar to the birth of Mutual Funds in the 1970's, the baby boomers have demanded a different way to invest. We used to be able to insulate our portfolio's from the volatility of the stock market by investing in Funds. Now that the marketplace has changed, the Exempt Market has been created to fill that need. After existing for many years, the Alberta Securities Commission has brought professionalism and safety to this market by regulating it in September of 2010.
Our investment management offers a select group of well managed funds, private equity relationships and principal protected investments carrying deposit insurance. In many cases, our relationships can allow you to meet face to face with the CEO of the company which you wish to invest in. This process removes many layers of the management leaving you more on the bottom line. Further to this, most of these firms don't earn a dime until your return has been paid. Gone are the days when your advisor made money while you were loosing it.
As your business involvement begins to change, your insurance begins to take on a different role. Whether it be to leave an inheritance for your children, or to cover estate taxes at death, there is a good chance your current policy rates will jump at the next renewal period. Protecting your savings with insurance ensures that your lifestyle will not be in jeopardy if something unfortunate should arise.
Important types of coverage include:
In all of this, limiting the risk to your family becomes key. Using tools like funded shareholders agreements, life, disability and illness insurance and health and dental medical plans are a cost effective method to protect those you care about.