Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina Financial Advisors at Worby Wealth Management Explain Corporate Estate Planning

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they discuss corporate estate planning. 

The Wealth Building Toolkit: Corporate Estate Planning

So you’ve used your corporation to build wealth and to provide a nice, stable income. At the end of it all, we all go the way we do and it’s time to consider the two inevitabilities in life: death and taxes. 

Upon the death of a shareholder, there is what we call a ‘deemed disposition’ of shares. This means that on the date of death, shareholders are considered to have sold their shares at whatever gain or loss they would incur at that time. Those shares are passed down to a new shareholder in accordance with a will or some corporate documents dictating who becomes the new shareholder. But regardless of what happens after, that shareholder has sold their shares on that date.

This can represent some problems. Let’s say no planning was done and the accounting was sloppy. If the shares were worth, say, $1,000,000 at the time of passing but had little to no cost base, that would be a $1M capital gain adding $500,000 to the income line of a taxpayer’s final tax return and a $208,000 best-case scenario tax bill.*

If the inheriting shareholder didn’t have the means to pay the tax bill and there were no other estate assets, they may have to take a dividend to pay the bill meaning they’d have to declare a $310,000 dividend to pay the tax for the dividend as well as to pay the tax for the estate - again, there are better ways to do this but it’s the least tax efficient way to manage the tax bill.

One of the ways to manage the tax bill is to own life insurance in the corporation yet again. There is a notional account called a ‘Capital Dividend Account’ that certain corporate activities create - one of which is a life insurance payout less the ACB of the policy. This ‘CDA’ allows for dividends to flow through to shareholders without attracting taxation. 

In our example above, if there was an insurance policy in the corporation which is triggered on death which is also when our deemed disposition occurs, there would be money made available to be removed from the corporation with no taxation. This could be used to pay the tax bill and provide tax-free money to remaining shareholders.

These past 3 blogs have shown the corporation as a wonderful tool for both reducing taxes while accumulating wealth, streamlining income for retirement purposes and then how to reduce tax burdens on death. It’s good when we can have all the tools in working condition!

*all personal tax calculations are estimates based on taxtips.ca tax calculator.


If you have questions about wealth building, contact Worby Wealth Management to get your questions answered and start investing in an RRSP, TFSA or other investment accounts today.

Some of the services that Worby Wealth Management can help you with: 


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!

 

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances.  This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc.  The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.  The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice.  Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.  Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Trusted Regina Financial Advisors at Worby Wealth Management Discuss Wealth Building and Corporations

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Jeremiah shares how corporations are a fantastic tool for building wealth. 


The Wealth Building Toolkit: Corporations 


There are many tools that are useful to build wealth. Virtually everyone has access to account types such as RRSPs and TFSAs. These are accounts which have special tax treatments such that we can reduce our overall taxation while we are alive and accumulating wealth. Pensions and group RRSPs are also useful and often an employer will give additional funds to these plans which is of obvious benefit.


For those of us who are not employees though, we may be able to use another tool - the corporation. If someone is self-employed and legally able to have their corporation take their income, this can be very helpful.


The key to using a corporation efficiently is that the earnings a taxpayer has is not all required. Active income for a small business conducted in Saskatchewan is taxed at a low rate of 11%. If a person’s income level is high enough that they don’t require all of it, leaving income behind in a corporation to invest may be much more efficient than taking it all as income and then investing.


Let’s look at an example:

John needs $95,000/year after tax for lifestyle but earns $250,000/yr gross. If he took all this money, paid tax and then invested the remainder, he’d have approximately $66,760* to invest at the end of the year.

If he were able to and chose to use a corporation, however, he’d take $130,000 gross income from the corp and pays approximately $35,000 in tax leaving $120,000 behind. 11% tax for taxes leaves him with $106,800 for investing.

The difference of using a corporation in this example leaves him with an additional $39,920 or 60% more money to invest to build his wealth.

Clearly, corporations are a fantastic tool for building wealth. The next blog is going to look at strategies to get this money out of the corporation on a tax-advantaged basis.

*all personal tax calculations are estimates based on taxtips.ca tax calculator.


If you have questions about wealth building, contact Worby Wealth Management to get your questions answered and start investing in an RRSP, TFSA or other investment accounts today.


Some of the services that Worby Wealth Management can help you with: 


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!


 

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances.  This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc.  The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.  The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice.  Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.  Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Trusted Regina Financial Advisors at Worby Wealth Management Provide Their Year End Financial Checklist

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Jeremiah shares their year end financial checklist.


Year End Financial Checklist

by Jeremiah Worby 


It's near the end of another year. You've probably been busy planning parties, planning pranks, and soon to be attending holiday events, but there's one thing that needs your attention – your personal finances.  It's time to start reviewing how much money you have saved up for retirement and other important costs in life. 


HERE'S HOW 


Do you have any RRSP room left for 2022?

If your RRSP room is $10,000 and you have already contributed $6,000 to an RRSP this year, then that means you have only… hold on give me a minute here – carry the 9… oh yeah,  $4,000 of available room for 2022.

If you don't have any remaining RRSP room for 2022, then no other RRSP contributions can be made before year-end.  That being said, if there are other registered plans (e.g., a TFSA) that you haven't maxed out yet for this year, then it may still be worthwhile contributing what is needed to fill up your existing registered plans so long as doing so doesn't exceed their respective contribution limits.


Are your TFSA contributions up to date?

TFSAs are a great way to save for retirement. Straight from the Canadian government’s website



The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. "

Unused contribution room from previous years carries forward to future years.  A quick check with your MyCRA account (or office Dwight – he seems to know everything) should let you know exactly how much TFSA room you currently have.



Have you funded your children's RESPs this year?

Whether you have two children or twelve, saving up for their education is a top priority for lots of families.  The biggest benefit of RESPs is that a grant from the Canadian government of up to $7,200 can be earned over the life of the plan.

The money in an RESP can be used for various education costs, not just for tuition.  There is no tax on the investment earnings as long as it remains in the plan.  Contributions are not tax deductible, however withdrawals called educational assistance payments are included in the student’s income.


Do you have enough life insurance coverage in case something happens to you?

Life insurance is an important part of financial planning.  The question is, do you have enough?  Pro tip: $100 Million is probably more than what you need.

You should consider getting life insurance coverage to protect your family from being left with financial burdens if something happens to you.

It's important to know how much coverage you need and what kind of coverage makes sense for your situation.  You can get a free life insurance quote by contacting Worby Wealth Management.


A review of personal finances at the end of the year makes sense

It’s a good idea to review your personal finances at the end of the year. This way, you can ensure that you are on track with your goals and make adjustments as needed.

You should review:

  • Your financial situation – How much debt do you have?  How much money do you have in savings?  What are your investments doing?  If there is anything that needs to be changed or improved, now is the time for it!
  • Your financial goals – What are some things that need improving?  Are there any new goals that could be set for next year?
  • Investments – Is your portfolio set up for long-term growth or short-term gain? Are your investment goals aligned with your time horizon and risk tolerance (e.g., saving for retirement vs. building wealth).  Have any recent market events caused you to rethink this part of your financial plan?  If yes, make sure to contact Worby Wealth Management for a free second opinion. 
  • Insurance coverage –  Does your current insurance cover all important aspects of your life (e.g., health care, disability income, burial expenses) while still being affordable?  What other types of coverage might make sense moving forward as life circumstances change (e.g., term insurance for those years while you’re still carrying a mortgage).

Conclusion

The end of the year is a good time to review your finances and make sure you're on track for the new year.  It's also a great opportunity to look back at the financial decisions you've made over the past 12 months and see if there might be room for improvement.  If so, now is the perfect time to make those changes!


Questions regarding your year end financial checklist? 

If you have questions about your year end financial checklist, then contact Worby Wealth Management to get your questions answered and start investing in an RRSP, TFSA or other investment accounts today.


Some of the services that Worby Wealth Management can help you with: 


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!


 

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances.  This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc.  The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.  The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice.  Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.  Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Trusted Regina Fireplace Experts at Wheatland Fireplace, Kitchen & Bath Share Wood Stove & Fireplace Trends

Your first step into the beautiful Wheatland Fireplace Kitchen & Bath Regina showroom will help you understand why Wheatland Fireplace has been given the Thumbs up by Trusted Regina as your exclusive Trusted Regina fireplace store. Wheatland loves its customers and as a result, its customers love and TRUST them. In their latest fireplace tip, they share current trends for wood stoves and fireplaces. 

Current Trends - Wood Stoves and Fireplaces

Wood stoves and fireplaces tend to become the focal point of a room, and even of a home. And they bring people together. In the cold winter months and on chilly evenings, it is often around the fire that people gather to create lasting memories. It is therefore important that this appliance fit into the decor, while also suiting the lifestyle and meeting the needs of the home’s occupants.

Whether you’re thinking of getting a wood stove or fireplace installed in the near future or want to spruce up your existing appliance and the room it’s in, get inspired by current trends.

Wood-burning fireplaces evoke warmth and elegance

Setting up a fireplace area lets you create a focal point in the room. The goal is to fashion a cozy, comfortable and inviting atmosphere. The latest trend is natural colours and materials, like a wood beam for the mantlepiece or field stone cladding. While very popular, wood cladding is not recommended for this project, as most wood stove and fireplace manufacturers require non-combustible materials within a certain radius of the appliance. For a similar effect, you could also opt for concrete that looks like wood. Several specialized companies, like Béton Architectural Johnstone, offer products with very realistic finishes, for a safe version of the look you had in mind. You could also make attractive log holders an integral part of your decor.

The important thing is to think minimalistic. Pick one element as the main focus. It could be your fireplace, a painting, a sculpture or other. You can beautify your fireplace area with a few decorative items, preferably in understated colours that call to mind natural materials like cotton and linen. For an uncluttered haven, pare down your options to only a few key objects. As for the overall colour scheme, the current trend is tone-on-tone (different shades of the same colour).

There are several combinations you can choose from to create a cozy cocoon. Select an original mantlepiece and decorative items that will showcase the play of the flames, exuding warmth and relaxation in the spirit of this year’s trends.

Wood-burning stoves create a relaxed and refined mood

Sleek, modern-looking wood stoves are very in and their minimalism complements all styles of decor. Select an appliance model and decor that best reflect your personality to add a one-of-a-kind touch to your home. With 80s furniture back in fashion, rattan chairs or an angular sofa will create a bold look. If you prefer more classic decor, featuring noble, natural materials like leather or marble, a contemporary wood stove will fit in beautifully.

One thing is certain, wood-burning stoves have become a design element, holding pride of place in a home’s gathering spaces. Beautiful, functional and timeless, modern wood stoves adapt to the activities of the house or cottage’s occupants. Some offer a variety of fire views while others are marvels of architectural design. There are even freestanding fireplaces that can become part of the furniture. They can be installed just as quickly and easily as a traditional wood stove, while offering a polished look that will turn heads. 

Adding accessories around the stove will also enhance your decor while clearly defining the area. The portable log holders and floor-protecting hearth pads seen on the market over the last several years are as beautiful as they are practical. These two must-have elements reinvent the space while making your stove more commanding and giving it prestige.

Finally, whether you’re setting up a nook for your fireplace or your wood stove, the important thing is that it be inviting. Achieving harmony between your appliance, finishes and accessories will make you want to spend hours by the fire.


Wheatland Fireplace, Kitchen & Bath are successful for a reason! This really is where your outdoor living and indoor fireplace, bathroom & kitchen dreams meet in spectacular surroundings! Wheatland services and installs high-quality fireplaces, Visit their website or stop by their showroom to feel the warmth and comfort of their amazing selection.


"Better Living Begins Here... At Wheatland, it is ALL ABOUT YOU!"

Wheatland Fireplace Kitchen & Bath are your Trusted Regina Fireplace Store 



Wheatland Fireplace, Kitchen & Bath Share How to Find the Right Sized Gas Fireplace for Your Home

Your first step into the beautiful Wheatland Fireplace Kitchen & Bath Regina showroom will help you understand why Wheatland Fireplace has been given the Thumbs up by Trusted Regina as your exclusive Trusted Regina fireplace store. Wheatland loves its customers and as a result, its customers love and TRUST them. In their latest fireplace tip, they share how to find the right sized gas fireplace for your home. 

How To Find the Right Sized Gas Fireplace for Your Home


Typically, gas fireplaces are classified into four sizes – small, medium, large, and extra-large. As a basic benchmark, a small gas fireplace will heat less than 500 sq. ft., a medium gas fireplace will heat between 500 – 1,000 sq. ft, a large gas fireplace will heat between 1,000 – 2,200 sq. ft., and an extra-large gas fireplace will heat over 2,200+ sq. ft. These figures are based on an average size, single-story home in a moderate climate, and an open floor plan.

Pro Tip: Quickly measure the size of the space you are looking to heat to quickly and easily categorize the size of your fireplace needs by measuring the Length (L) and Width (W). L x W = Sq. Ft. 


Standard Gas Fireplace Square Foot Heating Capacity

  • Small Gas Fireplace: less than 500 sq. ft.
  • Medium Gas Fireplace: 500 - 1,000 sq. ft.
  • Large Gas Fireplace: 1,000 - 2,200 sq. ft.
  • Extra-Large Gas Fireplace: 2,200+ sq. ft.
Note: this is simply a benchmark. A fireplace’s actual heating capacity will vary dramatically based on a high number of factors, see below for more details, and always discuss sizing and installation with an Authorized Regency dealer.


Factors Affecting Gas Fireplace Heating Capacity?

There is a wide variety of factors that can influence the heating capacity of your gas fireplace, insert or stove, some of these include:
  • Ceiling Height 
    • The total volume of the room can drastically change the heating capacity of a gas fireplace
  • Insulation
    • Older poorly insulated homes will decrease the heating capacity of a fireplace, whereas new highly insulated homes may increase the capacity of the fireplace
  • Number of Windows
    • Windows (even dual-pane) are a source of cooler air, and the more windows in a home/room, the greater the obstacle to the fireplaces heating capacity
  • Room/Wall Layout
    • Open rooms vs. homes with lots of walls will affect how effective the fireplace is at heating an area
  • Other Vented Appliances
    • Is there a hood vent in the same room as the fireplace? A dryer? Other appliances that require external venting can affect the draft and efficiency of your gas fireplace.​

Wheatland Fireplace, Kitchen & Bath are successful for a reason! This really is where your outdoor living and indoor fireplace, bathroom & kitchen dreams meet in spectacular surroundings! Wheatland services and installs high-quality fireplaces, Visit their website or stop by their showroom to feel the warmth and comfort of their amazing selection.


"Better Living Begins Here... At Wheatland, it is ALL ABOUT YOU!"

Wheatland Fireplace Kitchen & Bath are your Trusted Regina Fireplace Store 



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Saskatoon, SK   S7K 1N7
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