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 income.
The Wealth Building Toolkit: Corporate Income
Here you are, ready to retire, and you’re
getting all your ducks in a row: assessing your RRSP to RRIF options, seeing
how you can maintain OAS through the household, and you have spent your career
building wealth in a corporation so that’s a major tool in your kit.
The first and most interesting thing is
that, by definition, assets built in your corporate investment account are
going to be retained earnings which means you’ll be paying yourself dividends.
The upside of dividends is that you also get a dividend tax credit.
The benefit of dividends is this: let’s say
you were targeting this $95,000/yr of net income. From my last blog, we know
you’d need to take approximately $130,000 of gross income to provide that net
of taxes. A non-eligible dividend to make the same $95,000 net income needs to
only be $120,000 - dividends allow for more tax-advantaged income for sure and
the saving of $10,000 in this case.*
Another option is to use a life insurance
policy. If a corporation were to own a policy with the shareholder as life
insured, there could be a cash value built up in the policy against which a
loan could be set up to be settled upon the passing of the shareholder. As the
insurance policy is not required to declare gains for tax purposes year over year,
this tax deferral can lead to larger amounts within the policy and more money
available for a loan.
You’ve noticed I keep referencing ‘tools’
throughout this series. That’s because you can’t screw a screw with a hammer, and
you can’t drive a nail with a saw. I mean, I suppose you could do those things
but let’s attempt a little efficiency here! I think of retirement planning as
exactly this, pulling out the right tool for the job. And in this example of
having a high level of corporate assets, insurance is a great tool to help
build that wealth to do the job of providing security of income in retirement.
In the next blog, we’re going to talk about
insurance in corporations again but from more of an estate planning perspective
- no surprise but insurance is very helpful in dealing with taxes in an
estate.
*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.
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.
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 Insurance experts at Campbell and Haliburton Insurance Inc have been in the community for over 50 years. They know it is customer service and knowledge that counts when you are in need of an insurance company in Regina. Campbell & Haliburton Insurance, myCH.ca, dedicated insurance brokers in Regina, can assist you with finding the plan that works best for you. In their latest Campbell & Halliburton Regina Home insurance tip, they discuss travel insurance.
“I’m leaving on a Jet plane, don’t know when I’ll be back, but I’m leaving on a jet plane.” Yep, it’s my favourite song as I walk through the Regina airport, my carry-on case gracefully rolling behind me. As I walk and sing in my head, I’m doing the mental checklist to make sure I’ve got everything done:
- Lights put on automatic timers ✔️
- Home insurance policy on the table, just in case something happens while I’m gone ✔️
- Car policy on the table ✔️
- Have someone coming to check on my house while I’m gone ✔️
- Travel Insurance – Nooooo! I forgot to purchase that… oh well I’ll be fine I don’t need it.
But let’s do a quick review:
What is Travel Insurance?
Travel insurance is a type of insurance that helps to cover the cost of medical care if you become sick or injured while travelling.
When do you need it?
If you plan to travel outside Canada ‒ even for a single day ‒ you should buy travel health insurance before your trip or vacation.
There are a number of risks you face when travelling, and travel insurance can help protect you from financial loss in the event of an emergency. If you need medical assistance while abroad, travel insurance can help cover the cost of your medical bills and care. And if your trip is cancelled or interrupted, travel insurance can reimburse you for non-refundable expenses.
Travel insurance is an important consideration for any trip, and it’s especially important if you’re travelling to a country with high medical costs or risks.
Outside of Canada, what is covered under Travel Insurance?
No matter where in the world you are travelling, there are 3 basic medical expenses your travel health insurance policy should always cover: medical evacuation from your travel destination if required, coverage for any pre-existing conditions you have, and repatriation (covering the cost of transporting your remains should you pass away during your trip).
Every travel medical insurance policy is unique, as one has many options when applying for coverage. Most travel medical insurance policies typically cover:
- Emergency medical treatment for illness or injury
- Prescription medications
- Emergency dental treatment services
- Essential medical equipment (crutches, wheelchairs, slings, braces, etc.)
- X-rays and other diagnostic laboratory procedures (bloodwork, ultrasounds, etc.)
- Required ground, air or sea ambulance services
- Follow-up post-medical appointments with healthcare providers
- Medical evacuation
- Ambulance travel to the nearest hospital
- Meal expenses and accommodations while waiting for medical care\
Our Trusted Regina Insurance Agents at Campbell & Haliburton have your best interests and safety in mind and our commitment to customer service is one of the pillars of our business. We also know insurance inside and out, so please get in touch with us for all of your insurance needs and we will be more than happy to help ensure what you value most is protected.
Campbell & Haliburton's doors opened in 1957. Since then, they have seen run-away inflation, recessions, and now, a global pandemic. Through it all, their doors have remained open as they are committed to providing outstanding service to you. No matter what the next years and decades bring they have committed to continue to stay open to serve you.
Campbell and Haliburton Insurance are a Trusted Regina Insurance provider.
They offer many different insurance policies to protect the most important areas of your life including:
**This is a general overview. There are many different insurance companies, and there are always differences in insurance policies. For specific details on your policy and coverage, we recommend that you contact your agent or broker.
Trusted Regina Insurance experts at Campbell and Haliburton Insurance Inc have been in the community for over 50 years. They know it is customer service and knowledge that counts when you are in need of an insurance company in Regina. Campbell & Haliburton Insurance, myCH.ca, dedicated insurance brokers in Regina, can assist you with finding the plan that works best for you. In their latest Campbell & Halliburton Regina Home insurance tip, they review how to renew your plates online with SGI in Regina.
How many times have you woken up Monday morning and realized that your vehicle plate expired over the weekend? The first thought is always... now what? Over the next 2 blogs, we are going to review.
Here are a couple of things you are going to need before we start:
- Email address
- Smartphone
- Computer
If you are comfortable using your smartphone and making calls at the same time, then you won’t need your computer. Alright let’s start this process of How to Renew your plates online with SGI in Regina.
Step 1: You are going to have to register your email address
If you aren’t already signed up with MySGI, you need to register a valid email address with them before you can set up your new account.
When you get to this area, there are three possible scenarios and next steps below:
1. You Have a Saskatchewan driver’s licence only:
Register your email address at your local motor licence issuer by calling 1-306-757-0651 or if you are outside of Regina, you can call 1-877-757-0621.
2. You have a Saskatchewan driver’s licence AND an SGI CANADA insurance policy:
Register your email address online with the instructions provided.
3. You have an SGI CANADA insurance policy only:
Register your email address with your local motor licence issuer by calling 1-306-757-0641
Step 2: Create your account
Once your email address is registered, create your new MySGI account with these steps:
- Request an activation code
- On the Register screen, follow the instructions to get an activation code.
- Enter the requested information to verify your identity.
- The activation code is then sent to the email address you registered with MySGI.
- Register your account
Use the activation code sent to your email address to complete the registration process.
- Set up your new account
- Create a username and password of your choice.
- Read and accept the Terms of use.
- Once registered, you can sign into MySGI.
- Select Campbell & Haliburton Insurance as your motor licence issuer
- Transaction complete
If have any troubles on how to renew your plates online with SGI in Regina, please let us know, we are here to help you.
Our Trusted Regina Insurance Agents at Campbell & Haliburton have your best interests and safety in mind and our commitment to customer service is one of the pillars of our business. We also know insurance inside and out, so please get in touch with us for all of your insurance needs and we will be more than happy to help ensure what you value most is protected.
Campbell & Haliburton's doors opened in 1957. Since then, they have seen run-away inflation, recessions, and now, a global pandemic. Through it all, their doors have remained open as they are committed to providing outstanding service to you. No matter what the next years and decades bring they have committed to continue to stay open to serve you.
Campbell and Haliburton Insurance are a Trusted Regina Insurance provider.
They offer many different insurance policies to protect the most important areas of your life including:
**This is a general overview. There are many different insurance companies, and there are always differences in insurance policies. For specific details on your policy and coverage, we recommend that you contact your agent or broker.