Fall has officially arrived, and with it a new school year for many kids across Canada. This school year will be very different than years past, as questions and uncertainty continue around the world.
The questions around kids and their schooling is just one point of uncertainty.
Many of the discussions we’ve been having with clients lately are around uncertainty
How convinced are you that what you’re doing today will create the future you want tomorrow?
Our primary focus over the last many years, has really hit home since Covid-19 took hold of our world. It’s about combatting uncertainty, by controlling what you can.
Here’s how to take control of the financial aspects of your life that you can control
There are three primary recommendations we’ve made recently:
- Revisit your tax planning strategy. Given Federal spending, Canadians will be paying more tax in the coming years then we are today. And we already have one of the largest combined tax rates in the world.
Although we can’t control how high our taxes get, we can control how we hold and manage our assets.
- Do you have a Holdco you can invest through, or a family trust that lets you access income more favourably?
- Have you fully taken advantage of the financial products that provide true tax deferral or elimination? The might be your TFSA or a cash-value life insurance policy.
In some provinces, properly designed tax plans save our clients up to 40% in annual taxes every year.
Proper tax planning has never been as important for Canadians as it is today.
- Rebalance your investment portfolio. This sounds obvious, but many Canadians have substantially more risk in their portfolio than they think they do.
Investing in and understanding different asset classes, how they perform, and how they can match with your goals and risk appetite is a necessity for proper wealth planning.
Proper diversification is essential, now more than ever. In fact, many studies show that 95% of your return is a result of proper asset allocation.
Are you confident that your portfolio design matches your vision and values for you and your family?
- Review your insurance program. We cannot control our health. Covid-19 has made that clearer than ever. However, we can take control of what happens if we do get sick or meet an unexpected death.
When you own life or income replacement insurance, you have entered into a one-way contract with the insurance company. You are the only human on the planet who can change, cancel or impact your existing insurance policy. That puts you in full control of a number of “what if” scenarios that you definitely cannot control.
Proper insurance planning can also double as proper tax planning for those with money and assets to invest and protect.
We’ve all heard that the only guarantees in life are death and taxes. That doesn’t meant that you cannot take better control of your current and future situation
If you’re not certain what you’re doing today will accomplish what you want tomorrow, you can take control. Meet with us or your existing Advisor to discuss how a properly designed plan can bridge that gap of uncertainty.
