Are you a Value Investor or a Growth Investor?
Which investment style is right for you in the post-pandemic world? After coming through the whip-saw stock market of March 2020, most investors have generally seen a rise in their portfolio value. In many cases those returns are some of the best we have seen in a decade of a generally rising bull market. Consider […]
With the money left over…….Should I invest inside or outside my DPC? (Part 1)
You’ve worked hard to earn a profit in your company…..now what do you do with it? Profit up to $500k in a DPC is taxed at a combined rate in Ontario of 12.2%. This is one of the lowest tax rates you will ever pay. Once you’ve paid this tax, does it make sense to […]
Why is “inflation” a bad word for your investment portfolio?
Throughout the financial press, so-called experts are warning of the return of inflation. Should we be worried? Nobody likes rising prices for their everyday expenditures. But if the companies you’ve invested in are able to charge higher prices, shouldn’t that mean more profit and rising stock prices for your portfolio? We are still in the […]
Ontario Dentist Article – Split Dollar CI
The current edition of Ontario Dentist recently contained a short article on Critical Illness insurance (CI). The article refers to the Split Dollar CI strategy (i.e. using a combination of corporate and personal dollars to fund CI premiums) that I’ve been advocating for a several years. read my perspective below on the article and on […]
Are we in for the Roaring 20’s 2.0 PART 2!
We hope you enjoyed “Are we in for the Roaring 20’s 2.0” Now here is Part 2! As we look to the post-COVID-19 future that is hopefully just ahead, the stage is set for a period of rampant consumer spending that could look a lot like the 1920s. A decade that ended very badly […]
Are we in for The Roaring Twenties 2.0? Let’s not repeat the same mistakes.
The “Roaring Twenties” began after the 1918-19 global pandemic and ended when the stock market crashed in 1929, ushering in the Great Depression. Among several reasons for the crash, an overheated economy driven by out-of-control, debt-fuelled consumer spending was partly to blame. In 2021, as we look to the post-COVID-19 future that is hopefully […]
What is a TFSA?
A TFSA is a Tax-Free Savings Account to which you can contribute at age 18 or older. Here’s how you can benefit from a TFSA: You don’t pay tax on any money earned in a TFSA or on money you withdraw. There’s no contribution deadline, which means you can contribute to a TFSA at any time. […]
RRSP Season is Here!
A Registered Retirement Savings plan is an important part of smart financial planning. Not only do RRSP contributions help you plan for your future, they also reduce how much you have to pay in income tax. Your annual RRSP contribution limit is 18% of the prior year’s earned income to a maximum of: 2020 = […]
Wage Subsidy Update – At first there’s more for everyone, but the phase-out is underway.
The federal government announced proposed changes to its Canada Emergency Wage Subsidy(CEWS) program that will take effect as of July 5, 2020. To summarize, there are three principal impacts of these changes: For the near term, companies that have experienced a revenue drop of greater than 50% will receive an even larger subsidy than the […]
Corporately-Owned Life Insurance
Regardless of whether the need is primarily personal, we almost always recommend owning and paying for life insurance in your Professional Corporation (or Holding Company if you have one). The difference between corporate and personal tax rates can result in a significant savings in premium, while the tax-preferred treatment of the death benefit will still […]