Wealth Accumulation

5 Ways to Be Smart When the Markets Go Down

We all wish the stock market would move only one way….up.  Unfortunately, history has shown us that every bull market is followed by an equally aggressive bear market.  Sometimes the market falls hard and fast, but that doesn’t have to mean catastrophe.  Being smart when times are tough can be just as lucrative as being smart when the going is good.  After all, the smartest investors don’t fear a downturn, they take advantage of it by making sure they are in a good place when it corrects itself.



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Estate Maximization

In your lifetime, you’ve worked hard to build assets, some of which you may want to pass along to loved ones or charitable organizations after your death. The following video explains how to use a Life Insurance Estate Maximization strategy in order to minimize taxes and maximize your legacy.



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Using Corporate Owned Life Insurance to Reduce Passive Income Taxation

Effective January 2019, new tax rules will come into effect that will have a dramatic impact on some small business owners. Starting in 2019, the Small Business Deduction Limit will be reduced by $5 for each $1 of passive income that exceeds $50,000 and will reach zero once $150,000 of passive income is earned in a year. This new tax rule may be leaving business owners wondering how they can redirect a portion of excess cash flow that would traditionally produce passive income, and subsequently some unfavorable tax consequences.

Corporate owned life insurance can offer a “two bird one stone” solution to business owners. If used appropriately, strategies such as these are a viable option for a private corporation with a substantial amount of excess income and a life insurance need. The information below provides an elementary overview of how life insurance can be used to defer tax and grow the corporation’s estate.



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Using Joint-Last-to-Die Insurance to Protect Your Estate

Joint-Last-to-Die (JLTD) insurance is designed to protect the assets for the beneficiaries of an estate. A JLTD policy is issued on the lives of two people; typically spouses. The policy continues after the death of one spouse, and the benefit is paid on the death of the surviving spouse.

This type of insurance is an effective estate planning tool that provides protection for your estate as well as keeping premium costs lower than traditional insurance approaches.



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What is a Segregated Fund?

t’s a question we hear often – can I guarantee my investment? Well, in a sense, yes – the product you’re talking about is called a Segregated Fund.



Segregated funds, usually referred to as “Seg Funds”, are individual insurance contracts that invest in one or more asset, much like a mutual fund. Unlike mutual funds, Seg Funds provide a death and/or maturity guarantee that protects a portion of invested capital (usually between 75% to 100%).



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Private Corporations Dodge a Bullet with the 2018 Federal Budget

The Liberal Government’s Federal Budget was delivered by Finance Minister, Bill Morneau, on February 27, 2018. There had been much concern and speculation about the direction the budget would take with respect to the taxation of private corporations. This was due to a release of the Department of Finance in July 2017 which contained private corporation tax proposals which addressed areas of concern to the government involving, among other things, business owners holding passive investments inside of their corporation. There was speculation that if these proposals were implemented the effective tax rate on investment income earned by a private corporation and distributed to its shareholders could increase astronomically. Thankfully, the concerns voiced by business and professional groups following the July proposals were effective in moderating the government’s actions.



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Disclaimer

This information is designed to educate and inform you of financial strategies and products currently available. As each individual’s circumstances differ, it is important to review the suitability of these concepts for your particular needs with a Qualified Financial Advisor.