Essential Insurance for Business Owners
Most Canadian companies recognize the importance of helping employees properly save for retirement. These companies set up monthly savings plans for employees and most companies even contribute a bit of money towards the savings plan too.
A good pension plan will help to retain valued employees while also being a fully tax deductible valuable perk for all employees.
Sadly, many group RRSP pension programs are flawed. Here are some of the common problems we see in our competitor plans:
We integrate Canada’s leading money managers within a professional consulting approach to custom design a group RRSP pension plan appropriate for your employee base. We minimize all your fees (what fees do you pay today?). We meet with your employees to conduct proper retirement planning every year. No call centers. No websites. Upgrade to a common sense plan and make them understandable to employees.
We recognize the fiduciary and legal liability an employer faces, and the hit to company moral, if a retired employee sues you because of bad retirement planning. We won’t let this be you.
Contact us at 1-866-275-5878 FREE, Kurt, ext. 230 or Frank, ext. 236for immediate, friendly service to answer your questions or to arrange a detailed review of your existing group RRSP pension plan.
A business could be devastated if a shareholder dies without proper estate planning in place. A thorough written shareholder's agreement is essential. Within this agreement, it should plan for the death or disability of a shareholder.
The death of a shareholder can have a negative impact from 2 sides:
The solution for both is corporate owned life insurance.
Properly structured corporate owned life insurance will pay out tax free proceeds on a shareholder’s death. This money can be used by the remaining shareholders to redeem the deceased’s shares or buy the shares from the estate. Similarly, the estate can use the cash received to pay their tax bill.
Contact us at 1-866-275-5878 1-866-275-5878 FREE, ext 230 or ext 236 for immediate, friendly service to answer your questions or provide a cost quote.
John has his own consulting business with 5 employees. Last Saturday he was bicycling with his son when he got hit by a car. The doctor says he will be fine but he is expecting a 3-week hospital stay.
John could have used business overhead insurance – a form of insurance that is very popular with small business and self employed professionals. This type of insurance will pay John’s utility bills, staff salaries, and other operating costs while he is laid up in the hospital and unable to generate revenue.
Contact us at 1-866-275-5878 FREE, Kurt, ext. 230 or Frank, ext. 236 for immediate, friendly service to answer your questions or provide a cost quote.
A business owner with a lot of cash held inside the business is exposed to losing this money from lawsuits against the business, creditors, bankruptcy, divorce or other risks to wealth.
If the cash is invested in a GIC, a bond, a mutual fund, a stock or other typical investment vehicle, the money will be lost to the creditors or a lawsuit.
However, if the bond is invested in a segregated fund (seg fund) the money is protected against threats against your wealth.
A seg fund is an insurance product that looks and smells like a regular mutual fund, but could offer creditor protection similar to that associated with life insurance policies.
Contact us at 1-866-275-5878 FREE, Kurt, ext. 230 or Frank, ext. 236 for immediate, friendly service to answer your questions about seg funds or arrange a consultation.
A big problem for business owners is paying high rate income tax on investment income inside the business.
Tax rates can exceed 46% on investment income earned on surplus money left inside your business. This can even be a higher tax rate compared to holding the investments personally (meaning a corporation may cause your more tax!!).
Life insurance can help.
One of the best ways to tax shelter money inside a company is to purchase a corporate owned life insurance policy and contribute your surplus savings into the policy. This money grows tax-sheltered inside the policy every year and on death, pays out tax free to the corporation. This will result in a superior tax result compared to holding cash inside the company.
Contact us at 1-866-275-5878 FREE, Kurt, ext. 230 or Frank, ext. 236 for immediate, friendly service to answer your questions about an insurance tax shelter for your company or provide a cost quote.
Instructor of Wealth Management Course
Would you like a professional tax planning review from a highly qualified Chartered Accountant?
Kurt Rosentreter, CA
50 years ago many Canadians had defined benefit pension plans to take care of them in retirement. Sadly today most people do not!
Today only government employees and staff of some large companies still get the juicy pensions from a defined benefit plan.
HOWEVER, a business owner can still share in this sweet benefit. A business owner can set up an individual pension plan (IPP) for key employees or for the owner alone within an incorporated business in Canada. This pension plan is the same kind that many government employees have, and the business owner can tax shelter far more money inside this IPP than can ever be contributed to an RRSP.
An IPP also offers powerful legal protection of assets and saves tax if the plan is transitioned to children on the death of the elder shareholder.
Contact us at 1-866-275-5878 FREE, Kurt, ext. 230 or Frank, ext. 236 for immediate, friendly service to answer your questions or to provide an IPP cost quote.
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