It’s Myles from Business to Wealth. I will be discussing many topics here, but the main one is – How do I get my Business to Support Me – Instead of Me Supporting It?
It is possible, and we will discuss the steps it takes to transition your business to support your lifestyle.
I have been a business insider for years, in that I own my own business, and more importantly, have helped and created a business plan for many of the top business owners in my city.
I will cover many topics like the different savings plans available, how much money it takes to retire, business transition strategies (you need to start now for them to work), personal insurance and business insurance to protect you and your family while you are building your assets.
The first post will be on Tax Free Savings Accounts (TFSA). I am really excited about the possibilities of Canadians being able to save money in high growth accounts, and never paying a penny of tax – ever. At first these plans where great, but limited. But now – if you have not started yet, you can contribute over $50,000. You and your spouse can have $100,000 growing tax free forever. How great is that? With growth these TFSAs can cover much of your retirement lifestyle.
I generally recommend TFSAs before RRSPs, although every situation needs to be looked at on its merits. It is true that you get an initial tax break with registered retirement savings plans, but the tax bite at the end by revenue Canada can ruin your plans. With tax free savings plans you will never remember that you didn’t get a small deduction at the beginning, when you are making big tax free withdrawals twenty years later.
This was really brought home to me lately when a single father client died of a heart attack with young adult children. He had $600,000 in his RRSP, and before that money can be distributed, Revenue Canada will swoop in and take about $250,000, leaving just over $300,000 for his children. How does that sound?
So one of our first Business to Wealth strategy is to pay yourself first – and put that money into a high growth TFSA!
Talk to you soon.