How to eliviate a potential large CRA tax bill down the road.
Over the weekend I visited with a friend that has a small family business, and I was surprised to hear the concerns they had over Capital Gains Tax Increase from 50% to 67% in the 2024 federal budget. Talking with them further, I realized the potentially negative consequences with their business. Because of their unease, I took the time to re-examine a more Innovative Financial Process for Long-Term Planning, since they express doubt in the potential ability to save for retirement. In the past, these strategies were looked over, but I believe now, they are becoming crucial to achieving a holistic retirement and estate planning. These insurance products can serve as investment protection but MORE IMPORTANTLY offer flexible planning options for retirement and estate management. The way it works is to leverage life insurance products as part of a comprehensive financial strategy to create a tax-efficient growth of investment assets and provide a secure retirement income. These insurance policies grow on a tax-preferred basis, with the ability to use the policy as collateral for tax-free loans during retirement, ensuring a steady income stream, and/or leave a TAX-FREE estate to wanted beneficiaries. This may sound complicated, but once put in place, it is easier than having to contribute and invest in your RRSP and TFSA account. Don’t take me wrong you need both strategies, but you need to make sure you have the right product with the right amount to succeed. Given the potential negative impacts of this tax increase on small business owners, A RE-EVALUATION of corporate and individual FINANCIAL PLANS, need to be examined and adapted as necessary. IF YOU DON'T HAVE A PLAN, YOU NEED A PLAN. We invite you to call or email us with QUESTIONS AND COMMENTS. We are dedicated to finding solutions that are best for each corporation and individual alike. hollie.winkelaar@sunlife.com, phone number 825-551-0440.