Introduction The concept of using a life insurance policy with cash value as collateral security for a loan is not new. However, in recent years, this concept has evolved from future leverage (often at retirement) to one in which large sums of money are deposited…
Introduction A policyholder may choose to transfer ownership of an interest in a life insurance policy to another person. This Tax Topic will discuss the income tax implications of transferring a personally-owned policy to a spouse, to a child and to a non-arm’s length person….
Why do wealthy individuals, those who have no need for more insurance, sign up for the largest whole life policies issued inCanada? Did they meet a high pressure insurance salesperson who convinced them to buy something they don’t need? Are they unsophisticated investors who have…
Humans have the most complex and sophisticated minds in the animal kingdom, but when it comes to money our lizard brains take over. What’s the biggest threat to your portfolio? Most people would say low interest rates, high investment fees, looming inflation or the threat…
Many professionals now have the opportunity to run their business as a professional corporation. The ability to incorporate raises a number of planning issues and opportunities. This Tax Topic will explore the ins and outs of professional incorporation. Who can incorporate? Traditionally, professionals have carried…
Introduction In this Tax Topic, we look at the basic rules relating to charitable giving through life insurance and in particular, the methods of gifting life insurance. There are three main methods by which a donor can gift life insurance to a charity. First, the…
As a small-business owner, you have to make a wealth of decisions related to your business, from how to market your product or service to how to manage your employees. One employee-related decision is what employee benefits you will offer, from health insurance to a…
Investing in a Tax-Free Savings Account should be a priority for most Canadians. One of the first acts of the new year for our family was topping up our Tax Free Savings Accounts or TFSAs. You’ll see a number of TFSA stories running this week…
The tax man gives Canadian dividends such a delicious treatment, you can pay negative taxes. That means no tax on your dividends, and less tax on your other income. Talk about having your ice cream and eating it too. Like most dividend-loving investors, Larry Clark…
Why more Canadians should be using annuities. Annuities may be the best retirement product that hardly anyone buys. Like defined benefit pensions, they provide guaranteed income for as long as you live. But while employer pensions are considered the gold standard of retirement income plans,…