Getting Money Out of Your Corporation

by FLC

Thu, 25-September-2025

As a business owner, you may have surplus cash building up inside your corporation, but what is the most tax-efficient way of withdrawing funds? It is important to plan ahead so that you can decide what works best for your situation and keep more of what you earn.

Here are 5 ways to withdraw money from your business in a tax-efficient manner.

1. Salary vs. Dividends

Business owners often use a mix of salary and dividends to take income from their businesses. Deciding on the right balance requires understanding how each affect both corporate and personal taxes.

If you pay yourself a salary, it is tax-deductible from your corporation and reduces your taxable corporate income. However, your salary will be taxed based on your individual marginal tax rate.

Dividends allow you to draw profits without the payroll obligations that come with a salary. While they can be more tax-efficient, they do not create Registered Retirement Savings Plan (RRSP) contribution room or allow for certain tax deductions tied to a salaried income, such as childcare expenses.

2. Capital Dividend Account (CDA)

The CDA allows your corporation to pay out certain amounts to Canadian resident shareholders as a tax-free dividend. Be aware of the legal rules or consult with an accountant to determine what qualifies for the CDA and how withdrawals must be properly documented.

3. Whole Life Insurance

Whole life insurance can act as a tax-sheltered way to grow your wealth inside your corporation. Over time, this can create a source of tax-free withdrawals for your shareholders or beneficiaries, as it can boost your CDA balance.

4. Refundable Dividend Tax on Hand (RDTOH)

If your corporation earns passive investment income, you will likely pay additional tax. These amounts accumulate in an RDTOH account, and part of the tax is refunded to the corporation when you pay yourself dividends

5. Shareholder Loan Repayments

Consider moving other assets of value into your corporation for investment purposes. This may include investment real estate or collectibles. When you transfer your investment assets into your corporation, you create future opportunities for tax-free withdrawals via shareholder loan repayments.

Understanding the most tax-efficient ways to withdraw money from your business is an essential part of navigating the complexities of being a business owner. Most of the time, there is not one single strategy that works for all business owners. Your approach will depend on your priorities, income needs, long-term plans, and how your corporation is structured.

Planning ahead can help you keep more of what you have earned. If you would like to explore which strategies work for your situation, we encourage you to check in with your financial advisor and tax planner.

Frequently Asked Questions

We reached out to Jason Ding CPA, Co-founder of Notion CPA, who shared his insights on tax planning considerations.

1. Can I combine different strategies to be more tax-efficient?

Yes, absolutely. Generally, there should be a pragmatic approach when taking money out of your corporation. A review of both your corporate and personal situation should be considered.

2. Are there tax-free ways to withdraw money from my corporation?

Most of the time, money taken out of a corporation, like salary or dividends, is taxable. One exception can be a shareholder loan. In certain situations, you can borrow from your corporation without paying tax immediately.

However, a shareholder loan can be quite complicated. Factors including interest rates, what the money is used for, and how your company normally handles loans, all affect whether the money stays tax-free

3. What mistakes do business owners make when withdrawing money, and how can I avoid them?

The most common mistakes we see are:

Not taking any dividends or payroll when shareholders don’t need money from their corporation.
Increasing salary or dividends to cover higher personal costs (e.g. bigger home, rising interest rates) without stepping back to see if a short-term loan would be more appropriate.
Taking out extra salary just to maximize RRSP contributions, even though RRSPs are often not the most effective option for business owners.

Withdrawal strategies can be complex, so it is important to get professional advice from your accountant before making decisions.

Connect with Notion CPA

notioncpa.com

[email protected]

Clients, Families, Financial Planning, Taxes

2025 Summer Financial Checklist

by FLC

Fri, 4-July-2025

The sun is out, and for many, summer brings a shift in pace with some time to rest, reflect, and reprioritize. Whether you’re spending time with friends and family, traveling, or navigating the school break, we often forget to take time to review our financial plan.

Now is an ideal time to do a mid-year review of your finances and reassess your priorities. Intentional planning goes a long way in preparing for the unpredictable. We’ve updated our summer checklist to help you stay organized and keep your financial goals on track.

Investment Contributions

RESP – While there is no annual RESP contribution limit, we recommend that you contribute up to $2,500 per beneficiary per year to maximize the grant. Be mindful that the lifetime contribution limit per beneficiary is $50,000.
RDSP – You may be eligible for up to $3,500 in matching grants depending on your income and contributions.
TFSA – This year’s additional contribution room is $7,000. Remember to check for any unused contribution room from past years.
FHSA – The additional contribution room this year is $8,000. Remember that you will only start accumulating room in the year that you open the account. Unused contribution room can be carried forward, but the maximum carry forward amount is $8,000.

Cybersecurity Tip: Take a moment to review the passwords on your investment and insurance accounts. Many companies now use multi-factor authentication to add an extra layer of protection for your information.

Legal and Accounting

*Updated* Capital Gains Tax – On March 21, 2025, the Government of Canada cancelled the planned capital gains increase. Capital gains up to $250,000 will remain taxed at 50% for individuals.
Corporate Taxes – Many corporations have a fiscal year-end in the summer. Now is a good time to prepare your tax documents and get them ready for your accountant.
Wills – Make sure your will is up to date. If you do not have one yet, we recommend consulting a lawyer to create one. Alternatively, you can use online services like willful.co to set one up.
Bookkeeping – Get your bookkeeping up to date now to avoid the rush later in the year.

Travel

Insurance – Remember to have travel insurance before your vacation to protect your family from unexpected and costly medical expenses. Be sure to review your coverage details before your trip so you are well prepared in case of an emergency.
Spending Plan – Create a spending plan ahead of time to avoid overspending while on vacation.
Foreign Fees – Consider using a credit card without foreign fee transactions to save up to 2.5% per transaction.

With your finances in order, you can enjoy summer with confidence. Remember, while we may not be able to predict what lies ahead this season and beyond, we can prepare for it.

If you have any questions or would like to review your financial plan, we encourage you to check in with your financial advisor.

Clients

2024 Q4 Market Update

by FLC

Wed, 30-October-2024

Photo by Kharl Anthony Paica on Unsplash

As we enter the final quarter of 2024, global economic conditions continue to evolve, with central banks adjusting their policies to balance growth and inflation. This update examines recent developments in Canada and the United States, along with their potential impacts on various asset classes.

Macro Update

⁵

The Bank of Canada continued its easing cycle on October 23, 2024, reducing the policy rate by 50 basis points to 3.75%—its largest cut this year. Canada’s CPI has fallen to 1.6%, below the 2% target, with core inflation now under 2.5%. While growth remains modest and the labour market soft, excess supply and lower global oil prices are helping ease inflation, though shelter costs remain significant.¹

Looking forward, the Bank projects growth at 1.2% in 2024, increasing in 2025, with inflation expected to stay near 2%, keeping costs manageable for Canadians. The lower interest rate should gradually support growth in consumer spending, housing, and business investment.¹

Russell Investments notes that the U.S. economy is showing more signs of a potential soft landing as inflation has cooled significantly, prompting the Federal Reserve to cut interest rates. While employment growth is slowing and unemployment has risen slightly, layoffs remain limited, suggesting the job market is adjusting without typical recessionary job losses. The Federal Reserve’s proactive rate cuts aim to maintain economic stability, though risks remain if consumer caution leads to reduced spending and increased layoffs.²

Asset Update

⁵

The S&P 500 delivered a 5.53% gain for the quarter, lifting its year-to-date (YTD) return to an impressive 20.81%³. Solid corporate fundamentals continue to support growth, with earnings expected to expand beyond just the largest companies.² Vanguard’s latest outlook reflects this with slightly adjusted long-term projections, lowering expectations for U.S. large-cap stocks while raising them for small-cap stocks over the next decade.⁴

Meanwhile, their 10-year fixed-income projections are offering returns similar to equities, but with less volatility, appealing to conservative investors.⁴ Still, Russell notes that recent drops in Treasury yields have brought them to fair value, prompting some portfolios to reduce their bond holdings.²

Since they believe equities are priced for a stable economic adjustment, the possibility of a tougher downturn adds some risk. They underscore the importance of maintaining diversified U.S. portfolios to manage potential market swings effectively.²

Hot Topic: Red or Blue

⁵

As the 2024 U.S. election approaches, investors can expect continued market volatility beyond typical business cycle uncertainties. Russell has highlighted that key economic risks to monitor include potential tariff increases, changes to corporate tax rates, and challenges to Federal Reserve independence. Despite these short-term concerns, they note that historical trends show that U.S. stocks have generally trended upward over the long term, regardless of which party controls the White House. Moreover, diversified portfolios have typically delivered positive returns in election years, a pattern expected to continue in 2024.² While political outcomes may create short-term market fluctuations, maintaining a well-balanced, diversified portfolio aligned with long-term financial goals remains a prudent strategy for navigating election-year uncertainties.

Summary

Photo by Luca Bravo on Unsplash

The Bank of Canada accelerated rate cuts last quarter, during increasing economic pressure for Canadians. In contrast, the U.S. has navigated its economic environment more effectively, offering greater stability and boosting confidence in U.S. assets, even amid higher valuations. As the U.S. election approaches, investors can expect continued market volatility. With this and the U.S. potentially positioned for a soft landing, diversification across asset classes and regions is essential to manage market volatility and shield against economic uncertainty.

We encourage you to connect with your financial advisor to ensure your portfolio aligns with your life stage and financial goals, enhancing resilience in an evolving market.

Sources:

[1] Bank of Canada Media Relations. (Oct. 23, 2024). Bank of Canada reduces policy rate by 50 basis points to 3¾%. https://www.bankofcanada.ca/2024/10/fad-press-release-2024-10-23/

[2] Russell Investments. (Accessed on Oct 29. 2024). Q4 2024 Global Market Outlook: DEFINITELY MAYBE. https://russellinvestments.com/ca/global-market-outlook

[3] S&P Dow Jones Indices. (Oct. 2, 2024). U.S. Equities Market Attributes September 2024. https://www.spglobal.com/spdji/en/commentary/article/us-equities-market-attributes

[4] Vanguard Investment Strategy Group, global economics and markets team. (Oct. 22, 2024). Market perspectives. https://advisors.vanguard.com/insights/article/series/market-perspectives

[5] Fidelity Investments. (Accessed on Oct. 29, 2024). Quarterly Market Update: Fourth Quarter 2024. https://institutional.fidelity.com/app/literature/item/956327.html

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by Financial Literacy Counsel, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.

Mutual Funds and ETFs are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Clients

2024 Q3 Market Update

by FLC

Mon, 29-July-2024

Photo by Andrea Cau on Unsplash

Stay informed with our latest update on economic trends and investment strategies. Discover the impact of the Bank of Canada’s rate cuts, get the latest economic updates from Canada and the U.S., and review recent asset performance.

Macro Update

This past quarter, the Bank of Canada implemented two rate cuts, bringing its policy rate down to 4.5%. With a June inflation rate of 2.7%, they maintain expectations that Canada’s core inflation will decline to about 2.5% by the end of the year and reach its 2% target in 2025. The Bank’s decision to reduce the policy interest rate is due to easing broad inflationary pressures and excess supply, while acknowledging that high price pressures in shelter and services are keeping inflation elevated. Future monetary policy will be guided by ongoing assessments of these opposing inflationary forces, with a commitment to achieving price stability².

Russell Investments reiterated that a contraction of over 3% in per-capita GDP over the past two years indicates weaker economic health than headline GDP figures suggest. Additionally, The unemployment rate has risen from 5.4% to 6.2% over the past year. This increase reflects difficulties in absorbing the current influx of immigrants into the labour market³.

In the U.S., Vanguard reports that economic growth indicators, such as productivity gains and retail sales, are showing signs of slowing, leading them to anticipate 2024 GDP growth of around 2.0%. Despite recent favorable inflation readings, which have spurred market expectations of a Fed rate cut in September, Vanguard predicts that the Fed may only implement a modest rate cut in 2024 due to persistent high shelter inflation and a need to balance economic risks⁴.

Asset Update

Last quarter we saw the S&P 500 start off with a slight dip, but managed to rally and end June with year-to-date returns at 14.48%⁵. Fidelity’s analysis echos its first quarter findings, showing that “Magnificent Seven” accounted for a 17% return, while the remaining 493 stocks were flat¹.

Vanguard’s updated 10 year projections show U.S. large-cap equities ranging from 3.2-5.2%, while small-cap and value have higher projections from 4.4%-6.8%, but carry more risk⁴. Though valuations may be attractive, Russell adds extra caution as they still believe there is a 35% recession risk in the U.S., which would have a stronger negative impact on small-cap companies³.

Similarly, Russell warns that current valuations of Canadian shares are reasonable, but economic concerns warrant a cautious stance. Despite improved earnings-per-share (EPS) growth estimates, potential downturns could harm corporate profitability. They believe that given the economic uncertainty and continued potential BoC rate cuts, government bonds are expected to perform well. They are seen as a safe investment, especially if a recession occurs³.

Summary

Photo by Javier Allegue Barros on Unsplash

The past quarter has been marked by significant economic adjustments, notably the Bank of Canada’s rate cuts. On the asset front, despite positive performance in major indices like the S&P 500, analysts recommend cautious optimism given the potential for economic downturns. As we have seen each quarter, the market is full of surprises and timing is challenging to predict. In this context, diversification is key to managing risk and seizing opportunities, helping investors navigate market volatility and adapt to changing economic conditions.

If you have any questions about how your portfolio is positioned or if you have had any major life changes, we encourage you to contact your advisor!

Sources:

[1] Fidelity Investments. (Jul. 2024). Quarterly Market Update: Third Quarter 2024. https://institutional.fidelity.com/app/literature/item/956327.html

[2] Bank of Canada Media Relations. (Jul. 24, 2024). Bank of Canada reduces policy rate by 25 basis points to 4½%. https://www.bankofcanada.ca/2024/07/fad-press-release-2024-07-24/

[3] Russell Investments. (Jul. 2024). Q3 2024 Global Market Outlook: THREE-SCENARIO PROBLEM. https://russellinvestments.com/-/media/files/ca/en/insights/global-market-outlook/2024-q3-gmo-full-report.pdf

[4] Vanguard Investment Strategy Group, global economics and markets team. (Jul. 24, 2024). Market perspectives. https://advisors.vanguard.com/insights/article/series/market-perspectives#projected-returns

[5] S&P Dow Jones Indices. (Accessed on Jul. 26, 2024). S&P 500®. https://www.spglobal.com/spdji/en/commentary/article/us-equities-market-attributes

Clients, Families, Financial Planning, Taxes

2024 Summer Financial Checklist

by FLC

Wed, 5-June-2024

Photo by Natalya Zaritskaya on Unsplash

With the school year wrapping up, many transitions are underway. Children are starting their summer break, and families are planning trips, from beach visits to longer holidays abroad. Recent medical school graduates are also stepping into their new roles as residents.

No matter your situation, our team at FLC has updated our summer checklist to help you manage your finances during these changes. As always, feel free to reach out to your advisor if you have any questions or want to discuss any of these items further.

Investment Top-Ups

RESP – You can contribute up to $2,500 per child this year to maximize the grant. If you have missed contributions in past years, you can contribute up to an additional $2,500 as a catch-up.
RDSP – Depending on your family’s income, you can contribute $1,000-$1,500 to maximize the grant. For more information, click here.
TFSA – This year’s additional contribution room is $7,000. Remember to check for any unused contribution room from past years too!
FHSA – This is a helpful way to save for your first home and reduce your taxes for the year. You have $8,000 of additional room this year. Remember that you will only start accumulating room in the year that you open the account.

Cybersecurity Tip: review your existing passwords for your investment and insurance accounts. Many companies are moving towards multi-factor authentication to help keep your information secure.

Photo by Sandy Ravaloniaina on Unsplash

Legal and Accounting

*New* Capital Gains Tax – On June 25th, this capital gains inclusion rate will increase to 66.7%. This will apply to amounts exceeding $250,000 for individuals and on the first dollar for corporations. Be sure to review your investments with your advisor to determine if any actions should be taken ahead of the change.
Corporate Taxes – Many corporations have a year-end during the summer. Start preparing your tax package to submit to your accountant and check this off your to-do list!
Wills – Ensure your will is up to date. If you do not have one, we recommend working with a lawyer to create one. At the very least, you can easily create one online at willful.co so that you have something in place. Talk to us to find out if you qualify for a discount.
Bookkeeping – get your bookkeeping back on track and avoid having to do it during the busier holiday season.

Photo by Khachik Simonian on Unsplash

Travel

Insurance – Remember to ensure you have travel insurance before leaving for your vacation to protect your family from unexpected and costly medical expenses.
Inspect what you Expect – Review your travel insurance coverage details before your trip so that you are better prepared in the event of an emergency. Knowing the number to call and the nearest approved hospital is especially helpful when time is of the essence.
Spending Plan – Consider using a credit card without foreign fee transactions to save up to 2.5% per transaction.

Photo by Andrew Ruiz on Unsplash

Last, but not least…

Remember to schedule a check-in with your financial advisor. Enjoy the summer and we will meet-up with you in the fall!

Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Clients

2024 Q2 Market Update

by FLC

Mon, 29-April-2024

Photo by Mike Benna on Unsplash

Get insights on economic trends and investment strategies with our latest update. Learn about the Bank of Canada’s inflation outlook, current market dynamics, and key highlights from the 2024 Federal Budget, including changes to the capital gains tax and the Home Buyers Plan.

Macro Update: Steady as she goes

On April 10th, the Bank of Canada (BoC) opted to maintain its policy rate at 5%. They anticipate Consumer Price Index (CPI) inflation to hover around 3% in the first half of 2024 before moderating to below 2.5% in the latter half, ultimately reaching the 2% inflation target by 2025².

Russell Investments updated its Canadian recession estimation to occur within the next 12 to 18 months, pushing it into 2025. Immigration continues to bolster the overall economy, yet the current job creation rate doesn’t align with the influx of immigrants. Despite no official recession, GDP per capita has declined by 3.2% since the second quarter of 2022, which they suggest is a “standard-of-living recession”³. Higher debt levels and joblessness pose ongoing risks as indicators of soft demand persist in Canada, with slow sales growth particularly evident in sectors tied to discretionary consumption and residential real estate⁴.

In contrast, Vanguard’s view on the US economy appears more optimistic, with expected real economic growth of about 2.0% in 2024, surpassing their initial estimates of 0.5%. Shelter prices, a significant component of the core inflation, have increased by 5.7% year-over-year, contributing substantially to overall inflation⁵, similar to the current state in Canada.

Asset Update: Keeping the ship stocked

The S&P 500 ended a strong first quarter above 10%, but has pulled back since then, with year-to-date returns at 6.33% as of April 24, 2024⁶. Fidelity’s analysis highlights a continued significant performance gap within the index: by the close of the quarter, the “Magnificent Seven” stocks appreciated by 17%, nearly doubling the broader S&P 500’s growth rate, which stood at 9%¹.

Shifting focus to portfolio strategies, Russell Investments has been prioritizing security selection and diversification to safeguard client outcomes amidst diverse scenarios anticipated in the coming year. While formerly favoring quality equities—companies with strong balance sheets and profitability—this preference was adjusted in February following a period of robust performance for these stocks³. Similarly, Vanguard suggests that though these equities are currently favorable, investors might contemplate maintaining some exposure to large-cap growth stocks. Many have thought these to be overbought, however, they may still have a runway for continued returns⁵. This underscores the value of a diversified portfolio for long-term growth.

Hot Topic: 2024 Federal Budget – is that an iceberg?

Photo by Tom Carnegie on Unsplash

Earlier this month, Canada’s Department of Finance presented the 2024 Federal Budget. By the next morning, many woke up to headlines surrounding the capital gains tax increase from 50% to 67%. The Department of Finance emphasized that this would primarily affect Canada’s highest income earners, as, for individuals, it only applies to amounts in excess of $250,000⁷. However, professionals who are incorporated or planning to incorporate will have to do a deeper dive into potential implications. There will also be greater considerations for estate planning and real estate investment properties.

Prior to the full budget release, the Finance Minister announced an update to the Home Buyers Plan. Canadians can now withdraw up to $60,000, a substantial increase from the previous limit of $35,000, from their tax-sheltered RRSP to facilitate first-time home purchases. This adjustment is expected to provide valuable assistance to those striving for homeownership. You can find additional details about this development on Investment Executive here⁸.

Summary

Photo by Javier Allegue Barros on Unsplash

As we navigate these economic shifts and policy changes together, it’s essential to conduct regular reviews of your financial plan. Remember to keep the principle of diversification top of mind in your investment strategy. Diversified portfolios not only help manage risks but also maximize growth opportunities over time, regardless of market fluctuations. If you’re uncertain about how the Federal Budget developments may affect your financial journey, we encourage you to reach out and connect with your advisor. Your financial well-being is our priority, and we’re here to provide personalized guidance and support tailored to your individual goals and concerns.

Sources:

[1] Fidelity Investments. (Apr. 2024). Quarterly Market Update: Second Quarter 2024. https://institutional.fidelity.com/app/literature/white-paper/9883196/second-quarter-2024-quarterly-market-update.html

[2] Bank of Canada Media Relations. (Apr. 10, 2024). Bank of Canada maintains policy rate, continues quantitative tightening. https://www.bankofcanada.ca/2024/04/fad-press-release-2024-04-10/

[3] Russell Investments. (Apr. 2024). Q2 2024 Global Market Outlook: PENT-UP EXUBERANCE. https://russellinvestments.com/-/media/files/ca/en/insights/global-market-outlook/2024-q2-gmo-full-report.pdf

[4] Bank of Canada. (Apr. 1, 2024). Business Outlook Survey—First Quarter of 2024. https://www.bankofcanada.ca/2024/04/business-outlook-survey-first-quarter-of-2024/

[5] Dziuba, R & Sheridan, M. (Mar. 22, 2024). Portfolio perspectives. https://advisors.vanguard.com/insights/article/series/market-perspectives

[6] S&P Dow Jones Indices. (Accessed on Apr. 24, 2024). S&P 500®. https://www.spglobal.com/spdji/en/commentary/article/us-equities-market-attributes

[7] Government of Canada. (Accessed on Apr. 25, 2024). Budget 2024: Chapter 8: Tax Fairness for Every Generation. https://www.budget.canada.ca/2024/report-rapport/chap8-en.html

[8] Mezzeta, R. (Apr. 11, 2024). Feds boost home buyers plan withdrawal limit to $60,000. https://www.budget.canada.ca/2024/report-rapport/chap8-en.html

Financial Planning

Breaking the Silence: Addressing Money Taboos for Financial Wellness

by FLC

Wed, 13-March-2024

The following article is written by our Associate Advisor: Jee-Woon Jonathan Ha, BA, RIS

It is often said that what gets measured gets improved. To accomplish this, it helps to have open conversations with your trusted peers about whatever it is you are attempting to improve upon. Whether it is a fitness goal or a new hobby, sharing the struggles and successes allows a person to understand where the gaps are and how improvements can be made.

However, regardless of where you were born or how you were raised, it seems that many cultures today have consistent topics that are taboo to talk about, including money. Despite its foundational importance and undeniable prevalence to the many aspects of our life, there is a pervasive discomfort surrounding money conversations that often hinders financial wellness.

Let’s dive into 4 money taboos and why we should start talking about them.

1. Debt Shame:

Personal Finances are simply not taught enough in school. Even business school graduates will leave their university campus grounds feeling confused and disorganized with their assets, debts and spending habits. This can lead to unexpected overspending and a dependence on debt, which can be so easy to get into but feel impossible to get out of. By normalizing conversations around debt, seeking support to develop debt repayment strategies and asking for accountability to successfully execute this plan, individuals can remove heavy emotional burdens and go back to sleeping peacefully at night knowing they are not chained down by their lender.

2. Inheritance and Estate Ignorance:

This one is taboo twofold considering we are discussing another subject that is silenced – death. However, Canadians often don’t realize that the biggest tax bill for an individual is often at their death. This is because in Canada, many of your personally owned assets are considered sold the day before you passed away, triggering a massive tax bill for the remaining loved ones to deal with. By having proper planning completed in preparation for this day, it will allow the individual’s wealth to pass to the next generation in a tax-efficient manner, rather than having a significant portion of their wealth go to the government in the form of taxes. Planning through avenues such as wills, trusts, insurance and beneficiaries will ensure that their wealth is preserved, managed and distributed according to their wishes.

3. Investment Intimidation:

Many people enjoy traveling from Vancouver to Vancouver Island, which usually requires a ferry ride. However, if someone is too intimated to take the ferry and hesitates to get on the boat, it can cause them to delay or miss their opportunity of getting to their goal. Likewise with our investments, a lack of financial literacy can cause someone to miss out on opportunities to grow their wealth to achieve retirement based on their desires. Avoiding discussions around investment strategies due to fear of judgement or appearing ignorant can cause hesitation to get on the ferry, but we are here to help you get sailing.

4. Spending Guilt:

Everywhere we go, we are constantly bombarded with messages that tell us we could be happier with more. This insatiable desire for more can cause us to become overly materialistic without any consideration for financial prudency. By adopting a balanced approach of savings vs spending, it is possible to fill up your photo album with meaningful experiences that money can buy while achieving your long-term goals at the same time. This often requires understanding how much is enough and having a target to pursue. Then, a purposeful spending plan follows, where you tell every dollar what to do rather than wondering where it went. The end result is a life comprising of guilt-free spending, all the while achieving financial freedom in the years to come.

Final Remarks

Our finances are so closely tied to our emotional and relational well-being. As a strong foundational component of our life, it is important to uncover the potential roadblocks that may hinder our progress towards reaching our financial goals. Open and honest discussions around these 4 drivers of money secrecy may help eliminate some of these roadblocks. So, let’s start talking about money – because financial wellness begins with breaking the silence.

If you would like to start the discussion on any of these topics with a professional, reach out to your financial advisor!