Are you tired of your bank’s ﬁnancial advisor pushing their bank’s products on you?
Did you know that you could be losing up to 53.53% of your investment returns to TAX alone?
Are you conﬁdent that your investment advisor can provide you with the most tax-efﬁcient investment advice?
The investment industry is quickly evolving. Clients are no longer satisﬁed with a “stockbroker” that simply pushes investment products on them and concentrates only on their portfolio, ignoring their tax, estate, and overall ﬁnancial situation. The market is demanding a fully integrated ﬁnancial approach.
This is where Fabio Campanella CPA, CA, CFP, CIM comes in. Fabio draws on two decades of experience in multiple disciplines to integrate his clients’ tax, estate, and ﬁnancial plans. This ensures no stone remains unturned and all opportunities are fully utilized.
Fabio works under Queensbury Securities Inc., a FULLY INDEPENDENT broker-dealer that is not tied to any “big-box” ﬁnancial ﬁrm or bank. This allows Fabio to offer an independent, bias-free service that leads to more personalized outcomes.
Let’s look at an example: The Peterson Family — Not satisﬁed with their bank broker
The Petersons came to us looking for investment advice. They had been with their current bank advisor for years but felt that something was missing.
Dr. Peterson, an incorporated physician, and Mrs. Peterson, an VP at a pharmaceutical company were both conservative investors. They had been following a traditional approach, as recommended by their bank advisor, for years:
- Max out RRSPs and TFSAs on an annual basis
- Invest the retained earnings in Dr. Peterson’s corporation
- Use a “conservative” investment approach of 60% ﬁxed income and 40% equities
The strategy had “worked well” for them, but they were looking to maximize their results.
Taxes, Taxes, and more Taxes…
Upon careful analysis of their situation the Petersons were shocked to ﬁnd out that they were subject to 6 layers of taxation due to their current strategy:
- Tax on corporate profits at the small business deduction rate of 12.2% or the general rate of 26.5%
- Tax on retained earnings growth of up to 50.17% (corporate investment portfolio as it stands)
- Additional tax via the loss of the small business deduction as their corporate investments generate income more than $50,000
- Personal tax on dividends of up to 47.74%
- Capital Gains taxes on the value of their company to their estate of up to 26.7%
- Dividend taxes for corporate beneﬁciaries of up to 47.74%
Simply put, the greatest drain on their family’s net worth was TAXES, and this needed to be ﬁxed ASAP!
Here’s what we did:
- Reorganized their portfolios:
- Move their ﬁxed income and foreign equities into their RRSPs and TFSAs
- Reorganized the corporate investment portfolio to only:
- Canadian large capitalization equities
- A participating Whole Life Insurance policy
- Work with the couple on an annual basis to ensure the maximum after tax returns by:
- Planning Dr. Peterson’s compensation mix (dividends and salary) to maximize corporate tax refunds
- Actively monitor the corporate stock portfolio to ensure potential tax losses were “harvested” and offset with capital gains to reduce tax over time
- Ensure the life insurance policy is monitored to keep it well-funded, growing (currently receiving a dividend of 6%) and TAX FREE
Of all the strategies employed the most dramatic result was projected to be from the life insurance policy. The Petersons, in their mid-forties and in good health, had never considered life insurance to be an asset class they could invest in.
They wanted the following from an investment plan:
- Less ﬂuctuation in returns
- Tax efﬁciency, ideally tax-free investing
- A predictable and tax efﬁcient estate transfer
All of this was achieved with the life insurance strategy. Click here for more details.
Ultimately, the plan achieved the following:
- More predictable and “smooth” projected investment returns
- Signiﬁcantly less tax, eliminating almost 5 of the family’s 6 prior layers of tax
- A projected boost of $200,000 +++ of TAX-FREE annual income in retirement
A projected $3.3 million, TAX-FREE, estate beneﬁt
Nermin Burgic, Independent consultant
At the Campanella Group we help clients like the Petersons every day. We are dedicated to helping our clients forge the best ﬁnancial path for their families.
Are you ready to take a step forward and secure a lucrative ﬁnancial future for yourself and your family? We are always ready to speak to ambitious entrepreneurs and investors looking for an edge.
Feel free to contact us for a zero-cost, 30-minute, online meeting where we can get to know you and determine if we can help you pave a path to ﬁnancial success.