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:

  1. Max out RRSPs and TFSAs on an an­nual ba­sis

  2. Invest the re­tained earn­ings in Dr. Peterson’s cor­po­ra­tion

  3. 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:

  1. Tax on cor­po­rate prof­its at the small busi­ness de­duc­tion rate of 12.2% or the gen­eral rate of 26.5%

  2. Tax on re­tained earn­ings growth of up to 50.17% (corporate in­vest­ment port­fo­lio as it stands)

  3. Additional tax via the loss of the small busi­ness de­duc­tion as their cor­po­rate in­vest­ments gen­er­ate in­come more than $50,000

  4. Personal tax on div­i­dends of up to 47.74%

  5. Capital Gains taxes on the value of their com­pany to their es­tate of up to 26.7%

  6. 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:

  1. Reorganized their port­fo­lios:

    1. Move their fixed in­come and for­eign eq­ui­ties into their RRSPs and TFSAs

    2. Reorganized the cor­po­rate in­vest­ment port­fo­lio to only:

      1. Canadian large cap­i­tal­iza­tion eq­ui­ties

      2. A par­tic­i­pat­ing Whole Life Insurance pol­icy

  2. Work with the cou­ple on an an­nual ba­sis to en­sure the max­i­mum af­ter tax re­turns by:

    1. Planning Dr. Peterson’s com­pen­sa­tion mix (dividends and salary) to max­i­mize cor­po­rate tax re­funds

    2. Actively mon­i­tor the cor­po­rate stock port­fo­lio to en­sure po­ten­tial tax losses were harvested” and off­set with cap­i­tal gains to re­duce tax over time

    3. 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:

  1. Less fluc­tu­a­tion in re­turns

  2. Tax ef­fi­ciency, ide­ally tax-free in­vest­ing

  3. 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:

  1. More pre­dictable and smooth” pro­jected in­vest­ment re­turns

  2. Significantly less tax, elim­i­nat­ing al­most 5 of the fam­i­ly’s 6 prior lay­ers of tax

  3. 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
I've been an accounting client of Fabio's firm for a long time, and I'm happy to say that the same attention to detail, expertise, and service translates to Financial & Estate Planning. I required a conservative, long-term approach to financial planning with some optionality for exciting/interesting investments. The best part is that Fabio customizes the approach to my needs - timing/horizon/risk tolerance/etc. are all considered, and as sophisticated as all the pieces may be - the information is presented simply and comprehensively so that I can make the right decision at any given time. The difference between a big-5 'financial planner' and Fab's offering is night and day. Highly recommend!

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.