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Starts 11:30 Advanced Tax Planning Strategies

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About Kurt Rosentreter. Chartered Accountant. Twenty years of experience in personal finance. Past co-founder of the national wealth management practice at one of ... – PowerPoint PPT presentation

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Title: Starts 11:30 Advanced Tax Planning Strategies


1
Starts 1130 Advanced Tax Planning Strategies
  • Presented by
  • Kurt Rosentreter CA, CFP, CLU, TEP, FMA, CIMA,
    FCSI, CIM
  • Chartered Accountant
  • Senior Financial Advisor, Manulife
    Securities Incorporated
  • Certified Financial Planner, Manulife
    Securities Insurance Inc.

2
About Kurt Rosentreter
  • Chartered Accountant
  • Twenty years of experience in personal finance.
  • Past co-founder of the national wealth management
    practice at one of Canadas big four accounting
    firms.
  • National best selling personal finance author
    six published books in Canada.
  • More than 500 published articles and interviews
    for The Globe and Mail, National Post, CBC,
    Canada AM, Canadian Business and Macleans.
  • Personal Finance Course Instructor, Ontario
    Institute of Chartered Accountants
  • Senior Financial Advisor, Manulife Securities
    Incorporated in Toronto (Member CIPF).
  • Certified Financial Planner, Manulife Securities
    Insurance Inc.

3
Complete a Draw Ballot!
  • Draw for four books at the end of this 30 minute
    presentation
  • Draw ballots available at front of room
  • Drop in basket at front of room
  • Only completely filled out ballots will be
    winners.

4
Agenda
  • Tax planning defined
  • Tax planning and your family
  • Tax planning and your investments
  • Tax planning and your life insurance
  • Tax planning and your childrens savings
  • Tax planning and your real estate
  • Tax planning and your estate
  • Tax planning and your retirement
  • Next steps

5
What is tax planning?
  • Tax planning vs. tax return preparation not the
    same
  • What tax planning is not
  • Should you prepare your own tax return?
  • How do you recognize an expert tax planner?
  • What does it cost to hire an expert tax planner?
  • When does tax planning occur?
  • What areas does tax planning involve?
  • Income what everyone is used to thinking about
    taxes
  • But also includes
  • Real estate, investments, estate, insurance,
    family, career, debt and more.
  • When is the last time you had some tax planning?

6
Areas of your Plan That Taxes Impact
7
Tax Planning and your Family
  • View all family members as part of your tax
    planning team
  • Different average tax brackets
  • Different marginal tax brackets
  • Factors to consider before tax planning
  • Existing tax liabilities attached to assets
  • Legal risks of family members
  • Your need for the asset / money

8
Tax Planning Your Family
  • Examples of Tax Planning Among Family Members
  • Bad Examples
  • Elderly mom making her house jointly owned with
    son
  • Couple making a bank account joint
  • Good Examples
  • RESPs
  • Spousal RRSPs
  • Employing family in a business
  • Pension income splitting
  • Spousal loans and reinvestment

9
Tax Planning Your Family
  • Beware Joint Ownership and Gifting for tax
    breaks!!!
  • Examples of disasters
  • Elderly mom daughter sharing a bank account
  • Grandmother putting money away for granddaughter
  • Giving money to adult children to buy a first
    home
  • Giving money to adult children to pay off a
    mortgage.
  • Considerations legal, tax, asset control, your
    need.

10
Tax Planning Your Investments
  • Need to differentiate between taxable savings
    and non-taxable savings (rrsps, tfsa)
  • Each type of accounts warrants tax smart
    techniques
  • Different strategies
  • Different products
  • Different fee approaches

11
Tax Planning Your Investments
  • Seven Dimensions of Tax Smart Investing
  • Tax smart investing and People involved
  • Tax smart investing and Products utilized
  • Tax smart investing and the type of account
  • Tax smart investing and the fee approach
  • Tax smart investing and international aspects
  • Tax smart investing and time period
  • Tax smart investing and account ownership

12
Tax Planning Your Insurance
  • Life insurance
  • Grows tax deferred and pays out tax free on death
  • Loans from policy can be tax free
  • Corporate owned life insurance can be paid for
    with lower taxed dollars
  • Disability insurance
  • Benefits are tax free if paid out of after-tax
    cash flow
  • Critical illness insurance
  • Tax free benefits

13
Tax Planning Childrens Savings
  • Methods to Save Money for Minor Children
  • RESP
  • In trust account
  • Formal Trust
  • Key analysis factors
  • Control over the money, Tax treatment of income,
    Fees, Investment products
  • Notable grandparents should not own savings
    plans can catch up missed years

14
Tax Planning Real Estate
  • Three main types of real estate
  • Personal residence
  • Principal residence exemption
  • Business out of the home
  • Cottage
  • Taxable capital gain on death or sale or deemed
    sale
  • Use of principal residence exemption
  • Renting out your cottage
  • Rental property
  • Tax treatment on death or sale or deemed sale
  • Income splitting
  • Incorporation

15
Tax Planning Your Estate
  • How do taxes work when I die?
  • Make sure your Will had a tax review
  • How much tax will your estate pay and where will
    the money come from?
  • Do you need life insurance for estate taxes?
  • What are probate fees/costs and how to avoid
    them?
  • Is it better to trigger taxes now or wait until
    you die?

16
Tax Planning Retirement
  • Manage the composition of your retirement income
    mix (pensions, CPP, OAS, RRSP, RRIF, part time
    work, investment income)
  • Manage clawbacks age credit, OAS
  • How? Incorporate investments or buy deferred
    growth products
  • Pension credit
  • Pension income splitting

17
Tax Planning Retirement
  • Say no to reverse mortgages
  • Dont give away your money to kids to run from
    taxes dangerous
  • Should you borrow money to invest in retirement?
  • Should you buy life insurance to shelter against
    taxes in retirement?

18
Tax Planning Retirement
  • Spousal loans at prescribed rate
  • Buying assets from lower income spouse
  • Pay investment counsel fees, not investment
    commissions
  • Open TFSA accounts and hold interest bearing
    investments inside
  • RRIF withdrawals timing in retirement, timing in
    a year, spouses age if younger.

19
Conclusions
  • Everyone needs an expert tax review every 3 years
    at a minimum.
  • An investment portfolio cannot be built properly
    without thorough tax planning as well.
  • Tax rules change constantly stay on top of new
    opportunities to save tax.

20
Complete a Draw Ballot!
  • Draw for four books at the end of this 30 minute
    presentation
  • Draw ballots available at front of room
  • Drop in basket at front of room
  • Only completely filled out ballots will be
    winners.

21
Thank You.
  • Kurt Rosentreter,
  • Senior Financial Advisor Certified Financial
    Planner
  • CA, CFP, CLU, TEP,FMA, FCSI, CIMA, CIM
  • Manulife Securities Incorporated Manulife
    Securities Insurance Inc., Suite 1410-5001 Yonge
    Street
  • Phone 416-628-5770 Ext 238 kurt.rosentreter_at_manu
    lifesecurities.ca
  • www.kurtismycfo.com
  • Kurts books are available
  • in bookstores across Canada.

22
Disclaimers
  • Manulife Securities Incorporated is registered as
    an Investment Dealer, or its equivalent, with the
    provincial securities commissions and as such our
    Advisors are entitled to sell mutual funds,
    stocks, bonds and other securities as permitted
    under our registration. They may also be able to
    provide other services or products to you through
    their own business. As a member of the Investment
    Industry Regulatory Organization of Canada
    ("IIROC"), Manulife Securities Incorporated is
    obligated to disclose to you that you may be
    dealing with companies other than Manulife
    Securities Incorporated when purchasing services
    or products from your Associate (remuneration to
    your Associate may also come from various sources
    depending on the services or products purchased).
    For example, your Associate may offer any one or
    more of the following through a separate
    business, which would not be the responsibility
    of Manulife Securities Incorporated Income Tax
    Preparation Insurance Life, Accident,
    Sickness, Disability, General. Please be sure
    that you have a clear understanding of which
    company you are dealing with for each of your
    services and products. Your Associate would be
    happy to provide any clarification you require.
  • Insurance products and services are offered
    through Manulife Securities Insurance Inc. (a
    licensed life insurance agency and affiliate of
    Manulife Securities) by Manulife Securities
    Advisors licensed as life agents.
  • The opinions expressed are those of the author
    and may not necessarily reflect those of Manulife
    Securities Incorporated and/or Manulife
    Securities Insurance Inc.
  • Using borrowed money to finance the purchase of
    securities involves greater risk than a purchase
    using cash resources only. If you borrow money to
    purchase securities, your responsibility to repay
    the loan and pay interest as required by its
    terms remains the same even if the value of the
    securities purchased declines.
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