Financial planning
Corporate financial planning: A game plan, a win.
An idea without a plan remains a dream. A vision with a plan becomes an achievable goal. Itâs always easier to win a game when you know the rules of the game. In business, the financial planner plays the same role as the coach. It does not make the decisions for you, but guides you to the best decisions to make to win more easily.
Transparency
Proactivity
Integrity
A financial planner for your personal and corporate situation
When in business, entrepreneurs tend to forget about their personal situation. Their business comes first and their personal financial situation is too often ignored.
Unfortunately, this risk can be very costly. Hence the importance of balancing their overall portfolio in order to reduce risk.
Fortunately, Planico specializes in financial planning for entrepreneurs. One of our advisors will be happy to manage your financial situation so that you can manage your affairs with confidence.
Business needs
In the financial planning of your business, it is important to consider and anticipate the growing needs of your business as it grows.
By planning for this evolution, you can ensure successful growth and avoid unpleasant surprises along the way. Youâll be able to ensure that all the workforce is in exactly the right places for your business to succeed.
Business needs
Independent and incorporation
There are several tax advantages to incorporation as well as several advantages to being self-employed and incorporating. With our expertise, we will be able to determine whether it is better for your business to incorporate or for us, depending on the goals and needs you have.
In order to create the most ideal financial planning strategy for you based on your goals and needs, we invite you to schedule a call with us.
Independent and incorporation
Management company
A management company can be a promising avenue in your financial planning strategy since it allows you to protect your wealth, optimize your taxation and better manage your investments. However, establishing a strategy that includes the creation of a management company can be complex, which is why you will need the help of experts in order to successfully protect your wealth and optimize your business tax.
Management company
Plan and stabilize the financial situation of the company
The financial situation of an entrepreneur is unique. Entrepreneurs are overwhelmed with tasks, obligations, responsibilities and unforeseen events.
The financial situation of their company is treated to the small onions while their personal financial situation comes second.
In this case, 5 elements must be taken into consideration to find the overall balance of the corporate and personal financial situation.
The role of the financial planner is to stabilize the situation, minimize risks and find the overall balance between the personal and corporate situation of the entrepreneur.
The financial equilibrium of an entrepreneur.
Transfer of your business
The transfer of a business is prepared several years in advance and planning for this transfer is an essential step in the success of your financial planning. It may be a key step for your retirement plan so you must ensure the smooth running of the operation so that it is done at the right time and in the most optimized way possible.
Plan a meeting with us in order to establish together a tailor-made strategy according to your needs and objectives.
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Transfer of your business
Diversification of investments
Diversification of investments is a crucial step towards promising and stable returns. As there are a variety of different asset classes and funds, with a tailor-made financial planning strategy, we will be able to help you invest optimally and help you maximize your returns.
Schedule a meeting with us and start by discussing your needs and goals.
Diversification of investments
Corporate and Personal Investments
The vast majority of entrepreneurs/shareholders rely on the income generated by their businesses in order to cover their expenses and, above all, to build a proud and stable capital in order to ensure a flourishing retirement. In this situation it is important to establish a precise and concrete plan to combine your corporate investments and your personal investments. Together, we will be able to set up a tailor-made strategy customized to your objectives.
Corporate and Personal Investments
Time horizon and investment optimization
The time horizon determines the expected duration of your personal or corporate investments. By designating the types of investments that suit your investor profile and portfolio, we can establish a clear, accurate and effective investment horizon.
By establishing a time horizon for your investments, we are able to optimize your investments and maximize their returns.
Time horizon and investment optimization
Proper use of your BNRs
Retained earnings (BNRs) represent the amount of income remaining after paying all costs related to the operation of the business, i.e. : direct and indirect costs, taxes, dividends to shareholders, etc.
This is a remaining amount that can be of great use to you in the growth of your business and can be considered in your financial planning strategy.
Proper use of your BNRs
Plan and stabilize the companyâs tax situation
By reviewing your companyâs tax documents, it is easy to check if you are taking advantage of all the tax breaks (deductions, credits) to which you are entitled as a business owner. At the same time, we assess whether there is an opportunity to apply strategies that allow you to reduce or defer taxation.
RDTOH and CDC
Strict new rules regarding investment income can complicate your taxation and create unexpected costs, such as the refundable dividend tax system (RDTOH). It is therefore important to consult a financial planner to ensure that you optimize your taxation and that of your company.
The Capital Dividend Account (CDC) is a must for entrepreneurs since it allows the private company to pay its shareholders non-taxable sums.
Through our many years of expertise, we have mastered the use of these strategies to help you optimize your tax and ensure
RDTOH and CDC
Capital cost allowance and interest
In the analysis of your tax situation we take into account the counting of capital cost allowances, since it consists of an ingenious method of tax optimization. Depending on your situation, your objectives and your needs it can be an interesting depreciation method to consider if you own a business. Large investments can be the key to long-term returns and good tax optimization, depending on the investments you have made, it can be ingenious to adopt a linear or degressive method.
Schedule a meeting with us to establish together the best approach for your financial planning.
Capital cost allowance and interest
Capital gains deduction
Capital gains deductions are available. The deductions in question may apply to specific items that affect specific situations or sectors.
When we do the financial planning for your business together, we analyze the deductions for eligible capital gains.
Letâs plan a meeting together to discuss your situation and the opportunities available to you.
Capital gains deduction
Impact of the Morneau Reform
The Morneau reform is a measure that was put in place to prevent professionals from setting up private corporations to reduce their tax bills. In the Morneau reform, any passive income that exceeds $50,000 will have a negative impact on the small tax rate granted to the REEA***
The Morneau reform may have had an impact on all well-meaning entrepreneurs with passive investments, so it is essential to conduct an analysis in order to adapt and optimize your companyâs taxation.
REEA (Active Business Income) first $500,000 in net profits before tax.
Impact of the Morneau Reform
Financial Planning â Retirement Situation
As an entrepreneur, youâve worked hard enough, made great sacrifices, taken enough risks to earn the retirement of your dreams.
The analysis of the retirement situation requires taking into consideration a multitude of data in order to properly assess your current savings situation and the anticipated situation in retirement.
With planning, itâs easier to get to your destination.
A well-deserved retirement...
Estate freeze
During a business transfer, there may be surprise invoices that occur. Without proactive planning, you could be surprised by a higher-than-expected tax bill. Whether it is you or the person who will receive the business, it is possible to plan the transfer properly to ensure that the transition is as smooth as possible.
The estate freeze allows capital gains (and corresponding taxes ) to be frozen according to the value of the business. This is an interesting strategy to plan in your financial planning if one of your goals is the transfer of the company or share to a successor.
Estate freeze
Business income
It is possible that you benefit from business income to financially support yourself when you retire. In tax optimization and financial planning for your retirement, we will analyze the different opportunities available to you so that you can maximize each of the sources of income.
There are several tax benefits to opting for a business income paid by dividends rather than a fixed salary, both in terms of tax and for the future of your retirement. It is for this reason that we will be able to carry out a detailed analysis of your situation and your objectives in order to create a tailor-made strategy to benefit from a flourishing retirement.
Business income
The Individual Pension Plan (IPP)
The Individual Pension Plan (IPP) can be a potentially very powerful tool in your retirement planning since it allows you to make larger contributions than with an RRSP, but is subject to several laws.
Depending on certain situations, it may be more tax-efficient to proceed through the IPP than to proceed with the RRSP. An in-depth analysis of your situation will allow us to establish the best choice to ensure a fabulous retirement.
The Individual Pension Plan (IPP)
Life projects
In retirement we dream of different life projects, such as traveling to fabulous countries, getting a dream house and land, getting a splendid car, etc. These dreams can have a significant financial impact, which is why it is possible to anticipate these different life projects in advance, in your financial planning and ensure that you can flourish and live a dream retirement.
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Life projects
Plan everything
Financial Planning â Situation at Death
As an entrepreneur, itâs important to be ready for anything. The purpose of this analysis is to assess the legal, fiscal and financial impacts of the death of a shareholder, to measure the consequences on the general financial situation of dependents. Thus, we will make the recommendations that will make it possible to align the financial wealth with your objectives.
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Trust
The trust can be a great tool to protect your assets and make it easier to transfer your estate. Paired with other tools, it is possible to create a tailor-made strategy that is optimized fiscally to facilitate the transfer of wealth for an entrepreneur.
We will be able to plan with you an appropriate financial planning strategy according to your situation and objectives. Contact us to determine how a trust can help you in your situation.
Trust
Death of a shareholder
In your financial planning, it is crucial to anticipate different events, even the most tragic ones. It is for this reason that it is vital to have a clear and precise plan in the situation where a shareholder were to die.
Several alternatives exist in this situation and allow you to avoid complex and costly procedures and ensure good business continuity.
Death of a shareholder
Estate Planning
A clearly written will is crucial in your estate plan. When owning a business, it is essential to consult a financial planner to develop a specific plan and strategy to ensure that the wealth you have worked to accumulate is distributed according to your wishes.
There are several strategies to help you achieve your estate planning goals, including wills, beneficiary designation, powers of attorney, insurance, trusts, tax planning, and much more.
It is for this reason that we invite you to schedule a call with us to discuss your needs and goals and we will be able to find the right approach for you.
Estate Planning
Protection Partnership
Partnership protection is a protection allowing shareholders to finance the redemption of the shares of a partner in the company in the event of death, prolonged disability or serious illness.
It is crucial to think about partnership protection in order to avoid long complications in the event that a partner is absent for a long time.
Protection Partnership
Different protections
Planning Protection status
Entrepreneurs tend to plan several shots in advance. Unfortunately, as an entrepreneur, you are at the risk of lifeâs unforeseen events. Serious illness, injury, disability, death, and many others are part of the reality and its impossible to plan. Fortunately, it is possible to protect your business, partners and family to minimize the negative impacts of these unforeseen events. This analysis makes it possible to highlight the protection mechanisms you have at your disposal in order to mitigate the financial and legal consequences of a prolonged disability or incapacity, and to propose solutions to fill any negative gap.
It is better to be protected and not need it, than to need it and not to be protected.
Shared-ownership critical illness coverage
It is possible to share critical illness coverage with a key person in the company in order to be proactive and have protection in the event of a serious illness.
The company will take care of the payment of the protection and collect the indemnities if something happens to your key employee and the employee takes care of paying the guarantee of reimbursement of the premiums, which he will receive if he has not used the protection at the end of the period provided for in the guarantee.
Letâs plan a discussion to determine if the strategy is right for your needs and goals.
Shared-ownership critical illness coverage
Protection for long-term care
Itâs easy to take our physical health for granted mentally, but without warning, illness and disability can strike. Thatâs why long-term care coverage is an important choice in order to have an alternative to cover medical expenses that can quickly accumulate and thus avoid compromising your retirement plan.
Protection for long-term care
Shared-ownership critical illness coverage
It is possible to share critical illness coverage with a key person in the company in order to be proactive and have protection in the event of a serious illness.
The company will take care of the payment of the protection and collect the indemnities if something happens to your key employee and the employee takes care of paying the guarantee of reimbursement of the premiums, which he will receive if he has not used the protection at the end of the period provided for in the guarantee.
Letâs plan a discussion to determine if the strategy is right for your needs and goals.
Shared-ownership critical illness coverage
Critical illness insurance
Living with a serious illness can have a great financial impact on a personâs life and must completely rehabilitate our living environment.
This is an important protection to provide in order to anticipate the costly costs related to medical expenses, certain accessories and even certain changes to your living environment.
Critical illness insurance
Shareholder disability
This can complicate matters if a shareholder of your company becomes disabled.
The best precaution to avoid complications are shareholder disability protections that will allow for fair and appropriate options in the situation where a shareholder becomes disabled.
Disability can be both physical and mental, so it is essential to be proactive and anticipate the unexpected.
A shareholder must be absent?
Corporate disability
Donât let illness or injury make you lose the queens of your business and lose the fruits of your efforts.
Corporate disability coverage ensures a constant monthly income with bringing oxygen to your business during your absence in order to continue to cover expenses. Whether itâs a physical or mental disability, itâs important to be proactive and have a plan in the situation where you should be away.
A shareholder must be absent?
Shareholdersâ or partnersâ agreement
When creating your company, it is a good idea to think about putting in place a shareholder agreement that aims to put in place the regulations, structure and different roles of shareholders within the company as well as a specific plan if it happens that one or more shareholders would no longer be able to fulfill their roles.
It is important to anticipate all possible scenarios that may arise and to include a plan in your financial planning strategy should there ever come a time when you would like to sell or buy back shares in the company.
Shareholdersâ or partnersâ agreement
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