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Thinking about incorporating your small business in Canada? Hold on! This video breaks down why staying a sole proprietorship could save you thousands of dollars and even let you deduct your mortgage interest. We'll cover what a sole proprietorship is, its advantages and disadvantages, and reveal two tax planning strategies that are exclusive to sole proprietors. Discover how to deduct business losses and utilize the cashflow-damming strategy to maximize your tax savings. Start smart and learn why sole proprietorship might be the right choice for you.

*FPCBO 131 - Is Your Share Structure Making Your Business Sale Taxable?

https://youtu.be/hjLmFJAV-CU

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Wondering if selling your Canadian business will incur significant taxes? Learn about the Lifetime Capital Gains Exemption (LCGE) and how it can save you up to $1.25 million in tax-free capital gains as of 2025. Jason Pereira, senior partner and financial planner at Woodgate Financial, breaks down the eligibility criteria and tests your business “must meet” to qualify, and how improper planning can lead to costly tax liabilities. Discover actionable steps for structuring your business to maximize tax savings and multiply exemptions across family members.

Tune in to ensure your hard-earned success isn't overshadowed by unexpected tax surprises. 

Don't forget to like, subscribe, and leave a comment!

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Choosing Qualified Financial Planners: Insights from Aaron Hector, President of the IAFP

In this episode of Financial Planning for Canadian Business Owners, host Jason speaks with Aaron Hector, president of the Institute of Advanced Financial Planners (IAFP), about the importance of finding qualified financial advisors in Canada. They discuss the Registered Financial Planner (RFP) designation, the IAFP's role in credentialing and supporting financial planners, and the rigorous process required to become an RFP. The conversation also covers the benefits of working with an RFP, the IAFP's symposiums, ongoing discussions among member financial planners, and tips for selecting the right financial planner. The episode aims to guide business owners and other individuals seeking reliable financial advice.

00:00 Introduction to Financial Planning for Canadian Business Owners

00:22 Overview of the Institute of Advanced Financial Planners (IFP)

00:45 Understanding the Registered Financial Planner (RFP) Designation

02:15 Qualifications and Process to Become an RFP

03:50 The Importance of Peer Review and Feedback

05:57 The Role of the IFP in Supporting RFPs

08:43 Benefits of Working with an RFP

13:21 Tips for Selecting the Right Financial Planner

19:14 Conclusion and Final Thoughts

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Navigating Financial Planning in Canada with FP Canada

In this episode of 'Financial Planning for Canadian Business Owners,' the focus is on finding credible financial advice. Special guest Tasha Batstone, President and CEO of FP Canada, discusses the role of FP Canada as a certifying body, emphasizing their mission to advance professional financial planning. The conversation delves into the standards and importance of the CFP designation and introduces the QAFP designation tailored for less complex financial needs. The discussion also highlights the education, certification, and ethical requirements involved in becoming a financial planner in Canada, and the stringent processes FP Canada employs to ensure public protection and professional accountability.

00:00 Introduction to Financial Planning for Canadian Business Owners

00:39 Finding Credible Financial Planners

00:50 Profile of FP Canada

02:15 Importance of the CFP Standard

06:37 Path to Becoming a CFP

14:28 The QAFP Designation

22:01 Accountability and Enforcement in Financial Planning

28:46 Why Work with a CFP Professional?

30:05 Conclusion and Final Thoughts

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Elevating Financial Planning Standards: An In-Depth Look at FPAC with Julia Chung

In this episode of Financial Planning for Canadian Business Owners, host Jason Pereira delves into the importance of seeking high-quality financial advice. He is joined by Julia Chung, the chairperson of the Financial Planning Association of Canada (FPAC), to discuss the goals and benefits of the organization. Julia elaborates on FPAC's commitment to advancing financial planning as a profession through education, community support, and advocacy for fiduciary standards. They explore membership requirements, the value of a psychologically safe professional community, and FPAC's role in elevating the industry. The episode concludes with guidance on seeking financial planning services and the significance of choosing a true financial planner.

00:00 Introduction to Financial Planning for Canadian Business Owners

01:05 Meet Julia Chung: Chairperson of FPAC

04:18 The Importance of Fiduciary Standards

07:12 FPAC's Vision and Membership

13:01 The Role of Financial Planners in Clients' Lives

19:56 FPAC's Community and Educational Resources

25:01 Finding the Right Financial Planner

27:12 Conclusion and Call to Action

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Unlocking Insights: Expert Tips on Career Growth & Innovation

In this episode, we explore critical insights from industry experts on how to supercharge your career and drive innovation. Key topics include strategies for effective leadership, fostering creativity within your team, and the importance of continuous learning. The discussion also highlights personal anecdotes and practical advice on navigating challenges in professional environments. Listeners will gain valuable lessons to enhance their career trajectory and embrace innovative thinking in their daily work life.

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avigating Gray Areas in Insurance and Tax Law In this episode, host Jason Pereira, alongside guest Jason Watt, embarks on an in-depth discussion about the gray areas in insurance and tax law that Canadian business owners need to be aware of. They explore complex issues surrounding the Income Tax Act’s treatment of insurance, the potential risks involved with current sales tactics, and the specifics regarding corporate-owned insurance and individual policies. They discuss critical illness insurance, the implications of using corporate assets for personal loans, the nuances of the Capital Dividend Account (CDA), the mechanics of health spending accounts, and group benefits. They also touch upon the responsibilities and potential liabilities for insurance agents and financial planners. This episode aims to provide clarity and caution on often misunderstood and convoluted topics in the insurance field.

00:00 Introduction to Financial Planning for Canadian Business Owners

00:11 Gray Areas in Insurance and Tax Law

01:04 Historical Context of Insurance in the Income Tax Act

02:01 Critical Illness Insurance and Tax Code Gaps

02:59 Taxation of Corporate-Owned Insurance

05:06 Complexities of Borrowing Against Insurance Policies

10:45 Offshore Insurance Arrangements

13:56 Capital Dividend Account (CDA) Explained

17:05 Critical Illness Insurance with Return of Premium

20:43 Understanding Actuarial Valuation for ROP

21:06 Critical Illness Insurance: Real-Life Scenarios

21:56 Tax Implications and Full Disclosure

24:21 Group Benefits: Tax Outcomes and Gray Areas

29:14 Health Spending Accounts: Rules and Risks

33:43 Shareholder Benefits and Tax Risks

37:49 Agent's Obligations and Client Protection

41:52 CRA's Response and Tax Court Realities

45:11 Conclusion and Final Thoughts

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor

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Exploring Defined Contribution Health Plans with Steve McEwen

In this episode of 'Financial Planning for Canadian Business Owners,' host Jason Pereira welcomes Steve McEwen from My HSA to discuss defined contribution benefits programs, specifically Health Spending Accounts (HSAs) in Canada. They delve into the differences between traditional benefits programs and HSAs, the flexibility and advantages of HSAs, and the insurance options that can be layered with these accounts. McEwen provides insights on setup, costs, and the use of technology to manage claims, fraud prevention, and the overall benefits for both employers and employees.

00:00 Introduction to Financial Planning for Canadian Business Owners

00:25 Understanding Health Spending Accounts (HSAs)

01:39 Comparing HSAs to Traditional Benefits Programs

04:34 Catastrophic Insurance and Additional Coverage Options

07:52 Privacy and Legal Considerations for Employers

10:39 Setting Up and Administering HSAs

17:14 Cost and Tax Implications of HSAs

23:37 Employee Experience and Fraud Prevention

28:54 Conclusion and Final Thoughts

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In this episode, Jason talks to Jon Shell about the advent of employee ownership trusts in Canada, a game-changing legislation that addresses previous concerns and paves the way for a more inclusive and equitable business ownership structure. Through a deep dive into the intricacies of this model, listeners are offered a comprehensive understanding of its benefits, implications, and transformative potential for both business owners and employees alike.

Episode Highlights:

• 00:51: Jon shares his enthusiasm for being back on the podcast, reinforcing the collaborative nature of the conversation and evidencing the ongoing dialogue within the financial community on employee ownership.
• 00:57: Jon Shell discusses the context of the budget that introduced employee ownership trusts, identifying it as a standout positive in a predominantly negative financial announcement. His perspective sets the stage for an exploration of how this model can change the future of business ownership in Canada.
• 01:12: Shell provides a background on his role at Social Capital Partners, highlighting the organization's mission to democratize asset ownership and its focused efforts on advancing employee ownership as a vehicle for social and economic equity.
• 05:46: Tax incentives associated with employee ownership trusts are explored, providing clarity on the fiscal advantages for selling business owners, including significant capital gains tax exemptions.
• 06:11: The conversation shifts to the legislative nuances of employee ownership trusts and the substantial economic and societal benefits these structures offer, fostering job creation, economic resilience, and employee welfare.
• 08:18: Details on the specific rights and benefits that employees gain through participating in an employee ownership trust are outlined, offering insights into how this model promotes financial inclusion and workplace democracy.
• 12:12: The episode concludes with a forward-looking discussion on the potential expansion and long-term impact of employee ownership trusts in Canada, indicating a bright future for this innovative business model.

Key Takeaways:

• Employee ownership trusts offer a transformative model for business succession, aligning economic incentives with social benefits. - Tax incentives for business owners, including a substantial capital gains tax exemption, make this an attractive option for ensuring legacy and employee welfare.
• Employees gain not just from financial participation in the success of their company but also from having a voice in its governance, promoting a more democratic and equitable workplace.
• The introduction of employee ownership trusts represents a significant shift towards more inclusive capitalism, with potential long-term benefits for the Canadian economy and society.

Tweetable Quotes:

• "Employee ownership trusts redefine business legacy and inclusivity."
• "The transformative power of employee ownership trusts aligns profit with purpose."
• "Economic resilience is built on the foundation of employee ownership." 

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor
• Podcast Editing
• https://www.socialcapitalpartners.ca/ https://www.linkedin.com/in/jon-shell-8952491/ 

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In this episode, Jason Pereira discusses the world of virtual assistants for financial advisors, featuring insights from Andrew Evans, Founder of ROffice. Through their conversation, listeners gain valuable knowledge on how virtual assistants can revolutionize the way financial advisors operate, ensuring efficiency and effective client service. This episode is a deep dive into outsourcing certain business operations to optimize service delivery and business growth.

Episode Highlights:

• 00:37 - Introduction of Andrew Evans and the background to the discussion on virtual assistants. Jason outlines the problem of operational efficiency and how virtual assistants could be the solution for financial advisors, facing staffing issues due to fluctuating workloads or regulatory demands.
• 01:24 - Andrew Evans discusses the founding principles behind ROffice, emphasizing the common staffing challenges within regulated firms and how virtual assistants can help right-size personnel needs. This segment highlights the innovative approach ROffice takes, likening their service to an "Airbnb" for professional capacity, allowing flexibility for businesses to scale up or down as needed.
• 04:16 - Andrew explains how advisors can identify the right time to engage a virtual assistant, using an example involving annual client outreach. This moment in the podcast emphasizes the operational pain points that could be alleviated by outsourcing specific tasks.
• 06:16 - The discussion delves into how businesses often overlook the potential of virtual assistants in optimizing workload management, focusing on the flexibility and cost-effectiveness of such arrangements.
• 11:01 - Andrew and Jason discuss how ROffice functions as a marketplace to connect advisors with virtual assistants, including how they manage security and compliance concerns. This part of the conversation is crucial for understanding the operational and security framework that encapsulates the virtual assistant offering.

Key Takeaways:

• Virtual assistants can significantly enhance operational efficiency for financial advisors, allowing them to focus on core activities and client engagement.
• Identifying tasks that do not require physical presence in the office is the first step toward integrating virtual assistants into your business operations.
• Working with a service like ROffice offers flexibility and cost-effectiveness, providing a scalable solution to staffing challenges while ensuring compliance and security.
• The decision to employ a virtual assistant should be preceded by a careful analysis of business needs and potential tasks for outsourcing, ensuring a strategic approach to capacity management.

Tweetable Quotes:

• "Leverage virtual assistants to right-size your personnel needs and focus on what truly matters in your business." - Andrew
• "Virtual assistants are the middle ground that allows advisors to scale up efficiently without the commitment of full-time hires." - Jason

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor
• Podcast Editing
• https://app.roffice.team/
• https://www.linkedin.com/in/andrew-j-evans-218a16265/ 

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Jason talks to Richard Parker, owner of the Diomo Corporation. They delve into the critical aspects of buying and selling businesses, focusing on the complexities around what sellers might not disclose and how buyers can navigate these challenges for a successful acquisition. The conversation offers a wealth of insights, drawing from Parker's extensive experience in helping individuals acquire businesses in the lower market.

Episode Highlights:

• 00:07: Jason Pereira introduces the episode, setting the stage for an in-depth discussion on the intricacies of selling and buying businesses, with insights from award-winning financial planner and entrepreneur Jason Pereira and Richard Parker.
• 02:11: Richard embarks on a discussion about the critical aspects buyers must consider, including the significance of understanding the future of a business from the seller's perspective, the potential for customer concentration issues, and the overarching theme of whether stability or growth presents a more valuable proposition for the buyer.
• 10:06: Important aspects like key employees and their potential impact on the business after acquisition are discussed. Richard sheds light on the necessity of identifying truly key employees and devising strategies to retain them post-acquisition.
• 12:22: The dialogue transitions to the operational challenges and pitfalls that might not be disclosed by sellers, emphasizing the importance of aligning the business's needs with the buyer's skill set and avoiding the trap of falling in love with the product rather than focusing on the profit.
• 15:48: Richard and Jason discuss the negotiation phase, debunking myths about deal-making and stressing the importance of approaching negotiations with a balanced perspective, focused on constructive outcomes rather than winning every point.
• 18:01: The conversation culminates in a discussion about realistic expectations regarding deal terms, the imperfection of businesses, and the potential for sellers to adjust their expectations based on real market feedback.

Key Points:

• Understanding the future of the business and uncovering hidden challenges are paramount for buyers.
• Key employees and supplier relationships significantly influence the stability of the acquired business.
• Effective negotiation requires a balance between strategic firmness and flexibility, focusing on establishing a mutual understanding rather than winning outright.

Tweetable Quotes

• "Growth is very sexy, but stability provides value." - Richard Parker
• "Fall in love with the profit, not the product." - Richard Parker
• "Deal-making is not about winning every point but achieving a balanced outcome that benefits the buyer while keeping the seller reasonably happy." - Jason Pereira

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor
• Richard Parker
• Diomo 

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Jason Pereira interviews Tim Hewson, CEO of LegalWills, an online platform providing millions of users with a simple and accessible solution for creating legal and compliant wills. Tim discusses the importance of having a will, the challenges of estate planning, and how Legal Wills aims to demystify the process.

Episode Highlights:

• 03:00: Recognizing the inadequacies of existing will templates, Tim and his co-founder envisioned an online platform, drawing inspiration from Microsoft Office's user interface to guide users through the will preparation process.
• 08:39: Tim talks about additional estate planning documents, including a Financial Power of Attorney and Living Will, designed for situations where an individual loses capacity, and decisions need to be made on their behalf.
• 11:32: Tim discusses the expansion of LegalWills to multiple countries and the challenges of adapting services for different jurisdictions. He introduces the concept of expatriate wills, allowing users to cover assets in different countries with complementary wills.
• 16:57: Jason reflects on the binary decision people face when choosing between affordable online services like LegalWills and more expensive options for complex legal matters.
• 22:31: Tim acknowledges the challenge of changing the perception that creating a will is only necessary when someone is about to die. He discusses the battle to disassociate the act of writing a will from thoughts of death, emphasizing that estate planning should be a standard part of financial planning.
• 24:28: Jason and Tim emphasize the emotional impact on families left to deal with disorganized estates and stress the importance of creating a will to prevent conflicts and contempt among family members.

Key Points:

1. LegalWills aims to simplify estate planning, catering to diverse needs, including those of blended families.
2. Tim discusses the challenge of balancing growth and service quality as Legal Wills has steadily expanded without external funding.
3. The platform has made a positive impact on users and charities, emphasizing the importance of organized estate planning for individuals and 

Tweetable Quotes:

• "Writing a will shouldn't be about dying; it's part of financial planning. Organize your affairs while you're well; it's a gift to your loved ones.”
• "We're on a mission to demystify wills. Losing the legalese can make the process more accessible. It's about clear instructions, not complex language.”
• "Every person who used our service is better off—over a million users and counting. Helping families and charities with organized estate planning is what keeps us going.”

Resource Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor
• LinkedIn – Jason Pereira's LinkedIn
• https://legalwills.company/
• https://www.linkedin.com/in/timhewson/?originalSubdomain=ca
• Podcast Editing

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Jason talks to Aravind Sithamparapillai, an associate at Ironwood Wealth Management Group. Aravind is known for his unique and novel research on the cost of the Canada Pension Plan, and they will talk about the intricacies of Canada Pension Plan and its often-underestimated value for business owners. During the conversation, Aravind and Jason delve into the comprehensive out-of-pocket expenses for employees, taking into account tax credits and deductions. The dialogue explores the fluctuation in costs depending on income levels and the potential for tax savings.

Disclaimers

-“investment shop”

*Investment services are provided through Ironwood Securities, an approved trade name of Aligned Capital Partners Inc. (“ACPI”). ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Only investment-related products and services are offered through ACPI/Ironwood Securities and covered by the CIPF.

-“I do full scale planning”

*Aravind Sithamparapillai is an Associate at Ironwood Wealth Management Group. Ironwood Wealth Management Group offers financial planning and insurance services. Ironwood Wealth Management Group is an independent company separate and distinct from ACPI/Ironwood Securities.

Episode Highlights:

• 03:20: Aravind acknowledges Jason's content on corporate topics and integration, highlighting the confusion around CPP savings and the realization that the after-tax impact needs closer examination.
• 09:26: Introducing a chart to visually represent net costs for employers, the conversation explores hypothetical examples across various income levels. Emphasis is placed on the significance of taking the entire tax scenario into consideration.
• 14:15: Aravind introduces the concept of the Canada Child Benefit and other income-tested benefits that can be impacted by the choice between salary and dividends. He emphasizes the importance of considering all factors in optimizing total wealth.
• 21:43: Aravind discusses the "light bulb" moment regarding CPP calculations. He explains that when an individual takes CPP, a bonus is calculated on top of the actual CPP rate for that specific year.
• 22:26: The emphasis is on the assertion that the expansion of CPP extends beyond inflation; it encompasses real income growth attributed to the additional growth linked to the average industrial wage.
• 25:21: Jason discusses the importance of considering Old Age Security (OAS) and CPP in retirement planning. He also addresses the common belief that everyone thinks they will live to 100, pointing out the statistical likelihood of living longer as one ages.

Key Points:

1. Jason and Aravind discuss the worst-case scenario related to CPP contributions and how the tax savings play a crucial role, reducing the total contribution amount by over a third.
2. The conversation delves into the considerations for business owners deciding between salary and dividends.
3. The discussion emphasizes the importance of benefits of the Canada Pension Plan, including survivor benefits and disability portions in situations where private disability insurance may not be practical.

Resources Mentioned:

• https://www.ironwoodcanada.com/aravind-sithamparapillai
• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn

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