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CA4IT’S Approach |
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What is Financial Freedom |
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Four Steps to Financial Freedom |
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Tax Savings for a self employed person |
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Financial planner or financial peddler |
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Investment Criteria |
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Asset protection |
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Personal Service Corp. Risk |
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Real estate investment trusts |
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CA4IT offers commission/conflict free
professional financial planning services by charging clients for advice on
an hourly basis only, which is extremely rare compared to how financial
peddlers are compensated and motivated. |
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CA4IT offers the following Financial Freedom
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Free Seminars |
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Written plan |
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One on one financial planning |
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Research reports |
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Financial Freedom describes the financial
achievement or status of having your passive or investment income equal
your living expenses. |
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Sample Plan |
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Living expenses = $3,000 a month |
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Required investment income = $3,000 a month |
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Required investment portfolio |
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(based on 9% rate of return) = $400,000 |
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Make it |
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Maximize revenue |
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Marketing Skills |
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Save it |
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10 – 20 % of gross income |
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Save Monthly |
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Have a written income and expense plan |
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Invest it |
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What Is your objective |
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Protect it |
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Asset protection |
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Deduct business expenses |
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Minimize expenses |
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Don’t spend money like it is someone else's
company |
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Income Splitting |
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Split with spouse and kids |
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Document everything |
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Use income splitting to keep your total personal
income under $70,000 |
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Small business deduction |
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19% tax rate for consulting income left in the
corporation |
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More than just a deferral but an absolute tax
savings |
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High mutual fund fees |
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Greatest skimming operation in the world |
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Commission vs. wrap fee -
neither is good |
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Templeton growth fund vs. Phillips Hager and
north bond fund – What does your broker recommend |
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Watch out for high MER Rates |
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Leader vs. Looter |
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Is management ripping the place off. |
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CEOS ratio of investment in company vs. salary
(Warren Buffets ratio is 400000:1 for Berkshire Hathaway) good ratio is 50
– 100 : 1 |
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Related party transactions – the fewer the
better |
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Avoid Dual class shares |
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Business and economic analysis |
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What is the durable competitive advantage |
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Price |
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What separates a good company from a good
investment is the price |
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Set a
maximum purchase price |
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Assets should be held 100% in a spouses name
(house and vehicle) |
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RRSP – not creditor proof |
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Use spousal RRSP |
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RRSP meltdown to eliminate RRSP’s in your name |
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Spouse should not be director or the corp |
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If spouse is set up as a director she should
resign |
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Holding companies should be considered if you
have $100,000 – $200,000 in retained earnings |
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Spouse should be shareholder of holding company |
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PSC Risk |
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PSC Written Contract |
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REIT SUMMARY - www.realpac.ca |
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Click on Publications |
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Click on Report on REITS |
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REITS have a special tax advantage |
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E.g. *8% cash distribution, 2% is taxable 6% is
a capital gain and only taxable when you sell the REIT. |
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Contact your local CA4IT representative or visit
www.CA4IT.com for more information |
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Phone: 416-487-4300 or 1-800-465-7532 |
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Email: CustomerService@CA4IT.com |
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Thank you! |
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Notes