All Things Investing

[MoneyGuy]

I’m a retired financial advisor. I don’t want to horn in on Slava’s thread but will mention that my wife and I are heavily leveraged. It’s right for me but may not be for you or, I would say, for the average person. I used to ask several standard questions to determine suitability when clients asked about leveraging. It’s great when your portfolio is doing well but it’s a tough test when the market turns. I have a high risk tolerance and have been leveraged for 20 years. Best to sit down with someone like Slava to discuss; he’ll be able to assess suitability. I’ll add that dealers are much more strict about leveraging than they were years ago, and won’t allow it in some cases if they don’t feel it’s suitable.

[Street Pharmacist]

What kind of advisor should I seek?

I own a business that allows for dividends to my spouse as I own a retail store. I'm starting to earn enough that investments will now be more important, but I have a business to use as a vehicle for that potentially. However, it's complicated as it's a franchise so there are rules and limitations and some unique ways in which I get my inncome.

Is there a specialist type of advisor? Or would most wealth advisors be able to help me plan? I'm really a newb here but I really need to start getting some help planning here. Also, I'm in BC so that may matter too

[Slava]

Originally Posted by Street Pharmacist

What kind of advisor should I seek?

I own a business that allows for dividends to my spouse as I own a retail store. I'm starting to earn enough that investments will now be more important, but I have a business to use as a vehicle for that potentially. However, it's complicated as it's a franchise so there are rules and limitations and some unique ways in which I get my inncome.

Is there a specialist type of advisor? Or would most wealth advisors be able to help me plan? I'm really a newb here but I really need to start getting some help planning here. Also, I'm in BC so that may matter too

A good financial planner should be able to help you with that. You want someone who holds the CFP designation (Certified Financial Planner), and they can walk you through the tax issues surrounding the corporation and dividends. I'm guessing that you have an accountant already, and a good advisor will communicate with that accountant so that you can make sure that you're all on the same page and going in that same direction.

It shouldn't be overly complicated, but I'm not entirely sure where the issues and limitations with the franchise are going to factor in there. That's why I'd make sure that you have the accountant in that discussion, at least at the outset.

[Street Pharmacist]

Originally Posted by Slava

A good financial planner should be able to help you with that. You want someone who holds the CFP designation (Certified Financial Planner), and they can walk you through the tax issues surrounding the corporation and dividends. I'm guessing that you have an accountant already, and a good advisor will communicate with that accountant so that you can make sure that you're all on the same page and going in that same direction.

It shouldn't be overly complicated, but I'm not entirely sure where the issues and limitations with the franchise are going to factor in there. That's why I'd make sure that you have the accountant in that discussion, at least at the outset.

I have spoken in the past with other owners and they have all kinds of trusts and investment vehicles I've not heard of and sounds far more complicated than I know. I'm sitting on a bunch of cash not doing anything and my accountant has been bugging me for a while to get a Financial Planner, but I've been procrastinating to my own detriment. I literally just finished doing up a will and getting life insurance as a 42 year old professional with 3 kids. Dumb

[Slava]

Originally Posted by Street Pharmacist

I have spoken in the past with other owners and they have all kinds of trusts and investment vehicles I've not heard of and sounds far more complicated than I know. I'm sitting on a bunch of cash not doing anything and my accountant has been bugging me for a while to get a Financial Planner, but I've been procrastinating to my own detriment. I literally just finished doing up a will and getting life insurance as a 42 year old professional with 3 kids. Dumb

Sorry I missed this, but you aren't out of the ordinary in terms of waiting for the will and life insurance! A lot of people put that kind of thing off until they get a little more settled.

Investing for you shouldn't be incredibly complicated though. I have a lot of clients who have businesses and while there are some considerations as far as tax, it's still not that crazy! I would also say that while you should have a basic understanding of what's happening and how things are structured for you, you don't have to be an expert in these things; that's why you're having an advisor or planner work with you. I think that the ideal thing for you (or someone in your situation) is to feel comfortable asking a lot of questions and don't be afraid to ask things based on thinking that "everyone else knows that". A good advisor would walk you through things and be more than happy to explain why they're structuring things the way they are, give you an explanation of the investments and investment vehicles and overall just help educate you.

[troutman]

I've seen various surveys that suggest 50-70 % of adults do not have a Will!

https://www.legalwills.ca/blog/canadians-without-wills/

A 2013 CIBC survey put the number at “about half”, while a 2012 LawPRO survey claimed that 56% of Canadians did not have a Will in place. Most recently, in 2014 the BC Notaries reported a number of 55% of British Columbians without a Will.

https://www.forbes.com/sites/maggieg...h=4b621f145238

[Street Pharmacist]

Originally Posted by troutman

I've seen various surveys that suggest 50-70 % of adults do not have a Will!

https://www.legalwills.ca/blog/canadians-without-wills/





https://www.forbes.com/sites/maggieg...h=4b621f145238

Story time. I am 42, have a 22 year old son from when I was a teenager, and am now married for 10 years and have two children 9, 4. I own a business and own a house. I knew a will was imprtant and was going to get one.... for years.

My Dad is remarried for 22 years and his Wife has 4 daughters. The oldest daughter lost the youngest of their two children to a heart issue at 12 years old. His older brother was 26 and was on his way to work early one morning last October from Grande Cache to Grande Prairie and died in a head on collision. He had a wife and 3 children under 5. Thankfully he had some insurance through work and had told his mom where his will was just a few days before as they had gone and finalized it.

My Dad was supposed to come and watch my children so my wife and I could celebrate our 10th anniversary this year and he refused until I got my will done. I'm very glad he did.

[MoneyGuy]

We bought will packages for both of our adult children and their spouses.

[Badgers Nose]

What services do you recommend for getting a will?

DIY kit or lawyer?

[MoneyGuy]

Use a lawyer, not DIY. There are lawyers on this site, or I know someone who will do a professional will for about half the price (remotely).

[Slava]

Yeah I would only recommend a professionally completed will. While it’s true that a holographic will is legal in Alberta, I wouldn’t do that. I’d do one with a lawyer and as importantly, do the power of attorney and personal directive at the same time.

[Badgers Nose]

Seems like the going rate is $800 for individual or $1100 for couples, does that seem right?

[VladtheImpaler]

Troutman's crew...

[Slava]

Originally Posted by Badgers Nose

Seems like the going rate is $800 for individual or $1100 for couples, does that seem right?

I’d shop around a bit and you can get it done cheaper.

[DoubleK]

Originally Posted by Badgers Nose

Seems like the going rate is $800 for individual or $1100 for couples, does that seem right?

I literally just left the lawyer's office with my wife and we were quoted "around" $1000.

[CorsiHockeyLeague]

So I have a meeting scheduled with a financial planner (or wealth management or whatever they're calling it) to talk about an investment / retirement strategy. I'm making enough now that it makes good sense for me to start shuffling some of it into an RRSP to defer some taxes, and I figure there may be some other opportunities I might want to avail myself of that will pay off down the line.

What would people suggest I read to educate myself before I go into that meeting?

EDIT: On the wills stuff, I will just anecdotally say that I don't understand why other lawyers even do it. People want a will done for under $1K and the absolute time bomb of professional liability that can accompany it if anything goes wrong just doesn't make any sense to me.

[Slava]

Originally Posted by CorsiHockeyLeague

So I have a meeting scheduled with a financial planner (or wealth management or whatever they're calling it) to talk about an investment / retirement strategy. I'm making enough now that it makes good sense for me to start shuffling some of it into an RRSP to defer some taxes, and I figure there may be some other opportunities I might want to avail myself of that will pay off down the line.

What would people suggest I read to educate myself before I go into that meeting?

EDIT: On the wills stuff, I will just anecdotally say that I don't understand why other lawyers even do it. People want a will done for under $1K and the absolute time bomb of professional liability that can accompany it if anything goes wrong just doesn't make any sense to me.

Well you should be asking questions about how the money is managed, how they’re paid, their independence and professional credentials. I would ask about services such as financial planning and estate planning if those are topics that you’re interested in as well.

I think it’s good to know how often they want to meet, typically, how many clients they have and whether they have a team of people or it’s just them alone.

If it was me, I’d ask whether they’re a fiduciary as well. Most people would assume that advisors have to put their clients interests ahead of their own, but unless they’re a Portfolio Manager, that’s not a requirement. That would be something very important in my opinion.

[tony-soprano]

I have some questions in regards to crypto currencies, capital gains, and multi company structures.

I'm seeking the most tax efficient route, for my stock trades, crypto trades, long term holdings for both, potential real estate investments. I've been informed that opening a multi company structure corporation would be ideal, to limit any potential liability.

Just not really sure, where to get started, so any guidance would be appreciated.

[Slava]

Originally Posted by tony-soprano

I have some questions in regards to crypto currencies, capital gains, and multi company structures.

I'm seeking the most tax efficient route, for my stock trades, crypto trades, long term holdings for both, potential real estate investments. I've been informed that opening a multi company structure corporation would be ideal, to limit any potential liability.

Just not really sure, where to get started, so any guidance would be appreciated.

Well it’s something we could chat about, but more something that you’d want to speak to an accountant about. As far as stock and potentially crypto (depends on how your holding these), the most tax efficient is the TFSA/RRSP. It depends on your situation as far as which makes the most sense and such, but overall those are sheltered and about as efficient as you can get.

Obviously, I can’t give you much in terms of advice here because I don’t know your situation, but if you want to chat more, feel free to reach out.