More vital than you may think
With all the responsibilities and time commitments it takes to run a successful business, it's vitally important to work with a financial advisor that can work for, and with you to ensure all available resources are being utilized. David J. Orchard works with business owners and their accountants to ensure that all options are being reviewed and considered when it comes to cash flow management, risk management, and investment and retirement planning.
Manage costs effectively
Running a successful company and implementing safeguards to ensure its continuity costs money but, to survive in today's competitive economy, business owners must manage these costs carefully. Making business and personal financial decisions that are tax-effective can help business owners free up funds to support growth or other business objectives. David offers product solutions that can help business owners meet their objectives in a cost-effective manner.
Attract the best employees
Business owners know the importance of getting and keeping good people - the growth of their business depends on it. These days, steady work and reasonable wages just aren't enough. With limited resources, attracting and retaining talented employees can be a challenge for businesses.
Having a solid group benefits plan can help business owners gain a competitive edge in the job market. It's an affordable way to help protect employees and their families, while providing a tax effective form of compensation.
Group Retirement Savings Plan (RRSP) is another appealing benefit to offer new employees. There are different plans available, some designed for 2 or more employees and other plans that would be tailored for businesses with 25 employees or more, Manulife's RRSP delivers a quality solution to help businesses clients attract new employees.
Grow personal wealth
With an effective strategy in place, you can spend less time dealing with personal investments and more time building your business. David can help you choose the right solutions to match your financial goals and current stage of life.
Create an estate plan
Finding the time to plan a legacy and ensure a smooth transfer of assets is often a challenge for business owners. An estate plan needs to take into account your goals and objectives for the business, any business holdings, existing succession plans (e.g., buy-sell agreements), personal assets and liabilities, the funding of capital gains tax liabilities, fair share inheritance and more. An ill-conceived plan can turn into a nightmare for your heirs. Estate planning issues can be complicated, so a good understanding of the principles of a corporate, personal and estate taxation is important.
Common Wealth Transfer Mistakes (pdf)
Protect the business against loss or injury
Most businesses have at least one person who is key to the success of the company. Their loss or injury could have a disastrous effect on the business's ability to survive. Not only is their talent lost to the company but lenders may cut back credit or press for payment, debtors may delay making payments, customers may lose confidence and competitors may take advantage of the situation.
Below are a few of the ways in which life insurance can be used to manage these risks for business owners:
- Key employee insurance - the proceeds provide immediate cash to cover the business's working capital needs and to find and train a replacement. Term, whole life and universal life can all be cost-effective solutions.
- Disability insurance can be used to ensure that the business will continue even if an owner or key employee becomes disabled.
- ExpenseComp reimburses office overhead expenses for a business or professional practice during a disability.
- Critical illness insurance can provide the business with the resources to ride out the critical illness of a key employee.
- Business Loan Protection - Creditors will often require that the business owner personally guarantee a loan. A solution is for the business to purchase an insurance policy on the life of the business owner(s) or other key executives. Proceeds from the life insurance policy are tax-free and may be used to pay down the outstanding business debts.
Explore tax effective strategies
Taxes are one of the top concerns or "pain points" for business owners. Most business transactions - from employee compensation to business succession planning and asset protection - have tax consequences. Understanding and addressing tax implications can make a difference to the success of your business and your personal finances.
Tired of traditional banking?
I am authorized to refer you to a product that can help you take control of your daily finances. Contact me to learn more.
Design a succession plan
Many business owners have no clear plan for exiting their businesses. With identities closely tied to the business, the potential for intra-family conflict is high and the process of stepping down can be difficult.
Developing your exit strategy can be complex and often requires a team of advisors knowledgeable in the areas of tax, law and business transition. Therefore, David will work with your accountants and lawyers in order to achieve the best succession plan for you. In addition David works with our highly respected Tax & Estate Planning Group (TEPG) and Tax & Retirement Services team (TRS) to develop solid solutions.