Dynamic Duo Joins the Dream Team
“Find a group of people who challenge and inspire you, spend a lot of time with them, and it will change your life forever”- Amy Poehler
This dynamic duo goes as far back as the cradle. Joey first entered the business in 1990 while Cassandra was due to arrive into the world a few months later. Fast forward twenty-five years and fresh out of College with her marketing degree, Cassandra joined her Dad in the insurance practice he had built. Joey’s knowledge and expertise coupled with Cassandra’s new vision, innovation and goals for the company built a strong foundation as they launched Sansible Planning Inc.
Joey and Cassandra’s working relationship was a natural step after their extensive father-daughter coach and player relationship. At a very young age Cassandra shared a passion for the game of soccer like her all-star father. After helping coach her youth team to winning several championships, it was an easy step for the two to become business partners. For the past five years, they have expanded Joey’s insurance practice to new heights. Although the two have been a successful duo, they have always understood the value of being a part of a bigger team. Pursing this desire to contribute to a successful team led them to Connect Wealth.
Joey is a man of many talents. In an industry that can sometimes be mistaken as dry, sometimes dull and overly competitive; Joey’s strength since day one in the financial industry is his integrity. His success in the industry has come from his willingness to always put a client first and do what is best for them. His easy going, happy-go-lucky island mentality is contagious to anyone around him. Being a seasoned veteran in the business, he brings a confident relaxed nature which allows clients and colleagues to feel at ease.
Cassandra has always followed closely in her father’s footsteps. Sharing many common personality traits with him, coupled with her mother’s extensive gifts, she seemed made for the business. After being exposed to the world of planning she never looked back. Educating people on their planning so they can understand their financial situation is a big driver for her. She is passionate about encouraging young people to be pro-active so they can get ahead of the game.
Joey and Cassandra wanted to join a bigger team to help propel their goals and aspirations. Finding the right fit was not an easy task. After searching for some time, like Goldilocks and the Three Bears, they found a place that was ‘just right’. Connect Wealth felt like home from the start. Their team approach to everything made it feel like family. Coupled with their professionalism and varied expertise, Cassandra and Joey knew this was the place they could learn and further develop their business to serve their clients best. Most importantly, Connect Wealth was aligned with who they are as advisors.
Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.ca
What Are Your Options?
What is the best investment plan to use to save for retirement? It used to be fairly simple; the answer was maximizing your RRSP. Do you know what is the best strategy for your situation? Do you know what your options are?
Here is a basic overview:
1. Save – The first rule of thumb to be concerned about is that you are saving money for your future. Too many Canadians are spending all of what they earn and not putting away any money for their future. A good place to start is to aim at putting away 10% of what you make.
2. Tax Efficient – Ever since the launch of the TFSA, there has been a debate by financial professionals over which investment plan is more tax efficient to use, the RRSP or TFSA? My opinion is that it depends on your situation both now and in the future and should be looked at on a case-by-case basis to see what fits best. I would be cautious if a financial advisor is always only promoting one plan type over the other, both have their benefits. (For more info on TFSAs, see my article from Sept 2013 – http://jaybrecknell.ca/demystifying-tfsa/)
3. Business Owner – If you are a business owner the question can get even more complex as you have more options. Should you use your RRSP, TFSA or instead save your retirement funds in a holding company? Since corporate tax rates are at an all time low in Canada more business owners are saving corporately versus in a RRSP or TFSA. There can be many benefits to saving corporately as it can provide flexibility to the business owner. As this can be complex it needs to be put together by a professional that understands your corporate structure and the tax and legal rules that are involved.
As with any financial strategy we would recommend ensuring that you have your personal situation reviewed by a professional to make sure that is done in the best way possible. If you have any questions or would like your plan reviewed feel free to contact us.
Prepare Your Business For Sale
Only 9% of business owners have a documented transition plan in place and yet 70% of small business owners plan to transition in the next 10 years*! As a financial planner I continue to meet business owners who are planning to sell or transition their company but they do not have a plan. Typically they are either unsure of the process, so they procrastinate or the business is their baby and they do not want to let it go. It is understandable that a major decision like this is hard to make, especially without someone to assist you.
When a business owner is considering selling here are some things to consider:
1. Don’t Leave the Party Last – You see this with professional athletes when they face the question of when to retire? In my opinion you are either growing your business or it is shrinking it, there is no standing still. A lot of business owners later in their career can get into maintenance mode, which usually means the business is starting to decrease in revenues. At first the revenues may hold but after a couple of years you typically see them start to decline. If you want to maximize your selling price and be attractive to potential buyers be careful to wait too long.
2. It Takes Time – Selling a business can take you longer than you think. You need to find the right candidate to take over your business. You are looking for an individual that is an entrepreneur; remember there are more employees in the world than business owners. Also, in most transitions the current owner is asked to stay with the company to assist with the passing of the reigns. You should plan for 1-2 years to sell. This means you should be creating a plan 5-7 years prior to your planned exit.
3. Change – Every industry is faced with changes due to technology, regulatory, competition, etc. If you owned a video or record store in the 80 or 90’s, when was the best time to get out? What if the technology that Google is working on to make it so that cars drive themselves eliminate car accidents in the future. Could that affect you if you own an auto body business? What changes face your business?
4. Financials – Often times the financial statements for a business are ignored until it is too late. Yet they will play a very important role in the sale of the business. You want to make sure that your financials present the best view of your company so that a potential buyer is enticed to make an offer.
There are many things to consider when selling a business. The first is to get a professional that can assist you with putting a plan together to ensure that you maximize the value, save tax, and control when and how you sell your business. As with any financial strategy we would recommend ensuring that you have your personal situation reviewed by a professional to make sure that is done in the best way possible. If you have any questions or would like your plan reviewed feel free to contact us.
*Source – http://www.advocis.ca/Update2014/index.html
The Most Overlooked Risk
What is your biggest asset? Most people might answer your house, boat, car, or investments. When in fact it is your income and your ability to earn a living.
When I review a person’s financial situation, one of the most common areas that is overlooked is to protect their ability to earn a living. Disability insurance is a critical part of a person’s risk management plan. When you think about all of the things that people have insurance for, cars, houses, electronics, death, etc. Unfortunately if you do not have an income all of these other areas fall apart.
When it comes to managing risk, a financial planner looks at two main factors:
1. Risk – what is the chance of this happening?
2. Impact – If it does happen, what is the potential damage?
As an example, the risk of a house fire is low but the damage it can cause financially is extreme. Hence why people buy home insurance.
The Risk Is High:
Did you know that 1 in 3 people, on average, will be disabled for 90 days or more at least once before they reach age 65?*
The Impact Can Be Severe:
How long could you survive for without your income? Most families could last maybe 4 to 6 months before they would have to start selling other assets such as investments or their home. How would you survive till age 65 and then into retirement?
The main way to manage this risk is to have long term disability insurance to protect yourself in case of an illness or injury.
Possible Options:
1. Canada Pension Plan – This will only pay for the most severe disabilities and the amount is small.
2. Worker Compensation – This only covers you if it is a work related injury.
3. Group Plan – This is how most Canadians are covered. IMPORTANT! You should have your coverage reviewed to make sure you are properly protected.
4. Individual Plan – You can purchase this through the major insurance carriers.
Key Facts:
• If you are an executive or earn over $80,000 per year and you have group coverage you should have it reviewed, as you may not be fully protected.
• If you have group coverage your plan definition typically will change after 2 years of being disabled. This can allow the insurance company to decline your coverage if your disability is not severe enough. This is done to keep your rates lower for your group plan. You can get individual insurance to protect against this.
• The definition of a disability policy is critical.
• Most disability insurance is designed to cover you till age 65; some may have only a 5-year benefit period.
As with any financial strategy we would recommend ensuring that you have your personal situation reviewed by a professional to make sure that is done in the best way possible. If you have any questions or would like your plan reviewed feel free to contact us.
*Source – “A guide to disability insurance”. Canadian Life & Health Insurance Association
