How We Have Helped Our Clients Build A “Lifecycle Wealth Plan”.

The Clients

For this example, we are working with a married couple in their late 40’s who have two children ages 9 and 11. The husband owns his own company, and his wife is an executive health care provider for a Canadian company. They were referred to us by a mutual client.

During the initial call, the husband was immediately intrigued because he had a fear of missing out on ideas of insurance and investments to help fund their lifestyle.

The Goal

How We Helped

The Outcome

Helping You

Like many of our clients, they are successful couples who work hard in their careers and are good savers. They are already financially successful, but wanted to do better to address inflation, recession, higher interest rates and higher taxes.

From our first 30-minute telephone call, he realized we could help him make his mortgage interest tax deductible and help him pay less tax on his investment income.

We had a face-to-face meeting after the initial call, and he agreed to share their financial information.

His Corporate Financial Statements and Tax Returns
Mortgage details on their new home and rental property
Personal tax returns
Corporate and personal investment accounts, including her stock options and pension.

The couple needed and wanted a game plan for life. She has a good company pension and he wanted to use his corporate savings to build his own pension plan and potentially slow down his consulting business in ten years.

This couple is a great example of what many families face. It’s easy to feel overwhelmed when you have multiple goals with different timestamps. They wanted to be as tax smart as possible at every stage of life but really didn’t know where to start.

Working together with a tax advisor we knew, their CPA and their lawyer, we helped them structure a holding company to asset protect the family wealth and avoided the claw back of the small business deduction, from having too much passive income.

This restructuring work also allowed them to make their home mortgage interest tax deductible. We then showed them how invest to earn monthly, less volatile, investment income to pay the tax-deductible monthly interest. Their investment income is now paying for their home.

We reviewed their insurance needs and educated them about disability, critical illness, and life insurance. They purchased two permanent life insurance policies corporately and will be paid up in 10 years.

Lastly, we addressed an investment strategy that helps as follows.

Fund their home mortgage payments.
Manufacture and harvest capital gains for tax free dividends with less volatility
Have tax free corporate income fund their corporate owned life insurance, invested in less volatile investments.
Diversify their investments beyond ETF indexed investments and cash.

The overall goal with this couple was to be more tax smart at every stage of life.

The tax deductibility of their $1M mortgage saves them $95,000 in cash flow in the family holding company which will help fund the family’s insurance protection.

He now can save all his business income to build his own pension plan over the next ten years and have the flexibility to work at an easier pace.

In ten years, their guaranteed life insurance plans will be fully funded, this means they will have an extra $82,000 more to spend as tax free dividends or invest every year to build more retirement assets.

We work with a diverse range of business owners facing unique needs and situations. Whatever the situation, we aim to tackle them through a proactive process, that focuses on understanding your personal circumstances, addressing your concerns or fears, and creating strategies designed to help you achieve your goals.

If you’re experiencing a similar situation or face an entirely different need, we encourage you to reach out to us. A 10-minute call can give you a lifetime of savings.