FINANCIAL PLANNING
At the heart of every client interaction is RT Mosaic's experience and education in Financial Planning. We are registered under the highest industry ethical and professional standards.
OBJECTIVE ADVICE AND SOLUTIONS
Retirement Planning
Retirement Planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. It includes identifying sources of income, estimating expenses, implementing a savings program and managing assets. Future cash flows are estimated to determine if the retirement income goal will be achieved.
At RT Mosaic, we use sophisticated retirement software to show you various outcomes based on variable inputs such as retirement date, savings rate and spending rate, to name a few. This forms the foundation in developing and maintaining all our client's retirement plans. The retirement plan is continuously modified and updated to reflect the real-life changes we all experience. This allows us to make the necessary adjustments to ensure the plan remains on track. Major components of the plan include:
By putting a solid plan in place now, you'll have peace of mind knowing that your retirement goals will be achieved.
Risk Management
For most people, insurance is an important piece of the financial picture. We often see clients who are significantly over/under insured and frequently have the wrong type of life insurance. We complete a thorough risk management analysis and make sure you’re educated in all types of insurance available (life, disability, critical illness, long term care, etc.), while understanding the pros and cons of each. With that knowledge, you can confidently discuss your insurance needs with a specialist and can sleep soundly knowing that your family will be taken care of should something happen to you.
Insurance is a complicated area and it's important to receive an unbiased assessment without the sales pressure of buying a policy. As we do not sell any products, we are in an ideal position to have a frank and unbiased discussion on your current coverage and make appropriate adjustments that suit your lifestyle.
Estate Planning
Having a solid estate plan in place is a critical component of any strong financial plan. At RT Mosaic, we review your current estate documents and ensure what’s important to you is reflected in your estate plan. We work in conjunction with leading estate lawyers to make sure the estate distribution is straightforward and tax efficient.
Do you know the difference between the 3 main Estate Planning documents?
1) Wills - directs your executor/trustee to distribute your assets after you die
2) Enduring Power of Attorney (EPA) - allows your agent to manage your financial affairs if you lose mental capacity to do so yourself
3) Personal Directive (PD) - authorizes your agent to make health decisions on your behalf when you are unable to do so on your own
Financial Education
We encourage all our clients to be engaged in the financial planning process. You don't need to be an expert in all matters financial - that's what we do - but having a basic understanding of your financial situation is important.
At RT Mosaic, we take the necessary time to explain all aspects of your financial life, while answering any questions you may have. We ensure you have a clear understanding of your financial affairs, without using typical industry jargon. It's important to us that we provide you with enough knowledge for you to understand what you own, and why a specific strategy is being used.
Cash & Debt Management
Spending too much? Not saving enough? Just can’t seem to get ahead? Simply knowing where all your money is being spent is a great exercise. We are here to help achieve your financial goals, not judge you on your lifestyle expenses. Together, we review your budget and simply point out area’s where perhaps an expense isn’t consistent with your goals.
A great exercise for most of our clients is a detailed summary of monthly expenses. We find that most people significantly under estimate what they are truly spending. This allows us to coach individuals on how to optimize the use of their hard-earned money.
Education Planning
Saving for a child’s education is a major expense and there are several tax efficient ways to accomplish this goal. With your goals in mind, we determine how much of your child’s education you would like to fund, and allocate assets accordingly to achieve this goal.
RESP's are one tool to help fund your children's education by capitalizing on government grants. When you open an RESP and apply for the CESG (Canada Education Savings Grant), the Government of Canada will deposit 20% of your own contribution directly into the RESP as a grant - up to $500 per year.
Below you will find a link to the CRA website, which displays detailed information about RESP's and how they work.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/menu-eng.html
Trust Planning
Trusts can be a complex area of the law. A trust is a relationship that exists whenever a trustee holds property for the benefit of beneficiaries, so that the benefits of ownership flow through to the beneficiaries. Major types of trusts include testamentary trusts, inter vivos or living trusts, spousal trusts and alter ego trusts.
Family trusts are a great way to “distribute” income when set up properly. This allows you to utilize family members in lower tax brackets, leaving you with more money in your pockets. In certain circumstances, with some advanced maneuvering, you can also multiply the $848,252 lifetime capital gain exemption to each member of your family, if you are a small business owner. Trusts are complex and can be expensive, but offer significant tax savings in the right circumstances.
Tax Planning
From tax efficient investments, to spousal RRSP’s, to setting up family trusts, we have advanced knowledge of tax minimization strategies and apply them where appropriate. Tax minimization should be considered in every aspect of your financial life as taxes can have a considerable effect on your returns.
Proper tax planning is an area that can be easily managed, while having a profound impact on an individual's after-tax returns. Something as simple as moving the fixed income into a tax-sheltered account can save thousands of dollars of tax per year.
We work with leading domestic and cross-border accountants to integrate your tax situation with your overall financial plan to minimize taxes payable.
Corporate Planning
Despite the recent federal corporate tax changes with regards to small businesses, corporations are still a great place to accumulate savings as you can effectively defer paying the personal tax, leaving more dollars to grow. The ability to split income has generally been limited, but certain situations are still able to take advantage of this provision. A different option might be setting up an IPP (individual pension plan), which is akin to a super-charged RRSP or Retirement Compensation Arrangement (RCA).
The discussion of salary vs. dividends is more important than ever, with the former providing RRSP room and CPP contributions and entitlement, with the latter accruing neither.
At RT Mosaic, we ensure that you are aware of all the benefits and limitations of setting up a corporation, and the long-term effects of those decisions.