Trusted Regina Financial Advisors at Worby Wealth Management Share Expense Considerations After Retirement

10. May 2022 Ashlyn Regina Financial Services, TRUSTED TIPS

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers servicing local Regina households and businesses. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners. Worby Wealth Management listens and provides a personalized financial plan.

Retirement Considerations

by Jeremiah Worby

One of the biggest financial questions on everyone’s mind is whether or not they will have enough money to retire. Not only do savings and investments need to be taken into the equation, income and expenses also need in-depth analysis.

Expenses

Will my daily coffees increase in price? Although I’m poking fun, inflation is a serious concern. Everyone’s expenses will clearly vary from one person to another, but some other considerations need to be taken into account, such as:

Will I be able to find work if needed?

If income falls short, will a new source of income be required?

Am I financially dependent on someone else?

Or is someone else financially dependent on me?

Do I plan on living in the same city upon retirement?

Costs of living can vary greatly from one city to the next

Have I taken into account inflation?

Will my entertainment and hobby expenses increase during my retirement years?

What if interest rates rise?

Will I be able to afford my home if rates rise?

Do I plan on living in the same home upon retirement?

Will I downsize?
Is condo living a consideration due to limited mobility (that could mean increased expenses due to HOA fees)?

Do I have or need insurance?

What if something unexpected happens during retirement?

Do I have a will, power of attorney, health care directive in place?

Making sure all angles are considered and taken care of in your retirement years can help you live without unneeded stress

Find out more

Whether you’re 30 years away or just a few months from retirement, proper retirement planning is essential. Contact Worby Wealth Management to start planning your retirement today.

Some of the services that Worby Wealth Management can help you with:

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Trusted Regina Lawyer Robert MacKay explains how having primary and secondary wills

4. Jan 2019 bonnied Regina Lawyers, Regina Legal & Professional Services, TRUSTED TIPS

MacKay and McLean provide the professional services of a large Regina law firm, with the intimate attention of a small firm. The legal process can be daunting and overwhelming, but it doesn't have to be. MacKay and McLean is with you every step of the way.

MacKay and McLean are TRUSTED REGINA LAWYERS

It is said that in this world, nothing is certain but death and taxes. Modern estate planning aims to assist individuals to navigate both of these unpleasant certainties. Preparing double wills is an estate planning technique which minimizes the number of probate fees (estate administration taxes) payable on death by your estate.

Primary and Secondary wills

Double Wills – Primary (Public Asset Will) and Secondary (Private Asset Will)
Depending on the nature of a person’s assets, it is often beneficial to have a “primary” Will to deal with real property and assets held in financial institutions (public assets) and a “secondary” Will to deal with assets held in a private corporation, personal effects, vehicles, the proceeds of life insurance policies payable to the estate and any other asset which does not require probate to pass to a beneficiary (private assets).
Probate is required in select circumstances, and when it is required for the estate trustee to effectively deal with one asset in a will then all assets governed by that will must be probated. In that event, the estate will be required to pay the estate administration tax on the combined value of all assets governed by the will. Savvy individuals can avoid this problem through the use of multiple wills and proper drafting.

The use of multiple wills received judicial approval in Ontario in Granovsky Estate v. Ontario, 1998 CanLII 14913 (ON SC). Therein the court considered the testator’s use of two wills: a ‘Primary Will’ and a ‘Secondary Will’. The Secondary Will exclusively governed the testator’s private company shares, amounts owing to the testator from said companies, and assets held in trust for the testator by said companies. In other words, the secondary estate consisted solely of those assets that the estate trustee could deal without needing probate. Whereas the Primary Will governed all of the testator’s other assets, for which probate was required. The court in Granovsky found that there was no prohibition in the applicable legislation which could prevent a testator from having both a primary and secondary will – a testator may plan his or her estate as she or he sees fit. Notably, the court held that there was no requirement to submit the Secondary Will to probate or pay the estate administration tax on the value of the assets governed by the Secondary Will.

Following Granovsky, Ontario has witnessed a marked increase in the popularity of multiple wills as a method for effective estate planning. Complimentary to the reduced tax liability are the added benefits of ease of administration of one’s estate and privacy, as a probated will is a public document. These combined benefits make preparing multiple wills a prudent investment for the common sense business owner.

For advice, Robert MacKay's team provides professional, personalized service and with their assistance, you can rest assured that your real estate transactions will be handled with the utmost consideration and care.

They provide a full range of legal services including:

Real Estate & Mortgages
Wills & Estates
Family Law & Divorce
Commercial & Corporate Law
Litigation & Personal Injury

ROBERT Mackay is your TRUSTED REGINA LAWYERS!

Trusted Regina Financial Advisors share information about RRSP season.

11. Jan 2017 Admin Regina Financial Services, TRUSTED TIPS

Welcome to RRSP Season!

It is that time of year again when attention turns to RRSPs and tax planning.

The purpose for making an RRSP contribution, from a financial planning perspective, is to build savings and assets over time so that you can replace earned employment income with passive or investment income for your retirement years. In other words, you can sleep in and still have the lifestyle you want without going to work!

The Canadian Government assists you with that objective. It does this by giving you a tax deduction for contributions so that you can save more money on a pre-tax basis than you would if the money was taxed and then saved. Secondly, it allows for the tax-free growth (tax deferral) on your RRSP so that the capital amount will be much greater than it would be if you were taxed annually on the growth or income.

Most people focus on the tax deduction only while ignoring the significant benefits of the compounding effects and growth on the money that is not paid out as taxes. The theory is that you are contributing money while in a higher income tax bracket during your working years and withdrawing it in your retirement years while you are in a lower tax bracket. The reality is higher income earners may find themselves in the same tax bracket in retirement!

This leads many people, including some accountants, to challenge the effectiveness of RRSP by saying: Why bother with an RRSP if you have to pay taxes on the withdrawal!? This viewpoint ignores the real power of tax-deferred compounded growth and the effects of compound growth that you can achieve in an RRSP, especially on the capital that would have otherwise been lost to income taxes.

The math works something like this. If you took the assumed future capital value of your RRSP at age 65 or 70 and then collapsed the RRSP (not recommended) and paid 50% of the capital as income taxes, the remaining capital would still be higher than if you had been building your savings outside the RRSP in a fully taxable environment.

Impossible you say! Take a calculator while watching TV and invest, say $10,000 a year, minus your annual income taxes, say 30%, then invest the balance of $7,000 at an assumed rate of growth, pick 5% to keep it simple, then subtract the taxes on the earned income $105. The net amount at the end of Year One is $7,245. Then do this another 39 times assuming the person is age 25.

Year One Effects of RRSP Investing

Compare this with the RRSP with $10,500 at the end of Year One. The gap only gets bigger over time!

Long Term RRSP Accumulation

There are situations where RRSP contributions may not be the right thing for some people some of the time. For example, young people at the start of their careers or low-income earners nearing retirement. A TFSA may be the better solution!

These are just two alternatives for building savings and assets something which you would still need to do even if RRSPs didn't exist. RRSPs just make it easier to build savings. Call us today to discuss more savings and tax planning strategies!