Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina Financial Advisors at Worby Wealth Management Discuss Wealth Building and Corporations

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. 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 in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Jeremiah shares how corporations are a fantastic tool for building wealth. 


The Wealth Building Toolkit: Corporations 


There are many tools that are useful to build wealth. Virtually everyone has access to account types such as RRSPs and TFSAs. These are accounts which have special tax treatments such that we can reduce our overall taxation while we are alive and accumulating wealth. Pensions and group RRSPs are also useful and often an employer will give additional funds to these plans which is of obvious benefit.


For those of us who are not employees though, we may be able to use another tool - the corporation. If someone is self-employed and legally able to have their corporation take their income, this can be very helpful.


The key to using a corporation efficiently is that the earnings a taxpayer has is not all required. Active income for a small business conducted in Saskatchewan is taxed at a low rate of 11%. If a person’s income level is high enough that they don’t require all of it, leaving income behind in a corporation to invest may be much more efficient than taking it all as income and then investing.


Let’s look at an example:

John needs $95,000/year after tax for lifestyle but earns $250,000/yr gross. If he took all this money, paid tax and then invested the remainder, he’d have approximately $66,760* to invest at the end of the year.

If he were able to and chose to use a corporation, however, he’d take $130,000 gross income from the corp and pays approximately $35,000 in tax leaving $120,000 behind. 11% tax for taxes leaves him with $106,800 for investing.

The difference of using a corporation in this example leaves him with an additional $39,920 or 60% more money to invest to build his wealth.

Clearly, corporations are a fantastic tool for building wealth. The next blog is going to look at strategies to get this money out of the corporation on a tax-advantaged basis.

*all personal tax calculations are estimates based on taxtips.ca tax calculator.


If you have questions about wealth building, contact Worby Wealth Management to get your questions answered and start investing in an RRSP, TFSA or other investment accounts today.


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


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help 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 Financial Advisors at Worby Wealth Management Provide Their Year End Financial Checklist

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. 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 in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Jeremiah shares their year end financial checklist.


Year End Financial Checklist

by Jeremiah Worby 


It's near the end of another year. You've probably been busy planning parties, planning pranks, and soon to be attending holiday events, but there's one thing that needs your attention – your personal finances.  It's time to start reviewing how much money you have saved up for retirement and other important costs in life. 


HERE'S HOW 


Do you have any RRSP room left for 2022?

If your RRSP room is $10,000 and you have already contributed $6,000 to an RRSP this year, then that means you have only… hold on give me a minute here – carry the 9… oh yeah,  $4,000 of available room for 2022.

If you don't have any remaining RRSP room for 2022, then no other RRSP contributions can be made before year-end.  That being said, if there are other registered plans (e.g., a TFSA) that you haven't maxed out yet for this year, then it may still be worthwhile contributing what is needed to fill up your existing registered plans so long as doing so doesn't exceed their respective contribution limits.


Are your TFSA contributions up to date?

TFSAs are a great way to save for retirement. Straight from the Canadian government’s website



The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. "

Unused contribution room from previous years carries forward to future years.  A quick check with your MyCRA account (or office Dwight – he seems to know everything) should let you know exactly how much TFSA room you currently have.



Have you funded your children's RESPs this year?

Whether you have two children or twelve, saving up for their education is a top priority for lots of families.  The biggest benefit of RESPs is that a grant from the Canadian government of up to $7,200 can be earned over the life of the plan.

The money in an RESP can be used for various education costs, not just for tuition.  There is no tax on the investment earnings as long as it remains in the plan.  Contributions are not tax deductible, however withdrawals called educational assistance payments are included in the student’s income.


Do you have enough life insurance coverage in case something happens to you?

Life insurance is an important part of financial planning.  The question is, do you have enough?  Pro tip: $100 Million is probably more than what you need.

You should consider getting life insurance coverage to protect your family from being left with financial burdens if something happens to you.

It's important to know how much coverage you need and what kind of coverage makes sense for your situation.  You can get a free life insurance quote by contacting Worby Wealth Management.


A review of personal finances at the end of the year makes sense

It’s a good idea to review your personal finances at the end of the year. This way, you can ensure that you are on track with your goals and make adjustments as needed.

You should review:

  • Your financial situation – How much debt do you have?  How much money do you have in savings?  What are your investments doing?  If there is anything that needs to be changed or improved, now is the time for it!
  • Your financial goals – What are some things that need improving?  Are there any new goals that could be set for next year?
  • Investments – Is your portfolio set up for long-term growth or short-term gain? Are your investment goals aligned with your time horizon and risk tolerance (e.g., saving for retirement vs. building wealth).  Have any recent market events caused you to rethink this part of your financial plan?  If yes, make sure to contact Worby Wealth Management for a free second opinion. 
  • Insurance coverage –  Does your current insurance cover all important aspects of your life (e.g., health care, disability income, burial expenses) while still being affordable?  What other types of coverage might make sense moving forward as life circumstances change (e.g., term insurance for those years while you’re still carrying a mortgage).

Conclusion

The end of the year is a good time to review your finances and make sure you're on track for the new year.  It's also a great opportunity to look back at the financial decisions you've made over the past 12 months and see if there might be room for improvement.  If so, now is the perfect time to make those changes!


Questions regarding your year end financial checklist? 

If you have questions about your year end financial checklist, then contact Worby Wealth Management to get your questions answered and start investing in an RRSP, TFSA or other investment accounts today.


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


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help 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.

Ten Things Buyers Really Want in Their Next Home By Trusted Regina


The Top 10 Things Buyers Really Want in Their Next Home


There is likely no bigger purchase than a home. There are some things on almost every homebuyer’s list when it comes to looking for their perfect property whether they’re buying for the first time, upgrading or downsizing.

These 10 things seem to be really important to most:


1. Separate Laundry Room.

Most homebuyers want a designated space to do laundry. Having enough storage space for laundry items, as well as being able to fold clothes, is a must. Buyers see it as a huge plus. Most people prefer this space to be close to the master bedroom or at least on the main floor.

2. High Efficiency.

Even when buying an older home, homebuyers look for efficiency in appliances and windows. More people are mindful of their utility bills and look to things to cut those costs.

3. A Patio Or Deck. 

Outdoor living is embraced by most homeowners. 87% of house hunters look for a home with a patio where they can entertain family and friends in the warmer months.

4. A Large Garage.

For more than just the vehicles. A spacious garage can also double as a great storage space. A garage also provides easy accessibility to stored items unlike an attic or shed.

5. Exterior lighting.

Most people take great pride in the time and money they’ve invested in landscaping and would like to highlight that even at night. Next to a patio, exterior lighting is the most desired outdoor feature. That includes spotlight, walkway and pendant lights.

6. A Modern Kitchen and Bathroom.

Most people’s savings will be going toward a down payment, so getting a kitchen and bathroom they won’t have to change is high on the priority list. An eat-in, open-concept kitchen is what most people strive for. These are really attractive to young families with children.

7. Hardwood Floors.

Hardwood floors are cleaner and easier to maintain. Good flooring can last a lifetime if maintained well.

8. Walk-in Closet in the Master.

These types of closets are quickly gaining in popularity among first-time homebuyers. Such closets rank in the top five on the home want list.

9. Walk-in Pantry.

A full-sized pantry used to be a staple in every home in the early 20th century. They went out of favour, but are making a strong comeback. According to statistics, it’s the most wanted kitchen feature among buyers these days.

10. A Separate Dining Room.

Like the walk-in pantry, the formal dining room is back on the want list. A separate dining room is among the top 10 essentials for first- and second-time homebuyers.


Trusted Regina Shares 3 Things to Learn From An Open House


3 Things to Learn From an Open House


Are you a professed open house snooper? Do you love popping into open houses even if you’re not looking to sell or buy? While touring an open house is an important step for most buyers, there’s still a lot you can learn even if you’re not presently in the market. For example:


Get staging or design inspiration. 

Most open houses are professionally staged, so checking one out, especially if it’s similar in size or style to your own, can be a great way to get a sense of how different colours and furniture styles look. When it comes time to stage your own for sale, you might have some great ideas.


Get to know your price point. 

Taking a look through different open houses that are either similar to your own, or in a price point you plan to buy in, can give you a reality check. If you keep seeing homes in your price range that just don’t fit the bill, it might be time to increase your budget or be prepared to compromise. The same goes for your current home. If you see similar spaces that sell for a lot less, you might want to rethink your sales strategy.


Learn what doesn’t work. 

Open houses can also be a great chance to see some seriously misguided renovations or decor choices. Did someone take down a wall and lose a valuable potential home office? Undertake a bathroom renovation that just didn’t make sense? Learning what doesn’t work in a similar home, or what features you absolutely couldn’t compromise on can be valuable, too.

Most listing agents know that a certain number of open house visitors are there out of curiosity, not because they’re in the market, so don’t be shy! There’s still a lot you can learn from browsing open houses whether you’re looking to buy immediately or not.



5 Real Estate Tips From Trusted Regina


5 Real Estate Tips 


Thanks to a glam Hollywood treatment and an influx of design and reno shows, the world of real estate can look like a pretty sweet deal. You tour some high-end houses, sign some papers, close a few deals and you’re set. Right? In real life, it’s a little more complicated than that. From emotional sellers to DIY disasters, real estate agents deal with challenges just like any professional. Here’s what they wish you knew about the job:


“Reality” television isn’t that real. 

Shows can make it seem simple and fun to buy a fixer-upper, gut the place and sell it to make a profit, all within a short timeframe. In reality, these projects take much more time and often encounter more complications. Make sure you speak with both a real estate agent and a contractor before deciding if this is the right option for you.


Time is of the essence. 

In Canada, where many housing markets are hot, hot, hot, timing can make all the difference when it comes to scoring your dream home. For buyers, being responsive and filing paperwork on time can be the reason you get—or lose—the place you want.


It pays to keep your emotions in check when selling. 

It only makes sense that when you put down roots in a space you become attached to it. Unfortunately, emotional connections sometimes get in the way of pricing a home at its actual value or accepting a perfectly good offer.


Staging has real benefits. 

People become attached to their things as well as their actual dwellings. But not every potential buyer will be as enthused about your treasured family vacation photos or carefully curated souvenirs. If your agent suggests you use the services of a professional stager, they’re trying to get your home the value it deserves.


Keeping your home tidy helps!

Even in a hot market, going out of your way to make your home as presentable and welcoming as possible is a necessary piece of getting the buyer you want. Spending a few minutes every day to tidy up, wipe down counters and give the floors a quick swiffering makes an agent’s job that much simpler.





Previous Posts

ADDRESS

S & E Trusted Online Directories Inc
TrustedRegina.com
310 Wall St #209
Saskatoon, SK   S7K 1N7
Ph: 306.244.4150

GET THE APP

App Store Google Play
Follow us on Facebook Instagram Linked In Twitter YouTube RSS Feed
Abex
Abex
Stevies
Sabex
NEYA
Website hosting by Insight Hosting