Episode 88: Why the Capital Gains Tax Increase in Canada Isn’t Your Biggest Income Tax Problem

Listen here on our website:

Or jump to this episode on your favourite platform:

Does the increase in Canadian capital gains tax inclusion rate rolled out by the Liberal government have you wondering how this change will affect your investments and overall net worth?

In this episode Canadian Wealth Secrets, we address the most common misconceptions related to Canadian capital gains tax inclusion rates and we unpack the recent increase to Canadian capital gains inclusion rates – having increased from 50% to 67% for personal capital gains over $250,000 and all corporate capital gains. If you’re a high net worth Canadian, Canadian incorporated business owner or investor, understanding these changes to Canadian capital gains tax rules are crucial to effectively managing your wealth by minimizing income tax liabilities.

Many Canadians are concerned about the implications of this Canadian tax hike, fearing it will significantly reduce their investment returns. This episode addresses these concerns by clarifying common misconceptions and providing actionable insights on how to navigate the new Canadian income tax landscape. By understanding the nuances of the Canadian capital gains tax rules, you can make informed decisions and optimize your investment strategies to preserve and grow your wealth.

What You’ll Learn:

1. Gain clarity on the new Canadian capital gains inclusion rates and how they specifically impact personal and corporate investments.
2. Learn about common misconceptions surrounding Canadian capital gains taxes and get accurate information to avoid costly mistakes.
3. Discover strategies for managing your personal RRSPs and corporate retained earnings to minimize tax liabilities and maximize returns.

Don’t miss out on this essential episode—listen now to arm yourself with the knowledge to navigate the new Canadian capital gains tax landscape effectively. 

Resources:

• Budget 2024: Fairness for Every Canadian
• Capital gains inclusion rate proposal should be delayed, if not scrapped altogether [Article]
• Dig into our Ultimate Investment Book List
• Book a Discovery Call with Kyle to review your corporate (or personal) wealth strategy to help you overcome your current struggle and take the next step in your Canadian Wealth Building Journey!
• Follow/Connect with us on social media for daily posts and conversations about business, finance, and investment on LinkedIn, Instagram, Facebook [Kyle’s Profile, Our Business Page], TikTok and TwitterX.  
• Looking for a new mortgage, renewal, refinance, or HELOC? Reach out to Jon to share some options.

Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting corporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

This episode is a great resource to unpack the increase in Canadian capital gains tax rates and unpacks why there are bigger Canadian income tax “fish to fry” including but not limited to the fact that the capital gains inclusion rate inside your RRSP is 100% and the retained earnings in your incorporated business have an income tax target on their back.

Watch Now!

Detailed Episode Summary 

New Capital Gains Inclusion Rates Discussed

Kyle and Jon discussed the new capital gains inclusion rates in Canada, set to take effect in fall 2024. They clarified common misconceptions regarding the tax, emphasizing that the 50% tax rate on capital gains under $250,000 will not disappear, but rather, only half of the gain will be taxed at the individual’s appropriate rate. They further explained that this change should not cause undue concern among high net worth corporate owners or incorporated business owners, as it is not their biggest tax issue.

Tax Implications of Selling Assets

Kyle and Jon discussed the tax implications of selling assets, with a focus on capital gains tax. Kyle explained that if an asset is sold for more than its original purchase price, the gain is subject to tax, but only half of it is taxable, with the other half being tax-free. The taxable amount will be included in the individual’s income for the year, potentially pushing them into a higher tax bracket. However, Jon clarified that the misconception lies in the belief that the capital gains tax is a significant burden. In reality, it’s not as severe, and many individuals, including business owners, can find ways to minimize their tax liability. Kyle then shifted the discussion to personal assets, such as personal savings and unregistered accounts, which are not connected to a corporation.

Managing RRSPs and Tax Liabilities

Kyle highlighted the tax problem many people face with their Registered Retirement Savings Plans (RRSPs). He explained that while RRSP contributions and investment earnings are initially tax-deferred, the tax must eventually be paid when funds are withdrawn. Kyle advised that individuals should carefully manage their RRSPs, considering their future tax bracket and consulting with a trusted advisor to optimize their tax situation. Jonathan acknowledged the complexity of the tax issue and stressed the importance of preparing for future tax liabilities.

Capital Gains Inclusion Rate and Wealth Management Strategies

Kyle and Jon discussed the implications of the increased capital gains inclusion rate for individuals and businesses. They highlighted that while the new rate may result in a higher tax burden on capital gains, it could also be an opportunity to lock up assets in a Registered Retirement Savings Plan (RRSP) and avoid paying tax on a hundred percent of the gain. They further pointed out that the real tax issue for business owners is the potential halving of their wealth when they withdraw retained earnings. They suggested using permanent life insurance and compliance structures to mitigate these tax concerns. Jon invited anyone in such a situation to reach out to them for strategies to manage their wealth.

Transcript:

00:00:00:06 – 00:00:32:05
Jon Orr
Does the increase in Canadian capital gains tax inclusion rate rolled out by the Liberal government? Have you wondering how this change will affect your investment strategy and overall net worth? In this episode, we’re going to talk about why the capital gains tax increase is not your biggest tax problem and what actually is. So let’s get into it.

00:00:32:07 – 00:00:37:06
Kyle Pearce
Welcome to the Canadian Wealth Secrets Podcast with Kyle Pearce and Jon Orr.

00:00:37:08 – 00:00:51:03
Jon Orr
We are recovering high school mathematics teachers and education consultants whose entrepreneurial spirit led us to begin multiple businesses in real estate investing, digital courses and coaching and consulting after the bell rang at dismissal time.

00:00:51:06 – 00:01:32:05
Kyle Pearce
Fast forward a decade later where we’ve grown our portfolios and our time freedom to the point where we can now help entrepreneurs business owners and investors to grow their wealth into a legacy that lasts generations through hidden investment and tax secrets. Your financial advisors won’t believe our true. Well, hey there, Canadian Wealth Secrets Seekers today. We are going to have an episode where we dig into some details around the new capital gains inclusion rates that are actually in effect and then supposedly this fall they will actually be approved to go in.

00:01:32:05 – 00:02:09:16
Kyle Pearce
So there’s still a vote to be had. But however, the date was June 25th, 2024, when the inclusion rate for personal capital gains over $250,000 realized in a year or corporate capital gains are going to be going from 50% to two thirds or about 67%. But we’re here today to unpack that a little bit more, maybe correct some misconceptions out there around the capital tax rules, both the original rule or the rule before June 25th and now what we’re dealing with now.

00:02:09:21 – 00:02:29:12
Kyle Pearce
But also more importantly, it’s like I get so many people, high net worth corporate owner are incorporated business owners, all of these people are reaching out to me now and they were reaching out ahead of that June 25th date and they were throwing their arms up saying like, this is horrible. How can we pay more tax? And they’re all worried.

00:02:29:17 – 00:02:55:02
Kyle Pearce
And I tell most of them that, you know what, this is actually not your biggest tax problem. So we’re going to unpack that a little bit more later. But let’s dig in here. John, you were just recently chatting with someone who had a very common misconception. Let’s talk about the old rule or the under $250,000 capital gain rule that will still be in place for personal realized capital gains.

00:02:55:06 – 00:03:02:01
Kyle Pearce
What is that common misconception? And let’s make sure everybody’s clear on it before we dig into the weeds here and talk about the reality of the situation.

00:03:02:02 – 00:03:09:01
Jon Orr
Yeah, I think it was at a candidate, a party this year. We were just chatting about, you know, and making investments.

00:03:09:01 – 00:03:13:14
Kyle Pearce
All the things you were thankful for, you know, all the recent news about taxes.

00:03:13:14 – 00:03:30:18
Jon Orr
Right. So like a week later. Right. And it’s like the misconception or this person, we went down a rabbit hole and we started talking about the capital gains tax and like, yeah, you know, like I’m going to lose two thirds of my money in terms of this capital gains tax. If we if this changes. And I was like, well, tell me more about what you think that looks like.

00:03:30:18 – 00:03:50:15
Jon Orr
And I think the misconception is that let’s say I have an investment and I go to let’s say it’s a, you know, a real estate property and I go to sell that real estate property. There’s a gain there. So I think most people get the gain part right. It’s like, okay, let’s say I have $100,000 gain. I think what people are thinking is that on the old rule applies to the new rule.

00:03:50:15 – 00:04:11:09
Jon Orr
But let’s say I have a gain of $100,000 and the old would be like, I’m going to have I’m going to be taxed at 50%, which I think they think is that I’m going to lose 50% of the gain. Like 50% of the gain is taxed, which is true. That statement I just said is true, but they think it is 50% is gone.

00:04:11:13 – 00:04:33:19
Jon Orr
That’s the actual tax that I have to pay. I have to give up 50% of that because it sounds like when you hear your tax rate, you think, okay, well, 50% is taxed at 50%, which means I’m going to lose 50% of that gain. Instead of saying 50% is actually tax free and then the other 50% isn’t gone.

00:04:33:20 – 00:05:01:10
Jon Orr
The other 50% is taxed at whatever your rates, wherever you land on your income. So that might be let’s say it’s 30%. So you’re only going to pay 30% tax on the 50%. So it’s $50,000 is taxable. And then I’m going to pay whatever. Like, it’s almost like think of it as like I got $50,000 in extra income this year and now I’m going to pay the tax on that new amount instead of going lose it all.

00:05:01:12 – 00:05:20:13
Kyle Pearce
Yeah. Like imagine if you’re taking like $100,000 personally. Okay, so this is $100,000 that you’ve already paid personal taxes on, right? So like it was more than a hundred. The government took as much as they would take when you were in that particular tax year. You took it and you grew it to $200,000.

00:05:20:13 – 00:05:23:11
Jon Orr
So basically drawing, by the way, and again, if you’re watching, I’ve.

00:05:23:11 – 00:05:40:19
Kyle Pearce
Got my little document camera up there, it’s really, really about how about, look, anybody who’s been on calls with me, they deal with that random document camera being thrown up here on the screen. So you sell this asset, you bought it for 100,000, you sold it for 200,000. That means that original hundred, you’re not going to get taxed again on that.

00:05:40:20 – 00:05:53:22
Kyle Pearce
Then just go back in your bank account. You already paid income tax on that, right at whatever bracket you were at. If you did it over a number of years where you’re in a low bracket, then you paid not a lot of tax on it. If you did it over one year where you were in the highest tax bracket, that you paid a lot of tax on it.

00:05:53:22 – 00:06:18:08
Kyle Pearce
That part doesn’t really apply here. But what does apply is that you got this $100,000 gain. And what I heard you just say, which is the correct mentality, is that if in this case the capital gains 100,000. So if you own this personally, even with the new rules, you are still only going to include half of that income into your taxable income and the other half is tax free.

00:06:18:10 – 00:06:29:11
Kyle Pearce
So that’s like nobody ever talks about the part that’s tax free, right? They just talk about how horrible it is. And in reality, this is not that bad, that that’s not a huge deal.

00:06:29:12 – 00:06:34:06
Jon Orr
Tax free sounds pretty good. It’s like I made $100,000 and I don’t have to pay tax on half.

00:06:34:06 – 00:07:01:23
Kyle Pearce
Right. Exactly. And that taxable amount, this little part here, this $50,000 is going to get tapped out, tagged on to your income for that given year. Right. So if I earned $250,000 already, I now have earned 300,000 that year and that 50,000 is going to get taxed at a very high tax bracket. Right. I’m going to pay a lot of taxes on the 50,000 part of the gain.

00:07:02:04 – 00:07:21:24
Kyle Pearce
The other 50 tax free in your bank account. Now, of course, if you claimed no income that year, right. So maybe you’re a retiree and you don’t have a ref where you have to take money out or you don’t have a pension, where you have to take an income, maybe you took no income that year from any of your investment accounts, your RRSP, your tax free savings that would be tax free.

00:07:21:24 – 00:07:44:01
Kyle Pearce
Of course, but your RSP would not. You would just be claiming a $50,000 income in that given year. So when you really think about it, you can look at it as you’re going to get taxed on 50% of the gain gets taxed. Or you can think of it the other way, is that that hundred thousand, you’re going to pay half of the tax bracket.

00:07:44:01 – 00:08:11:24
Kyle Pearce
You’re in on the full hundred. Whoa. I just did our old math teaching move right there, John. It’s like the doubling and having strategy right? It’s like if I pay tax at my current bracket on half the amount, that’s the same thing as paying half the taxes on the whole amount. So however you want to do it, the maximum amount you’re going to pay personally on that portion is going to be on the full capital gains going to be about 26%.

00:08:12:02 – 00:08:34:12
Kyle Pearce
If you’re in Ontario on the full 100 or you can say on 50,000, you’re paying the 54 ish percent tax rate in the highest bracket. But for everybody else, it’s going to be a lower tax bracket. So it’s actually not that bad, although a lot of people already said you already took money from me in order to make this investment.

00:08:34:12 – 00:08:52:08
Kyle Pearce
So you shouldn’t tax the upside either. I agree with you, but that’s just not the case. But at least, you know, you’re not losing half of the return or nowadays you’re not losing 67% of the upside. If the capital gain was $250,000 or more.

00:08:52:10 – 00:09:25:17
Jon Orr
So the same applies there. Like there’s no change in your thinking when the number just changes. So you just have to now apply. Okay, that’s 67% inclusion instead of 50%. So I think we’ve made it clear like where the misconception is. But so what’s the real problem? Like you said, you’re talking with people and I think which is also surprising that you’re talking with business owners, high net worth individuals, people who have lots of retained earnings and trying to strategize best practices around keeping more of their hard earned earnings inside their company and not pass it over to the tax.

00:09:25:17 – 00:09:39:15
Jon Orr
So you do this on a regular basis. So in that was the surprising part is that you’ve got business owners who were like, that’s the way they think and you’re helping them kind of first correct there. But then you’re saying that’s not the real issue, that’s not that bad to pay these amounts on the game. We just talked about that.

00:09:39:15 – 00:09:41:14
Jon Orr
But what’s the real issue that.

00:09:41:16 – 00:10:01:21
Kyle Pearce
Well, what I’m going to talk about, I’m going to break it down into two pieces. We’re going to talk personally so those who have assets outside of a corporation, you might still have a corporation, but we’re talking specifically about personally owned assets, your tax free savings, your RSP, your unregistered accounts, your home, your all of these things are personal assets that you own.

00:10:02:01 – 00:10:29:19
Kyle Pearce
For those people, when we don’t consider the actual corporation, I’m going to talk about the real tax problem for many people is the RRSP. A lot of people are still buying things that have capital gains associated with them inside of their RSP. So I redrawn this on this little document camera here and you see that, yes, we have a 100,000 that’s gone into the RSP.

00:10:29:21 – 00:10:55:13
Kyle Pearce
You got your tax back on that 100,000. Now, that’s the part that people like. But here’s the thing that the vast majority of Canadians do once they get that tax free refund, they very rarely take the refund and invest that amount as well. That part you should be doing if you’re not already, you shouldn’t be taking it and then using it for lifestyle unless you needed that for lifestyle.

00:10:55:13 – 00:11:17:01
Kyle Pearce
And the only way to fund your RRSP was to do it in that manner. But here’s the problem that happens later. Let’s say you bought the same stock, $100,000 of stock, or maybe it was an index fund and there was a capital gain where it doubled over time. We went from 100,000. This is scalable, by the way. If it’s 200,000, we can apply it to whatever the gain is on that.

00:11:17:01 – 00:11:46:14
Kyle Pearce
A million doesn’t matter. But let’s look at this one. We say, okay, we went from 100,000 in the RSP. It now became 200,000. The problem is that the entire 200,000 is going to be taxed on the way out. Now, you don’t have to take it all out at the same time, which is what we would encourage people to do, is slowly take it out, slowly melted down so that you govern how much taxes or what tax bracket you’re in when you slowly melted down.

00:11:46:14 – 00:12:09:02
Kyle Pearce
But the reality is for this particular gain, if we look at an individual year, you get no capital gain exemption here. What I mean by this is that means none of that amount that you earned inside of there is tax free. You also still have to pay tax on the original 100,000 you put in. So you have $200,000 that you need to pay tax on.

00:12:09:02 – 00:12:42:12
Kyle Pearce
And if we think about this and say 200, let’s say you pulled all 200 out in any given year, that is $200,000 of income, not paying 50% inclusion rate or even the 67 in this case, that wouldn’t be over to 53 wouldn’t apply. The 67 anyway if it wasn’t in an RSP. But here you are paying 100% inclusion for that capital gain, which is a massive, I would say, nuance to what’s going on in the background.

00:12:42:12 – 00:13:05:10
Kyle Pearce
Everyone just says, wow, it’s tax free. It’s not tax free, it’s tax deferred. And tax deferred is better than not deferring tax, but you lose your capital gain exemption. So basically what you’re doing is you’re trading some of the benefit and you have to be really I suppose you have to be thinking about this when you’re funding your RSP.

00:13:05:10 – 00:13:31:03
Kyle Pearce
Now, if there’s only 200,000 total in an RSP, this is not a real concern. But what happens is people’s RRSPs become much greater in value, right? A million, 2 million sometimes you get up into 5 million, whatever it is, right? Depending on how long they’ve been funding for and how much they’ve been funding for. These RSP accounts can get quite large and then people don’t start taking money out early enough.

00:13:31:05 – 00:13:48:12
Jon Orr
So when they don’t start taking money out early enough, what do we do? Because I guess we’ve talked about this on other episodes, but I mean, the mindset is that I’m going to be in a lower tax bracket, but we argue here on this podcast, and if you’re listening to this podcast, you’re hoping that’s actually not the case.

00:13:48:18 – 00:14:01:20
Jon Orr
You’re building your business, you’re making more income, and it’s like how you want to get to a place where you don’t have to worry about money anymore. And that might mean you have a lot, especially if you’re RSP. You’re going to be like, If I’m going to melt this down, that’s a lot of money that I have to now pull out of there.

00:14:01:20 – 00:14:18:00
Jon Orr
Like, I get the idea that I tax deferring this. You’ve got to pay tax somewhere. So it’s kind of like we’re not going to be able to get around this. You either pay the tax before it goes into the pot, which is like, okay, well, it goes into the say on registered accounts. I pay tax now and I get some gains.

00:14:18:00 – 00:14:33:20
Jon Orr
I got to pay the capital gains tax on the money that comes out of there or I put it stuff my spouse and I have to pay tax when that money comes out later on, but I don’t pay tax on it now. So it’s like we all know that we’re going to pay tax somewhere. So it’s like, what do I do in the case?

00:14:33:20 – 00:14:46:05
Jon Orr
Like you just presented the real problem of you’ve got 200,000 that’s now taxable in your RSP and we’re going to melt it down. Is that basically your suggestion? What else can you do?

00:14:46:09 – 00:15:02:14
Kyle Pearce
Yeah, and by all means, it’s like, Hey, listen, RSPs, it’s better to pay less tax now, even though I have to pay tax later. But you have to be aware of what’s actually going on. So all I say to people is, regardless of where you are in that journey, you’ve got to do the math. Like you got to do the thinking.

00:15:02:14 – 00:15:27:21
Kyle Pearce
And sometimes that means working with a thought partner, right? Working with someone, an advisor you trust. If you’re working with the big bank person, they’re going to say, don’t melt down because they lose money. When you do that, right? I mean, that makes sense. The assets under management, there’s a commission that’s associated with it, right? The reality is, is you just got to do the math to figure out what’s the best move based on all of these buckets.

00:15:27:21 – 00:15:52:09
Kyle Pearce
So with the RSP, I just want to make sure that people are aware that your capital gains inclusion rate this is a non-issue for people who don’t have, say, unregistered accounts that have growth assets in them, growth stocks that are going to have capital gains. It is a problem for people who own real estate, right? Personally, if you go and sell a building and it’s a big capital gain after a long period of time, this is a problem for you.

00:15:52:09 – 00:16:15:14
Kyle Pearce
But again, it would be better to pay the capital gain even at the new rate, over 250,000 then say to have that building locked up in an RSP where you’re going to pay on 100% of that gain. Right. So there’s all kinds of different factors we have to think about. But I want to shift here just to talk to our business owners, those who are incorporated, especially those who are have an operating company.

00:16:15:14 – 00:16:36:00
Kyle Pearce
So active income is being earned. You’re paying a low corporate tax rate on the active income. There’s still some challenges for those earning passive income, too. But with the active income especially, people are now saying, Oh man, my corporation, they’ve been saving their retained earnings inside of their corporation. And then reinvesting it into assets. We do that all the time.

00:16:36:00 – 00:16:58:02
Kyle Pearce
You and I, John, you myself, Matt we do it all the time. But here’s the bigger problem, because even though the capital gain is going to be higher, when you actually look at going from 50% inclusion to 67% inclusion, you’re talking about paying about 8 to 9% more in taxes on the capital gain, which is like, I don’t want to do it, I don’t like it, I don’t want to.

00:16:58:03 – 00:17:30:13
Kyle Pearce
But it’s not like you’re paying 16 or 17% more like you’re paying 67 is 17% more than 50, Right? Because that’s just the inclusion rate. So when it all comes out in the wash, you’re not actually paying a significant amount more. Where you’re going to pay a significant amount more is on those retained earnings that you already took from your corporation, already paid probably a low amount of tax, 12.2% here in Ontario, or if it’s over 500,000 per year, that amount is 26 and a half percent.

00:17:30:13 – 00:17:56:10
Kyle Pearce
Still lower than doing that personally, that’s a good deal. The problem is, is that all of that money, all of the retained earnings are earmarked. So as you build more and more retained earnings, I’m going to use an example of 1 million here for a second insider company because this happens all the time with companies. They go, okay, I’ve got this million dollars retained, and then they put it into things like buildings.

00:17:56:10 – 00:18:12:14
Kyle Pearce
It might even be the building that you’re using for your operating company, or it might be a real estate building or a might be growth stocks. It could be the same growth stocks or growth index funds and equity index funds that you were buying in your RSP that might go and I’m going to use double because it’s easy.

00:18:12:14 – 00:18:37:13
Kyle Pearce
We’re going to go up to 2 million. Sorry, that’s a total of 2 million. So I’ve got an extra $1 million capital gains. Sure, you’re going to pay corporate capital gains tax on the two thirds. The one third is going to be tax free. That’s going to go to the capital dividend account, which is a nice little account that allows you as a shareholder to take tax free dividends as you sell or crystallize gains inside the corporation.

00:18:37:13 – 00:18:57:22
Kyle Pearce
Fantastic. So I have tax here on the capital gains, but again, it’s still going to work much like it does at the personal level. The government tries to put you in, we’ll call it the highest tax bracket because they know that in the corporation, the reason you didn’t pull it out was because it would push you to high up in the brackets.

00:18:57:24 – 00:19:19:01
Kyle Pearce
And therefore they assume that you should pay the same amount of income tax on those capital gains that are included as you would if you were in the highest personal tax bracket. So it’s a bit of a wash there, especially if it’s a big gain, personal or corporate, where your real issue is, is this retained earnings has not yet been taxed at the personal level.

00:19:19:03 – 00:19:51:15
Kyle Pearce
So while you have basically $667,000, that has to pay a capped gain tax, that’s fine. But that tax rate is going to be lower. Then the gains, the actual income tax you have to pay when you personally pull that $1 million of retained earnings out. And this is the real tax problem for our business owner friends. And this is something that took you and I almost a decade to figure out with our own businesses that that money is going to get chopped almost in half.

00:19:51:15 – 00:20:29:01
Kyle Pearce
If we took it all out and paid ourselves personally that money. So what do we do? First, we stuff policies and we use permanent life insurance in order to help us. And that creates not only a windfall through the capital dividend account tax free to shareholders after we go. It also gives us a massive amount of leverage ability inside the corporation as well as when we use compliant structures outside of your corporate structure to yourself personally as you build up these policies.

00:20:29:03 – 00:20:51:19
Kyle Pearce
So there are two major tax concerns that are greater than the actual inclusion rate that people are all worried about right now that I want to make sure that people out there, the Canadian wealth seeker audience, whether it’s personal or corporate for you, that these are on your radar. Because here’s the sad reality both of those things are secret sources.

00:20:51:21 – 00:21:33:08
Kyle Pearce
The RSP doing a cap gain on 100% of the gain on the way out, as well as the retained earnings being taxed on the way out. These are two things that are often missed. They’re often invisible. And it’s only when you go to take them out that you start to recognize what’s really happening. You’ve been playing the game for years and sometimes decades, and then you finally go to pull something and you realize that you’re in a tax pinch and you didn’t have the proper recommendations, perspectives, or advice from those who you thought had your best interest in mind, which I’m sure they do, But they might not even be aware of some of these

00:21:33:08 – 00:21:34:02
Kyle Pearce
nuances.

00:21:34:07 – 00:21:59:06
Jon Orr
If you’re in that situation, if your RSP, it’s grown and you’re now going, Oh crap, I’ve got to figure out how to get this money out of here. Reach out to us because we’ve just, you know, we just met with the client and structured through a policy, through personal dividend paying, whole life policies to kind of melt that down, but also transition that pot of money that would have been fully taxable because we had to pull so much out.

00:21:59:06 – 00:22:15:21
Jon Orr
But because of the age of this client transition that into the family estate. So that is not all going to the government or half of it’s going to be going to the government. It’s more of it will stay within the family than prior before, which is the same kind of strategy we’re doing in the corporation side of things too.

00:22:15:21 – 00:22:39:00
Jon Orr
So if you’re in either of those situations, you’ve got high corporate retained earnings and I got am I going to get that out of there? We’ve got strategies to help you do that. If you’ve got you on the RSP side, we’ve got strategies. That’s what we do. So reach out to us over at Clean well secrets dot com forward slash discovery and we will look at your situation and provide you some next steps.

00:22:39:02 – 00:23:05:19
Jon Orr
If this is the first time you’ve listened to the show, we’re going to encourage you to hit the follow button or subscribe button on your podcast platform so that you get notified. When we put out episodes, we put them out every Wednesdays and Fridays for you to start to learn and take the nuggets, the secret sauces away so that you can grow your financial net worth and put yourself on a great pathway to eventually being financially free or doing whatever you want to do.

00:23:05:23 – 00:23:23:03
Jon Orr
If you listen to other episodes, then we encourage you to hit that rating and review button. We read every single one of those reviews. It helps grow the show, but it also it also helps us strengthen the show. This is partly why we put out Friday episodes, is we wanted shorter nuggets of great info for you to take away on Fridays.

00:23:23:05 – 00:23:48:00
Jon Orr
That was all from the feedback we received on those ratings and reviews and links and resources you heard here today can be found over at Cannonball Secrets dot com for episode 88 at Canadian while secrets dot com for a special episode 88. And if you want for us to dig into your scenario your situation look at some of the moves you’ve made or some of the things you should be making so that you can set yourself up right on a great pathway forward.

00:23:48:06 – 00:24:08:18
Jon Orr
Head on over to Kenny. Well, SiriusXM bought us Discovery and we would love to kind of dig into your scenario and help you and navigate what you should do as your next step and maybe what tools you should be employing to make that happen. So head over to Katie, mostly with Scott for such discovery up on a quick call with us and we’ll be taking a peek at your scenario.

00:24:08:20 – 00:24:49:05
Jon Orr
All right, Candy, whilst you’ve got secrets, we’ll see you next time. Just as a reminder, the information you heard here today is for informational purposes only, you should not construe any such information or other material as legal tax investment, financial or other advice, John. Or is a mortgage agent with bricks. Mortgage License number m23006803. Cal Pierce is a licensed life and accident and sickness insurance Agent and VP of Corporate Wealth Management with Pam Corp. team.

00:24:49:07 – 00:24:51:16
Jon Orr
This includes corporate advisors and Pan Financial.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

OPTIMIZE YOUR FINANCIAL FUTURE