Do you feel that you’re doing everything you can to better your financial situation? Unfortunately for many, the opposite is true. The term Wealth Management is used loosely – the best way to determine whether you’re truly managing your wealth is through specific examples. This self-assessment test will help you reach a conclusion about your own affairs.
TAX MINIMIZATION PLANNING1. I have a plan in place to convert taxable income into capital gains on a yearly basis.YesNot SureNo 2. An RRSP is a tax deferral mechanism rather than a true tax savings strategy. I am taking advantage of alternatives to RRSPs that provide similar annual tax savings without “locking” money in.YesNot SureNo3. If my spouse is in a lower tax bracket, I am taking advantage of current income splitting opportunities such as a spousal loan.YesNot SureNo4. The interest on the mortgage of my principal residence is tax-deductible.YesNot SureNo 5. I have a plan in place to withdraw from my RRSP/RRIF in a tax efficient manner.YesNot SureNo PORTFOLIO CONSTRUCTION6. I have analyzed my portfolio using asset allocation software to ensure my portfolio is as efficient as possible.YesNot SureNo7. I am familiar with Standard Deviation and know what the deviation of my portfolio is. (Without this information it’s difficult to gauge what level of risk you are taking.)YesNot SureNo8. I have a written correlation analysis for my portfolio.YesNot SureNo INCOME PLANNING9. I have a retirement income analysis in place to ensure I am spending (or planning to spend) just the right amount. A lack of income projection leads some to deplete assets too quickly while others may not lead their preferred lifestyle due to the uncertainty over whether or not money will last.YesNot SureNo10. I know exactly how much monthly income I can expect from all of my combined assets.YesNot SureNo11. We will be income splitting during retirement to ensure that, as a family, we are paying the least amount of tax on our combined income.YesNot SureNo12. I have a net worth and financial analysis in place that calculates the financial outcome of my current approach which also compares this to the outcomes of alternate approaches which I have not yet explored.YesNot SureNo13. When I retire or if I am retired already, I know exactly which accounts to draw money from in order to keep my tax lower. (The various accounts can include registered and non registered plans, TFSAs, one spouse’s accounts vs. the next, corporate investments, pension plans, rental properties, corporations etc.)YesNot SureNo TRUSTS & ESTATE PLANNING14. I have an estate needs analysis in place that calculates the approximate estate taxes and probate fees on my estate should I pass away during any given year; and I have a plan in place to minimize those taxes and leave my estate to my beneficiaries in the most tax efficient manner.YesNot SureNo15. There is a plan in place to ensure assets I leave to my beneficiaries are protected from current and future spouses and other potential creditors.YesNot SureNo16. I have a records book which will allow my heirs to quickly access information on my various financial affairs.YesNot SureNo17. I understand how the use of various trusts could decrease taxation.YesNot SureNo18. If I am interested in leaving assets to charity(s) I am aware of which assets I’m better off leaving to the charity(s) and which assets I should leave to the children in order to maximize taxable benefits.YesNot SureNo19. Our Wills, Power of Attorney’s, Living Wills and Representation Agreements have been reviewed during the last 3 years.YesNot SureNo SUMMARY QUESTIONS20. I can honestly say that I am taking advantage of all of the tax reduction strategies currently available to me.YesNot SureNo21. I am comfortable that my spouse and/or children will be able to manage our family assets when I am no longer here.YesNot SureNo22. I am happy with my risk adjusted portfolio returns and feel my portfolio is as efficient as possible.YesNot SureNo23. I know my advisor is much more than an investment advisor as he/she has reviewed all of the above financial matters with me.YesNot SureNo ADDITIONAL QUESTIONS FOR BUSINESS OWNER24. I have a plan in place beyond taking out dividends to access my corporation’s retained earnings with little to no personal income tax.YesNot SureNo25. I have a plan in place to pass along the assets within my corporation to my heirs without any tax liability.YesNot SureNo26. I have a succession plan in place to either sell or pass on my business in the most tax efficient manner.YesNot SureNoName
If you have answered NO or NOT SURE to a number of the questions above, you might be overlooking various option to better your financial situation. If you'd like a call from one of our advisors or prefer to schedule a meeting, please contact us at 1-855-339-0088 or firstname.lastname@example.org.
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