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Financial Planning For Canadian Business Owners
Jason Pereira
136 episodes
5 months ago

Business owners live complex lives. You have traded the stability of working for someone else, for the uncertainty of controlling our own destiny. Whether you are starting your own business, scaling it, or planning your exit, you face challenges that the average person never has to face. Ensuring that you make the most of your business means not just being the best at what you do, but figuring out all the other complexities that come with it, and that will mean finding people that will help give you the right advice.


The Financial Planning for Business Owners Podcast is here to help guide you regardless of the stage of your business. Each week we interview experts from various fields to help you become aware of what good advice looks like. From setting up your corporate structure to selling your business we tackle both the technical and personal considerations impacting all of your decisions. We can’t make you better at what you do, but we can help you benefit the most from the fruits of your labours.


Hosted on Acast. See acast.com/privacy for more information.

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All content for Financial Planning For Canadian Business Owners is the property of Jason Pereira and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.

Business owners live complex lives. You have traded the stability of working for someone else, for the uncertainty of controlling our own destiny. Whether you are starting your own business, scaling it, or planning your exit, you face challenges that the average person never has to face. Ensuring that you make the most of your business means not just being the best at what you do, but figuring out all the other complexities that come with it, and that will mean finding people that will help give you the right advice.


The Financial Planning for Business Owners Podcast is here to help guide you regardless of the stage of your business. Each week we interview experts from various fields to help you become aware of what good advice looks like. From setting up your corporate structure to selling your business we tackle both the technical and personal considerations impacting all of your decisions. We can’t make you better at what you do, but we can help you benefit the most from the fruits of your labours.


Hosted on Acast. See acast.com/privacy for more information.

Show more...
Entrepreneurship
Business
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True Cost of CPP with Aravind Sithamparapillai | E116
Financial Planning For Canadian Business Owners
26 minutes 56 seconds
1 year ago
True Cost of CPP with Aravind Sithamparapillai | E116

Jason talks to Aravind Sithamparapillai, an associate at Ironwood Wealth Management Group. Aravind is known for his unique and novel research on the cost of the Canada Pension Plan, and they will talk about the intricacies of Canada Pension Plan and its often-underestimated value for business owners. During the conversation, Aravind and Jason delve into the comprehensive out-of-pocket expenses for employees, taking into account tax credits and deductions. The dialogue explores the fluctuation in costs depending on income levels and the potential for tax savings.


Disclaimers


-“investment shop”

*Investment services are provided through Ironwood Securities, an approved trade name of Aligned Capital Partners Inc. (“ACPI”). ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Only investment-related products and services are offered through ACPI/Ironwood Securities and covered by the CIPF.


-“I do full scale planning”

*Aravind Sithamparapillai is an Associate at Ironwood Wealth Management Group. Ironwood Wealth Management Group offers financial planning and insurance services. Ironwood Wealth Management Group is an independent company separate and distinct from ACPI/Ironwood Securities.



Episode Highlights:

  • 03:20: Aravind acknowledges Jason's content on corporate topics and integration, highlighting the confusion around CPP savings and the realization that the after-tax impact needs closer examination.
  • 09:26: Introducing a chart to visually represent net costs for employers, the conversation explores hypothetical examples across various income levels. Emphasis is placed on the significance of taking the entire tax scenario into consideration.
  • 14:15: Aravind introduces the concept of the Canada Child Benefit and other income-tested benefits that can be impacted by the choice between salary and dividends. He emphasizes the importance of considering all factors in optimizing total wealth.
  • 21:43: Aravind discusses the "light bulb" moment regarding CPP calculations. He explains that when an individual takes CPP, a bonus is calculated on top of the actual CPP rate for that specific year.
  • 22:26: The emphasis is on the assertion that the expansion of CPP extends beyond inflation; it encompasses real income growth attributed to the additional growth linked to the average industrial wage.
  • 25:21: Jason discusses the importance of considering Old Age Security (OAS) and CPP in retirement planning. He also addresses the common belief that everyone thinks they will live to 100, pointing out the statistical likelihood of living longer as one ages.


Key Points:

  1. Jason and Aravind discuss the worst-case scenario related to CPP contributions and how the tax savings play a crucial role, reducing the total contribution amount by over a third.
  2. The conversation delves into the considerations for business owners deciding between salary and dividends.
  3. The discussion emphasizes the importance of benefits of the Canada Pension Plan, including survivor benefits and disability portions in situations where private disability insurance may not be practical.


Resources Mentioned:

  • https://www.ironwoodcanada.com/aravind-sithamparapillai
  • Facebook – Jason Pereira's Facebook
  • LinkedIn – Jason Pereira's LinkedIn


Hosted on Acast. See acast.com/privacy for more information.

Financial Planning For Canadian Business Owners

Business owners live complex lives. You have traded the stability of working for someone else, for the uncertainty of controlling our own destiny. Whether you are starting your own business, scaling it, or planning your exit, you face challenges that the average person never has to face. Ensuring that you make the most of your business means not just being the best at what you do, but figuring out all the other complexities that come with it, and that will mean finding people that will help give you the right advice.


The Financial Planning for Business Owners Podcast is here to help guide you regardless of the stage of your business. Each week we interview experts from various fields to help you become aware of what good advice looks like. From setting up your corporate structure to selling your business we tackle both the technical and personal considerations impacting all of your decisions. We can’t make you better at what you do, but we can help you benefit the most from the fruits of your labours.


Hosted on Acast. See acast.com/privacy for more information.