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Separating Your Personal And Business Finances

One of the things that we often see with incorporated professionals, entrepreneurs, and business owners, is the intermingling of their personal and corporate finances. The blurred line between their personal and business finances creates complexity, and as an entrepreneur, you cannot grow out of complexity.  To help simplify and organize your financial picture, we recommend that you ensure you’re taking the right amount of money out of your corporation, paying a dividend to you personally as needed, and leaving the…

How To Structure Your Investment Portfolio

One of the things we’ve observed among many business owners and incorporated individuals is that they measure the success of their investment portfolios strictly by its rate of return, without considering the bigger picture. When it comes to your investment strategy, tax plays a major role in your net rate of return of your overall investment portfolio. And if your portfolio isn’t structured effectively, you can end up paying significantly more tax. This is why the rate of return on…

Product-Driven Vs. Fee-Based Financial Planning

One of the things that we’ve recognized over in the financial planning industry over the years is that it has been very product-focused. Financial advisors are incentivized to sell specific insurance and investment products to their clients in exchange for commissions. So let me ask you a question: do you want to buy a product or do you want valuable intellectual property and financial advice? At Ocean 6, we have transitioned to a full fee-for-service and fee-based financial planning model,…

How To Pay Yourself If You’re Incorporated (Salary Vs. Dividends)

One of the most common decisions that a business owner or incorporated professional needs to make is how to pay themselves. Many entrepreneurs decide to incorporate their business and then pay themselves a salary out of their corporation, but this often results in paying higher taxes on their personal income.  One of the major advantages of being incorporated is you get the benefit and the flexibility of being able to decide how to pay yourself, paying yourself a salary isn’t…

Ocean 6 Wealth Advisory

Understanding the Government of Canada COVID-19 Package

Created: 20 March, Edited: 31 April The Government of Canada has implemented new measures to help employees and business owners through the many closures and restrictions imposed. We do not have all the details on how these pieces will be delivered but here’s a summary and useful table to help you to understand how you can be supported. Click here to download a pdf of the table. Tax Filing Instead of April 30, Canadians will have until June 1 to…

When is a good time to leverage?

Date: 26 March Often clients approach us wanting to leverage – a process that involves borrowing funds to invest in the market. When stock prices and valuations are high, as they have been in recent years, we are cautious about recommending leverage as a financial strategy. The reality is now significantly different. The market is currently in decline, TSX and S&P stock markets have both plummeted over 30% from their 2020 high and assets are on sale. We cannot be…

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What to do when the market declines

Date posted: 13 March If you’ve been following recent headlines, you’ll likely know that markets are experiencing a significant correction. Corrections happen when the market sees a decline of 10% or greater. While there is no question that volatility can be unsettling, it is normal. To offer peace of mind here’s some information to help answer your questions. Has this happened before? Yes, market corrections are part of the natural cycle of the stock market. To illustrate this, the graph…

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Why You Should Avoid A Retirement Savings Plan

One of the things we often see with incorporated professionals and entrepreneurs is that they’re utilizing their RSP (Retirement Savings Plan) as their number one vehicle for retirement savings. For most entrepreneurs, this isn’t the most tax-efficient way to save for retirement. With an RSP, what you’re essentially doing is going into business with the government, and you have no idea how much of your business they are going to take on the back end. An RSP is a vehicle…

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Purchasing Insurance Through Your Corporation

One of the things we help entrepreneurs with when looking at their financial plan is how they can effectively structure their insurance strategy. The biggest challenge with owning insurance personally is that you’re paying for it with dollars that have been taxed at a significantly higher rate. If you have a corporation, you definitely want to own your insurance inside of your corporate structure. You’re paying tax on earnings inside the corporation at 13.5%, which gives you a significantly higher…

Ocean 6 Wealth Advisory

Debt Restructuring – Is It Right For You?

One of the most common topics we’re asked about from business owners, incorporated professionals, and entrepreneurs is debt restructuring. More specifically, how should an entrepreneur structure their debt in the most effective way and for the lowest cost? A lot of entrepreneurs focus on getting the lowest interest rate on their loans, but the lowest interest rate doesn’t always result in the lowest cost of having that debt over the long-term.  If you look at a fixed-rate mortgage, for example,…

Ocean 6 Wealth Advisory

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