Financial Planning

Business Owners

As a small business owner or professional, you face many challenges not only in the day-to-day management of your business, but in ensuring its long-term viability. Most of us, however, spend more time managing the day-to-day than planning for the long-term. To ensure your business is successful, some of the concerns you need to address are listed below:

• loss of an owner
• loss of a key person
• attracting employees/executives
• retaining employees/executives
• using the business to support retirement income
• business investment income taxes
• covering capital gains tax liabilities

We help solve these problems.

Running a successful company and implementing safeguards to ensure its continuity costs money, but to survive in today’s competitive economy, small business owners must manage these costs carefully.

Making business and personal financial decisions that are tax-effective can help small business owners free up funds to support growth or other business objectives.

Manulife Wealth Inc. offers product solutions that can help small business owners meet their objectives in a cost-effective manner.

Group Benefits

• Quickstart is a cost-effective basic employee benefits program that allows small business owners to deliver a solid benefits plan for employees at a cost that’s manageable and sustainable.
• AlphaPlus is designed with comprehensive options to allow small business owners to design a program that manages their costs effectively with the flexibility to grow as their business prospers.

Group RRSP

A group retirement plan is an easy, cost effective way for small business owners to offer another appealing benefit to their employees. Manulife Wealth Inc.’s structured Group Retirement Savings Plan (RRSP) is ideal for businesses with 25 employees or more and offers the same competitive features typically reserved for a large employer’s plan. Manulife Wealth Inc.’s RRSP helps small business owners deliver a convenient option to encourage employees to save for retirement.

Banking

• Manulife Wealth Inc. Bank’s Business Advantage Account is a high-interest, low-fee investment account that makes your client’s excess business cash work harder by offering a premium interest rate on every dollar deposited.
• A $US Business Advantage Account is also available.
• Manulife Wealth Inc. Bank’s personal Advantage Account is a high-interest, low-fee account that can be used as a primary personal bank account or as a secondary investment account.

Tired of traditional banking? Manulife Wealth Inc. Bank offers an account that can help you take control of your daily finances and could save you thousands.

Tax and Estate

Things to know about tax and estate planning:

1. No matter your net worth, it’s important to have a basic estate plan in place. Such a plan ensures that your family and financial goals are met after you die.
2. An estate plan has several elements. They include: a will; assignment of power of attorney; and a living will or health-care proxy (medical power of attorney). For some people, a trust may also make sense. When putting together a plan, you must be mindful of both federal and provincial laws governing estates.
3. Taking inventory of your assets is a good place to start. Your assets include your investments, retirement savings, insurance policies, and real estate or business interests. Ask yourself three questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you’re ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself?
4. Everybody needs a will. A will tells the world exactly where you want your assets distributed when you die. It’s also the best place to name guardians for your children. Dying without a will – also known as dying “intestate” – can be costly to your heirs and leaves you no say over who gets your assets. Even if you have a trust, you still need a will to take care of any holdings outside of that trust when you die.
5. Trusts aren’t just for the wealthy. Trusts are legal mechanisms that let you put conditions on how and when your assets will be distributed upon your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your heirs without the cost, delay and publicity of probate court, which administers wills. Some also offer greater protection of your assets from creditors and lawsuits.
6. Discussing your estate plans with your heirs may prevent disputes or confusion. Inheritance can be a loaded issue. By being clear about your intentions, you help dispel potential conflicts after you’re gone.
7. There are ways to give charitable gifts that keep on giving. If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.

Contingency Plan

Having a Contingency Plan in place is vitally important to any business in which the owner plays an active role. Without a well thought-out game plan, the consequences to key stakeholders (family, clients and estate) in the business are dire.

The impact of your sudden and unexpected departure from the business due to death, disability or extended leave of absence from the business can be disastrous. As a professional, it’s your responsibility to make every attempt possible to ensure a plan is in place to protect everyone’s interest.

The objective of a Contingency Plan is to make sure your heirs know what you would like them to do with the business in the event you can’t do it yourself. It can involve negotiating something as simple as a letter of understanding or the drafting of a legally binding buy & sell agreement funded with life insurance. Whatever approach you choose, the main objective is to make sure there is a plan to follow if a triggering event occurs.

It’s also imperative in this process that you communicate the details of your plan with your executor or legal representative and include a copy with your estate documents.