taylerinsurance

Building a Personal Pension from Corporate Profits

Wed, 10 Dec 2025 23:17:43 GMT

Client Goal

A successful business owner in her early 50s approached us with a clear objective: she wanted to secure her retirement

by turning corporate earnings into personal wealth—without increasing her salary or dividend income.

With a thriving incorporated business and healthy retained earnings, she was looking for a strategy that would allow her to

extract funds tax-efficiently and build a stable retirement income stream.

Our Solution: Establishing an Individual Pension Plan (IPP)

An IPP is a corporate-sponsored defined benefit pension plan, much like the ones enjoyed by government employees

or workers at large institutions. For incorporated professionals and business owners, it offers a powerful way to

accelerate retirement savings, reduce corporate taxes, and protect assets.

Here’s how it helped this client:

Her corporation made larger, tax-deductible contributions than what she could put into an RRSP
She used past service RRSP room to make an additional lump-sum contribution, creating an immediate corporate tax deduction
The assets in the plan are creditor protected, adding an extra layer of financial security
Contributions and growth within the plan are tax-sheltered until retirement, allowing her wealth to accumulate more efficiently

A Fully Funded Personal Pension

She now has a fully funded personal pension —paid for by her corporation—without increasing her personal income today. The result is a smarter, tax-efficient way to move corporate dollars into her retirement plan, providing long-term confidence and a clear path toward a secure financial future.

Estate Planning for a Blended Family in Retirement

Wed, 10 Dec 2025 23:14:56 GMT

A recently retired couple in their early 60s approached us with a combined net worth of nearly $6 million. Both had children from previous marriages, and while they had been happily married for over 20 years, they understood that blended families require extra care when it comes to estate and tax planning.

We Uncovered a Significant Issue

During our initial review, we uncovered a significant issue: most of the couple’s assets were held in Mr.’s name alone. This structure created serious estate planning risks. If Mr. were to pass away first, his spouse—who was named as executor—would be responsible for a large tax bill. Worse, assets such as the family home or investments might need to be liquidated just to cover taxes and meet the terms of the Will.

Three-Part Planning Strategy

To address their concerns and protect both the surviving spouse and their children, we implemented a comprehensive, three-pronged approach:

Updated the Wills in collaboration with an estate lawyer to ensure their documents reflected their current wishes, reduced potential family conflict, and provided clear, tax-efficient instructions for distributing assets.

Restructured investment accounts, including the use of segregated funds with named beneficiaries, to help bypass probate, enhance privacy, and ensure specific assets could go directly to each spouse’s children—without jeopardizing the surviving spouse’s financial security.

Implemented a targeted income tax strategy to help reduce taxes on their registered accounts over time. This approach not only increased cash flow in retirement but also helped lower the overall estate tax burden, preserving more of their wealth for their family.

Outcome: A Thoughtful & Tax-Efficient Legacy Plan

A proactive and tax-efficient plan that reflects the couple’s blended family dynamics, protects both spouses, and ensures their legacy is passed on according to their values—not lost to unnecessary tax or avoidable

conflict. This approach provides long-term peace of mind for their entire family.

Protecting a Tech Entrepreneur’s Legacy

Wed, 10 Dec 2025 23:13:17 GMT

A successful software entrepreneur in his early 40s came to us seeking guidance on how to protect his growing wealth and young family. While his business was thriving, he was concerned about the significant tax burden his estate could face if something happened to him unexpectedly.

Collaborative Planning Approach

Working closely with a trusted CPA and tax lawyer, we developed a customized tax and estate plan to address his concerns and future goals. During our planning conversations, he also mentioned the possibility of selling his business down the road. This led to a two-pronged strategy.

Two-Pronged Strategy

Our recommendations focused on two key objectives:

Reposition excess capital out of the operating company to make it more appealing for a future sale
Minimize future estate tax on the shares of the business

Repositioning $5 Million in Retained Earnings

With $5 million in retained earnings, it was essential to structure the transfer of capital through a tax-free intercorporate dividend strategy, moving funds into a holding company. This repositioning not only reduced the value of the operating company—making it more attractive for a future sale—but also allowed for the strategic investment of surplus funds within the corporate group.

To address the significant estate tax exposure, we implemented a permanent life insurance policy owned by the holding company. This strategy ensures the estate will have tax-free liquidity when it’s needed most, provides a tax-efficient way to cover future liabilities, and allows the policy’s cash value to grow tax-deferred within the corporate structure.

Outcome: A Strong, Future-Ready Estate Plan

The result is a well-protected estate plan: the business is primed for a future sale, the family is financially safeguarded, and the CRA’s tax impact has been minimized.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

Financial Planning - Who Gets Paid First When You Die

Thu, 05 Jun 2025 15:44:37 GMT

Who gets paid when you die first? It’s not your family. Have You Ever Really Looked at the Language in a Will? Consider this common statement:

"Pay my debts, funeral expenses, income taxes, and all other levies such as estate taxes payable in connection with any property passing upon my death, as well as the expenses of administering my estate."

It’s a mouthful, right? But did you notice what’s not mentioned first?

Debts Come Before Loved Ones

Nowhere in that line did we say: "Take care of my spouse, my children, or my grandchildren."

That’s because debts, income taxes, and estate taxes come first . Only then does the residue —what’s left—go to your loved ones and beneficiaries.

What Happens When You Die?

It’s More Than Just Grieving—It’s About Paying Bills

When you pass, ask yourself:

How is your mortgage paid off?
What about your Visa or car loan?
How will your funeral be funded?
And let’s not forget our dear friends at the CRA—how will those final taxes be covered?

There’s a Smarter Way Forward

Maybe it’s time to have a financial plan put together. As a Certified Financial Planner , I specialize in:

Creating strategies that maximize wealth
Reducing income taxes
Ensuring your money goes to the hands that need it most— your family

At Taylor Insurance and Estate Planning

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

Grandparent Strategy: Protect Wealth, Build Legacy

Thu, 05 Jun 2025 15:44:30 GMT

Grandparents bring inherent wisdom , patience, and a generosity that knows no bounds.

We know you'd do anything for that little one — with chubby knees and an adorable, toothless smile.

But Here’s the Truth - You Can’t Take Your Wealth With You

When you pass, your estate could face significant taxation. The CRA and government may claim a large portion of the wealth that should go directly to your grandchildren.

The Solution: Be Warm-Handed, Not Cold-Handed

Don’t wait until it’s too late to be generous. You can start now.

Consider a Legacy Gift - Cascading Wealth for Future Generations

By investing in a participating life insurance policy on your grandchild, you can create a lasting, tax-efficient legacy .

A small annual contribution—say, $2,500 a year for 10 years — could grow into a significant, tax-free estate over the course of your grandchild’s lifetime.

Your Legacy, Their Future

Let us show you how to be warm-handed to your smallest loved ones — because they all grow up eventually.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

Do You Want To Save Millions?

Tue, 15 Apr 2025 15:43:27 GMT

Looking to protect your wealth? A permanent life insurance strategy owned by your corporation is tax-exempt and could save your estate millions in taxes. Get expert financial advice tailored to your needs at TaylorInsurance.com .

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Bloopers with Purpose - Every stumble is a step forward.

Tue, 08 Apr 2025 15:14:12 GMT

Every outtake is proof that the journey matters just as much as the outcome.

What you don’t always see is what makes the difference. In this blooper reel with Taivi Tayler , we’re reminded that success isn’t built on perfection — it’s built on showing up, staying real, and trusting the process.

These behind-the-scenes moments are proof of what we live by:
✅ Tried and true methods
✅ Real connections
✅ Proven results for our clients

Every stumble, every laugh, every “take two” — it’s all part of helping others build confidence, overcome challenges, and grow stronger. Because when you’ve been through it, you know what works. We don’t just teach it — we live it.

At Taylor Insurance and Estate Planning

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

Financial Planning for Professionals - Without a plan, your estate pays the price

Tue, 01 Apr 2025 15:13:00 GMT

When you're young and working, your goal is simple: Get to retirement with wealth and confidence . But here’s the truth:

The financial decisions you make throughout your life will directly impact:

The value of your retirement assets
And the size of your overall estate

Without a Plan, You Pay the Price

If you don’t have a financial strategy, you’ll likely:

Pay the highest amount of income tax over your lifetime
See your estate ripped apart by capital gains tax, final tax returns, and probate fees

The Smart Solution: Life Insurance

Life insurance isn’t just protection—it’s a tactical tax weapon . Without it, your estate pays the bills using your own assets. With it, you use the life insurance company’s money to cover final expenses — leaving more behind for the people you love.

At Taylor Insurance and Estate Planning

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

From Trikes to Trusts: A Grandparent’s Financial GiftThe Journey of Growing Up

Thu, 20 Mar 2025 15:13:21 GMT

Toddlers with trikes and training wheels eventually become teens with cell phones, social media, and first loves.

The Role of a Grandparent

As a grandparent, you can take the lead —offering financial guidance and leadership to the youngest ones in your family.

You can:

Set up in-trust-for accounts
Make contributions to educational savings plans
Or do what high-net-worth families do...

You know, the ones with millions of dollars ?

Tools to Secure Their Future

They cascade their wealth from generation to generation — keeping money in the hands of their children and grandchildren, and out of the hands of the CRA.

The Secret Weapon: Life Insurance

Their family wealth and legacy grow exponentially because they use life insurance as a tactical weapon against the CRA and income tax.

Choose your grandchildren first. Secure your legacy. Let us show you how to be warm-handed to your smallest loved ones — because they all grow up eventually.

You have the power to shape more than memories—you can shape a legacy.

At Tayler Insurance & Estate Planning, we help you grow your wealth, minimize taxes, and protect your legacy. Learn more today.

Grandparents: The Legacy Builders of the Family

Mon, 10 Mar 2025 15:12:31 GMT

As a grandparent, you hold a unique role. You’re a friend, a guide, a mentor — and often the family historian all in one.

So why not add “family financial educator” to that list?

If Your Wealth Is Over $1 Million…

At that level, it's unlikely you'll ever run out. So have you considered investing in the youngest members of your family? By giving them a financial leg up, you can:

Transition wealth into their hands
Reduce income taxes
Avoid probate
And expand your legacy across generations

We Help You Multiply Generational Wealth

Our team teaches grandparents how to be strategic and tax-efficient —turning today's wealth into a lasting financial legacy that grows generation by generation. Let us show you how to be warm-handed to your smallest loved ones — because they all grow up eventually.

Let your legacy live on!

Be wise, and let your legacy live on through the ones you love most. At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect your legacy. Learn more today.

Hiring a Certified Financial Planner (like Taivi) is kinda like hiring a professional organizer.

Thu, 27 Feb 2025 19:55:05 GMT

I Love CPAs But I Don't Want Their Job

Tue, 17 Dec 2024 06:00:00 GMT

Protecting Corporate Estates: Planning Ahead to Avoid Financial Trauma

I love working with accountants to create strategies for our corporate clients—it’s a mutually beneficial relationship. But I wouldn’t want their job when there’s no insurance plan in place, and a client passes away.

Here’s the scenario:

The CPA has to inform the executor—often the estate’s beneficiary—how much tax is owed. By this point, the executor is already overwhelmed with financial demands:

Mortgage lenders,
Credit card companies,
Outstanding bills,
Vendors for the corporation,
And finally, the CRA tax bill

The result? Beneficiaries, heirs, or surviving shareholders are left with an estate worth less than half of what they expected , compounding financial trauma on top of personal loss.

The Solution: Strategic Corporate Estate Planning

When corporate clients plan with me and their accountant, we can:

Reduce taxes now and in the future ,
Ensure the corporation has liquidity to clear debts and obligations,
Deliver tax-free funds to surviving shareholders, and
Prevent the estate from being drained by taxes.

Instead of the CRA taking a significant portion of your wealth, write a smaller check to an insurance company now and secure your legacy.

At Taylor Insurance and Estate Planning, we help business owners grow their wealth, minimize taxes, and plan for a seamless transition of assets.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Real Estate Investors: Hold Companies & Corporate Dumpster Fires

Thu, 05 Dec 2024 15:19:11 GMT

Protect Your Wealth: A Corporate Estate Planning Strategy

With real estate values at record highs, many private real estate investors in Ontario are sitting on significant wealth. However, the tax implications on death are often underestimated, leaving families with unexpected financial burdens.

Case Study: The Tax Trap for Real Estate Investors

A couple in their late 60s has accumulated:

$10 million in rental properties
$5 million in liquid assets (stocks and fixed income) held inside their holding company.

While this $15 million wealth seems like a strong legacy, taxes create a domino effect:

Corporate Asset Tax : Taxes are owed on corporate assets.
Forced Asset Sale : Selling an asset to pay the first tax bill triggers more tax.
Personal Tax : The value of the holding company shares incurs personal tax when money is withdrawn to pay the personal bill.
Estate Administration Tax : Additional taxes further reduce the estate's value.

The result? A large portion of the $15 million wealth is lost to the CRA.

The Solution: A Holistic Corporate Tax & Estate Planning Strategy

Instead of losing wealth to taxes, you can protect it using a permanent life insurance strategy owned by your corporation. This strategy:

Avoids taxes with a tax-exempt structure.
Maintains liquidity to cover tax obligations without selling assets.
Preserves your legacy for the next generation.

The choice is clear: Write a smaller check to an insurance company now or a much larger one to the CRA later.

At Taylor Insurance and Estate Planning, we specialize in helping business owners grow wealth , mitigate taxes, and secure their legacy.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Why Pay Taxes When You Can Be Charitable Instead

Wed, 27 Nov 2024 20:37:10 GMT

Generosity and Tax - Smart Giving for Retirees

Many retirees are deeply charitable, giving their time to food banks, hospitals, and community programs. They’re also among the most generous with their money, but when I ask about their giving goals, I often hear: “I wish I could do more.”

The truth is—you can do more! There are strategies to maximize your charitable giving, potentially increasing its impact tenfold, while also being highly tax-efficient.

Tax Saving Opportunities for Retired Business Owners with Corporate Savings

For retired business owners with corporate savings , the opportunities are even greater. By donating strategically, you can:

Mitigate taxes now and in the future.
Increase non-taxable cash flow to draw money from your corporation tax-free, enhancing your retirement lifestyle.
Support your favorite charities while reducing your tax burden.

Why pay taxes when you can direct that money to causes you care about?

At Taylor Insurance and Estate Planning, we help retirees grow wealth, minimize taxes, and plan to protect their legacy. If you’d like to explore tax-smart giving strategies, contact us today at TaylorInsurance.com .

Retirees, Cruises & Tax Mitigation

Sun, 17 Nov 2024 20:37:05 GMT

I recently worked with a retired couple in their 60s who were seeking a comprehensive financial plan. During our initial conversation, I focused on understanding their goals for retirement and how they wanted to transition their wealth to their adult children.

The couple had a liquid net worth of about $1 million , solid pensions, and a fully paid-off home. Together, we created a personalized financial plan that achieved every one of their objectives.

One of their key goals was to help their adult children buy their first home. We showed them how to provide support in a way that felt rewarding and meaningful, while also preserving their wealth.

We also introduced tax mitigation strategies to ensure their wealth could be passed on intact, maximizing its value for their children. Helping retirees grow their wealth, reduce taxes, and protect their legacy brings immense joy to our team.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Don't Lose the Small Business Deduction

Thu, 07 Nov 2024 20:37:04 GMT

In the business world, earning passive income without putting in significant effort is an attractive idea—it's a fantastic way to grow your corporate wealth. However, there are limits to how much passive income you can earn before facing financial consequences.

Here’s the issue:

You can earn $50,000 corporately in passive income without penalty.
Every dollar over that limit sacrifices your Small Business Deduction —and losing that deduction can cost you significantly.

The impact?

Your tax rate increases substantially, and the penalty is harsh : a $5 cost for every dollar over the limit.

The good news is that there’s a simple solution.

By shifting assets from a tax-exposed environment to a tax-exempt one , we can resolve this issue effectively.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Wealth Preservation for Medial Professionals

Sun, 27 Oct 2024 20:37:02 GMT

I’ve had the privilege of working with medical practitioners, from family physicians to specialists in hospital settings. Medical professionals are remarkable—they give so much to their patients, but I often wonder how much time they dedicate to their own financial planning. There’s a strong focus on wealth accumulation, but little attention to wealth preservation.

It’s not just about what you earn; it’s about what you keep and pass on. Addressing the issue of taxes isn’t difficult—it involves investing in another asset class, like a permanent insurance policy. When done right, this strategy can eliminate tax burdens, sparing your family from selling assets at a loss to cover CRA debts. Without planning, cherished assets like the cottage, rental property, or investment portfolio may be at risk.

At Tayler Insurance & Estate Planning, I help medical professionals grow their wealth, minimize taxes, and protect their legacy. If you have questions or want to learn more, please contact our office at taylerinsurance.com .

The Viciousness of Income Tax

Thu, 17 Oct 2024 20:26:26 GMT

My name is Taivi Taylor, a Certified Financial Planner specializing in estate planning with a focus on tax planning. I’ve come to realize that most people don’t fully understand how severe income taxes can be upon death. For instance, capital gains inclusion rates on corporate assets can reach 67%, and once you surpass $250,000 in personal assets in Ontario, the highest marginal tax rate hits 53%. On top of this, there’s the Estate Administration Tax.

Even if you have assets, without liquidity at the time of your passing, your estate may be forced to sell properties like rentals, cottages, or even the business—triggering additional taxes. It can lead to financial trauma compounding personal loss.

You owe it to your family to plan ahead. Investing in a permanent life insurance strategy can help protect your wealth, as otherwise, nearly 40% could be left behind while the CRA claims the remaining 60%. Don’t leave your loved ones financially vulnerable—protect them.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and safeguard their legacy. If you have questions or want to learn more, please contact our office at taylerinsurance.com .

A Financial Future

Mon, 07 Oct 2024 20:26:06 GMT

As a professional, you are likely the family breadwinner. After all, you spent years in post-secondary education, which probably meant graduating with significant debt. This might have delayed milestones like buying your first home, finding a partner, and starting a family. But it was all worth it—you do what you love, and your compensation is substantial.

So, I have just one question: Have you stopped planning for your financial future?

Many will say no, but what I observe often tells a different story. When I ask specific questions of business owners—especially tech experts, engineers, those running manufacturing businesses, or professionals like physicians and lawyers—I repeatedly find the same gaps:

Unprotected income
A lack of liquidity, both personally and corporately
No plan to mitigate income taxes

My message is simple: Be proactive and continue planning for your financial future.

You’ve worked so hard to get to where you are—don’t let the CRA claim a significant portion of your assets through taxes, leaving a mess when you're gone.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacies. If you have questions or want to learn more, please contact our office at taylerinsurance.com .

Corporate Business Plans - Teaching Entrepreneurs to Minimize Taxes (Video 4)

Mon, 09 Sep 2024 13:28:58 GMT

For entrepreneurs, their business is their passion—it’s their baby.

It’s how they provide for their family and afford that “ trip to a sunny destination. ”

I don’t know of any business owner who wakes up hoping that their life’s work will be swallowed up by Canada’s near 67% capital gains inclusion rate . Most want to mitigate any taxes that they or their estate will have to pay. I spend much of my day working with professional entrepreneurs like:

Dentists
Real Estate Developers
Veterinarians
and those who run manufacturing and trade businesses

My goal is to help them ensure that their life’s work doesn’t end up in the CRA’s pocket.

When their eyes light up, understanding how this asset class moves wealth tax-free to the next generation, it gives me goosebumps! I get excited for them.

At Tayler Insurance & Estate Planning, we help business owners:

Grow their wealth
Minimize taxes
Plan to protect their legacy

Don’t let your hard-earned wealth slip away to taxes. Contact us today to learn how you can protect your business and ensure your legacy lasts for generations.

Estate Planning - Over Stuffed Registered Accounts (Video 4)

Mon, 09 Sep 2024 13:20:58 GMT

When I start working with a new couple in their early retirement years, I often encounter the same issue repeatedly: overstuffed registered accounts like RRSPs and RRIFs . These accounts are one of the biggest liabilities for an estate strategy. Yes, liability—not asset.

Here’s what many don’t realize:

During their working years, a couple each accumulates $400,000 in RRSPs, totaling $800,000.
If one spouse passes away, the survivor inherits the full $800,000 in their registered account.
Upon their death, the estate doesn’t receive $800,000.

Why? The final tax is calculated at the highest marginal tax rate—nearly 54% in Ontario. That means the beneficiaries, usually the children, face a massive tax bill, leaving them with almost half of the estate gone.

What’s the Estate solution?

If the estate doesn’t have the liquidity to cover this tax, we need to address it now.

We encourage retirees to:

Spend their money tax-efficiently.
Recycle RRSP or RRIF assets into tax-smart vehicles like permanent life insurance and TFSAs, which transfer fully intact and tax-free to beneficiaries.

Otherwise, the CRA wins and the beneficiaries lose.

At Tayler Insurance & Estate Planning , we help you grow your wealth, minimize taxes, and protect your legacy."

Corporate Business Owners: Seek Answers to be Ahead of the Curve (Video 3)

Thu, 29 Aug 2024 12:47:32 GMT

Game Changers

We hear about them all the time in business. Change is inevitable. Smart, proactive business owners are always looking for ways to stay ahead of the curve, both personally and professionally.

Wealth Creation Strategy

When developing a wealth creation strategy for business owners, my primary focus is on reducing the income tax burden that a small business corporation and its shareholders will face—whether now or in the future. I believe that integrating a tax-exempt asset class into the corporate wealth strategy is one of the most powerful tools available.

In fact, it’s the best weapon for wealth preservation, tax reduction, and legacy planning that any entrepreneur can access.

If you have questions or want to learn more, please contact our office through the link provided.

At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy. Learn more today.

Estate Planning - Estate Planning - I’m self insured, I don’t need life insurance (Video 3)

Thu, 29 Aug 2024 12:43:14 GMT

'I’m self-insured, I don’t need life insurance.'

"I love it when people say things like, 'I’m self-insured, I don’t need life insurance.' I find this to be the most bizarre of comments because, as far as I’m concerned, everyone needs life insurance. You just don’t always need it for the same reason.

Life insurance becomes crucial for preserving their legacy

Traditionally, people have life insurance coverage when there are debts like mortgages and to ensure an income when children are young. But when people reach their 60s and beyond, life insurance becomes crucial for preserving their legacy. In fact, the more wealth you have, the more important 'permanent life insurance' becomes.

It acts as a safeguard, reimbursing a family after the CRA swoops in and carves out upwards of 53% of an estate. Insurance creates wealth for those who don’t have it, but more importantly, it preserves wealth for those who do.

Learn more about life insurance . At Tayler Insurance & Estate Planning, we help grow your wealth, minimize taxes, and plan to protect your legacy."

Corporate Business Owners: Smart Strategies for Incorporated Entrepreneurs (Video 2)

Mon, 19 Aug 2024 13:19:16 GMT

As a business owner, I always strive to solve multiple problems with a single idea when investing in my business. I value efficiency and suspect other entrepreneurs do too. It makes me uneasy when I hear fellow business owners say they “don’t have time to plan.”

Your business is your baby

Representing countless long nights, stress, and time away from your family. Ensuring that your corporate wealth accumulation strategy is sound is a crucial part of working on your business.

Too much passive income can jeopardize your Small Business Deduction (S-B-D). Let’s work together to preserve your S-B-D and make strategic adjustments to your corporate savings.

By utilizing a “tax-exempt asset class” in your corporation, you embrace one of Canada’s most effective wealth-preserving, tax-busting, and legacy-creating strategies. This approach will keep your corporate tax return in good standing annually and create a substantial “tax-free capital dividend” for shareholders in the future.

If you have questions or want to learn more, please contact our office through the link provided. At Tayler Insurance & Estate Planning, we help business owners grow their wealth, minimize taxes, and protect their legacy.

Estate Planning - Wealth Management for Retired Business Owners (Video 2)

Mon, 19 Aug 2024 13:15:06 GMT

I work with a lot of retired business owners and these people have a significant amount of “never spend money” because they’ve got significant amounts of wealth. The sad part is that their estate is going to be a considerable tax win for the CRA.

Frankly, that just makes me upset. I encourage these retirees to take a different spin on things, and how we can start moving money around now for the benefit of their children and grandchildren.

The strategy is so easy and simple, and leaves a legacy.

That gift, which has grown year by year, decade by decade, has turned into this huge “tax free wealth accumulation asset class” that is quite literally the financial gift that keeps on giving, long after the retiree has passed away.

At Tayler Insurance & Estate Planning we help grow your wealth , minimize taxes and plan to protect their legacy.

Corporate Business Owners: Protect Your Wealth & Legacy (Video 1)

Fri, 19 Jul 2024 17:34:42 GMT

Are you a retired business owner with substantial wealth?

Many successful entrepreneurs accumulate significant assets but hesitate to spend their hard-earned money. Unfortunately, this often results in a substantial tax windfall for the government.

At Tayler Insurance & Estate Planning, we believe there's a better way. By strategically planning and transferring wealth now, you can create a lasting legacy for your children and grandchildren while minimizing taxes.

Our approach is simple yet powerful: we transform unused wealth into a tax-efficient asset that grows over time. This "financial gift that keeps on giving" ensures your legacy endures long after you're gone.

Let us help you:

Grow your wealth
Minimize taxes
Protect your legacy

Stay tuned for video 2 in out service of videos for Corporate Business Owners.

Estate Planning - Safeguarding Your Legacy for Retirees (Video 1)

Thu, 18 Jul 2024 14:00:39 GMT

Many retirees, especially successful entrepreneurs, have complex financial lives. They may own rental properties, cottages, and other valuable assets. A critical but often overlooked step – estate planning – can significantly impact how these assets are passed on to loved ones.

The Challenge: Capital Gains Tax and Liquidity

Changes in the "capital gains inclusion rate" for personal assets can create a hefty tax burden for heirs. Without proper planning, families may be forced to sell cherished assets like cottages to pay the tax bill. This can significantly erode net worth and disrupt legacy plans.

The Solution: Proactive Estate Planning

Estate planning offers a proactive approach to navigate these challenges. By working with a qualified professional, retirees can:

Minimize Taxes: Strategies exist to reduce the tax impact on inheritances.
Maintain Liquidity: Ensure enough cash is readily available to pay taxes without selling valued assets.
Protect Your Legacy: Ensure your wishes are followed regarding how assets are distributed.

At Tayler Insurance & Estate Planning, we specialize in helping retirees:

Grow their wealth
Minimize taxes
Plan to protect their legacy

We can show you how to navigate the complexities of estate planning and ensure your hard-earned assets are passed on as intended.

Mortgage Insurance - Yuck!

Thu, 18 Jul 2024 13:00:53 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help home owners grow their wealth, and plan to protect their financial legacy.

If you own a new home in Ontario, you probably have a mortgage between $500,000 to $1million. These are big numbers and we need to protect the right people. Mortgage insurance doesn’t protect your family. It protects the lender.

Hear my words very carefully: having mortgage insurance may clear the debt, but it’s not a guarantee.

Mortgage insurance doesn’t ask enough questions and therefore if the homeowner dies, it may but it may not payout the debt, leaving your spouse/partner, and other heirs such as children on shaky ground.

Protect your beneficiaries and obtain real life insurance.

Reach out and find out how we can build your financial strategy to protect your beneficiaries. Tayler Insurance & Estate Planning Inc. We help home owners grow their wealth and plan to protect their legacy.

Mortgage Insurance Coverage That Shrinks

Fri, 14 Jun 2024 21:11:44 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help home owners grow their wealth, and plan to protect their financial legacy.

One of the biggest misconceptions about mortgage insurance is that it protects the homeowner.

It really doesn’t. Let me explain. Let’s say you have a mortgage and you pay down some principal over the 5 year term. You obtained mortgage insurance. However, upon renewal of your mortgage, which is now less than where you started, you’ve aged. Now that you’re 5 years older, you’re going to wind up paying more for your coverage and it’s covering less as you’ve paid down the principal. It’s so backwards.

A better solution is to have a life insurance policy.

You can have it at a fixed cost for 20 or even 30 years. You can name your beneficiary and regardless of what you do with your mortgage, your insurance coverage will not change. If you start with $1million in coverage, and buy a term for 20 years, you will have $1million in coverage for the same price for 20 years.

Protect your beneficiaries and obtain real life insurance .

Estate Planning: Grandpa Needs Your Help

Fri, 14 Jun 2024 21:05:59 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help retirees grow their wealth during retirement and specifically plan to protect their financial legacy.

Is your grandpa all set financially? How about is financial legacy?

Your grandfather is the best isn’t he? You have these amazing memories of baseball games and popcorn. He taught you to fish, even though you didn’t want to touch the worm. He reminded you to listen to your parents but was always good for a little mischief and ice cream before dinner.

As grandpa is on his own now, he needs you more than ever.

He needs you to ensure that his estate legacy plays out as he wants it to. He needs professional advice by a Certified Financial Planner who will ensure that his wealth is transferred to his beneficiaries tax efficiently and without probate.

Reach out to our office today so we can help your grandpa put an estate plan in place that will allow him to transfer his financial legacy privately and tax efficiently. Tayler Insurance & Estate Planning. Let us help to grow grandpa’s wealth, and plan to protect his financial legacy .

Financial Planning: Mom and Dad Do They Understand

Fri, 14 Jun 2024 20:59:54 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help retirees grow their wealth during retirement and plan to protect their financial legacy.

Securing Your Financial Legacy

So you’re in your late 40s. Your parents are now in their mid 70s. Your parents have a paid off house, and a sizable non-registered account, as well as Tax Free Savings and RRIF accounts. Your parents have always followed the advice of the institution where they bank.

Let’s see what they and you know about investing, accounts and estate transition.

Do you talk about why the RRIF will not transfer to the next generation tax free and in fact, could lose up to 50% of its value on the annuitant’s death?

Do you understand that putting an adult child on a bank account is not guaranteed to bypass the estate administration tax, which is probate, if there is more than one beneficiary named in the Will?

Do your parents know how to provide for a beneficiary long term that is terrible with money, or maybe has addiction problems?

If neither you nor your parents know the answers to these questions, perhaps it’s time to reach out . At Tayler Insurance & Estate Planning, we will help your parents growth their wealth and plan to protect their legacy . Reach out today.

Critical Illness Insurance: Then Your Buddy Had a Heart Attack

Fri, 14 Jun 2024 20:55:06 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help business owners grow their wealth, and plan to protect their financial legacy.

You should be proud. You survived Covid and continued to grow your business from a handful of clients and contracts to this immensely profitable business. You’re still young and healthy and you have at least another 20 years doing what you love. You are the family breadwinner.

Did you know that your buddy from high school just had a heart attack?

Shocker right. He was pretty healthy and boom, down for the count for the next few months. Doctor’s orders, no stress and no work for the next 8 months.

Except that without income, your buddy is going to blow through his corporate savings to cover his business expenses and his personal retirement accounts are going to be obliterated paying his mortgage and other monthly bills.

It’s too bad he didn’t know about critical illness insurance.

He could have received a tax free payout for hundreds of thousands of dollars tax free and his company could have paid some of the costs.

It’s something to investigate if you don’t know about it either.

Reach out and we’ll explain. Tayler Insurance & Estate Planning, We help business owners grow their wealth and plan to protect their finances .

Critical Illness Insurance: Then You Were Diagnosed with Cancer

Fri, 14 Jun 2024 20:50:41 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help business owners grow their wealth, and plan to protect their financial legacy.

What happens if you are diagnosed with life threatening cancer?

I was speaking to a young business owner recently. We were doing some long term retirement planning and during our conversation she started to tell me about her best friend who is a lawyer running her own practice. The self-employed lawyer friend was 35, 2 little kids at home, a spouse and she was just diagnosed with life threatening cancer.

Better hope you have critical illness insurance!

I hope the lawyer had a critical illness insurance policy. It would have taken the financial pressure off. She would be receiving a tax free payout for hundreds of thousands of dollars and she can use the money any way she wanted.

My client thought so too. We put a strategy together to ensure that if she were to be diagnosed with a critical illness, including heart attack and stroke, that her family, and she’s got 3 little boys, would be financially solvent.

If you’re self-employed you need an exit strategy.

Reach out and find out how we can build yours. Tayler Insurance & Estate Planning Inc. We help business owners grow their wealth and plan to protect their finances .

Disability Insurance: Right After Tax Season

Fri, 14 Jun 2024 20:31:34 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help business owners grow their wealth, and plan to protect their financial legacy.

What if you were in an accident?

Last year, after tax season, the accountant was in a motorcycle accident. Survived of course, but he suffered some major injuries. Broken bones, surgery, some pins and obviously quite a lot of time off work.

There is a rainbow to this story. The accountant had a disability insurance plan. The tax free cash flow started and it was more than enough to pay his personal bills like his mortgage, property tax and utilities. His partner was actually the most grateful for the disability insurance plan because the partner wasn’t the breadwinner, so it was a relief to have cashflow and not get behind on the bills.

If you’re self-employed you need a financial strategy in the event you have a major injury and can’t work, or have a critical illness.

Let's build a financial strategy to protect your income in case of injury or illness. Contact Tayler Insurance & Estate Planning for expert guidance. Reach out and find out how we can build your financial strategy to protect your paycheque. Tayler Insurance & Estate Planning Inc. We help business owners grow their wealth and plan to protect their finances.

Mortgage insurance may not adequately protect your family in case of death

Fri, 14 Jun 2024 20:26:06 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help home owners grow their wealth, and plan to protect their financial legacy.

If you own a new home in Ontario, you probably have a mortgage between $500,000 to $1 million. These are big numbers and we need to protect the right people. Mortgage insurance doesn’t protect your family. It protects the lender.

Hear my words very carefully: having mortgage insurance may clear the debt, but it’s not a guarantee.

Protect your beneficiaries and obtain real life insurance.

Estate Planning: What About Grandma's Money

Wed, 12 Jun 2024 19:11:51 GMT

A Little Guidance Can Go a Long way!

For the elderly generation, talking about money has historically been considered impolite and rude. Money was a very closely guarded secret and frankly none of anyone’s business. Times are changing and those in their late 70s and beyond are realizing that a little bit of professional guidance can go a long way.

In our practice, we love working with your grandma. She’s smart, dynamic and you should see that picture of her in her prime. She’s still that same person on the inside. She makes great money decisions but options are limited where she banks.

Grandma is not on social media, but you are.

Your grandma needs us to put together retirement plan and estate transfer strategy that is simple, tax efficient and probate free. Please share our contact information with your grandma and join us in our first meeting.

Tayler Insurance & Estate Planning Let us help grow grandma’s wealth, and plan to protect her financial legacy. Contact us today.

Estate Planning: Don't Go On Title

Wed, 12 Jun 2024 19:06:20 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help retirees grow their wealth, and plan to protect their legacy.

In my work with clients, it is often suggested that the elderly homeowner put their adult child on title of the primary residence. There are a multitude of reasons as to why this is a terrible idea for everyone involved, except in a very strict situation.

Here are my rules for putting an adult child on title:

Rule 1, that adult child should be the ONLY beneficiary of the estate.
Rule 2, that adult can’t own their own home already.
Rule 3, that adult child has to want to live in their elderly parent’s home, in that location
Rule 4, the adult child needs to have mental capacity to care for the home
Rule 5, the adult child needs to have independent resources to financially care for the home and it’s ongoing upkeep

If you can’t check all the boxes, don’t do it. Otherwise you’re just going to create an estate disaster. There is a better way to manage this situation.

We help retirees to grow their wealth, and plan to protect their financial legacy.

Please reach out if your elderly loved one needs professional financial planning guidance on how to put their estate plan together. At Tayler Insurance & Estate Planning, our solutions are simple and tax efficient.

Estate Planning: Tax Fluid Wealth Transfer

Wed, 12 Jun 2024 19:02:46 GMT

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario.

I Work With Clients 60 & Up

I am someone that loves to work with people in their 60s and older, to help them grow their wealth during retirement and specifically plan to protect their financial legacy. An estate strategy is just as important as building up wealth for retirement.

Understanding how tax is applied in retirement and in death will dramatically change how you structure your overall wealth.

Knowing the tax implications and setting it up correctly is key to making sure your money transfers to the next generation, making it fluid and efficient.

Reach out today to learn more about how we can help you put together a strong retirement strategy and plan with you to protect your legacy. Tayler Insurance & Estate Planning.

Your Biggest Retirement Asset is Your Estate’s Biggest Liability

Fri, 07 Jun 2024 17:52:49 GMT

When I start working with a new couple in their early retirement years, I often find the same problem repeatedly.

Overstuffed registered accounts like RRSPs and RRIFs. These accounts are one of the biggest liabilities for an estate strategy. Yes liability, not asset.

Let’s explain it differently.

A married couple accumulates $400,000 each in their respective RRSPs. Combined they have $800,000 in registered assets. Going into retirement, their assets grow and they take out the required minimums from their RRIF.

Sadly, one partner dies. Their survivor spouse is the successor annuitant of their account and now their registered account has the $800,000. Shortly after, they also pass away and the account is still worth $800,000.

The four adult children are the beneficiaries of the estate, and they all assume their portion of the RRIF will be $200,000 each. Two plan to pay down their mortgages, the third wants to take a 25 ^th wedding anniversary cruise and the last one is going to be able to help their child with tuition for medical school.

Or will they?

The $800,000 is 100% taxable income to the deceased on their final return. Therefore, 53.53% is going to be taxed away. Beneficiaries are shocked when $395,487 (approximately) is the income tax bill.

More pain comes, as the asset drops into the estate, so the pain is enhanced by another 1.5% tax applied by Ontario’s Ministry of Finance Estate Administration Tax (probate).

The inheritance dream bubble bursts as reality sets in that less than $100,000 is coming to each beneficiary. As the estate is in probate, it is expected to take upwards of 9 months to settle before assets transfer.

No one is happy.

When we work with retirees, we discuss how to restructure their accumulated savings. We show them how to set up their legacy so that it moves as tax efficiently as possible, without probate, directly into the hands of their beneficiaries.

This is how we make retirees happy.

Wealth takes a lifetime to accumulate and when no one discusses the final estate plan, tax and probate will disintegrate a lifetime of smart financial decisions.

At Tayler Insurance & Estate Planning we help grow your wealth, minimize taxes and plan to protect your legacy. Secure your financial future contact us Tayler Insurance today.

CPP as a Force For Good – Grandkids

Fri, 12 Apr 2024 16:41:26 GMT

In a previous article, we discussed using your CPP as a force for good. It detailed how retiree Cathy Gauci was able to use her CPP to create a $400,000 charitable donation for her local hospital. Read that article here:

Use Canada Pension Plan (CPP) as a Force for Good

Part two of the Gauci story is about what Cathy's husband Jim decided to do with his CPP when he too embraced the concept of using your CPP as a force for good.

How Jim Put to Use His Canada Pension Plan for His Grandchildren's Benefit

Jim Gauci is an amazing grandpa. He loves to lift the kids in the air making them squeal. He takes the older ones for fishing adventures and started teaching them how to golf. He is patient when his favourite personal items are touched by sticky fingers and when one of the twins was sick in his car, he took it in stride.

Jim decided to use his CPP for his grandchildren's benefit. His grandchildren are still young with Michael the eldest at just 7, Thomas is 5, and the twin girls Maddie and Isabella are 3. Jim's adult sons are financially educated and have set up and maxed out the annual RESP contribution limits for their own children.

Jim is set to receive $16k a year in maximum payments from CPP. He doesn't need the money and wants to help the kids out with some longer-term wealth transition strategies. He set up a program for his grandchildren that will allow them to have a starting amount of $100,000 in life insurance and coverage for life.

By the time each grandchild reaches their mid-late 20s, there will be tens of thousands available to assist them in paying for vehicles, weddings and home downpayments. By the time the twins are 65, the tax-free death benefit has potentially grown up to 9 times. The financial advantages the Gauci grandchildren experience are enormous.

Jim paid premiums for 10 years and gave his grandchildren a lifetime gift. They will never forget him or his generosity. When they're older, Michael, Thomas, Maddie and Isabella will follow in Jim's footsteps. They too will put an insurance policy on their grandchildren, and the family's wealth expands and grows with each generation.

You too can use your CPP as a multiplier and a force for good, just like Jim.

Maximize Your CPP Benefits with Tayler Insurance's Expert Guidance

Harness the power of your Canada Pension Plan (CPP) with Tayler Insurance's expert financial guidance. Our tailored financial strategies ensure you leverage CPP benefits effectively for retirement security and beyond. From optimizing contributions to navigating complex regulations, trust us to maximize your CPP potential. Our team specializes in leveraging CPP benefits to their fullest extent, whether through strategic planning, investment advice, or retirement income optimization.

Secure your financial future with Tayler Insurance today! Contact us now to start maximizing your CPP benefits.

Taivi Tayler, RRC, CLU, Certified Financial Planner

www.taylerinsurance.com

Source: Equitable Mar2024

Use CPP as a Force for Good

Wed, 27 Mar 2024 07:27:16 GMT

By Taivi Tayler, RRC, CLU
Certified Financial Planner

For many wealthy retirees, their Canada Pension Plan payment is just icing on the cake. For affluent Canadians, it's more of a tax hiccup than a meaningful source of income. Instead of using CPP in its traditional manner, one can choose to use it as a force for good .

Jim and Cathy Gauci, age 65, have recently retired. They sold their business and worked with their professional advisors to complete an estate freeze and take advantage of their capital gain exemption limits. Now in their second year of retirement, they turned on CPP and will each receive the max payment of $1364.60 monthly (over $16k annually for each, taxable income). At their level of wealth, they don't need this extra money to support their lifestyle.

This couple have always wanted to be generous and support their local hospital beyond their annual $1000 donation. They want to leave a significant charitable legacy as their children were well cared for in the neo-natal unit decades ago.

Cathy embraced the idea of using her CPP as a force for good. At age 82, she passed away. Her CPP created a $400,000 donation to the hospital. Recently, Cathy's great granddaughter was born in that hospital, and the family waited for the happy news in "Cathy Gauci's Teddy Bear" space.

In addition, Cathy's estate received a charitable donation receipt for $400,000. This incredible legacy strategy reduced Cathy's terminal estate tax by 100%, and reduced the income tax she paid the year before, creating a refund. Cathy's heirs received a better-than-expected inheritance, the hospital has new equipment for newborns and the CRA got less tax. Win. Win. Win.

Use your CPP as a multiplier and a force for good, just like Cathy.

Taivi Tayler, RRC, CLU, Certified Financial Planner

www.taylerinsurance.com

Source: https://www.canada.ca/en/services/benefits/publicpensions/cpp/payment-amounts.html ; Manulife Mar25.2024

Investment Strategies: Another Article on TFSAs and RRSPs

Thu, 08 Feb 2024 07:10:45 GMT

Oh Good! Another Article on TFSAs and RRSPs

If you haven’t read enough articles at this time of year about the merits and differences between TFSAs and RRSPs, here is another one to dive into. Here is a quick chart to look at:

TFSAs are our favourite accounts. They are the best for every type of investor, young and old. They accumulate wealth tax free and allow for withdrawals without tax consequences. On death, they are an estate planner’s dream account as the proceeds can transfer 100% in tact without probate (estate administration tax) and income tax to any named beneficiary.

Overstuffed RRSPs can get reduced down to just 47% of their value due to income tax on death in all cases unless the proceeds go to a spouse, impaired financially dependent child/grandchild or to one other really important type of beneficiary.

If you have questions you’d like answered, feel free to email: ttayler@taylerinsurance.com

Taivi Tayler, RRC®, CLU®
Certified Financial Planner
Toll Free: 1-866-550-6932
Local: 705-733-3338

Fax: 705-734-6243

https://www.taylerinsurance.com/

Canada Interest Rates Changes for 2024

Tue, 30 Jan 2024 07:01:02 GMT

In Cash? Time to Make a Move!

When it comes to investing, the professionals in the investment industry read a lot of economic updates. They have a good sense of major shifts coming. I’m here to tell you that one is on its way.

In 2022 and 2023, the Bank of Canada was doing its best to fight inflation. The only option they have is to raise interest rates to bring inflation down. Inflation is expressed as a year-over-year increase in the total Consumer Price Index (CPI). The CPI is made up of the most relevant items that a Canadian will typically buy such as food, furniture, clothing, transportation, etc. It may not feel like it, but it worked. Peaking on June 1, 2022 at Total CPI of 8.1% it dropped to 3.4% on November 1, 2023.

https://www.bankofcanada.ca/rates/price-indexes/cpi/

Interest rates are likely to drop in Canada in 2024. When that happens, certain types of investments will experience capital appreciation. If you parked your money in a High-Interest Savings Account in 2022 or 2023, or if your GIC is about to mature, you may want to consider transferring the asset to a fixed income investment. In a falling-rate environment, fixed income outperforms interest-bearing products. Fixed income is considered low-risk and works well for conservative investors.

If you’re going to make an RRSP contribution, consider investing in a fixed-income product with this year’s contribution. If you have already converted to a RRIF, you can make a change as well. Fixed-income investments can be used in TFSA, RESP, LIRA, LIF, RRSP, RRIF, and non-registered personal or corporate investments.

If you would like to explore this idea further, please reach out.

Taivi Tayler, RRC®, CLU®
Certified Financial Planner
Toll Free: 1-866-550-6932
Local: 705-733-3338

Fax: 705-734-6243

https://www.taylerinsurance.com/

The Gift of Education

Wed, 20 Dec 2023 09:45:00 GMT

It’s the holiday season and there is one type of gift that will carry a young person through their entire life. It is the gift of education. When high school ends, and young adults look forward to entering a post-secondary institution, the costs of tuition may be surprising. Tuition alone can range $3000-$4000 a semester, before one factors in housing, food, and transportation.

Initiate Financial Planning Early For Post-Secondary Education Savings

To get ahead of these looming expenses, it’s best to start early to save for post-secondary education. A parent, grandparent, or guardian can make contributions to a Registered Education Savings Plan “RESP” for a child(ren). The contributions can be made monthly, annually or on an ad hoc basis. From birth to 12 months of age, a child has accumulated $2500 worth of contribution room and has a lifetime contribution limit of $50,000. Each year that $2500 is contributed, an education grant of $500 is automatically available and applied for.

This grant is a 20% increase on the contributions made by their adult loved one before being invested. If the contributor can’t financially make the entire $2500 amount, any contribution that they do make will receive a 20% grant on their contribution. It’s a win-win for the future student.

Setup Monthly Contributions For Your Savings Plan

We recommend a monthly contribution for any savings plan. This is partially because it’s often easier on the budget for working adults and pensioners. We also believe that the best opportunities come from dollar cost averaging. Dollar cost averaging is just buying an investment on a regular consistent basis, often monthly, allowing the saver to take advantage of the ups and downs of the markets. If someone saved monthly in 2022, they would have picked up great investments at a discount price and then as prices picked up in 2023, they got them at a great price which is advantageous for long term wealth accumulation.

Few are aware that when the student redeems money from their RESP (Registered Education Savings Plan), it is considered taxable income to them. This is generally not a concern because few students earn enough income to pay income tax at all even between part-time jobs and redemptions from the RESP.

Feel free to reach out and ask us a question about finances that you’d like answered. We’re more than happy to answer you personally.

Taivi Tayler, RRC ^® , CLU ^® , Certified Financial Planner ^®

www.taylerinsurance.com

Financial Planning: Validating Who to Get Advice From

Thu, 14 Dec 2023 19:27:27 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner, Wealth Manager, & Insurance Broker and I work with people all over the Province of Ontario.

How do you know that I am who I say I am?

After all, you’re watching this on your social media outlet and frankly, how can you confirm the person you are watching is actually regulated and has to abide by a set of rules.

Get ready to copy and click, I’m going to tell you how: www.fsrao.ca

Financial Services Regulatory Authority of Ontario , known as FSRA

Financial Services Regulatory Authority of Ontario , known as FSRA is the provincial regulator that regulates Credentialing Bodies like FP Canada and the Institute for Advanced Financial Education.

CFP Certified Financial Planner and CLU Chartered Life Underwriter

The Credentialling bodies provide designations like the CFP Certified Financial Planner and CLU Chartered Life Underwriter which are Ontario’s highest designations in Financial Planning and Insurance. These are designations that I have worked very hard to obtain.

Not Just Anyone Can Be Called a Financial Planner

Go to these sites and validate that who you’re getting advice from is in good standing. Title Protection is here in Ontario and not just anyone can call themselves a Financial Planner.

Contact me to find out how I can put together an integrated insurance and wealth management financial plan designed for you. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning

My Love for the “TFSA” Tax Free Savings Account

Wed, 13 Dec 2023 09:29:55 GMT

The Tax Free Savings Account is my hands down favourite account registration. I do find that it is often misunderstood, so let’s add some clarity.

What is TFSA (Tax Free Savings Account)?

The TFSA is not a fancy bank account. Please don’t use it as such. Instead, you should use a traditional savings account to park your extra cash for your emergency fund, annual vacation savings or the money you’re pooling for your vehicle. I do suggest that if you have access to a liquid High Interest Savings Account (“HISA”), use it. I’ve seen 4.45% offered through our service providers. Be forewarned that a HISA will create annual taxable interest, but it’ll be nominal if it’s based on a balance of $10-$20k.

The TFSA is designed for long term (1 year +) wealth accumulation. The money in the account should be invested in alignment with your personal risk tolerance.

That being said, from this Certified Financial Planner/Wealth Manager’s point of view, please do NOT park cash in this account. That is what the previously mentioned HISA is for. Cash inside a TFSA completely defeats the power of the TFSA.

Why do I say that?

The answer lies in the name of the account. Tax FREE. There is no tax. None. Ever.

What Steps Should You Take To Make the Most Out of Your TFSA Investment?

Invest the proceeds of your TFSA to grow your wealth. Dividend paying investments are great, complimented with an allocation towards a fixed income investment in the current high-rate environment. Using balanced funds are ideal for those with low-medium risk tolerances. If you have the opportunity to trigger capital gains within your TFSA, consider doing it. The gains are yours and you don’t need to share them with the CRA.

When you invest in your TFSA using segregated funds, you can protect 100% of your invested principal for estate transition. You can lock in market growth with resets. This combination of TFSA tax sheltering and wealth preservation is just incredible for investors, especially those age 60+ who are keen to enhance their wealth.

I love the estate planning benefits of the TFSA. It is the ONLY account that will send the proceeds to any named beneficiary (spouse, child, grandchild, best friend, charity) without tax consequences.

I get goosebumps when I think of how powerful this one little account is. I hope that you are using yours to its true potential. If not, let’s talk.

At Tayler Insurance & Estate Planning our solutions are simple and tax efficient. We help retirees grow their wealth and plan to protect their legacy.

Taivi Tayler, RRC ^® , CLU ^® , Certified Financial Planner ^®

www.taylerinsurance.com

An Advisor’s Holiday Wish List

Fri, 08 Dec 2023 09:02:51 GMT

It’s that time of year when people make requests of loved ones. I have a list for this holiday season of the people that I care about.

This is what I am asking for:

1) All my contacts have updated their Wills and Powers of Attorney in the past 5 years with a lawyer.

2) Beneficiary designations are checked and cross checked for accuracy.

3) Parents of small children have life insurance to replace their income and pay off debts.

4) $100k+ income earners embrace duality – save it once, use it twice.

5) Self-employed individuals have put a strategy in place to protect their paycheque.

6) Corporate business owners have a long-term tactical plan in place to move assets tax free through their capital dividend account using an alternative asset class.

The wish list is not long, but it can be overwhelming. If anything on this list causes you to stop in your tracks because you haven’t done it, investigated it or are not even sure what is being referred to, then let’s chat. Wrapping up 2023 and heading into 2024 should be done so with financial literacy and confidence.

Taivi Tayler, RRC ^® , CLU ^®

Certified Financial Planner ^®

www.taylerinsurance.com

Life Insurance: Can I get Life Insurance if I Had Cancer

Tue, 14 Nov 2023 19:20:30 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner, Wealth Manager, & Insurance Broker and I work with people all over the Province of Ontario.

So you’ve had cancer. That sucks.

It really does. It doesn’t however mean that you can’t get life insurance coverage because you still can.

As an insurance broker, I want to get those with a history of cancer, covered. After all, you have spouses and common law partners, you have children and dependents. You have mortgages. You need insurance.

Yes You Can Get Life Insurance!

In my practice, we have placed life insurance coverage on those that have had survived breast cancer, testicular cancer and non-hodgkins lymphoma.

Contact us to find out how we can put together a long term life insurance strategy designed specifically around your needs and your medical history. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Critical Illness Insurance: Cancer and a BIG Fat Cheque

Sat, 14 Oct 2023 18:15:05 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner, Wealth Manager, & Insurance Broker and I work with people all over the Province of Ontario.

Specifically in my role as a Certified Financial Planner, I am always on the look out for the potholes of life.

The big gaping holes on our journey through life that can and will take us out at the knees.

Let’s take cancer for example.

According to the Canadian cancer society, for 2015-2017, the net 5 year survival rate for men with prostate cancer is 91%, women with breast cancer is 89%. They survived and that is amazing.

What you don’t hear in those numbers is what happened to their finances. These people were on treatment and that treatment may not have allowed them to work. Therefore, debt likely accumulated and the retirement assets may have been withdrawn early.

Consider Critical Illness Insurance

It doesn’t have to be that way. When doing an insurance strategy for my clients, I will recommend they consider critical illness insurance to protect their finances. According to the Canadian Cancer society, cancer is more widespread for those aged 50+, the ones that are in their peak earning years.

How would you like a big fat cheque?

In late 2022, I delivered a $100,000 tax free to a woman who was diagnosed with cancer. She survived her ordeal and is now on the mend with her finances intact.

Contact us to find out how we can keep your wealth from illness like cancer, heart attacks and strokes. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Start planning for the next stages of your life.

Wed, 20 Sep 2023 15:58:44 GMT

Today’s the day you start planning for the next stages of your life.

With the recent economic uncertainty, increased interest rates and a layoff that you weren’t expecting, feeling stunned and lost right now is completely normal.

You may need to start making some big financial decisions quickly. This may include transferring out your group RRSP or commuting your pension. You may have high medical expenses in your family, and you need to replace your group insurance coverage quickly, but within 30 days.

When a layoff occurs, sometimes you need to make decisions by a deadline. Those decisions can be made without panic, pressure or emotion.

At Tayler Insurance & Estate Planning, we’re here to help.

Taivi Tayler, Certified Financial Planner, is a wealth manager and chartered life underwriter. With over 20 years of financial services experience, she can provide objectivity and clarity when everything seems loud, confusing, and overwhelming. Taivi can guide you on the simple financial decisions that you can make now so that down the road when your world is less frantic, you can make some great decisions for your future.

Please reach out if you have questions about what you should do next.

At Tayler Insurance & Estate Planning, our solutions are simple and tax efficient. We help individuals growth their wealth and plan to protect their legacy.

Estate Planning 101 with a Tax Free Savings Account

Thu, 14 Sep 2023 18:09:17 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner, Wealth Manager, & Insurance Broker and I work with people all over the Province of Ontario.

I love the Tax Free Savings Account.

As a wealth manager, ensuring that people invest tax efficiently is key. As an Estate planner, I’m always on the look out for how wealth is handled at death.

Yup, we’re going to get a bit dark here for a moment.

When someone dies their Tax Free Savings Account will transfer to their named beneficiary. If a spouse, it just slides across into the surviving spouses TFSA. It doesn’t count as a contribution either which is ideal strategically because the surviving spouse preserves their own contribution room and limits. If the named beneficiary is another adult, then the funds can move both TAX FREE and will bypass the Dreaded Estate Administration Tax, commonly known as probate. This account is wildly tax efficient.

If you have a TFSA and you don’t think you’re lining it up for it’s true potential, let’s talk about it.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Financial Planning: Wealth Management From Your Mon & Dad

Mon, 14 Aug 2023 18:05:31 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner, Wealth Manager, & Insurance Broker and I work with people all over the Province of Ontario.

Did Mom & Dad give you great or terrible wealth management advice?

Do you feel that your mom or dad gave you great or terrible wealth management advice? Many people try to give their adult children advice. Sometimes what mom and dad told you is excellent – like get permanent life insurance when you’re young, start saving for retirement when you get your first job. Excellent!

I also see the impact of really bad financial suggestions, like telling a first time home buyer to get mortgage insurance (don’t, get real coverage instead) or people who suggest that their kids only pay down their debt and not save (again, terrible advice).

Let’s get you started on the road to real wealth security and tax efficiency.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Self-Employed Financial Advice: Everyone Counts on Small Business Owners

ttayler@taylerinsurance.com (Taivi Tayler) — Thu, 27 Jul 2023 14:05:13 GMT

According to Statistics Canada, there are 1.19 million small businesses in the country, employing up to 99 people at a time.

If you are self-employed and have a team, it’s a huge responsibility. Employees may not truly understand the immense pressure you are constantly under. In many cases, you are the product/service expert and the head of sales.

You ensure that your company puts the customer first but not at the expense or abuse of your employees. You could be in charge of marketing or lead human resources. It’s quite likely that you are the CEO, CFO and President all rolled into one.

It's likely as well that you have a few more hats to wear spouse, parent or grand-parent, daughter or son, sibling, caregiver, or coach. In my case, I need a hat that says “Personal chauffeur for children” who play sports and need to be driven everywhere.

Are you also the breadwinner at home?

Do you earn the primary income on which your household thrives? Entrepreneurs are often big income earners and without their activity, it all falls apart.

The vendor doesn’t get paid. The client is unhappy. The debts increase. The mortgage is missed.

We don’t plan to go off and have a heart attack. We don’t want to have a stroke. We didn’t intend for our body to fail us and develop cancer. We put protocols in place so there isn’t a workplace accident, and we didn’t think that driver was going to run the light.

No one expects to be brought to their knees financially, but it happens, every single day.

Planning for the potholes (or craters) on our journey through life is part of financial planning. If you wear a multitude of hats in your business and for your family, you know better than I do how many people are counting on you. By putting the right types of protections in place that will protect your income and cash flow, (disability insurance or critical illness coverage) you are a better employer than most. You’re an even better parent or spouse.

Please reach out if you have questions on how to manage your business and personal risk.

At Tayler Insurance & Estate Planning our solutions are simple and tax efficient. We help entrepreneurs grow their wealth and plan to protect their legacy.

Beware the Unfunded Shareholder’s Agreement

ttayler@taylerinsurance.com (Taivi Tayler) — Thu, 27 Jul 2023 13:50:27 GMT

When working with business owners with partners, I always ask to read their shareholder’s agreement.

Sometimes, I get the deer in the headlight look from the person across from me. Either they don’t know what that document is, or they do and then I hear:

We haven’t finished it yet.
The lawyer is still working on it.
We haven’t signed it yet.

To understand why a shareholder’s agreement is important, let’s use an example:

Bob and Adam are equal business partners in Springwater Plumbing Inc. The business is very successful. Revenues are north of $ 1 million and growing, they have 3 employees, and the business is just 5 years old. Bob is married to Cathy. I ask Adam, to envision Cathy, a dental hygienist. She doesn’t have any skills in the trades, let alone plumbing, and doesn’t understand how they operate the business.

During my meeting with Bob and Adam, I advise them that Bob has theoretically died. Bob willed all his assets to his wife, Cathy, which included Bob’s 50% ownership of Springwater Plumbing Inc. Adam is now in business bed with Cathy.

A shareholder’s agreement is a legal contract that a lawyer draws up. It will specify how to break up if the business partners are no longer getting along. It will detail what happens if a business partner becomes disabled or dies. Most importantly, it will put a price tag on the value of the shares.

Adam and Bob did sign their agreement which stated that on the death of either partner, the value of the deceased’s share is $500,000. Therefore, on Bob’s death, Cathy is expecting a cheque for $500,000 from Adam for Bob’s shares.

Except, Bob and Adam missed the final step. They didn’t fund the agreement. Adam just bought a new house and doesn’t have the ability to re-mortgage. He could sell some corporate assets, but there isn’t enough to fulfill the obligation, and income taxes will be triggered. Adam is stuck.

The cheapest dollar a business owner will ever spend is on a life insurance strategy to fund a shareholder’s agreement.

We help business owners grow their wealth and plan to protect their legacy.

Please reach out if you have questions on how to manage this risk in your business. At Tayler Insurance & Estate Planning our solutions are simple and tax efficient.

The Registered Retirement Income Fund (RRIF) Tax Bomb

ttayler@taylerinsurance.com (Taivi Tayler) — Thu, 27 Jul 2023 13:15:16 GMT

Many people understand the fundamental basics of how an RRSP reduces taxable income when contributed to, and that investment losses or gains are tax neutral due to its sheltering status.

General understanding starts to falter when the RRSP must convert to a RRIF “Registered Retirement Income Fund”.

A RRIF is the opposite of an RRSP. You are required by law to withdraw money from this account. By the end of the year in which you turn age 71, you must convert your RRSP to a RRIF.

The amount you must take out is based on the market value of the account on Dec 31 of the year previous (2022). The percentage you must withdraw is based on your age, but you can use your spouse’s age if younger. Currently, at age 71, you must take out 5.28%.

Lump sums are terrible ideas for those that will be overwhelmed with the amount and may in fact inadvertently abuse the financial gift.

The RRSP to RRIF account transfer is an exceedingly simple process. The Certified Financial Planner (CFP) will prepare a handful of forms that their client needs to sign. Together the planner and client decide how often the client would like to receive their income from the RRIF. It can be monthly to annually and anywhere in between. The financial institution makes the transfer and voilà, it’s done.

It is important to understand that when the money comes out of your new RRIF, it is now taxable income. For all years that you benefitted with tax-sheltered growth, you will now draw money from the RRIF and pay tax on it. If you overstuffed your RRSP, have a solid employer pension income, are collecting CPP or are still working, you may find yourself in a higher tax bracket than you were in years past.

RRIFs do not transfer tax-free to the next generation. The CRA will tax away upwards of half of the value of an RRSP/RRIF if the beneficiary is not the spouse. This is a huge issue for singles and widows/ers.

If your RRSP or RRIF is in the $500,000 range, you have a tax bomb. You need to be proactive now so that the CRA doesn’t strip away your legacy.

Please reach out if you have questions on how to manage this risk. At Tayler Insurance & Estate Planning our solutions are simple and tax efficient. We help retirees grow their wealth and plan to protect their legacy.

Financial Planning: My Love Affair with Tax Free Savings Accounts

Fri, 14 Jul 2023 17:59:05 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner & Wealth Manager and I work with people all over the Province of Ontario.

I think my husband might be getting a bit jealous.

In fact he accused me of being in love with the Tax Free Savings Account -weird right?

Maybe he’s right? TFSAs are my HANDS DOWN, WITHOUT A SHADOW OF A DOUBT, FAVOURITE TYPE OF INVESTMENT ACCOUNT.

Here is why I love them...

100% of the investment growth is tax free, forever. FOREVER!

Let’s say you contributed $10,000 to your TFSA. You invested smart, and the account value goes up to $15,000. You decide to go on vacation and decide to take that $5000 of growth out.

Go for it! Enjoy your vacation! Take that $5k and spend it as you like. It’s TAX FREE. There is literally no other investment account that you can draw from that will not have a taxable impact. This is the only one.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Wills & Estate Planning: How to Leave an Inheritance to the Challenging Family Member

Wed, 05 Jul 2023 17:00:00 GMT

There could be one in every family. That one family member that causes worry and angst for their siblings, parents, and grandparents.

This challenging family member may be completely ignorant of the fact that they cause such emotional turmoil for others, especially when the worrier is wealthy and there is an inheritance on the line.

For the affluent older generation, they love this person and want to do what’s right. They just don’t know how.

Transferring wealth reasonably and equitably isn’t an easy decision. There are many factors that need to be considered, especially if the future recipient is not capable of handling the wealth or due to circumstances, should not be handling large sums of money. The loved one may have addiction issues (gambling, drugs, drinking). They may be on Ontario Disability Support Program (“ODSP”) and special rules apply to them. Perhaps the person could be heading for a divorce in the future or maybe they’re just lousy with money.

Lump sums are terrible ideas for those that will be overwhelmed with the amount and may in fact inadvertently abuse the financial gift.

Putting rules around how money will be received by the beneficiary, can be a simple, strategic decision that can reduce anxiety for the person planning their estate. In fact, the decision on how wealth will be received can be reduced to answering two questions: how much and how long.

You decide how much you want to give (percentages are ideal) and you decide how long you want that payment stream to last (2 to 25 years). From that basis alone, you can structure a regular payment stream to transfer an inheritance to someone overtime as opposed to leaving a lump sum.

You don’t need a Will to execute it, but you do need to work with a life insurance licensed Financial Advisor. Please reach out if you have questions.

At Tayler Insurance & Estate Planning, our solutions are simple and tax efficient. We help retirees grow their wealth, and plan to protect their financial legacy.

Investment Planning: To GIC or to GIA: that is the question

Fri, 23 Jun 2023 16:27:26 GMT

If the title sounds familiar, think William Shakespeare’s Hamlet “To be, or not to be”.

As you’re aware, the Bank of Canada sent interest rates soaring (relative to the last decade) in 2022.

The Bank of Canada had the target rate at 0.25 on December 8, 2021, moving up the first 0.25 basis point on March 2, 2022, and by January 25, 2023 the rate had reached 4.50%.

For those with variable rate mortgages and lines of credit, increasing rates became painful. For those that gravitate towards fixed income products, higher rates are exceptionally appealing. Balanced funds are now in recovery mode after being crushed with the rising rates in 2022.

If you like having some of your money in fixed rate investments, where should you invest it? If the rates and terms being offered are the same, should you use a bank or should you use an insurance company?

Familiar companies like Canada Life, Manulife and Equitable Life are major Canadian insurance firms as well as being wealth management companies. They oversee immense wealth for pension plans as well as for retail investors like yourself. For those that like fixed income, they also offer GIAs – Guaranteed Interest Accounts.

A bank GIC and an insurance GIA offer the same type of guarantee of principal as well as a guaranteed rate of interest for the duration of the term. Both have protection against financial losses of the issuing institution (bank deposits are offered under the Canada Deposit Insurance Corporation and life insurance cash values are covered under Assuris).

So why would someone want to use an insurance company over a bank? It all comes down to the type of account that you use, specifically if you are saving your money in a non-registered account.

Four reasons why insurance GIAs are better:

GIA Non-registered accounts can have a named beneficiary.
GIA Non-registered accounts are an insurance product; therefore, they do not have to pass through the estate. The beneficiary may be paid directly and quickly, potentially avoiding estate related fees such as probate, legal and accounting fees.
GIA Non-registered accounts qualify for the pension income tax credit. If you’re aged 65 and older, you may claim the first $2,000 of interest as eligible pension income.
GIA Non-registered accounts being an insurance product, may also provide creditor protection to the policyowner from their creditors (subject to certain conditions).

Please reach out if you have questions.

At Tayler Insurance & Estate Planning, our solutions are simple and tax efficient. We help retirees grow their wealth, and plan to protect their financial legacy.

Estate Planning: Joint Bank Accounts: Do they avoid probate?

Fri, 23 Jun 2023 15:33:07 GMT

Estate planning is becoming very sophisticated in Ontario. It is common to hear the suggestion to add a family member to a senior parent’s bank account and make the bank account Joint With Rights of Survivorship. According to banking institutions that offer these services, it’s a sure-fire way to avoid the Estate Administration Tax, commonly known as probate. Except it isn’t.

I have a story about following a banker’s advice.

The elderly father sold his primary residence and cottage property and moved into a care facility.

In his Will, he named his 3 adult children to be his estate beneficiaries. One child lived close and assisted with managing the elderly father’s expenses.

As a result of that responsibility, the adult child and elderly father were “joint with rights of survivorship” on the primary chequing account, and on the savings accounts. The savings accounts held the proceeds of the real estate transactions, amounting to over $1million.

The banker assured everyone that due to the “joint with rights of survivorship” designation, the assets would bypass the Estate Administration Tax.

After the father passed away, the beneficiaries were shocked to find that the assets were placed into probate and could not be released, contrary to what they were led to believe. Nearly a year later, the executor issued a cheque for the Estate Administration Tax, the clearance certificate was produced by the Ministry, and the beneficiaries finally received their inheritances.

The Will named the three children and only one of the children was on the joint bank account. Subsequently, the $1million in the bank, regardless of the “joint with rights of survivorship”, was pulled into the sphere of the Will instruction and distributed accordingly.

As an estate planner and Certified Financial Planner, I know that there was a better and simpler way to have handled this entire situation. The Estate Administration Tax could have been avoided and the assets could have been in the hands of the beneficiaries within weeks of the elderly father’s passing.

Taivi has over 20 years of experience in financial services and is renowned for her expertise in wealth creation and inheritance preservation strategies.

Estate Planning: Don’t Put Your Adult Child on Title

Wed, 14 Jun 2023 21:58:48 GMT

Over the years, I have heard many ways that people strategize to move wealth between generations in order to avoid the Estate Administration Tax, otherwise known as probate. In Ontario, probate is triggered when the executor applies for an estate certificate to be issued.

It’s a death tax as far as I’m concerned.

The government swoops in and strips 1.5% off the value of an estate over $50,000. If your estate is small, the bill won’t be large. If your estate is large (north of $250,000) you need to be proactive and put some tactical strategies in place.

A commonly suggested strategy is for an elderly homeowner to add their adult child to the title of their primary residence. This one is the most prevalent and probably the least effective.

This is one of those situations where you pause before you act.

The biggest risk is to the adult child, not to the senior parent. If the adult child owns their own home, and the value of the parent’s home increases in value, the adult child will face a capital gains tax at their marginal rate on the sale of the elderly parent’s home. The capital gains tax for the adult child could be significantly larger than the Estate Administration Tax.

If there are a multitude of beneficiaries, this situation becomes very messy. Good intentions without understanding the impact on all your beneficiaries could mean that your loved ones wind up suing each other.

5 rules before adding your adult child member to your title.

I have some rules that should be discussed before anyone puts pen to paper adding their adult child to title. If you can’t clear every rule, don’t do it.

Rule 1: The adult child should be the ONLY beneficiary of the estate.

Rule 2 : The adult child can not own their own home already.

Rule 3: That adult child must want to live in their elderly parent’s home.

Rule 4: The adult child needs to have the mental capacity to care for the home.

Rule 5: The adult child needs to have independent resources to financially care for the home and its ongoing upkeep.

If you can’t check all the boxes, don’t do it. Everyone’s situation is unique and there may be different and better solutions available for the senior homeowner depending on their financial, mental, and physical capacities.

Taivi has over 20 years of experience in financial services and is renowned for her expertise in wealth creation and inheritance preservation strategies.

Financial Planning: When Not To Make RRSP Contributions

Wed, 14 Jun 2023 17:53:40 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner & Wealth Manager and I work with people all over the Province of Ontario.

Don’t blindly make an RRSP contribution.

You have decided to put some money away for your retirement. Do me a favour, please don’t blindly make an RRSP contribution just because you think you should. I have listed 3 of the MANY careers that should NOT make a personal RRSP Contribution (like ever).

Teachers – you have OTPP.
Nurses – HOOP
Fireman – you have OMERS.

If your participation in one of these plans happens to be optional, please sign up.

These pension plans are world class and they will protect your retirement income. In my role as a Certified Financial Planner, finding out that clients have a guaranteed source of income for their retirement is a huge bonus.

That being said, these people should still be saving, they just have to do so in a different tax efficient account.

Contact us to find out which one and how we can build you a portfolio that is right for you. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Financial Planning: Three Simple Rules for RRSPs

Fri, 14 Apr 2023 17:39:17 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner and wealth manager and I work with people all over the Province of Ontario.

Here are my 3 Simple Rules for RRSPs

Rule 1 – contribute, don’t over contribute – you don’t need to max out your RRSP. Don’t stress yourself out. Do what you can when you can. Perhaps saving monthly will work better for your budget.

Rule 2 – the highest income earner makes the contribution. In my practice when I have a new client to work with, I find that I am constantly balancing out people’s RRSPs. This is usually because their former advisor didn’t set it up right. Just because the highest income earner makes the contribution, it doesn’t mean they should own the account.

Rule 3 – if you have a solid pension plan that you’re contributing to, please don’t make an RRSP contribution, unless it’s spousal. Decades down the road, you’ll be setting yourself up for an overtaxed retirement. We want to avoid that.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Financial Planning: Love / Hate Relationships with RRSPs

Tue, 14 Mar 2023 17:35:45 GMT

I love to love and I love to hate RRSPs, my name is Taivi Tayler and I am a practicing Certified Financial Planner & Wealth Manager and I work with people all over the Province of Ontario.

I love RRSPs.

I love them because in your high-income earning years, (over $70,000 a year) they are a beautiful tool for reducing your taxable income. RRSPs are immensely important for those that are self-employed or those that don’t have access to a pension plan.

BUT, I also hate RRSPs.

You’re asking yourself why a wealth manager hates RRSPs. Ok, I only despise them when they become overstuffed. That is when they turn into unwieldly tax bombs that if not handled correctly become a tax gift, you heard me, a tax gift to the CRA.

This is especially true for those that have over $500,000 invested in their RRSP account. You are heading for trouble!

Let’s talk about how to manage your RRSP and one day your RRIF, the right way.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.

Financial Planning: Why a TFSA is Not a Good Strategy

Tue, 14 Feb 2023 18:27:14 GMT

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner and wealth manager and I work with people all over the Province of Ontario.

Want to know what drives me crazy about Tax-Free Savings Accounts?

It’s when people underutilize them. If you’re taking your investment advice from a company that happens to offer chequing accounts, they will encourage you to invest in a GIC or a HIGH-Interest Savings Account within your TFSA.

UGH! I think that is the worst advice ever.

Your TFSA should be poised to have meaningful capital growth through an investment portfolio strategy. If you want to grow your wealth, keep the GIC outside of the TFSA and have a high interest savings account for emergency stash cash purposes. Yes you’ll pay a little bit of tax on earned interest, but frankly, that interest is going to be minuscule vs the capital growth potential from the right investment under the shelter of a tax-free savings account.

Contact us to find out how we can build you a portfolio that is right for you.

Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning or learn more about our financial planning

Tayler Insurance & Estate Planning Wins The Readers Choice Award

Thu, 03 Nov 2022 11:15:36 GMT

Tayler Insurance & Estate Planning, Favourite Insurance Brokerage, Insurance Company, Investment Company

This is a first-time win for Tayler Insurance & Estate Planning and Owner/Certified Financial Planner Taivi Tayler couldn’t be more delighted. The firm was voted as Favourite Insurance Company, Favourite Insurance Brokerage and Favourite Investment Company.

“It is such an honour to win in three categories and it’s nice to see our hard work come to fruition,” says Taivi.

“I am so proud of our team. We are quite niched when it comes to wealth management. As an independent firm, we use insurance companies who provide maturity and death benefit guarantees on investments in RRSPs/RRIFs, TFSAs and non-registered accounts. This has been a huge source of comfort for our clients, especially with recent market volatility. We can lock in portfolio growth and profit within investment accounts securing it for the future, which gives us an edge on growing wealth. One extremely unique advantage we have is to transition wealth to the next generation privately while bypassing the Estate Administration Tax (probate).”

Taivi has over 20 years of experience in financial services and is renowned for her expertise in wealth creation and inheritance preservation strategies.

“Our clients are our lifeblood—they are like family to us. I know their birthdays and every milestone. We are there for all the hugs and high fives! If they succeed in their goals, we succeed. Thank you Barrie & Area!”

Real Estate Investing & Tax Planning: Why The Lawyer Was Wrong

Mon, 18 Jul 2022 19:34:31 GMT

A client came to my office recently and advised me that her single elderly parent had sold their home. The little country residence purchased for under $200,000 decades ago had been sold in Ontario’s hot real estate market for nearly $1million. A wonderful outcome for this senior as the proceeds of the sale are tax free.

Or are they?

As my client talked and I learned more about the situation, I started to cringe. By the end of the story and hearing the assurances that the lawyer gave, I was mad. The lawyer was wrong.

The lawyer assured my client, who owned both a primary residence and a rental, that by putting her name on title of the parent’s property, it would not cause any issues for my client or her siblings, who also have their own primary residences.

The lawyer was wrong. As a result of this recommendation, my client will have a tax bill in 2023. Her siblings will also have a tax bill. The elderly parent will not.

It doesn’t matter the type of home that you own, a single detached, a semi, condo, or townhouse, they all can qualify for the principal residence exemption. If you own it, live there every year, upon being sold the profits are yours. The profits are the capital gain, which is the increased value of the home from your original purchase price. That capital gain is exempted from tax if it is your designated primary residence.

The Estate Administration Tax is applied to a deceased homeowner’s final estate return. If you’re alive and sell your primary residence, no tax. It’s very simple.

I never encourage adult children who own their own home to be put on title of their parent’s primary residence. When it comes to the sale of your primary residence, and it’s the only property you own, the tax system is already efficient if you just keep the status quo.

If the parent(s) elect to sell their primary residence as they are moving in with family, moving to a rental property or will be going to a retirement residence or care facility, and they are worried about probate, that is when we start to adjust how to invest and account for an efficient wealth transfer.

As seniors age, many have their TFSAs maxed out and can no longer make RRSP contributions. I am the ONLY end of the financial services industry that can actually name a beneficiary on a non-registered account. This will create an effective transfer of wealth, without a dime going to the Estate Administration Tax.

If you would like more information on how to correctly avoid probate, please call our office at 705-733-3338 or Toll Free 866-550-6932 or email us at ttayler@taylerinsurance.com or mbishop@taylerinsurance.com .

Disability Tax Credit: Attention Diabetic & Special Needs Family Members

Tue, 28 Jun 2022 11:23:43 GMT

ATTENTION DIABETICS / SPECIAL NEEDS FAMILY MEMBERS

When working with our clients, I often inquire about special needs family members, such as those with autism or down syndrome. The purpose of my inquiry is to ensure that the client and their special needs family member applies for any tax credit or registered account that they can qualify for.

I will now be asking if there are family members with Diabetes.

Disability Tax Credits

As per the CRA:

“The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities, or their supporting persons reduce the amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year. The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face.”

While attending a conference last week, I learned that there is also an opportunity for those with diabetes to potentially qualify for the “DTC” under the category of Life-Sustaining Therapy (when on the link, scroll down).

Example: 14 Hours / Week

If the therapy requires a regular dosage of a medication that needs to be adjusted daily, the time spent on activities directly related to determining the dosage and administering the medication can be counted in the 14 hours per week requirement. For example:

checking blood glucose levels
preparing and administering the insulin
calibrating necessary equipment
testing ketones
keeping a log book of blood glucose levels

Life-Sustaining Therapy Eligibility

View the life-sustaining therapy video to help you understand the criteria.

It is our recommendation that you review the criteria and see if you do qualify for the Disability Tax Credit.

Explore the financial value of the annual max disability amount ($8662 in 2021, $8576 in 2020.

(Scroll to bottom of linked page.)

Taxpayer Relief Provision

If you or a family member qualified for the DTC but did not claim it, you can request an adjustment for up to 10 years under the CRAs Taxpayer Relief Provision .

This link will direct you to the application process:

Registered Disability Savings Plan "RDSP"

If the person who qualifies for the DTC, happens to be under the age of 59, they can also open up a Registered Disability Savings Plan.

This is VERY important financially for a special needs individual.

Grants and bonds are paid by the government into the RDSP, up to $3500 a year and up to $70,000 over the beneficiary’s lifetime, (paid up to age 49).

There are 3 short videos that are worth watching for more information.

Please call 705-733-3338 speak to Taivi about how the Disability Tax Credit and the Registered Disability Savings Plan can work for you and your family.

New Years Goals for 2022

Thu, 20 Jan 2022 02:16:39 GMT

2022 Getting Back on Track

January each year, many people make New Year’s Resolutions. I like goals over resolutions because I find that resolutions lose their steam by February. Goals are what you work towards day in and day out through out the year. They are a commitment to positive change, and I believe that they have a much weightier impact on your mind than a resolution ever could.

What goals did you accomplish in 2021?

Did you achieve them? If not, why not? The pandemic has rattled and ruined many businesses and entrepreneurs. For others, they pivoted and innovated to find new and creative ways for products and services. I know several people that lost their careers and jobs in early 2020, retrained and are now employed in much more lucrative positions.

As we head into 2022, what goals are you setting for yourself to ensure that you are committed to positive change?

We all need something to work towards, regardless of who we are, our career (currently or historically) and our age.

I know a ton of vibrant, 60+ people that truly know how to live. Retirement for them became a way to discover more about themselves. They host fiddle jamboree’s and write newsletters to keep in touch with their far-flung community. Some noticed the increased demand at the food bank and now volunteer stocking shelves and helping those in great need. Others have taught themselves how to play guitar and some even went back to work just to get out of the house and have something to do. Having goals to achieve provides purpose.

I set goals with my kids each year. We want to show them that working towards something has great rewards. A few years ago, one daughter wanted to learn how to tie her shoes and learn how to read better. This year, I reminded her about that goal of learning how to tie her shoes, and she gave me a “Mom, you’re so weird” look as she is now a self-proclaimed expert shoe tier. She did acknowledge that her reading skills have much improved.

Your goal could be as simple as walking daily to ensure you’re getting enough exercise. Maybe it’s to quit smoking (the insurance advisor in me loves that!) or perhaps drinking less caffeine and increasing your water. It could be decluttering your home so that you’re not overwhelmed trying to find a spot for more “stuff” (1 in, 2 out is a great rule). Perhaps your goal could be more meditative in nature to encourage focusing on what makes you happy as opposed to being sucked into the quagmire of negativity.

Goal setting should include an aspect of financial planning as well.

Financial planning doesn’t refer to just wealth accumulation. It is a series of steps and strategies you undertake to reduce your exposure to negative outcomes.

These goals could be simple like reducing non-deductible debt on credit cards and lines of credit, or buying life insurance. Financial planning goals should include putting your financial house in order. This will include updating a Will and Power of Attorney that is more than 5 years old, as well as beneficiary designations and trustees for minor children. It includes understanding why a disability and critical illness insurance policy is key to avoiding financial ruin. Financial planning goals should include maximizing tax efficient savings without creating tax bombs in retirement. As we get into our elder years, perhaps our financial goals include giving back and planning to donate to a deserving charity.

This came across my desk the other day. It is a link to a 5-minute exercise on creating wealth accumulating savings goals for special purposes. Have fun with it while you reflect on what it is that you want to achieve in 2022.

If you have some changes in mind that you want to discuss, let’s have a chat about it. I am looking forward to dreaming with you and figuring out how to get you there financially.

Our office will be maintaining a Zoom and Telephone review set up for the time being.
Call us 1-866-550-6932 or locally at 705-733-3338 to schedule an appointment.

Email Miranda: mbishop@taylerinsurance.com
Email Taivi: ttayler@taylerinsurance.com

Know the facts: Getting the vaccine will not affect your insurance coverage

Mon, 08 Mar 2021 18:11:16 GMT

N ews Release

Release Date: 03/08/2021
Staff Reference: Kevin Dorse
View Original Blog

Contrary to misinformation being shared on-line, receiving a COVID-19 vaccine will have no effect on the ability to obtain coverage or benefits from life insurance or supplementary health insurance.

The CLHIA is aware of misinformation that is being spread through social media claiming that individuals who get the vaccine will not be able to get life insurance or may be denied their disability or life insurance benefits. These claims are incorrect and have no basis in fact whatsoever.

Canada’s life and health insurers stress that vaccination is one of the most effective ways to protect yourself and others from serious illness and death from COVID-19. Receiving the vaccine will not affect your individual or workplace life or health insurance benefits, or ability to apply for future coverage.

As with any medication approved for use in Canada, the COVID-19 vaccines have been found safe and effective through Health Canada’s independent scientific and medical assessment process.

“Getting the vaccine will not affect your insurance coverage. No one should be afraid and choose to not protect themselves from COVID-19 because they are worried about it affecting their benefits. All of Canada’s life and health insurers are supportive of Canadians receiving government approved vaccinations to protect themselves from serious illness and death.”

About the CLHIA:

The CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business. These insurers provide a wide range of financial security products including life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to over 29 million Canadians. They hold nearly $950 billion in assets in Canada and employ more than 157,000 Canadians.

Group Insurance is Never Enough Life Insurance

Fri, 15 Jan 2021 23:17:19 GMT

If you have access to group life insurance coverage, consider yourself lucky as few workers have a group benefit plan.

However, one should never rely on their group life insurance, group disability insurance or group accidental death and dismemberment coverage as the core life insurance strategy. Relying on group is the equivalent of hoping a band-aid will fix a broken arm.

When reviewing your group life insurance booklet, you will notice that the employee will always be limited to a set amount of life insurance coverage. Such as:

1 x salary
2 x salary
Unit purchase amounts in discretionary $10,000 increments with a ceiling limit of $300,000 - $500,000

The problem with group life insurance is that it’s simply never enough life insurance coverage. Let’s prove it.

An individual earns about $90,000 after tax and deductions. They have a house and some RRSPs. These assets will transfer correctly as the house is jointly owned and the RRSP has the correct beneficiary designation. These assets are therefore neither sold nor liquidated to clear debt or pay income tax and will become solely owned by the surviving spouse. The spouse works earning a solid salary and has some retirement savings.

Together they have some debt from a recent home renovation on the line of credit and some credit card debt totaling $33,000.

There are 2 minor children in this scenario, age 7 and age 3. In 20 years, the eldest will have graduated post-secondary, and the younger will be finishing. The cost today is about $20,000 a year per child for a 4-year degree (tuition, books, food, technology, rent, parking pass / public transportation, fun spending).

A modest $25,000 is allocated for last expenses, and a GIC will be liquidated on death.

The individual has group life insurance coverage of $150,000.

Here’s a snapshot:

$150,000 barely makes a dent in the mortgage, let alone provide enough cash to cover other unexpected expenses (surprise tax bills, grief counsellors etc.).

This family is not super wealthy. They’re kind of average. Does it sound familiar?

Inflation is 1% and the calculation is stretched over 20 years to get the youngest to their final year of college / university.

My simple little scenario generated a monstrous life insurance shortfall. The person has $150,000 in life insurance coverage. They need over $2.7 million.

Even if you do not feel that you “need” that much, the need is clearly bigger than a measly $150,000.

Perhaps you go with an amount that will pay off the mortgage, clear the debts and funeral expenses and provide a bit left over to replace your income for a few years.

We work with your budget. Rarely can people afford what they need, after all there are the expenses related to hockey, dance, a gym membership, wine club, groceries, and the babysitter for date nights (when you can do that again).

Please don’t forget the importance of your human capital. The $1.8 million is what that person could take home in after tax income to their family over 20 years. Maybe it’s more, maybe it’s less, but the number will be large.

We want to protect that ability to earn an income. Therefore, I will always recommend that we work some disability insurance into your overall life insurance strategy.

Bear in mind that if your circumstances change such as you leave your current employment, that little bit of group life insurance will go “poof”. Always own your destiny.

Own your own life insurance and get the amount of coverage you need to properly protect your family.

Taivi Tayler has been in the financial services industry for over 20 years. She specializes in estate planning and risk management solutions that are integrated into comprehensive wealth management concepts. Tax minimization is at the forefront of every client relationship while developing suitable retirement and financial planning strategies. Her primary focus is client financial literacy and she uses simple illustrations to teach retirees, business owners and high-income earners how to recognize current and future financial challenges while demonstrating that they have choice in how to better manage their wealth.

Learn more about how Taivi can make life's biggest financial decisions easy to understand at https://www.taylerinsurance.com/about .

Investment Strategies: TFSA vs RRSP - The Great Contribution Debate

Tue, 05 Jan 2021 23:17:17 GMT

We are into the first month of the year and those that regularly make retirement savings contributions are gearing up to make an allocation to their long-term plan.

New clients often ask which type of account is better for them. Should they contribute to their RRSP or TFSA? My answer is that it depends.

Deciding where to contribute ultimately depends on what happened in 2020 with your taxable income. If you have the means to save, then a quick discussion about which option will benefit you in the long run should be had. An RRSP contribution is not a decision about last year’s income, it is really about creating a long-term retirement income stream.

Readers, please note, when you read blog articles such as this and you see the word “income” always equate that to “tax is applied” (think RRSP/RIF, capital gains, employment income, business income, rental income). If you read “cash flow”, it’s entirely different.

Cash flow tends to be used with the understanding that no tax is applied (think TFSA, savings account, collateral in your primary residence).

There are a variety of taxable impacts one must consider first as opposed to blindly dumping money into an RRSP and ignoring the long-term tax consequences. Mishandled, RRSPs are tax bombs that give the gift of your money to the CRA when a single person dies.

Here are a few questions that I ask clients:

How much money did you earn in 2020?
If you are employed, did you make pension or group RRSP contributions this past year?
If you are self-employed, how much is your accountant going to knock your income down by this year?
If your income is above $60,000, is it a salary or a dividend? One creates RRSP contribution room and the other does not.
3. How much have you already saved in your RRSP? I start to cringe when I hear of balances that exceed $500,000 as they can become future tax bombs if not de-accumulated correctly.
How much does your spouse have saved? Perhaps you should consider making a Spousal RRSP contribution instead.
If your TFSA is empty and the RRSP is creeping north ($500,000 is my suggested limit where I want people to start to cool it on contributions), then a discussion is well needed on which to prioritize and why.

When it comes to managing wealth, everything that I think about for a client always considers the taxable impact. As I tell my clients, the priority is the type of account you invested in, not necessarily what you invested in.

If you are a teacher, firefighter, police officer, nurse, or someone else who has and will continue to make serious pension plan contributions and it’s managed by OMERS, HOOP or OTPP or by a company like CN, please don’t make an RRSP contribution until you speak to a Certified Financial Planner. RRSPs tax hinder people in those industries more than they assist them. TFSAs are the way to go.

If you are looking for advice on which direction to go in this year, please call our office at 1-866-550-6932 or contact us here. We’re here to ensure that you make the most of your long-term retirement savings plan.

Learn more about how Taivi can make life's biggest financial decisions easy to understand at https://www.taylerinsurance.com/about .

Don't Panic: Planning Offers Financial Advice

Wed, 02 Dec 2020 23:17:16 GMT

Like any other investment professional, Taivi Tayler is watching the financial markets bounce around through 2020.

As a certified financial planner and president of Tayler Insurance and Estate Planning, Tayler is sharing advice about saving your money during the pandemic.

In a recent CIBC survey, four out of 10 respondents were concerned about the COVID-19 pandemic’s effect on their retirement savings. Almost a quarter were unable to contribute to their nest egg since the pandemic began.

The markets normally fall down in the fall, Tayler said, but the presidential election added a bit of a boost this year.

Other news headlines will also prompt the markets to fluctuate.

“Every whiff of a vaccine coming in, the markets are going to run (up). Every failure of a vaccine, the markets are going to fall. We have to be cognizant it’s just overreaction one way or another.”

For retirees wondering what to make of the ups and downs, Tayler said they shouldn’t panic.

Whatever is bouncing around up and down in the market should not be influencing their day-to-day decisions. They should have planned for this already,” she said. “You should have a strategic plan. Retirees still love GICs. What little they earn is going to be taxed away if it’s not in a Tax Free Savings Account.”

She recommends a Tax Free Savings Account for many, including those who don’t have a lot of disposable income.

And with many residents working from home right now, Tayler said now is the perfect opportunity to get caught up on loan payments.

“You’re not going out on a Starbucks run, you’re not spending as much on gas,” she said.

For people who are unemployed, or receiving the Canada Emergency Response Benefit or one of its replacement recovery benefits, Tayler wants them to be ready for tax time.

“There could be some nasty surprises for people who are on claim going into April of next year,” she said, noting it wasn’t taxed before it was paid out.

“People are going to be upset; they’re going to be mad they weren’t told. In financial circles, we all know what’s going to happen.”

Janis Ramsay (jramsay@simcoe.com)

Simcoe News- Barrie Advance - November 26, 2020

Investment Strategies: Three Financial Fundamentals for Millennials

Wed, 02 Dec 2020 23:17:15 GMT

As we become independent adults, there are three basic structures of our financial lives that we need to put into effect: A budget, a will (or power of attorney) and insurance. Each can serve us well as we navigate the initial stages of adulthood and – when harmonized – can allow us to protect and provide for ourselves and our families.

The Budget:

Setting up a budget is the no-brainer of financial security. Simply put, budgets are important so that you have the money to buy what you need when you need it. It enables you to avoid things such as ridiculous credit card interest rates, and to be prepared for the unexpected – car repairs, for example.

Through a proper budget, you will also have established an emergency fund that can support you through challenging life events. For example, if you find yourself suddenly unemployed, you can breathe easier knowing that you don’t need to make financial decisions under duress, nor rack up your credit card to pay for fixed expenses.

The Will and Power of Attorney:

Sadly, too many well-intentioned older adults may talk a younger adult out of setting up their legal documents. They may not think such things are needed if a person does not “own” anything.

They could not be more wrong.

The most glaring example of this relates to payments owed. If you are legally contracted on a scheduled payment basis (i.e. car lease, rental, credit card) you are bound to those obligations regardless of your circumstances. If you have debts, the institution, corporation, or person involved has no obligation to your misfortune. Their concern is their own financial state, and they will expect you to meet your end of the bargain – even in the case that you face incapacitation or death.

This is where your Will and Power of Attorney are key. These documents will enable a trusted person(s) to act on your behalf in meeting these obligations. They have the authority to wrap up or pay these contracts out and make financial decisions on your behalf. They can make your payments for you or close your bank account if you are deceased. They can also make claims for your benefits and access government programs for you. Each document is a powerful tool and has its own unique purpose. Choose your Power of Attorney and your Executor/rix well.

If you have children, dying intestate (without a Will) can be horrifying, so it is critical that you name a physical guardian of your minor children in the event of your death. A financial guardian (who may or not be the same person as the physical guardian) is also required so that your wealth transitions to your children as per your instructions.

Finally, please consider their personalities, ages, and maturity level when writing these instructions. If you do not detail the age at which each child will receive their inheritance, it will all land in their lap at the age of 18. Sports car, anyone?

Insurance:

Insurance is often mistakenly viewed as an expense. Rather, it should be viewed as your “get out of crisis” free card.

Although we all consider ourselves invincible under the age of 40, the reality is that terrible things happen to awesome people. One may experience a work accident, become incapacitated and find themselves unable to work temporarily or perhaps never again. Life-threatening illnesses can also develop, disabling us or shortening our life expectancy. Strange accidents and tragedies occur in vehicles, on snowmobiles and on boats.

Protecting yourself is your responsibility. If you have a partner/spouse, and/or children, and if they rely on you in any financial capacity, then you have an equal responsibility to ensure that your obligations to them are met. It does not matter whether you are alive, disabled or have died.

Life insurance (as well as disability and critical illness coverage) is an amazing asset in the financial toolbox that young people should solidify prior to worrying about TFSA or RRSP contributions. Life insurance is a key tool where youth and ideal health locks in prices for substantial windows of time – or even permanently. The influence of time on permanent life insurance itself can become an asset tool that will enhance your overall wealth.

Finally, as you pay for your insurance from your after-tax income, remember that the disability payment, critical illness payout and life insurance benefit will be tax free if you need to make a claim.

All in all, insurance premiums are the cheapest way to secure your future and that of your family.

Bringing it all together:

Your budget will allow you to have the funds to pay the lawyer for your Will and Power of Attorney. In the Will and Power of Attorney, you will have identified your trusted persons and guardians for your children. The Will details who gets your wealth and how it is to be distributed.

The life insurance premium will form the cornerstone of your regular ongoing budget. The beneficiary designations will reflect the same named people as noted in your Will. The financial guardian for your minor children will be named as the trustee on your life insurance policy.

As noted at the beginning, this harmony between a budget, Will and Power of Attorney and insurance will provide you with the ability to protect and provide for yourself and that of your family.

Taivi (pronounced Tie-V) Tayler, CDFA, RRC®, CLU, CERTIFIED FINANCIAL PLANNER® has been in the financial services industry for over 20 years. Her professional experience ranges from working for a trust company, the corporate head office of a Toronto based mutual fund firm, to association with independent wealth management firms.

She is currently affiliated with Financial Horizons Group and is a President’s Circle qualifying member:

Taivi holds the CERTIFIED FINANCIAL PLANNER® and CHARTERED LIFE UNDERWRITER® designations. These two complimentary designations represent the pinnacle of financial planning in Canada. Taivi specializes in tax efficient, tactical wealth management strategies for high income earners, business owners and professionals.

Goals based solutions presented to clients range from wealth creation and preservation to the transfer of assets to the next generation simply and effectively. Risk management and tax management are integrated strategies for all clients. Taivi requests to collaboratively work with her clients’ accountants, lawyers, therapists and mediators, as her belief is that these professionals and their services must be recognized and respected as the ultimate goal is to enhance every client’s overall wealth strategy.

Retirement Planning: Protecting Your Retirement in times of Volatility

Wed, 23 Sep 2020 22:17:14 GMT

The tsunami of change is here.

With the pandemic of 2020, so much that was is no more. Our lives have changed, our social circles have tightened, and we have all become excellent mask wearers (if not willing ones).

Over the summer, we witnessed the astronomical market return of a handful of stocks (Apple, Google, Amazon etc.), and then the subsequent price fall in late August/September.

Every few years we get a serious draw down (Feb-Mar. 2020, Sept-Dec. 2018, May-Oct 2011, Jan-Nov. 2008) and those times embed themselves on our brains. The rest of the time, the stock indices are trading ever northward.

Time, patience, asset allocation, mental composure and long-term time horizons are all part of the tools in the toolbox while waiting out the volatility.

I like technology-based companies.

I also like Consumer Staples (think food companies) and Medical / Health Care companies (long before COVID19 this was a favourite of mine due to aging populations). Like any compatible relationship, investment funds and their internal stocks need to harmonize with each other, never compete.

It is important to build a portfolio structure that does not overlap and does not cause portfolio return friction. Those that entrust us with their wealth are familiar with my “spread the love around yet be concise” methodology.

Insurance:

Insurance is often mistakenly viewed as an expense. Rather, it should be viewed as your “get out of crisis” free card.

Our traditional way of living and interacting will continue to be challenged as our global society deals with a pandemic never seen in modern times. The markets are going to be choppy as global leaders and companies bring forth vaccines and pivot towards a slightly different future.

United States:

On Wednesday, September 16, 2020 Federal Reserve Chair Jerome Powell and the Federal Reserve maintained interest rates at a near zero level. All signals are pointing to interest rates in the US staying low and being kept at that level until 2023. The expectation is that low interest rates will assist in the American economic recovery. Until inflation reaches a stable 2% amount, no change is to be expected.
American’s said goodbye to Ruth Bader Ginsberg on Friday, September 18, 2020. The open spot on the American Supreme Court will be highly controversial over the coming weeks.
The US Presidential Election Trump vs. Biden 2020. The media will report on accusations of mail in voter fraud. When the final verdict is announced, the markets will react (good or bad).

Canada:

Tiff Macklem was appointed as the Governor of the Bank of Canada on June 3, 2020 for a 7year term.
Bank of Canada interest rates are steady at 0.25 after dropping on March 27, 2020. This overnight rate is what financial institutions utilize to determine their interest rates for consumer loans, mortgages etc. Low rates are incentive to spend and borrow. Higher rates are used to lessen inflation. Ultimately the Bank of Canada wants to encourage positive economic activity striking a balance to keep inflation in check (avoiding high inflation or deflation).
Canadians are paying down their debt. With our work life changing, our spending habits are changing as well. People are telecommuting to work. Less gas, less cost and wear / tear on vehicles. Working from home and not commuting means less money being spent on public transit. This rolls over to less lunches out and Starbucks coffee runs.

Those that became unemployed at the earlier part of the year received government response benefits that allowed them to adjust to circumstances changing beyond their control. As a result, individuals were able to accelerate paying down their credit cards and lines of credit. Outstanding debt dropped from a ratio of 158.2 % (April – June 2020) from 175.4 % (Jan- March 2020). (Source: https://www.cbc.ca/news/business/consumer-debt-statscan-1.5720402 )

However, the financial crunch could be on its way as government emergency benefits begin to wind up.

In March 2020, at the beginning stages of the COVID19 pandemic, the unemployment rate in Canada went from 7.8% (which increased from 5.5% in February 2020) to 13.0% by April 2020, peaking at 13.7% in May, the highest number reached since record-keeping started in 1976.

(Source: https://www.ontario.ca/page/labour-market-report-february-2020 ; https://www150.statcan.gc.ca/n1/daily-quotidien/200409/dq200409a-eng.htm ; https://www150.statcan.gc.ca/n1/daily-quotidien/200605/dq200605a-eng.htm ; https://www150.statcan.gc.ca/n1/daily-quotidien/200508/dq200508a-eng.htm )

How does the above translate into our new COVID19 economy? Economists love to talk about rebounds as if they are shapes, their favourites being: “V”, “U”, “L”. It appears that the original rebound was a bit of a “V” in Canada / USA. Businesses learned to pivot.

Frances Donald of Manulife noted in a recent webinar we attended that Phase I Rapid Rebound ran from Mid-April to August and that 60-70% of the lost economic output came back.

We are currently in Phase II according to Donald. The Manulife team has deemed it the “Stall Out”. Businesses and the economy in general are trying to close that last 30% gap to get back to Pre-Covid19 output levels. The time frame: August 2020 – until 2022.

This position is backed up by Eric Lascelles of RBC Global Asset Management. He stated: “On balance, we believe the recovery can continue, albeit at a much slower rate than over the early going. To provide some perspective, developed economies reclaimed more than half of their lost economic output over the span of just three months. Recovering the other is likely to take the better part of two years.” (Source: MacroMemo-Sept15-Sept21, 2020)

Google mobility trackers are detailing loss of activity in retail and recreation of -12% on September 11, 2020. I wonder what that number will be a few months from now.
https://www.gstatic.com/covid19/mobility/2020-09-11_CA_Ontario_Mobility_Report_en.pdf

As mentioned in previous articles, we are in a services recession. Those that work in retail and restaurants may find that their employer closes shop when the cold sets in and winter is upon us.

Here is another data chart that economists are tracking, “dining in” restaurants. Lots of room in late August, busy on the long weekend, and much availability now.

When is Phase III the New Normal? Full economic recovery is hoped for 2022 onwards. Interest rates in Canada and the USA are expected to remain at zero or below zero (25% of global government bonds are negative yielding) for the next several years. As a result, investment managers must go to the equity markets or emerging market debt or infrastructure debt for yield.

For those that are politically minded, be aware, record high government debt is here (to stay). Running deficits, the new normal, globally. Economists have noted that governments are challenged in how to run their balance sheets post pandemic and that giving up the “balanced budget” mentality should be expected by all in the future.

How do you protect your portfolio? As mentioned at the beginning of this article: time, patience, asset allocation, mental composure and long-term time horizons are all part of the tools in the toolbox while waiting out the volatility.

Utilizing segregated fund contracts that put 100% investment maturity guarantees to protect your original investment capital or 100% death benefits in place can also provide peace of mind. Having the ability to lock in and reset your growth is also a unique tool in the financial toolbox that we can use strategically to build and maintain wealth.

All the best,

Taivi Tayler, CDFA, RRC®, CLU
Certified Financial Planner®

Sources:

Eric Lascelles, RBC Global Asset Management MacroMemo Sept15-Sept21,2020
Frances Donald Webinar Tuesday, Sept. 8,2020
Phil D’Iorio, Cumberland Private Wealth, Market Update: Sept 11,2020
Bloomberg, Fed reveals latest interest rate decision, Sept 16., 2020

She is currently affiliated with Financial Horizons Group and is a President’s Circle qualifying member:

Disability Insurance: Concussions Scare Me

Wed, 16 Sep 2020 22:17:13 GMT

When I read about high profile tech start up leader John Ruffolo and his cycling accident due to the jack-knifed tractor, I reflected on how my husband likes to cycle long distances and take my minor son with him (they clocked a 72 km ride this summer). It scares me as the roads are dangerous.

According to CBC News: “The 54-year-old says that he's had several surgeries since then and that while his "head was unaffected," it's unlikely he will regain the use of his legs.” (Source: https://www.cbc.ca/news/canada/toronto/john-ruffolo-accident-1.5716550 )

Thankfully, no concussion for this gentleman.

Ryan and Lachlan pre-cycle

In 2020, I found myself working with several people that have experienced a concussion.

Every single one of my encounters was with someone in their 50’s or 60’s.

One fainted in a hotel reception lobby and hit their head on the ceramic floor.
One fell while ice skating with their spouse.
Another was rear-ended in a car accident.
The fourth lost their balance at home, fell and hit their head on the coffee table.
The fifth was picking up something from a parking lot and the car door caught the wind.

The impact on these people’s lives is profound. Two were barely retired prior to the concussion. Two took early retirement due to the concussion but realistically they would have worked for another 5 years or more. The last is currently on disability because they had at least another 10 years to go before retirement.

These people suffer headaches and migraines. Some cannot read a book nor work on a computer for any length of time due to nausea. They now listen to podcasts and audio stories. Others are sight and sound sensitive and wear heavy sunglasses or headphones.

These people worked in well-paid, high level positions from administrators/executives, salespeople as well as technology/medical specialists.

For anyone working at the time of unexpected injury, there is an immediate negative impact on your ability to earn employment income. Employment income stops, and if there isn’t a disability policy in place, people immediately go to their life savings. If you’re drawing on your RRSP or TFSA accounts 10 or 15 years early, rather than contributing to them, you’re draining your retirement funds and that will have a negative impact on your entire financial future.

If you do not have disability insurance, you need it.
Especially if you do not have group coverage.

True disability insurance will pay you, not the mortgage. It goes far beyond the basics offered by your mortgage lender. If you had to go on claim, you will have absolute freedom of choice on how to utilize the funds while healing. It can be used to pay the mortgage, the grocery bill and property taxes. You can pay down credit cards and use it to pay for lifestyle adjustment devices that you need. There are no rules on what to spend the income replacement money on.

When it comes to insurance, people are more concerned with dying than surviving. I think that they have it backwards.

Term life insurance is so inexpensive because the carriers know that statistically, you are not likely to die, especially if you’re under age 70.

Disability is much more costly on a dollar per $1000 of coverage. Why? Statistically, you’re more likely to be incapacitated and survive than pass away. The younger you are, the higher the risk.

My carriers tell me that mental health claims are much of what they see besides the expected other injury/illness claims (think back problems and heart attacks).

I fully expect that Mr. John Ruffolo had an extensive disability policy. If so, by claim standards, he will now be considered totally disabled and a tax-free disability payment will be sent to him.

Call our office today to find out how a disability insurance policy will protect your life’s savings and provide tax-free cash flow monthly: Toll free at: 1-866-550-6932 .

We are a fully digital office and can assist you while you are in the comfort of your own home. New graduates in certain professions (medical, accounting, legal, engineering etc.) can also receive a lifetime discount on disability premiums within the first year of practice.

Learn more about how Taivi can make life's biggest financial decisions easy to understand at https://www.taylerinsurance.com/about .

Investment Strategies: 5 Tips for Sleeping Soundly During Volatile Markets

Wed, 18 Mar 2020 21:44:07 GMT

When the media has screaming headlines and the global markets are flashing red, do you sleep well at night?

If market worries are keeping you up at night creating anxiety, that is an indication that you are not comfortable with your investment strategy.

Let’s review a few tips that will help you handle volatile markets:

5 Tips for Sleeping Sound During Volatile Markets

Investment Strategies: Discussing Economic Uncertainty with Advocis

Sat, 14 Mar 2020 22:17:12 GMT

Meet Taivi Tayler

Taivi, an Advocis member, has been in the financial services industry for over 20 years. She specializes in estate planning and risk management solutions that are integrated into comprehensive wealth management concepts. Tax minimization is at the forefront of every client relationship while developing suitable retirement and financial planning strategies. Her primary focus is client financial literacy and she uses simple illustrations to teach retirees, business owners and high-income earners how to recognize current and future financial challenges while demonstrating that they have choice in how to better manage their wealth.

In January 2020 Advocis The Financial Advisors Association of Canada, asked to interview and record Taivi as an expert panel member on the subject of Client-Partnering in Economic Uncertainty. Her interview was focused on answering questions related to Strategies for Clients who are Retired or Planning for Retirement, strengthening relationships and having proactive conversations.

With all eyes on the economy and the investment markets in flux, due to the global pandemic, it was a very timely request. The Advocis program Update 2020 is a national professional development training workshop for advisors across Canada. Her honorarium was provided to the Barrie Food Bank.

Investing Opportunity: Perspective is Everything

Tue, 10 Mar 2020 22:17:11 GMT

Perspective is everything in life.

I see opportunity, do you?

While drafting this market update piece for most of Friday afternoon, the markets were in the deep red, with the Dow Jones Industrial Average (“DJIA” American index, where Apple, Microsoft, JP Morgan etc. are listed) being down nearly 800 points. When I checked the close, the DJIA rebounded dramatically on March 6, 2020 and was down just 256.50 points. Today the drop has continued as a new battle is emerging between Russia and Saudi Arabia over oil prices.

As I expressed during portfolio reviews over the past few months, the “fresh new market highs”, were not sustainable with the global markets rising consistently in late 2019 and early 2020. I was expecting a “10 percenter” or a correction and here it is. By definition, a market correction is a 10% price fall (but not farther than 20%) from the highest point.

Here is what some of the portfolio managers are thinking.

Manulife Investment Management:

“Broadly speaking, from a longer-term perspective, we still believe that the coronavirus outbreak could lead to buying opportunities. However, the events of the past two weeks have led us to think that the “dip” may be deeper and longer than most have initially expected, and we may still be some distance away from putting risk back on the table. In other words, the market has yet to find a bottom. However, further monetary easing from global central banks and the introduction of growth-friendly fiscal measures as a result of the outbreak could support a rebound in the second half of the year and we still believe equities will end the calendar year higher than where they are today.

Source: Manulife Investment Management: Coronavirus update: a material economic reassessment Feb. 26.2020

RBC Global Asset Management:

“The long-term return potential of the markets is quite stable, so when prices decline in the near-term, investors have an opportunity to add to their long-term return prospects. The companies we own in our funds have strong balance sheets and a history of navigating uncertain time. It’s been settling to have thoughtful conversations with management teams in recent days about risks and opportunities, as well as to hear what they’re doing to maintain healthy returns to shareholders.”

Source: Chief Economist Eric Lascelles, RBC Global Asset Management: Market Volatility Update Feb 28.2020

Monetary easing arrived on March 3, 2020 when Jerome Powell, Federal Reserve Chair trimmed rates by a quarter point in the United States. Our Bank of Canada Governor Stephen Poloz followed suit on March 4, 2020, with a large cut of fifty basis points.

Bank of Canada Press Release, March 4, 2020:

“Before the outbreak, the global economy was showing signs of stabilizing, as the Bank had projected in its January Monetary Policy Report (MPR). However, COVID-19 represents a significant health threat to people in a growing number of countries. In consequence, business activity in some regions has fallen sharply and supply chains have been disrupted. This has pulled down commodity prices and the Canadian dollar has depreciated. Global markets are reacting to the spread of the virus by repricing risk across a broad set of assets, making financial conditions less accommodative. It is likely that as the virus spreads, business and consumer confidence will deteriorate, further depressing activity.

It is becoming clear that the first quarter of 2020 will be weaker than the Bank had expected. The drop in Canada’s terms of trade, if sustained, will weigh on income growth. Meanwhile, business investment does not appear to be recovering as was expected following positive trade policy developments. In addition, rail line blockades, strikes by Ontario teachers, and winter storms in some regions are dampening economic activity in the first quarter.”

Source: https://www.bankofcanada.ca/2020/03/fad-press-release-2020-03-04/

One of my favourite Canadian economists is Frances Donald. She is the Chief Economist at Manulife Investment Management. She was interviewed by BNN Bloomberg in response to the rate cut and here is what she had to say:

“The goal is not to lift the stock market. That’s not the goal. The goal is to recognize what we witnessed in the past 2-3 weeks has economic implications. So do rate cuts help cure a health crisis? Absolutely not. Do they help cushion the economic impact? Yes. If you are a central banker, you have one tool, arguably a few smaller tools that do the same thing. Would you stand on the side lines when you know people are going to be afraid, suffering and pulling back? No you would use the tool that you have available in your pocket.”

Source: https://www.bnnbloomberg.ca/economics/video/we-are-living-through-history-manulife-s-donald-on-bank-of-canada-rate-cut~1914417

“Is this doom and gloom? No.
In fact, all I see is OPPORTUNITY.”

For those of you that have worked with me for a long time, you know that I like to be early to the party and early to leave. In 2018 and 2019, one strategy we implemented was to reduce exposure from pure equity funds and reduce risk by moving into balanced funds. In January / February 2020, many TFSA and RRSP contributions were allocated to cash as market prices were high. With market volatility now upon us, it would be prudent to consider starting to allocate that cash into a dollar cost averaging program.

How does a Dollar Cost Averaging program work? Simply put, you’re investing a fixed amount at regular intervals, regardless of market movement. When markets are volatile, you will pay less and purchase more units than you would have 6 - 8 months ago when markets were rising and prices were accelerating. The intention now is to take advantage of lower prices, but not all at once. Therefore, the strategy will deploy cash over the next 3 - 10 months as I believe that the markets are going to choppy for a while longer.

For those that are actively saving on a monthly basis, congratulations, you’re already taking advantage of a Dollar Cost Averaging program. Independent investment research firm Dalbar Inc. conducted a study back in 2007. Their study indicated that a Dollar Cost Averaging program produces returns over 20 years that were 40% higher than those experienced by the average investor. This is because the investor is buying into the dips as well as the highs.

Source: Quantitative Analysis of Investor Behavior, 2007, Dalbar, Inc. www.dalbar.com

Remember that investment performance is not to be measured in minutes or days, or even weeks and months. Rather, it’s years that offer you the best point of reflection.

I have the benefit of insight of what the professionals share. That is why I redistribute their charts and comments for your benefit. When it comes to long term growth, look at the dips in the chart. Then look at the year after and the rise. There will be a significant dip for spring 2020 in next year’s chart. There will also be a considerable bounce back rise after. Markets are quite predictable on the bounce back, it happens every time.

Take a long-term view

If you also recognize the opportunity upon us and agree to start investing your cash while things are down, let’s meet soon to get organized. For those that need a bit more perspective about market volatility, this is my best piece of advice (and thanks to Tom T. for sharing):

Thank you for your trust in our team.

Best Regards,

Taivi Tayler, CDFA, RRC®,
Certified Financial Planner ®

She is currently affiliated with Financial Horizons Group and is a President’s Circle qualifying member:

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