A Challenge for New Clients: How to Choose a Trusted Advisor

If you’re in business for yourself, you have a unique opportunity to build wealth in an asset class that others don’t have: equity in a business enterprise that some day may be sold for millions of dollars. In addition, that business can spin off income for family members that can provide significant tax advantages, done well. Understanding how to realize on this asset requires the help of a trusted financial advisory team. Who should be on that team and how do you find them? This is a challenge your next new business clients may wrestle with. Here are some tips on how you can open discussions to help them:

Are Millennials really that unmotivated, and underperforming? Not according to an important new study. In fact, it turns out that Millennials may be ahead of their parents when it comes to retirement planning, an important trend for young tax and financial advisors looking to build their practices with peer group clients.

It could be a “Buy-Canadian” summer as trade tensions escalating between Canada and U.S. are starting a movement towards economic nationalism throughout Canada. But that comes at a cost - can you afford to spend more? Canadians currently have over $2 Trillion in debt, according to the Bank of Canada, and increased spending could dig a deeper hole.

Last year, the Canada Revenue Agency received extensive criticism for failing to meet basic service standards. But things have recently improved at the CRA; 74 percent of calls are being answered by an agent or auto assistant, compared to the mere 37 percent in 2015, which prompted this fall’s Auditor General Report. The CRA now intends to ensure things get even better, and responded to the criticisms on June 12, 2018 with a three-point action plan.

Our June poll asks readers whether or not they believe the self-employment route pays off in the long run, or whether having the financial security provided by an employer paycheque is smarter. Be sure to weigh in with your views, but in the meantime, Knowledge Bureau author Philippe Richer provides food for thought for those considering leaving the 9-to-5 behind for self-employment.

Increasing interest rates have sparked a warning from the International Monetary Fund (IMF) that approaching headwinds could affect housing values; potentially good news for Canadians looking to enter the housing market. But there is also tax risk for investors intending to purchase and flip real estate, and a good opportunity for tax and financial advisors to provide valuable counsel.

Donald Trump’s U.S. tax reforms are having a significant spillover effect north of the border, as many individuals with private businesses in Canada are facing an enormous tax bills in the U.S. If your client base includes any corporation in which a U.S. shareholder controls at least 10 percent of the voting rights or value, you need to know the details of this punitive measure.