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FAQ

Frequently Asked Qustions

When should I start planning?

It is never too late to plan your financial future, Start Now!

What advisors are needed to help me to become a successful operation, financially?

Given our experience and expertise, every operation should have a minimum of three, maximum could be five to seven, depending on the size of the farm operation. Some have additional relationships such as Bankers, Agronomists, Risk managers, Cfo’s, and so on.

Who are the three recommended advisors?

Every successful farmer will need an Accountant, and or a CPA, a Financial Advisor, and Lawyer.

What is the role of an accountant or CPA?

Many assume that an Accountant or CPA, is a Financial Planner; however, their purpose can be quite different, unless they have their CFP or relevant designation. You should seek clarification as what services they provide? In most cases, they only provide accounting & tax planning services.

What is the role of a Financial Advisor?

A Financial Advisor has many roles. In today’s world, many financial advisors only provide Investment & Insurance products, when, in fact, there are six or more key planning disciplines. It is our firm belief that all farmers should receive complete holistic advice.

What are the disciplines of Financial Planning required?

Tax Planning, Cash – Flow, Education, Debt, Investment, Insurance, Retirement, and Estate, Farm Succession.  Peters Wealth Management provides a comprehensive financial plan.

What is the cost?

Peters Wealth Management does not charge a fee for building a holistic financial plan. Consultations provided at no cost, no obligation to all.  Full financial disclosures provided transparently and at the time of any transaction executed at the request of the client.

Farm Succession and transfer of wealth from one generation to the next requires the involvement of Farm Planning Specialists, CPA, and Estate & Planning Specialist, which is provided to you by Peters Wealth Management.

*CPA and Legal services are an independent value chain of advice; therefore, the cost of these specialists, are subject to their Fee schedules.*

What is your Risk Management, Exit Strategy, for your Farm / Corporation? Are you protected, and Why Should I have a Buy-Sell?

Without a buy-sell agreement, you could find yourself sharing the reins of your LLP or corp with your former partner’s spouse, children, or someone else. Would you want to be in business with someone who knows little about your business and does not have skin in the game?

How does a Buy-Sell Agreement protect me?

A buy-sell agreement in basic terms, is an exit strategy for you and your business partners. It can protect you, your family, and partners, because it sets ground rules for how ownership shares should be dealt with or restructured, should you, or one of your partners leave the business.

How do I fund the agreement?

If you ever need to act on your buy-sell agreement, the money will change hands. Do you have a cash account set aside for this purpose? Sources of revenue could include cash, CSV, installments, or collateral loans. Many shareholders and partners utilize life insurance as a cost- and tax-efficient solution. Cash values, also known as CSV, are available. If an entity-redemption agreement is in place, the Entity, LLP, or Corporation purchases individual life insurance contract on the lives of each owner. The entity then funds the monthly or annual premium and is both the owner and beneficiary of the agreement.  When an owner of the policy passes away, the LLP, Corporation, an or Entity uses the income-tax-free sheltered death benefit to purchase the deceased owner’s shares. A cross-purchase buy-sell,allows each owner to buy a policy on the other owner(s). When one of the owners’ passes, the surviving owner(s) use the death benefit to purchase the deceased owner’s shares.

Are there other risks that need to be addressed?

Yes, one of the greatest threats to your livelihood, is the ability to manage your risk beyond your control.  All shareholders included in your LLP, or Corporation, run the risk of Death, Disability, Failure of Health, and eventually Long Term Care. Ask yourself this: If something were to happen that affected my ability to earn an income, how would I fare? What if this happened to my partner(s), how would it affect my LLP or Corp?

Farm Succession,Taxes, LGE, and Keeping Harmony In The Family?

A well-designed estate plan will provide a road map for the transfer of property from one generation to the next while reducing or deferring taxes. However, as a farmer, you may have other estate planning objectives:

  • What is Fair & Equitable?
  • How do I provide for the Farming heirs?
  • What do we need in Retirement?
  • Preserve wealth and minimize current taxes, and Capital Gains upon rollover?
  • Estate preservation and minimization of taxes upon death?
  • Liquidity at death sufficient to meet debts, tax liabilities and other obligations?
  • Transfer of farm to beneficiaries without dissolution of the business?
  • Equitable distribution of the estate for children not involved in the farm operation?
  • Protection of the Farm against a person’s Illness, Disability, Failure of Health, or Death?

What is the role of a Lawyer?

Every Canadian, should at a minimum have Living Will, Medical Directives, POA, and whatever else may be required, depending on your situation. It is recommended your documents be five years current and reviewed every two years. ***These documents can neither be changed or updated, once the person in question has lost capacity****.

Why Should I Have a Buy-Sell Agreement?

Without a buy-sell agreement, you could find yourself sharing the reins of your LLP or corp with your former partner’s spouse, children, or someone else. Would you want to be in business with someone who knows little about your business and does not have skin in the game?

How does a Buy-Sell Agreement protect me?

A buy-sell agreement in basic terms, is an exit strategy for you and your business partners. It can protect you, your family, and partners, because it sets ground rules for how ownership shares should be dealt with or restructured, should you, or one of your partners leave the business.

How do I fund the agreement?

If you ever need to act on your buy-sell agreement, the money will change hands. Do you have a cash account set aside for this purpose? Sources of revenue could include cash, CSV, installments, or collateral loans. Many shareholders and partners utilize life insurance as a cost- and tax-efficient solution. Cash values, also known as CSV, are available. If an entity-redemption agreement is in place, the Entity, LLP, or Corporation purchases individual life insurance contract on the lives of each owner. The entity then funds the monthly or annual premium and is both the owner, the beneficiary of the agreement.  When an owner of the policy passes away, the LLP, Corporation, an or Entity uses the income-tax-free sheltered death benefit to purchase the deceased owner’s shares. A cross-purchase buy-sell,allows each owner to buy a policy on the other owner(s). When one of the owners’ passes, the surviving owner(s) use the death benefit to purchase the deceased owner’s shares.”

What professionals should I use?

When entering into an LLP or Corporation, You should consult with an experienced CPA, Lawyer, and a Risk Management Specialist who can provide the education and the roadmap required to structure your entity. Peters Wealth Management offers complimentary and customized risk management as part of our planning service.

Are there other risks that need to be addressed?

All shareholders included in your LLP, or Corporation, run the risk of Death, Disability, Failure of Health, and eventually Long Term Care. Ask yourself this: If something were to happen that affected my ability to earn an income, how would I fare? What if this happened to my partner(s), how would it affect my LLP or Corp?

What are the disciplines of Financial Planning required?

Tax Planning, Cash – Flow, Education, Debt, Investment, Insurance, Retirement, and Estate. Many financial advisors only provide Investment & Insurance products.We will provide both a personal and corporate needs analysis, then provide portable solutions designed to grow with your practice. It is our firm belief that all LLP’S, Partners, should receive complete holistic advice. Peters Wealth Management provides a comprehensive financial plan.

What is the cost of your services?

Peters Wealth Management does not charge a fee for building a holistic financial plan. Consultations provided at No Cost, No obligation to all. Full financial disclosures provided transparently and at the time of any transaction executed at the request of the client.

Sole proprietor or incorporate?

The tax act, federal, and provincial budgets are always evolving; hence, your strategies need to be consistently updated as needs change. Your CPA, and or Financial Planner, Advisor are best positioned to provide the advice necessary. Bill C-74, introduced in February 2018, made significant changes to TOSI, Tax on Split Income, the SBD, Small Business Deduction, Passive Investment rules, and so much more. Your CPA is best positioned to answer this question. You should seek clarification from your CPA as to what size businesses and the type of companies they represent.

What advisors are needed to help me to become a successful operation, financially?

Given our experience and expertise, every operation should have a minimum of three, perhaps more depending on the size of your business.

What advisros do you recommend?

Every successful business owner at a minimum needs an Accountant, and or a CPA, a Holistic Financial Planner / Advisor, and Lawyer.

What is the role of an accountant or CPA?

Many assume that an Accountant or CPA, is a Financial Planner; however, their purpose can be quite different, unless they have their CFP or relevant designation. You should seek clarification to the services they provide. In most cases, they only provide accounting & tax planning services.

What is the role of a Financial Advisor?

A Financial Advisor has many roles. In today’s world, many financial advisors only provide Investment & Insurance products, when, in fact, there are six or more key planning disciplines. It is our firm belief that all farmers should receive complete holistic advice.

What are the disciplines of Financial Planning required?

Tax Planning, Cash – Flow, Education, Debt, Investment, Insurance, Retirement, and Estate. Peters Wealth Management provides a comprehensive financial plan.

What is the role of a Lawyer?

Every Canadian, should at a minimum have Living Will, Medical Directives, POA, and whatever else may be required, depending on your situation. It is recommended your documents be five years current and reviewed every two years. ***These documents can neither be changed or updated, once the person in question has lost capacity****.

Why should I have a buy-bell agreement & do I need one?

If you are a sole proprietor, then a Buy-Sell is not required, however, if you are incorporated, have holding companies, etc., then you should at the very least, consult with your trusted professionals. Without a buy-sell agreement, you could find yourself sharing the reins of your LLP or corp with your former partner’s spouse, children, or someone else. Would you want to be in business with someone who knows little about your business and does not have skin in the game?

How does a Buy-Sell Agreement protect me?

A buy-sell agreement in basic terms, is an exit strategy for you and your business partners. It can protect you, your family, and partners, because it sets ground rules for how ownership shares should be dealt with or restructured, should you, or one of your partners leave the business.

How do I fund the agreement?

If you ever need to act on your buy-sell agreement, the money will change hands. Do you have a cash account set aside for this purpose? Sources of revenue could include cash, Csv, installments, or collateral loans. Many shareholders and partners utilize life insurance as a cost- and tax-efficient solution. Cash values, also known as CSV, are available. If an entity-redemption agreement is in place, the Entity, LLP, or Corporation purchases individual life insurance contract on the lives of each owner. The entity then funds the monthly or annual premium and is both the owner, beneficiary of the agreement. When an owner of the policy passes away, the LLP, Corporation, an or Entity uses the income-tax-free sheltered death benefit to purchase the deceased owner’s shares. A cross-purchase buy-sell,allows each owner to buy a policy on the other owner(s). When one of the owners’ passes, the surviving owner(s) use the death benefit to purchase the deceased owner’s shares.

Are there other Risks that need to be addressed?

Yes, one of the greatest threats to your livelihood, is the ability to manage your risk beyond your control. All shareholders included in your LLP, or Corporation, run the risk of Death, Disability, Failure of Health, and eventually Long Term Care. Ask yourself this: If something were to happen that affected my ability to earn an income, how would I fare? What if this happened to my partner(s), how would it affect my LLP or Corp?

What are your fees to work with you?

Peters Wealth Management does not charge a fee for building a holistic financial plan. Consultations provided at No Cost, No obligation to all. Full financial disclosures provided transparently, and at the time of any transaction executed at the request of the client.

How much should you spend and can you afford when you’re retired?

Even if you are considered high net worth, you will face uncertainty over how much you can afford to spend in retirement. The retired business owner or professional(s)often do not have a source of guaranteed pension income which may present you with the challenge of determining a sustainable draw on your investments. Additional factors, such as market volatility, inflation, and taxes create financial planning challenges.

How do I prepare for retirement?

Whether you’re already retired or planning to exit your business, here is a guide to help put you prepare for retirement.

  1. Create a personal checklist – How much per year,  and frequency of withdrawal, Income you will need after-tax, the withdrawal rate from your investments held within RRSP, RRIF, IPP, TFSA,  and other income-producing investments depends on several factors:
  2. What is your Investment Risk Tolerance? If you are considered a  conservative investor, you would expect a lower return with less volatility, whereas, a more aggressive investor could expect higher returns with more pronounced market adjustments.
  3. Your longevity? Retirement could span thirty-five plus years and, generally, a more extended time-frame requires a more specific withdrawal strategy.
  4. Your income requirements – will you need to draw on investment income every month or can your defer or decrease income to offset periodic declines in portfolio value?
  5. Know your income sources –  Your retirement income will come from sources such as the Canada Pension Plan (CPP), Old Age Security (OAS) and company pension plans. Add them all up.
  6. Know your expenses  Add up your expected costs – both fixed and discretionary.
  7. What is the gap? For example, If you need Sixty Thousand dollars, 60,000.00, before tax, calculate the difference between total CPP / OAS, and your other income streams. A couple receiving maximum CPP & OAS totals receives about 30,000.00 before-tax per year. The difference will leave a shortfall of Thirty-Thousand to fill the gap. Your income from all other combined sources will be needed to fund your fixed and discretionary expenses.
  8. What is your drawdown rate? What is your number? Determine the amount or percentage you need to withdraw from your retirement savings and investments.

Stress Test your adjustment Strategy?   Many use a 4% drawdown rate; however you must account for taxes, inflation, and capital gains. When drawing down on a registered source of investments, Non-Reg, or sheltered investment vehicles, your advisor should adjust to keep pace with your needs.

What is the cost of your Wealth Management and Retirement Planning Services?

Peters Wealth Management does not charge a fee for building a holistic financial plan. Consultations provided at No Cost, No obligation to all. Full financial disclosures provided transparently, and at the time of any transaction executed at the request of the client. Work with your professional advisor to develop a personal plan that takes into account all of these factors and provides peace of mind. Very often, a high net worth individual will discover that they can afford to spend much more than they thought.

We want to hear from you.

You deserve the value of a personal, lasting relationship.

Our commitment to face-to-face relationships, a proven investment approach, the breadth of our products, and the depth of our management are what make a relationship with us so rewarding.

We look forward to working with you to help you achieve your lifelong financial goals.

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We want to hear from you.

You deserve the value of a personal, lasting relationship.

Our commitment to face-to-face relationships, a proven investment approach, the breadth of our products, and the depth of our management are what make a relationship with us so rewarding.

We look forward to working with you to help you achieve your lifelong financial goals.

 

Preferred Contact Method

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