IT Financial Management

Taxation has a considerable effect on your financial planning as it affects your financial yield.

Being tax-savvy has advantages to keep your money in your back pocket. No one likes to pay more taxes however if you don't do proper tax planning, you always end up paying more taxes. By taking full advantage of all the tax saving opportunities you can reduce your tax burden. The tax saving opportunities always come in two forms;

• Tax deductions that help to reduce your taxable income
• Tax credits that reduce your taxes payable

Tax Deductions:

1. RRSP Contributions
   
   Knowingly, Registered Retirement Savings Plan (RRSP) has always helped family to reduce their tax burden by deducting the RRSP contributions from their income. Moreover, you can carry forward your RRSP contribution indefinitely and can also spread out over several years. This means that you can take strategic decisions when you would like to take the tax deduction.
2. Investment Expenses
   
   Do you know; you can deduct fees paid to manage and administer your non-registered investments. You can also deduct interest paid on money borrowed to earn income from non-registered investments or even from a business.
3. Daycare Expenses
   
   If you are paying for daycare expenses, you can also deduct qualifying child care expense so you or your spouse can income or go for study. You can deduct amounts paid to a child who is age 18 or older to look after siblings who are age 16 or younger. Generally, the spouse with lower tax income is allowed to claim these expenses however in certain cases if the lower-income spouse is engaged in the educational program then the spouse with higher income can also claim it.
4. Relocation Expenses
   
   Sometime people relocate themselves to come closer to work or school. In such a situation where you or your spouse have moved at least 40 kilometers closer to your workplace or school, you can claim the moving expenses. You can only deduct these expenses from your taxable income earned at the new location but you can carry forward unused amounts until you have enough eligible income to claim it.

Tax Credits:

1. Transit Expenses
   
   People most of the time use public transport to commute to work or school. Such expense is eligible to claim as your tax credits. There are certain conditions where you cannot claim such expenses however using this tax credit wisely can help you to save your tax dollars.
2. First Time Home Buyer
   
   If you are a first time home buyer you may qualify for the First Time Home Buyer's Tax Credit worth up to $750. Either spouse can claim the credit, or you can share the credit between spouses.
3. Medical Expenses
   
   Your eligible medical expenses for yourself, your spouse or your dependent children under age 18 can also be claimed. You can also claim the premiums you pay for a private health plan. The lower-income spouse should generally claim this credit if he/she has to pay taxes because the credit is reduced by a percentage of net income.
4. Charity donations
   
   Charitable donations over $200 receive a more generous credit so it makes true sense for either spouse to pool their donations and for only one spouse to claim all donations during the year. The donations can also be carried forward up to 5 years to maximize your tax savings. Also remember that donating stocks, mutual funds or segregated fund contracts directly to charity results in a donation receipt for the fair market value. This eliminates the tax on any capital gain.
5. Student Expenses
   
   If you are student and are engage in study, you can claim your post-secondary tuition costs over $100. You can also claim your education amount for each month you're enrolled in a qualifying educational program. You can claim the textbook amount for each month you're enrolled as well. Any amounts that you can't claim on the current year's return can be carried forward to a future year or even can be transferred to a spouse, parent or grandparent. In addition, students can also claim most of the interest paid on their student loans in the current tax year and/or the preceding five years.
6. Children Arts Credits
   
   If your children(s) are engaged in extracurricular activities that you can also claim up to $500 in eligible fees or for activity. Either parent can claim this credit.
7. Pension Income
   
   The first $2000 of your eligible pension can be qualified for the tax credit. However, there are certain conditions where this amount is not eligible.

Taxation rules change over the time so it is always beneficial speaking with a qualified tax professional to ensure your taxation is done in a correct way and you have taken full advantage of all the deductions and credits available to you.

A Tax Efficient Solution that will provide a steady income to support your retirement lifestyle.

RY Financials has a series of tax-efficient investment solutions that produce steady, reliable income for IT professionals and their families.

Our tailored solutions will help you to:

• Get steady monthly income
• Provide tax efficient strategy
• Have high investment growth potential
• Provide you personalized income stream

A well designed insured strategy will combine the guaranteed, sustainable income of an annuity with life insurance to protect the value of your estate. An insured annuity strategy is an excellent pension plan alternative. Moreover, it will also turn your savings into guaranteed income for the rest of your life.

We can help you to design a solution that meets the needs of an individual and also a professional corporation. We will create a comprehensive approach where a single plan will encompass all of your financial assets and goals.

Insured Annuity Solutions for Individuals

Insured annuities generate guaranteed sustainable income for life, which is both higher and more tax efficient than other fixed income alternatives. An insured annuity will also help to preserve your estate for your heirs, provide a guaranteed cash flow for life, effectively improve estate settlement and eliminate probate fees.

Our annuity strategy allows your corporation to benefit from a source of guaranteed, sustainable cash flow during a lifetime. It is a tax-efficient strategy to distribute an income to shareholders and maximize estate value for heirs. Our strategy will also supplement your retirement income from your corporation and get a tax-free payout of life insurance proceeds to your corporation. Moreover it will sustain cash flow for your corporation enhance estate value for your heirs.

Strategies to help support growth and continued success of your business.

Business move from start-up phase to the growth phase does not happen on it's own. In fact it requires considerable amount of planning and efforts. As the business growth rises, it is critical that your business financial planning is in place to maintain the growth.

Below are the some of the important aspects for business growth that a business owner should consider.

Business Process

Business policies and procedures are essential to manage the increasing complexity of a growing business. Having established practices can help you to delegate and for strategic planning of your business. Some of the factors you should consider are; Key performance indicators that are tracked weekly or monthly and a smart mechanism to collect the customer feedback.

Cash Flow

The business growth triggers change in cash flow. While the business is growing, you may start thinking about expanding it, adding more employees, investing in new technologies, adding more clients, etc. This involves frequent change in cash flow and needs a considerable planning to manage it.

Unforeseen Circumstances

While the business in growth state, you must also start thinking would your company survive if you or your business partner were unable to work? Would your personal assets be protected from creditors if your business were to fall? 

Partner with an us to build a comprehensive tailored asset protection strategy considering;  

• Incorporating your business
• Personal Life and Health Insurance plans
• Personal liability protection
• Creditors protection
• Key person insurance
• Protecting you if you are unable to work

Financial Planning

Focusing on the goals of your business can push your personal financial planning on low priority list. A personal financial planning that is aligned with your business objectives can help you enhance wealth, reduce debt, protect your family's lifestyle and develop a sustainable income stream in your retirement leaving legacy to your loved ones.

Many professionals are attracted by significant tax planning opportunities that become available when they incorporate their business. These include splitting income with family members, taking advantage of low corporate tax rates to defer tax and possibly the capital gains exemption if you sell your corporation.

Business Incorporation has various tax advantages as a company's net revenue is often taxed at a lower rate than that of as of an individual. This results in more cash available for the company to invest or use towards expenses. Before you make a decision “Is Incorporation right for you” there are a number of important factors that need to be considered and unlike business people in general, you must also consider the specific rules that govern your profession when determining whether incorporation makes a good sense for you.

Smart Strategy for Incorporated IT Professionals

A preferred tax strategy is only one aspect of wealth management. A complete Wealth Management strategy also involves other aspects like managing your investment with your risk tolerance and retirement objectives. Reducing diversification must also be exercised in an effort to minimize tax. Neglecting your investment objectives and just focusing on taxes could also increase your investment risk.

Build your wealth by investing in smart strategy.

Wealth optimizing is an important step in achieving your financial goals. However, it is just one step of a bigger plan.

We focus on creating a tailored plan that is related to an individual situation. This is a multistep process and we begin our first step by evaluating our client needs. Soon after that, we do a detailed analysis of every aspect of your current situation such as your investments, mortgage, will, insurance, company plan, and taxes. After we complete our analysis, we design a strategy to achieve your financial objectives.

The complete wealth optimization strategy often involves; Financial planning, Investment, Insurance and Taxation.

• Financial Planning
• Investment Management
• Insurance Planning
• Taxation

Since the purpose of Insurance is to protect lives, integrating with a financial plan to cover specific needs. Life insurance offers more than a simple financial provision for your family on your death. If structured properly, it can be an essential part of a smart investment strategy.

Choosing life insurance can provide you and your family, as well as your business, with a wide range of benefits. Estate preserving and leaving a legacy for your family are two of the primary benefits of life insurance. You can also reduce your tax burden and turn surplus corporate income into non-taxable cash flow.