Contact

KL Advisory Group

Suite 350, 229 – 11 Avenue SE
Calgary, AB T2G 0Y1

p: 403-910-5964

e: info@klag.ca

Planning

Tax Planning – How much tax can we save you?

Whether it be income splitting opportunities or tax-advantaged investments, we are here to help minimize taxes and maximize savings, all while making the process uncomplicated. A tax plan catered for you will help keep more of your money in your pocket.

1. RRSPs

Tax-deferred growth on your registered investments ensure you will pay the least amount of tax at retirement. Our approach will enable you take full advantage. LEARN MORE

2. TFSAs

A tax free savings account allows you to maximize your savings to meet your goals for today and tomorrow. LEARN MORE

3. RESPs

The cost of post-secondary tuition has never been higher. If you plan on paying for your children’s education, plan ahead. Save now, and take advantage of government grants. LEARN MORE

Estate Planning – Address this early on

When it comes to planning for the future, the financial decisions you make that affect your family will be largely based on emotion. Let us help alleviate the stress involved and ensure you make informed decisions for yours as well as your families’ future.

1. Business succession planning

Is your business protected in the event of a death of one of its owners? We can help make sure that your business stays on the right track. LEARN MORE

2. Have your wishes in writing

You are never too young to write a will and name a power of attorney. Naming an executor of your estate will ensure that your assets are distributed the way you intended them to be. Make your funeral arrangements clear and make sure all paperwork is in order. LEARN MORE

3. Estate preservation

A solid estate plan includes insuring your assets, thus minimizing tax liabilities and allowing your beneficiaries to benefit from the full value of everything that you leave behind. LEARN MORE

Retirement – Do you have a plan?

When do you want to retire? How much will you need to fund your retirement? With a tailored plan, we can help turn your dreams into reality.

1. Accurate Analysis

As you near retirement, it is critical that you plan accordingly to understand what your overall income needs will be. We work early on with our clients to provide up to date analysis of how well on track each family is to reaching their retirement goal.
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2. Multiple income streams

We provide our clients with an assumed income from each source of savings ie) RRSPs, TFSAs, Corporate accounts, Pensions, CPP, OAS, Inheritances, etc.
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3. Budgeting

When there are deficiencies, we can show clients how much additionally they must save, how much longer they must work, or how much less they can spend when starting retirement.
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* This financial analysis is prepared using personal and financial information provided by you. It is important that the information is as accurate as possible, as even small discrepancies in your personal and financial situation can have an impact on recommendations made. Illustration Purposes Only: The values illustrated in this document are not guaranteed. They are based on numerous assumptions that are certain to change and are neither an estimate, nor a guarantee of future performance. Actual results will vary over the life of your plan and may differ from the provided example. Planning Assumptions: Taxation Calculations and recommendations relating to income taxes are based on the Canadian Federal Income Tax Act and the Provincial Tax Rates in effect where you live at the time the plan was created. Since tax legislation is subject to change, the tax treatment of your assets is not guaranteed. Professional Advice: This document was prepared solely as a general guide and is not indeed to provide or replace professional, legal or tax advice. For your own specific situation, please consult your own tax and legal advisors.

Planning Case Study

"Isaac, single, permanent full-time teacher, 30 years’ old."

Identifying needs:
Isaac had an immediate goal to buy a house. He had sufficient savings for his down payment and required advice on how to secure a mortgage. He was also concerned about his ability to meet the mortgage repayments if he was unable to work due to a disability. Isaac also wanted to ensure that if he passed away unexpectedly, his sister would get the house mortgage free. His long term goal was to retire early and wanted to explore all options here.

How AK Wealth Management helped:
We guided Isaac through the application process with our dedicated mortgage specialist and were successful in securing a competitive mortgage package for him. To protect his new mortgage, we acquired a disability policy that would cover his payments as well as his other monthly expenses in the event that he got hurt or sick and could not go back to work. Isaac purchased a life insurance policy that would last until age 55, at which time he would be mortgage free. Isaac’s immediate priority was to purchase his home, therefore we agreed to a date in 3 months’ time to discuss various retirement strategies.

"Diego and Marina, married, late-thirties with two children. Diego is a full-time engineer and Marina is a part-time IT consultant."

As a married couple with children, it was vital that Diego and Marina protect their family's current lifestyle. As Diego is the higher income earner and the life insurance provided by his employer was insufficient, we felt it appropriate to protect him further with a permanent life insurance policy that would have a growing death benefit and substantial cash values at retirement.

Diego also acquired a critical illness plan that would provide his family with a lump-sum payment to keep them afloat should he need to take time off work due to an illness. Marina purchased a term insurance and critical illness policy.

Both were keen to ensure that they had sufficient savings for their children's education. We established a family registered education savings plan (RESP) that would grow their money tax-deferred as well as maximize the available government grants.

We provided them with a structure for their savings and investments that struck a balance between low risk deposits and investment opportunities with a higher growth potential which was in line with their risk tolerance threshold. We've committed to review their financial plan on an on-going basis to ensure it remains consistent with their goals.

"Tim and his business partner Satvir are joint shareholders of a successful trucking company, Truck Co., which employs eight full-time staff. FMV = $2,000,000"

Identifying needs:
Truck Co. is heavily reliant on Susan, a key employee to the company, and are worried that the company would be vulnerable in the event of Susan’s untimely death or ill health. Tim & Satvir have no succession plan in place should one of them die prematurely. Truck Co. have no health benefits in place for their staff.

How AK Wealth Management helped:
The company took out a key person life insurance and critical illness policy on Susan’s life.
With their corporate share redemption agreement in place, Truck Co. purchased a $1,000,000 life insurance policy on each of the lives of Tim and Satvir, with the company being the owner and beneficiary. In the event of one of their deaths, Truck Co. will purchase the shares of the deceased shareholder and use the life insurance proceeds to distribute the funds to the deceased’s estate, tax-free. A group health benefits plan was put in place which provided coverage for all employees and their families. As the premiums are paid by Truck Co., they are able to claim a deduction against their business income.

In 2014 unfortunately Susan was diagnosed with cancer. During the course of her successful treatment, Susan was out of work for 12 months, however the company was able to claim under her key person critical illness policy. This gave Tim and Satvir a substantial cash injection which enabled Truck Co. to find a replacement as well as pay Susan income so that she could take time to fully recover.