Generations Building Wealth Differently

Can Canadians build wealth in the current economic environment? Over the longer term?  After taxes?  These are important questions anytime but particularly at election time.  The traditional way to build wealth for Canadians families has been to buy a home, pay it off and even leverage the equity to borrow money to invest in the financial markets.  These wealth building exercises occur over a lifetime.  But today, new generations are building wealth differently.

It can be very expensive to owe money to the CRA and it’s the one debt that must be given priority over others. That’s because CRA has significant powers to enforce payment of taxes, levy penalties and interest, which includes garnishment of wages and seizure of assets. This can obviously impact other financial obligations, so here is what you need to know to break up with the tax collector.

The CRA receives a “D” mark!  According to a new report by CFIB, the quality of the information and phone support the CRA is extending to Canadian business owners has worsened, despite the agency’s goals to increase service standards. One of the biggest issues: failure to understand the new Capital Cost Allowance rules which have been in place since late 2018.

Tax changes to employee stock options were supposed to come into effect on January 1, 2020, and thanks to feedback collected from Canadian businesses in a consultation that ended in September, the implementation of these measures has now been delayed. Tax and compensation planning should take place before these new rules come into effect.

If you are a tax, bookkeeping or financial advisor looking to sharpen your technical tax knowledge to accurately prepare personal tax returns or provide sound financial planning advice this tax season, don’t miss Canada’s most comprehensive T1 Advanced Tax Update. Besides the comprehensive 330-page course, CE Summit attendees receive a three-month subscription to EverGreen Explanatory Notes, and a full day of peer-to-peer training with expert instructors.  It’s an outstanding value dedicated to enhancing your value proposition.

Join us in celebrating our 2019 graduates who completed their DFA-Tax Services Specialist™ and DFA-Bookkeeping Services Specialist™ designation programs. Knowledge Bureau is so proud of your achievements and we look forward to sharing knowledge with you in 2020.

It is estimated that about 425,000 Canadians will retire each year by 2020.*  But for many, it will be a retirement that includes debt, according to recent reports on the proliferation of reverse mortgages**.  Are Canadians planning soon enough for the one big question most worry about: will there be enough? A new edition of the best-seller Master Your Retirement by Douglas V. Nelson will help.