Stonewater Financial Group Inc.

Business owners: Salary or dividends? 🤔

There's no right answer. It depends on your goals.

Salary builds RRSP room, allows you to contribute to a Canada Pension Plan (CPP) and helps with mortgage qualification.
Dividends can result in overall lower combined corporate and personal tax in some cases, provides administrative simplicity, and allows flexibility in avoiding mandatory Canada Pension Plan contribution
The catch? Some retirees wish they'd built more RRSP room instead of managing a corporation in their 70s.
Plan now based on your retirement goals.

💬 What's your compensation strategy?

Your vacation property comes with an invisible price tag, and your kids will be the ones who pay it.

Most people don't realize that passing down a cottage or secondary property means passing down a massive tax bill. But here's what changes the game: you can actually model out that exact number before it becomes a problem.

Once you see the reality in black and white, the choice becomes clear. Build a TFSA strategy or set up life insurance that skips probate and lands directly in your family's hands when they need it most.

What if saving "too much" for retirement is actually wasteful? There's a dark irony in being the perfect saver who dies with a massive RRSP - because the government becomes your biggest beneficiary.

Sometimes the smartest financial move is spending more money on your family while you're alive to enjoy it together, rather than letting it sit there growing into a bigger tax bill.

The goal isn't dying with the most money. It's living well and leaving what you intend to leave.

Would you rather spoil your kids now or let the CRA spoil themselves later?

Moving your DCPP into a LIF might seem right, but if you don't need withdrawals yet, it's the wrong move. LIFs require minimum annual withdrawals, which could create problems if you're still working in your 40s or 50s.

Key steps when transitioning:
✅ Choose the right account for your situation
✅ Consider unlocking 50% into an RSP or RIF for more control
✅ Review your investment strategy and fees
Getting this wrong can cost you flexibility and money. Make sure you're set up properly.

💬 Are you planning to transition your pension soon?

Two colleagues started investing in their workplace pension plan at the same time. 30 years later, one had significantly more than the other.

The difference? One stayed invested through market crashes. The other panicked and sold during downturns.

Most people aren't trained in investing. When markets drop, the emotional reaction is to "fix the problem" by selling. But that's usually the worst time to make changes.

The lesson: Stay the course. Market volatility is temporary. Panic selling locks in losses.

Protect your income BEFORE you invest aggressively 💰

Disability and critical illness insurance are "living benefits" that pay out when you need them most.

✅ Disability: Tax-free monthly income if you can't work
✅ Critical illness: Lump-sum payment if diagnosed
These protect your income, cover debt, and safeguard your investments.

Set up these guardrails before going all-in on investments.
💬 Have you considered living benefits?

See how much of YOUR estate goes to the government vs. your family

Our financial planning software has an "estate shrinkage" feature that's honestly shocking. It shows exactly what percentage of your wealth goes to the CRA at death versus what actually reaches your family.

The goal: Flip those percentages. More to family, less to taxes.
Estate planning and retirement planning aren't separate - they're two sides of the same coin. The right strategies can optimize both your retirement income AND what you leave behind.

👆 Want to see where YOUR money would go?

This is the number one reason people try to manage their investments themselves.

But here's the reality: Under 2% in fees to have someone who actually KNOWS you, understands your risk tolerance, and keeps you on track for retirement?

Would you rather save on fees or save your retirement? 👇

⏰ Your biggest retirement fear: Running out of money at 95 Everyone plans for the fun part - travel at 65, adventures in your 70s...

But what about your 90s? Healthcare costs, downsizing, living longer than expected? 😟

The uncomfortable truth: You might need money for 30+ years after you stop working. Planning different scenarios isn't pessimistic - it's smart. Your 95-year-old self will thank you.