Small business owners have enough on their minds without having to worry about what their money is doing while they’re working 18-hour days. In fact, if they have money coming in but they leave it lying around, it could cost them.
“Business owners are busy, and they often will just leave money sitting there in a savings account or a GIC without really knowing the impact that has on their taxes,” Prospera Credit Union financial planner Charmaine White says. “It’s most important that business owners look at the options that are available to them that could help reduce their taxes and potentially make more money. Even if they do nothing different, at least they’re making an informed decision.”
White and the Prospera team are there to help entrepreneurs make decisions that won’t cost them in the long run. If it’s within the clients risk tolerance, White recommends investments that will generate capital gains because you get taxed on only half of the proceeds.
That is just one example of what a small business owner can do with the fruits of their labour. A financial planner like White will also consult with the client’s accountant to ensure all bases are covered when it comes to excess cash.
“It’s really important for business owners to have a plan for that money,” White says. “Often they keep as much as they can inside of their business, and tax rules have changed a lot over the last few years. It’s more important than ever that they seek advice.”
White likes to meet with her clients every three to six months, and she and the Prospera team also have the expertise to oversee clients’ retirement plans. They are related, after all, since small business owners don’t have pension plans or anyone matching their retirement contributions.
Basically, White will look at the big picture to make sure her clients are making an informed decision, because not everyone wants to take the same investing approach.
White’s clients don’t have to worry about squeezing in time to see her, either.
“At Prospera, we’re mobile,” White says. “We’ll come to you. Business owners are busy, so we’ll come and meet them at their place of business when it’s convenient for them and help them put together a plan.”
This article is written by or on behalf of the sponsoring client and does not necessarily reflect the views of Okanagan Edge.
All Think Local Stories