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Trusted Tips & Resources

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Give Expert Insights on Maximizing Your RRSP

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. In their latest tip, they give expert insights from Wiegers Financial & Benefits on Maximizing Your RRSP.


Maximizing Your RRSP: Expert Insights from Wiegers Financial & Benefits

As life evolves, so do your financial priorities. At Wiegers Financial & Benefits, we recognize the significance of optimizing your Registered Retirement Savings Plan (RRSP) to help secure your future. By taking a personalized and strategic approach, we ensure your financial plan adapts to your changing needs. In this article, financial planner Kim Chicoine shares valuable tips to help you get the most out of your RRSP and work toward a more confident retirement.

Aligning Your Savings with Your Financial Objectives

Balancing daily expenses with long-term savings can be challenging, but watching your investments grow over time makes it worthwhile. To make the most of your RRSP, consider diversifying with a mix of investment options such as guaranteed investment certificates (GICs), mutual funds, segregated funds, stocks, and bonds. These choices, when integrated into your RRSP or Tax-Free Savings Account (TFSA), can align with your risk tolerance and financial goals.

Proven RRSP Strategies to Enhance Your Savings

Automate Your Contributions for Consistent Growth

A simple yet effective way to stay on track with savings is by setting up a Pre-Authorized Chequing (PAC) plan. This method ensures your RRSP contributions happen automatically, treating them like a fixed expense. By contributing regularly, you benefit from dollar-cost averaging, which helps smooth out market fluctuations. You can also schedule annual contribution increases, allowing your savings to grow progressively over time.

Leverage an RRSP Loan to Maximize Contributions

If you haven’t taken full advantage of your RRSP contribution room in previous years, an RRSP loan can be a useful tool. This approach provides additional time for your investments to grow while potentially yielding a tax refund that can help repay the loan. While not suitable for everyone, an RRSP loan can offer key benefits such as:

  • Accelerating your retirement savings

  • Potentially increasing your overall retirement fund

  • Lowering your taxable income through a larger deduction

Consider a Spousal RRSP for Tax Efficiency

For couples, a spousal RRSP can be a strategic way to optimize retirement savings and minimize taxes. The higher-income spouse contributes to the plan and claims the tax deduction, while the lower-income spouse holds ownership of the account. This strategy can help balance income levels in retirement and reduce overall tax liability. However, it’s essential to understand the withdrawal rules, especially for contributions made in the last two years. Consulting with a financial advisor can help determine if this approach suits your situation.

The Importance of Starting Early

Although RRSP season may still be ahead, making contributions early allows your investments more time to benefit from compound growth. Regular contributions not only enhance your retirement fund but also foster disciplined saving habits. If you’re unsure which strategies best fit your financial picture, speaking with an advisor can provide clarity and guidance tailored to your needs.

At Wiegers Financial & Benefits, we’re committed to helping you develop an RRSP strategy that aligns with your long-term financial objectives. Take action today and begin building a secure future.

Kim Chicoine, CFP, B.Comm.
Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.
Financial Planner, Manulife Wealth Inc.

The opinions expressed in this article are those of the author and do not necessarily reflect those of Manulife Wealth Inc.

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Explain Key Strategies for Effective Financial Planning

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. In their latest tip, they go over some key strategies for effective financial planning.


Wiegers Financial & Benefits: Key Strategies for Effective Financial Planning

When thinking about financial planning, people often focus on exciting aspects like growing their investments or envisioning an ideal retirement. However, they may overlook crucial yet less glamorous details that form the foundation of a secure financial future. Just like a home with stylish upgrades can still have structural weaknesses, a financial plan with overlooked gaps can leave you at risk. Let’s explore some commonly neglected areas and how to address them before they turn into costly mistakes.


Overlooked Aspects of Financial Planning

Inadequate Insurance Protection

Insurance serves as a safeguard within your financial plan, yet many assume that employer-provided coverage is sufficient. In reality, it often falls short. If you have dependents or outstanding debts, lacking adequate life or disability insurance can put you in a vulnerable position. Additionally, umbrella insurance is frequently disregarded but offers valuable protection in case of major liability claims. While insurance may seem like an unnecessary expense, it is an essential component in securing your financial stability.


Neglecting Estate Planning

Estate planning isn’t just for the elderly or wealthy—it’s important for anyone who wants to ensure their loved ones are taken care of. Without a legally sound will, power of attorney, or healthcare directive, critical decisions regarding your assets and medical care could be left to the courts. A well-prepared estate plan ensures that your wishes are carried out and prevents unnecessary stress for your family.


Unrealistic Retirement Planning

Many individuals contribute to retirement accounts without a precise understanding of how much they will need. Common mistakes include underestimating future living costs, overlooking inflation, or ignoring healthcare expenses. A solid retirement strategy involves more than just saving—it requires realistic projections, a diversified investment approach, and, often, the insight of a financial professional.


Lack of Tax Planning

While paying taxes is inevitable, overpaying them is not. Using strategies like tax-efficient investing, maximizing contributions to tax-advantaged accounts, and planning for required minimum distributions can help retain more of your wealth. A financial expert can guide you in navigating tax regulations and identifying ways to enhance your tax efficiency.


Insufficient Emergency Savings

An emergency fund is crucial for handling unexpected financial setbacks, yet many individuals overlook this fundamental element. A sudden expense, such as a medical emergency or vehicle repair, can derail your financial plans if you’re unprepared. Aim to accumulate three to six months’ worth of expenses in a high-yield savings account to prevent relying on credit in difficult times.


Unclear Financial Goals

Simply saving money without a clear objective can hinder progress. Having well-defined financial goals makes planning more effective. Instead of vague aspirations like “saving for a home,” specify goals such as “saving $100,000 for a down payment within five years.” Setting clear targets provides motivation and ensures your actions align with your long-term vision.


Overestimating DIY Financial Planning

Managing finances independently can be effective in some cases, but it’s easy to overlook key details or make costly errors. A professional financial advisor brings expertise, an objective perspective, and a holistic approach to your financial health. Consider them a valuable guide in helping you navigate potential pitfalls and stay on course toward your financial goals.


Proactive Planning Prevents Costly Mistakes

Even minor gaps in financial planning can lead to significant challenges if left unaddressed. The good news? Every shortfall can be corrected with strategic planning and the right guidance. By identifying and resolving these gaps early, you can build a robust and resilient financial future.


Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits Is A Trusted Saskatoon Financial Advisor 

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Explain The Importance of Succession Planning

Wiegers Financial & Benefits is one of Saskatchewan's largest private financial planning and employee benefits consulting firms. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


THE IMPORTANCE OF SUCCESSION PLANNING


Whether it’s a well-loved breakfast diner that feels like the hub of the community or a factory that manufactures safety shoes and work gloves, creating and growing a small business is incredibly rewarding and requires a lot of hard work. After toiling long hours to become successful, most owners want the business to continue thriving long after they step away.

A carefully crafted succession plan is important to any successful small business. It can help you clearly identify your company’s goals, protect the business's legacy, plan for the unexpected, and prepare for the financial security of your family and employees. The planning process can feel overwhelming at first, but carefully considering all aspects of your business is time well spent.


GETTING STARTED

There’s no time like the present. Succession planning can clarify how you visualize your future success, even if you just opened the doors to your business. Planning helps you narrow down your goals and objectives, identify the right person to take over one day and prepare for financial setbacks.

Bob Labrecque, a succession planning consultant with Manulife Securities, says business owners often wait too long to begin the planning process, starting when they’re only three or four years away from retirement. “A good succession plan is a five-to-10-year strategy of building the business, and then transferring ownership while it’s in a growth phase – not in a maturity or a declining phase,” he says. “And you want a team of experts in place to help make this happen. An advisor is a key member of this planning team.”

The first step in developing a business succession plan is to self-reflect and ask yourself some critical questions. Consider the following:

  1. When would you like to retire or step back from running the business?
  2. What kind of future would you like to see for your business?
  3. Do you have a successor in mind with a mentoring plan in place?
  4. Are there any weaknesses in your current business operations that must be addressed?
  5. What is your plan for handling unexpected events, such as illness, financial difficulties, or the retention of top employees?
  6. Do you have a team of financial and legal experts to help you with the planning process?

 

ESTATE PLANNING AND TAXES

Even though running a successful business can occupy your full attention, looking at the bigger picture and how a business succession plan dovetails into your personal plans is essential. An advisor can help determine a company's financial value and opportunities for growth and also help with retirement and estate planning.

A business owner hoping to step down must plan for adequate retirement income to maintain his or her desired lifestyle, put a savings plan in place to cover future expenses such as a child’s education, and set up life and disability insurance plans so loved ones are well cared for in the event of severe illness or death – all while maximizing tax-planning opportunities.

 

MANAGING EMOTIONS

As you are getting your succession plans down on paper, don’t discount the emotional impact that this major life event might have on you and the entire organization. Labrecque says leaving can be very difficult and emotional for many business owners.

 “Quite often, for a first-generation business owner, this is their baby, and there can be strong protective feelings that nobody else can do what they do.” 

Owners have some crucial decisions to consider:

  • Take an honest look at who can lead the business and compile a short list of candidates
  • Create a succession team to help navigate the financial, legal, and human resource aspects of the transition
  • Explore new opportunities for the organization to ensure continued strength and growth
  • Establish a co-lead to allow the current owner to begin stepping back into a lesser role

If the intent is to transition the business within the family, a specialist called a family facilitator might also be helpful. 


“Family transfers are the most complicated because they involve not only the business but the family dynamics,” says Labrecque. “Families also need to have honest discussions about whether children even want to take over the family business. They may want the money and the lifestyle but do they find the work interesting?”


WINDING DOWN

As a business owner prepares for retirement, there might still be an opportunity to stay involved and active but at a slower pace. A step-down approach is possible, where the ownership is transferred, but the owner stays on in a limited capacity for a set duration to help with the transition. After a lifetime of work, the boss can gradually ease into retirement rather than giving up everything all at once.

Succession planning can be a rewarding process that sets the tone for your business's overall success. For more information about getting started on a succession plan, please contact Wiegers Financial & Benefits to speak with one of our experienced advisors

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Explain How To Make The Most of Your RRSP

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


HOW TO MAKE THE MOST OF YOUR RRSP

Matching each saving option to your specific financial situation

Building savings can be challenging; there are plenty of other things to spend your money on.  That being said, the satisfaction of watching your savings grow will likely outlast the thrill of your latest online purchase.  To maximize your savings potential, you can add guaranteed investment certificates (GICs), mutual funds, segregated funds, stocks and bonds to your registered retirement savings plan (RRSP) or tax-free savings account (TFSA)[1]


Accelerate your savings

Here are a few options you can consider to make the most of your contributions:

  1. Pay yourself first with a pre-authorized chequing contribution plan.

A pre-authorized chequing (PAC) contribution plan helps you make regular, automatic contributions to your investments. It’s “paying yourself first” by treating regular savings like any recurring payment. This strategy is more effective because contributing more frequently gives you the advantage of dollar-cost averaging.[2]

Talk with your advisor or investment representative about adding an option that gradually increases the amount you contribute over time. It’s like giving your investments an annual raise, which can make a big difference to your savings.


  1. Catchup on unused RRSP contribution room with an RRSP loan

An RRSP loan can boost your savings by allowing you to catch up on RRSP contributions[3]. By catching up on contributions using a loan, you’re giving your investments the most available time to grow[4]. It helps you now and in the future because it:

  • It gives you more money earlier to grow your investment.
  • Potentially creates a larger nest egg down the road.
  • Reduces this year’s tax bill through an income deduction equal to the amount of your allowable RRSP contribution.

Borrowing your RRSP contribution doesn’t have to be costly. You can use any tax refund to help pay down your RRSP loan, which means you’ll benefit from tax advantages right away.

Despite the advantages, RRSP loans aren’t suitable for everyone.


  1. Contribute to a spousal RRSP

In a spousal RRSP, the higher-income spouse makes an RRSP contribution and claims the tax deduction, but the other spouse owns the plan and the money in it. Spousal RRSPs are generally used to equalize income during retirement, lowering the overall family tax rate as a result.

This type of plan can be advantageous if one spouse earns a higher income than the other. Any contributions made by the higher-income spouse will reduce his or her individual RRSP contribution room for the year but won’t affect how much the lower-income spouse can contribute to his or her individual RRSP.

If a spousal RRSP annuitant withdraws an amount from the account, all or part of the withdrawal would be taxed to the contributing spouse and not the annuitant to the extent that contributions were made in the year of the withdrawal or the previous two calendar years.

When it comes to investing, the earlier you start, the better.  If you have any questions, please speak with your financial advisor.


Taylor Szeto, B.Comm.

Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.

Account Representative, Manulife Securities Investment Services Inc.


Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits Is A Trusted Saskatoon Financial Advisor 

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

[1] If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec). If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec).

[2] Dollar cost averaging means investing smaller amounts at regular intervals, rather than saving up to invest in one lump sum. It can help you avoid jumping into the market at peak times by purchasing more fund units when values are low and fewer fund units when values are high.

[3] While borrowing to invest has many potential benefits (investing an initial lump sum creates greater potential for compound-growth compared to making smaller regular investment purchases), leveraging also has potential risks (market volatility may result in poor investment returns and the possibility of owning more on the loan than the investments are worth).

[4] RRSP loan proceeds cannot be used to fund TFSA contributions

Trusted Saskatoon Financial Advisor Cliff Wiegers Tip On The Benefits of Business Coaching

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


Wiegers Financial & Benefits are Trusted Saskatoon Financial Advisors. In their latest Wiegers Financial tip, Cliff Wiegers shares his experience and the many benefits of business coaching. 

The Life-Changing Benefits of Business Coaching

In 1991, I joined a coaching program called The Strategic Coach which was run by Dan Sullivan out of Toronto. The program has since gone international and has thousands of participants involved globally. Put very simply, it is intended for individuals who are interested in growing both personally and professionally. The goal is for participants to have a great personal life with lots of time off, as well as a great business that generates a lifestyle for them that allows them to live a preferred life.


Why Consider Business Coaching?


Most people think that in order to be successful in business, you have to give away all of your time or to have time off you have to give away money. This program helped me build a good business and have a great personal life. The program offers tools that I can use to enable me to have both personal and professional growth. If you are a business owner, at some point, you will likely develop a feeling of complexity. What this means is you simply have run out of time, and you can’t get any more results. In fact, running out of time means that you have already potentially cut into a lot of your own personal time as well. The program that I got involved with is not the same program that I’m in today, but it has many similar characteristics. 


In order to achieve personal and professional growth, you need to have a good team around you. You must identify what your unique abilities are and try to operate in that area. By doing this, you will generally work in areas of your business that give you energy and are usually associated with the highest economic bang for the buck. This means you have to delegate. In order to delegate, it’s critical that you empower people by ensuring they know what they are doing and have the necessary tools and resources. You will also be building empowerment so that bigger results can be made, and making an investment back into your business. Many times, when business owners are adding employees, they look at it as a cost. It is actually an investment and, if done properly, will yield results that are greater than what you invested.


This is just scratching the surface on coaching and what it’s done for me. If you ask me who needs coaching in business, I would say that everyone needs coaching. But it’s important also that you hit that scene of complexity, you still want to grow, and you’re willing to spend the time and money to do so. If each of those criteria is met, business coaching is something I strongly recommend you pursue.

Clifford A. Wiegers

CFP, TEP, CH.F.C., CLU, B.Comm.

Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.

Financial Planner, Manulife Securities Investment Services Inc.


Contact them today for a no-obligation consultation to determine how they can help you.


Wiegers Financial & Benefits are Trusted Saskatoon Financial Advisors 


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