Trusted Tips and Resources

Trusted Tips & Resources

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.

Relieve Neck Pain With A Thai Massage From Trusted Saskatoon Sirius Health Thai Massage Experts

Sirius Thai Massage Clinic in Saskatoon is committed to providing authentic Thai massage practices to get excellent mobility, flexibility and pain relief results that traditional massage may not be able to achieve. They're certified practitioners provide a variety of Thai-style massage modalities that last from 30 to 180 minutes. In their first tip, they share how you can relieve neck pain with a Thia massage.



Relieve Neck Pain With A Thai Massage


People who sit at a desk or on mobile devices all day may find themselves using poor posture which results in back and neck pain.


One of our customers’ most common ailments is neck pain caused by our modern, sedentary lifestyle. Whether at work, at a computer, or at home, watching movies on a mobile device, we do our neck a great disservice, leading to sharp, stabbing neck, shoulder, and upper back.


The main reason these activities cause pain is that we often have very poor posture as we do these activities. Whether sitting at a desk with a chair that is too low or too high or holding a mobile device in front of you on your lap and looking down at the screen, you are straining the muscles and tissue structures surrounding your neck or cervical spine. Over time, that strain leads to neck pain.


The most common symptoms that clients describe are:

  • Localized pain in the upper back, shoulders and lower neck
  • Jaw pain
  • Mild or even severe headaches
  • Pain when tilting the head forward and down
  • Tingling sensation or even numbness in the arms and hands

Neck pain can be severe, but even when minor, it can profoundly affect your quality of life. So, a Thai massage for your neck is more than a luxurious treat; it’s a therapeutic solution. First, acupressure and stretching in a Thai massage will improve blood circulation, which helps ease pain. A Thai massage will also help reduce the stiffness in your neck and shoulders, restoring your range of motion.

But while regular Thai massages can provide much-needed relief, you should also take steps to prevent neck pain. The essential thing you can do is to focus on improving your posture. Take a good look at your workplace and incorporate any ergonomic adjustments you need to improve how you sit at your desk.

Another workplace tip is to incorporate short stretching breaks into your day. You can watch many short stretching videos online or ask your Thai massage practitioner about special neck exercises you can perform at work or home. You don’t have to spend more than a few minutes every few hours doing these stretches, but they will significantly affect your problems.

When you get home from work, try to reduce your screen time, especially with mobile devices that you hold in front of you. Looking down at a phone or tablet is even worse for your neck than sitting at a desk, so don’t add to the trouble by continuing to strain your neck after work.

Another simple way to reduce neck pain is to reduce your stress. While practising qigong or meditation is an excellent way to offset sitting at a desk, these activities take time to develop discipline. So start by ensuring that you give yourself time for quality sleep. Sleep is one of the best ways to reduce stress, giving your body time to recover.

Thai massage is a good antidote for neck pain caused by our sedentary lifestyle. However, taking the time to alleviate tension and stress in your neck muscles can improve comfort, and overall well-being is equally important.


If you seek a holistic healing practice that focuses on energy-based therapy, incorporating techniques such as stretching, compression, and acupressure in Saskatoon, Sirius Health Thai Massage Clinic is your destination. Your well-being will noticeably improve after your visit, with the benefits continuing to unfold in the following days.

Trusted Saskatoon Air Conditioning & Furnace Pros at Gibbon Share 5 Reasons Your Boiler May Not Be Working

Gibbon Heating & Air Conditioning has been serving Saskatoon and surrounding areas for over 40 years. They are a "total service" company with trained technicians who are able to provide customers with solutions to all their plumbing, air conditioning, and heating (HVAC) related requirements. As an Independent Lennox Premier Dealer, the Gibbon Heating and Air Conditioning team are proud to provide prompt, courteous, and professional service that is required by Lennox’s Quality standards. They are regularly evaluated through an independent customer satisfaction survey process. They are trained to design, install, service, and maintain home comfort and indoor air quality systems in Saskatoon. In their latest tip article, they discuss 5 Reasons Your Boiler May Not Be Working. With the colder Saskatoon weather coming, we want to make sure we are ready for our Saskatchewan Winters. 

5 Reasons Your Boiler May Not Be Working


Neglecting Maintenance:

Failure to perform regular boiler maintenance is a leading cause of boiler problems. Debris, scale, and dirt can accumulate over time, reducing efficiency and potentially causing breakdowns. Make sure you schedule annual maintenance checks to clean and inspect your boiler thoroughly.


Pressure Problems:

Low or high boiler pressure can lead to issues. Low pressure results in insufficient heat production, while high pressure can be dangerous and trigger system shutdown. Check the pressure gauge and keep it within the recommended range, typically around 1 to 1.5 bar, to ensure proper boiler operation.


Thermostat Troubles:

Sometimes, the issue lies with the thermostat rather than the boiler itself. Incorrect thermostat settings can lead to inadequate heating. Make sure your thermostat is programmed to your desired temperature, and consider replacing it if it’s malfunctioning.


Frozen Condensate Pipe:

In freezing weather, the condensate pipe that carries wastewater from the boiler to the drain can freeze and cause a blockage. When this occurs, the boiler may shut down to prevent damage. To fix this, thaw a frozen condensate pipe by pouring warm (not boiling) water over it and insulating it to prevent future freezes.


Faulty Components:

Boilers contain numerous small parts, and a failure in any of them can lead to system malfunctions. Parts like a malfunctioning pump, gas valve, or pressure relief valve can result in a loss of heat or even pose a safety risk.

Regular maintenance, proper pressure monitoring, thermostat adjustments, and insulation, as well as addressing faulty components, are essential for maintaining efficient boiler operation. If you’re uncertain about any of these signs or these issues continue, it’s a good idea to contact a certified technician from Gibbon’s Heating and Air Conditioning in Saskatoon who can assess and repair your boiler, making sure your home stays warm and comfortable during the winter months. Remember that addressing boiler issues promptly not only ensures your comfort but also extends the lifespan of your heating system.


See more of Gibbons Air Conditioning Articles and Tips here.

 Gibbon's Services Include

"A History of Professionalism, A Foundation of Trust"

Gibbon Heating and Air Conditioning are TRUSTED SASKATOON Air Conditioning & Furnace Professionals


Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Discuss US Residency Rules for 'Snowbirds'

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. 


WHY IT’S IMPORTANT THAT SNOWBIRDS UNDERSTAND U.S. RESIDENCY RULES BEFORE PLANNING THEIR TRIP


Every year, over 1 million Canadian seniors and retirees pack up and move south for the winter to enjoy the warm weather and avoid the freezing temperatures at home.

However, while warmer climates can be a welcome escape, Canadian snowbirds need to be very careful about how much time they spend in the United States, as overstaying can result in being deemed a U.S. resident for tax purposes and subject you to paying taxes in the United States even if you’re not a U.S. citizen.

The good news is that proper planning and awareness of the correct U.S. residency rules can help you avoid falling into the snowbird tax trap.

NOTE: If you have dual Canadian – U.S. citizenship, you should already be filing a U.S. tax return to report your worldwide income, no matter how much or little time you spend in the U.S., so the options below won’t apply to you.


The Wrong Way to Avoid Being Considered a U.S. Resident

Unfortunately, many Canadian snowbirds have been misinformed that if they simply spend fewer than 183 days in the U.S. in any given year, they will not be considered U.S. residents for tax purposes.

This information is not true, and has caused thousands of Canadians to unknowingly violate U.S. residency rules, often leading to serious financial and emotional stress.

Don’t think you’ll just slip through the cracks. Canadian and U.S. border officials are sharing more information than ever, making it virtually impossible to hide from the IRS.

 

The Right Way to Avoid Being Considered a U.S. Resident

Canadian snowbirds have three options to avoid being considered U.S. residents for tax purposes by the IRS. The first option is to avoid being considered a U.S. resident for tax purposes in the first place, while the second and third options offer exemptions if you could be considered a U.S. resident.

The three options below are listed from simplest to most complex. The right option for you will depend on your unique situation:

  1. The Substantial Presence Test
  2. The Closer Connection Exemption
  3. The Canada – U.S. Tax Treaty

Option 1: The Substantial Presence Test

The easiest way for Canadian snowbirds to avoid being considered U.S. residents for tax purposes is to make sure you don’t meet the IRS’s Substantial Presence Test. Under the Substantial Presence Test, the IRS considers Canadians to be U.S. residents for tax purposes if you are physically present in the U.S. for:

31 days in the current calendar year; AND
183 days during the three-year period covering the current calendar year and the two preceding calendar years on a weighted basis.

To arrive at your three-year total, you include:

  • All days spent in the U.S. in the current calendar year,
  • One-third of the days spent in the U.S. in the preceding year, and
  • One- sixth of the days spent in the U.S. in the year prior to that

While the test is odd and confusing, it actually allows you spend significantly more than 183 days in the U.S. over the three-year period by giving less weight to days in previous years.

If your total over the three-year period is 182 days or less, you will not be considered a U.S. resident for tax purposes, as you don’t meet the Substantial Presence Test.

However, if your total for the three-year period is 183 days or more, you will be considered a U.S. resident for tax purposes under the Substantial Presence Test, which would require you to seek an exemption under Option 2, and possibly Option 3, below.

TIP: For U.S. residency calculation purposes, a day is considered to be a calendar day, not a 24-hour period! For example, if you enter the U.S. at 11:00 pm one night and return to Canada at 1:00 am the next morning, it counts as spending two days in the U.S. even though you were only there for 2 hours.

Example:

Glenn spends 120 days in the U.S. in 2020 (the current year), 120 days in the U.S. in 2019 and 120 days in the U.S. in 2018, he would calculate his three year total as follows:

120 days in 2020
+ 40 days in 2019 (120 ÷ 3)
+ 20 days in 2018 (120 ÷ 6)
= 180 total days
In this example, Glenn would not be considered a U.S. resident for tax purposes, as he is under the 183- day threshold for the three-year period. He should still consider filing Form 8840 to document this with the IRS.

NOTE: If you spend a fair amount of time in the U.S. each year, you should still consider filing Form 8840 to document and certify to the IRS that you were not substantially present in the U.S. under the Substantial Presence Test. You are not required to have a U.S. tax identification number to file Form 8840.

 

Option 2: Form 8840 & The Closer Connection Exemption

Even if Option 1 above doesn’t work for you, you can still get an exemption from being considered a U.S. resident for tax purposes if you qualify for and file a Form 8840 with the IRS.

The official name of Form 8840 is the “Closer Connection Exemption Connection Statement for Aliens”.

Essentially, filing Form 8840 allows Canadian snowbirds to stay in the U.S. for up to 182 days every year without being considered a U.S. resident for tax purposes (assuming you meet the criteria and file on time).

In order to qualify to file Form 8840 and receive this exemption, you’ll need to meet ALL of the following criteria:

  1. Be present in the U.S. for less than 183 days in the current calendar year
  2. Be able to establish a home in Canada in the current calendar year
  3. Be able to establish a closer connection to Canada than the U.S. during the calendar year

Form 8840 is a short form that asks you a number of questions to support your claim that you have closer economic and personal ties to Canada than the United States.

Questions cover a broad range of topics including, but not limited to:

  • Where your permanent home is
  • Where you keep your belongings
  • Where your family lives
  • Where you’re registered to vote
  • Where your driver’s license was issued
  • Were your banking and financial accounts are located
  • Where you’re covered by a government health plan

Form 8840 must be filed with the IRS no later than June 15 in the year following the year in which you qualified as a U.S. resident for tax purposes under the Substantial Presence Test. If you fail to file on time, you may be considered a U.S resident for tax purposes and subject to other penalties.

If you meet all of the criteria to be eligible for the Closer Connection Exemption and file your Form 8840 on time with the IRS, you will avoid being treated as a U.S. resident for tax purposes.

If you don’t meet all of the criteria for the Closer Connection Exemption, and you are ineligible to file a Form 8840, you must look to Option 3 below as your third and final option for relief from being deemed a U.S. resident for tax purposes.

 

Option 3: The Canada – U.S. Tax Treaty

Canadian snowbirds that spend 183 days or more in the U.S. in the current calendar year have one last option to avoid being declared a U.S. resident for tax purposes: file a U.S. Nonresident tax return (Form 1040NR) and claim an exemption under The Canada – U.S. Tax Treaty.

In order to claim an exemption under the Canada – U.S. Tax Treaty, Canadians must file a non-resident U.S. tax return Form 1040NR and attach a properly completed Form 8833, called the “Treaty Based Return Position Disclosure”. You will need a U.S. Individual Tax Identification Number (referred to as an “ITIN”) to file these forms with the IRS.

This option is by far the most onerous and complex to complete and will likely require you to incur the time and expense of hiring a U.S. tax professional to assist and advise you.

Form 1040NR and Form 8833 must be filed with the IRS no later than June 15 in the year following the year in which you qualified as a U.S. resident for tax purposes. If you fail to file on time, you may be considered a U.S resident for tax purposes and subject to other penalties.

 

The Bottom Line

Whenever possible, Canadian snowbirds should avoid being considered U.S. residents for tax purposes.

As mentioned previously, your best options are to ensure you do not meet the Substantial Presence Test or to qualify for the Form 8840 Closer Connection Exemption. Avoid having to rely on the Canada – U.S. Tax Treaty whenever possible.

While filing a Form 8840 Exemption may be a little more work than simply not meeting the Substantial Presence Test, the filing process isn’t particularly difficult or time consuming, and allows you to spend more time in the United States. It’s a common practice, and thousands of Canadian snowbirds file a Form 8840 every year.

Avoiding U.S. tax issues should never be a problem for snowbirds as long as you plan ahead and take the time to understand and follow the IRS rules. Talk to an advisor for more information. 

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

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Ph: 306.244.4150

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