The following scenario illustrates how the sale of a business opens multiple options in retirement.

Having recently sold their successful manufacturing business, Anne (62) and George (64) are looking forward to enjoying more free time in retirement. Their home is mortgage free, their health is good, and both of their adult sons are independent and starting their careers. Anne would like to play pickleball year-round and spend the winter months in warmer climes, and they are also looking forward to an upcoming Alaskan cruise with friends.

Although they are feeling confident, Anne and George wonder about how to make the most of their hardearned wealth in retirement:

• FINANCIAL PLANNING
• When is the optimal time for each of them to begin taking Canada Pension Plan and Old Age Security payments?
• How should they draw funds to minimize income tax and maximize their investment capital, given they have a variety of investment accounts – corporate, non-registered, and registered?
• INVESTMENT MANAGEMENT
• What type of assets should they invest their savings in, given their various accounts and transition to retirement?
• TAX SOLUTIONS
• What potential income tax and succession laws apply if they choose to purchase a vacation property in the U.S. or another foreign country?
• ESTATE PLANNING
• Should they give their sons part of their inheritance early?
• CHARITABLE GIVING
• What is a donor advised fund? Friends of theirs set one up and saved a considerable amount of tax when they sold their business last year —should they have one too?

OUR TOTAL WEALTH SOLUTIONS

Although the substantial nest egg from the sale of their business should easily cover Anne’s and George’s lifestyle expenses in retirement, a review by our team of specialists revealed additional opportunities to help them reach their wealth goals by:

• Minimizing income taxes by doing a drawdown analysis from all sources
• Reviewing their current investment portfolio and suggesting a strategic mix of assets to maximize their capital
• Advising on the tax implications of purchasing a foreign vacation property
• Addressing their wealth transfer questions

Anne and George were presented with a variety of options. After updating their existing financial plan to reflect proceeds from the sale of the business, they chose to defer CPP and OAS payments until they reach 70 and live off the dividends from their Holding Company over the next few years. They also decided to gift each of their sons $100,000 for a down payment on a home to help them get started. And to give back to the community where their employees, suppliers, and clients live, they established a Donor-Advised Fund – a charitable giving strategy that they will oversee along with their sons. As they settle into a comfortable retirement, they feel confident that their financial house is in order.

Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.