In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, switches roles for this episode. Instead of conducting the interview he gets interviewed by his colleague Guy Anderson, Full-Licensed Investment and Financial Planner with Aligned Capital. They go over some of the fundamentals of investing within your corporate structure. 

Episode Highlights: 

● 01:14 – What should business owners know before they start investing? 

● 03:48 – Passive business tax rates start at 50% for interest and half of that is for capital gains. 

● 04:37 – What does it take in order to sell your small business corporation? 

● 09:00 – What is the formula for investment returns that is taxable? 

● 13:59 – What is the status of corporations and income splitting? 

● 14:56 – What are the limits for interest income? 

● 18:58 – Jason Pereira explains the tax rates for investment returns? 

● 22:25 – What types of advantages does insurance offer? 

● 25:25 – Get the right team behind you to keep your accounting solidified. 

3 Key Points 

1. Only people can qualify for tax saving exemptions, not businesses. 

2. Tax rates within a company on the owner's earnings could be between 10%-12%. 

3. You are allowed to earn up to $50,000 in investment returns within your corporate structure a year at the normal 50% tax rate. 

Tweetable Quotes: 

● “One of the key reasons people incorporate is to have creditor protection, protect your assets from creditors, assuming you haven’t signed a personal guarantee.” – Jason Pereira 

● “Seek advice on re-organizing your corporation and make sure that it is optimized for protecting assets and for the capital gains exemption.” – Jason Pereira 

● “By leaving money in your pirate struction, you actually have more money to invest than if you took it out personally.” – Jason Pereira 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Guy Anderson’s Linkedin 

● KindWealth.ca – Website for Kind Wealth - Pro-Bono COVID-19 services.

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, talks with Andrew D'Souza, Co-Founder and CEO of Clearbanc. Clearbanc is an online lender to businesses that helps them gain access to capital through royalty models that serve as alternatives to lending and venture capital. Clearbanc’s business model of lending isn’t one of debt or equity, but specifically one of royalties, which is important in an emerging market for lending options. 

Episode Highlights: 

● 01:24 – Andrew D'Souza explains Clearbanc. 

● 02:29 – How did Clearbanc get started? 

● 05:57 – How much of his time has been spent in just fund-rasing alone? 

● 08:52 – What does the lending experience look like? 

● 11:39 – Their goal is to fund businesses with less bias. 

● 14:56 – What do their offers generally look like? 

● 14:58 – Which niches seem to be some of the best fits for Clearbanc? 

● 15:42 – Which verticals seem to typically meet Clearbanc’s needs? 

● 18:35 – How much do they look at the founders themselves before making a decision? 

● 24:02 – How does Clearbanc get their message out there? 

● 26:04 – What is expansion looking like for Clearbanc? 

● 27:40 – How have their risk models that they have built been holding up? 

● 30:49 – How much repeat business are they seeing? 

● 32:58 – What would he change in his business or industry? 

● 34:47 – What have been the biggest challenges he has faced? 

● 36:15 – What keeps him excited each day about his work? 

3 Key Points 

1. Clearbanc helps fund businesses for their online growth by getting a fixed portion of the revenue in return until Clearbanc gets their initial revenue back plus a fixed percentage between 6%-12%. 

2. Over 2500 businesses have been globally and Clearbanc has provided over a $1 billion in funding to businesses. 

3. Fundraising is typically a three month process that can be 20% of your time. 

Tweetable Quotes: 

● “We can fund a business to continue to accelerate their online growth.” – Andrew D'Souza 

● “Equity capital is designed for high variability, a lot of uncertainty in both the upside and the timing of that upside, and that is why you want an equity partner.” – Andrew D'Souza 

● “If you’ve de-risked your business and if you understand your sales and marketing and your inventory terms or your customer break-even points, and your return, equity is a very, very expensive way to fuel that growth.” – Andrew D'Souza 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Peter Merrick

● Linkedin – Andrew D’Souza

● Clearbanc – Website for Clearbanc 

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, talks with Peter Merrick, Financial Expert and the author of the book The King of Main Street. Peter talks about finding purpose through philanthropy, the ways people can give back, dynastic wealth trends, and overcoming charity fatigue. 

Episode Highlights: 

● 01:20 – Peter Merrick explains philanthropy. 

● 03:14 – What awakens people to the desire to give back? 

● 06:11 – How much is the will to give driven by people feeling they have way too much? 

● 12:47 – Andrew Carnegie talked about giving wealth after you are dead. 

● 15:10 – Generations are now living longer beyond 65. 

● 19:40 – What causes charitable fatigue to set in? 

● 25:38 – What causes some advisors to not advise their clients about philanthropy? 

● 37:31 – Revisit the client every year and adjust what is important to them. 

● 39:44 – Advisors don’t find philanthropists, they find them. 

● 41:20 – Peter Merrick shares a personal story about his father’s desire to give. 

● 42:50 – Time is your most valuable asset. 

● 47:30 – Peter Merrick says that you should read The Gospel of Wealth by Andrew Carnegie and Maimonides’ Eight Levels of Charity. 

● 50:40 – Jason Pereira tells a story of an oil man who gave more than half of his wealth and JK Rowling’s charity. 

3 Key Points 

1. The first generation tends to earn wealth. The second generation witnessed part of the journey towards that wealth and maintains it. The third generation tends to spend it all and has to go back to work. 

2. Andrew Carnegie talked about giving in three ways: giving to your family, giving after you are dead, and giving to causes that are important to you through your time and money. 

3. Around age 55 is when people tend to plan their exit strategy and philanthropy starts to mean more. 

Tweetable Quotes: 

● “People that have means also want to give, and the way they want to give is with purpose. Purpose is finding something they care about, something that has touched them in their life and they want to make a difference.” – Peter Merrick 

● “There is no such thing as charity. They call it justice, meaning, if you’ve done well on this planet, you have benefitted from the society and the people who’ve come before you, and also the society as you live, and it is your responsibility to give back.” – Peter Merrick 

● “If you can give back, you can act quicker than let’s say a government or a committee. This is something that a lot of people as baby boomers retire, who are the richest generation that has ever lived on the planet. They have the ability to make a difference.” – Peter Merrick 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Peter Merrick

● Thekingofmainstreet.com – The King of Main Street book 

● Book:The Gospel of Wealth by Andrew Carnegie 

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, talks with Heather L. Hansen, Lawyer and Partner at Martha McCarthy & Company. Heather L. Hansen talks about family law and its impact on business owners, the legal ramifications of marriage and separation, and the myths to be aware of surrounding both of those instances. 

Episode Highlights: 

● 01:05 – Heather L. Hansen explains her background in family law. 

● 03:42 – What are the tensions between family law and contract law? 

● 06:11 – How does a divorice from a business owner differ from a regular conventional employee? 

● 16:08 – What happens when some of that income from the business may not be fully reported? 

● 22:27 – Get clear accounting on what your assets are 

● 25:30 – Why is the family home different in family law? 

● 30:38 – You can enter into a domestic contract that is not in contemplation or during a marriage. 

● 37:31 – Heather L. Hansen’s ‘marriage contract mantra’ is to keep them as simple as possible and to do as little as possible in the contract. 

● 41:37 – Heather L. Hansen discusses the class of excluded assets under the family law act. 

3 Key Points 

1. Value doesn’t equal fair market value and value doesn’t necessarily equal 

some prior indicator of value. 

2. In family law, division of property turns to the value of the business and the 

obligation to equalize it. 

3. In family law, child support and spousal support are based on income. 

Tweetable Quotes: 

● “I am a family lawyer. I practice in Ontario. I’m a certified specialist in family law and what that means is that it occupies the totality of my practice. I’ve been practicing for just over 12 years now.” – Heather L. Hansen 

● “One of the areas that I’ve developed a specialty in is the intersection of family law and business, and how partially business owners are impacted during a separation process.” – Heather L. Hansen 

● “People should consult often and early with family lawyers, particularly within their corporate life, and there are things that we can do. There are strategies and there are approaches we can do. But it is limited.” – Heather L. Hansen 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Heather L. Hansen’s Linkedin 

● mccarthyco.ca – Website for Martha McCarthy & Company 

● [email protected] – Email

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Dr. Randy Knipping, Medical Director of the Deerfields Clinic. The Deerfields Clinic is an integrated medicine clinic that focuses on human longevity and performance. Dr. Randy Knipping talks about health challenges facing business owners and how integrated medicine can help fix those issues and get ahead of challenges in their health. 

Episode Highlights: 

● 01:16 – Dr. Randy Knipping explains his medical background. 

● 06:24 – What does he see different in his business owner patients than others? 

● 08:55 – How does he calculate their biological age against their birthdate age? 

● 14:52 – What is the negative impact on a business owner's relationships and their business when their health is out of whack? 

● 18:00 – How does integrative medicine course-correct health problems? 

● 23:00 – What kind of feedback has he received once people adopt the approach? 

● 26:05 – What are some best practices that people can implement to build resilience? 

● 36:15 – Having 10 minutes of meditation daily for 8 weeks shows changes in the brain that can be seen by an MRI scan. 

● 39:53 – Deerfields.ca offers an initial complimentary virtual needs assessment with Dr. Randy Knipping. 

3 Key Points 

1. Stay on top of your health by measuring it on a regular basis instead of waiting until something goes wrong. 

2. Dr. Randy Knipping uses biomarkers to measure your physical and mental functional capacity and then track it on a quarterly basis to see if the patient is reaching their goals. 

3. Resilience is the ability to have and maintain a calm, clear, and stable state of mind in spite of what is going on outside of your mind. 

Tweetable Quotes: 

● “Most people who have chronic disease or worse, you can identify factors 5, 10, 15, 20, 30 years before they get sick.” – Dr. Randy Knipping 

● “Typical clients that I’m seeing coming into my clinic are 40, 50, 60-years-old . They’ve made their $10-$15-$20 or more millions of dollars. But they are 5, 10, 15, 20 years older biologically than their birthdate.” – Dr. Randy Knipping 

● “The future health of the couch potato is clearly going to be much worse than the amateur athlete.” – Dr. Randy Knipping 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website

● Linkedin – Dr. Randy Knipping’s Linkedin 

● Deerfields.ca – Website for Deerfields Clinic

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Josh Zweig, CEO and Partner at LiveCA. Josh Zweig talks about the benefits of outsourcing various financial functions and work to a professional accounting firm that can do it on your behalf, supporting ongoing engagement with your clients. 

Episode Highlights: 

● 01:10 – Josh Zweig explains what LiveCA does. 

● 01:33 – Where is LiveCA’s physical location? 

● 02:56 – How does their business model enable clients with their offerings? 

● 05:05 – What is the best practice for efficiency? 

● 09:07 – How often does LiveCA reengineer a client’s system? 

● 12:13 – What is the first thing someone should contemplate when looking to potential outsource? 

● 18:05 – Set up your system to scale. 

● 21:09 – How does the pay-per-use business model change the relationship with consumers? 

● 25:05 – Ask customers about their personal lives to be able to advise them better for needs that they may have never thought of. 

● 26:53 – What should you look for in an outsource firm? 

● 30:55 – How has LIveCA been able to help businesses during COVID-19? 

3 Key Points 

1. LiveCA has an account’s payable team, a payroll team, a bookkeeping team, and all of those teams work with their tech teams and their client service teams. 

2. Outsourcing should serve as being a fraction of a full-time person. 

3. LiveCA takes into account how fast a business is growing and they lay processes that are adaptable to even when that business hires more people. 

Tweetable Quotes: 

● “LiveCA is Canada’s largest online CPA firm and what we do is a combination of the tax and accounting that you would expect a typical CPA to do and we combine that with a knowledge of technology and financial workflow.” – Josh Zweig 

● “Scoping is basically us going, can we help you? If so, here is what help looks like and finally, here is how much it costs.” – Josh Zweig 

● “I would look at the outsourcing process as two-fold. One is, how are you doing the process? And two, who is doing it?” – Josh Zweig 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Jason Pereira Website 

● Linkedin – Josh Zwaig

● liveca.ca – Website for LiveCA 

● [email protected] – Josh Zwaig Email

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Melanie Russell, President of Kalex Valuations. Melanie Russell, is a business evaluator who does so to meet the needs of businesses for a range of issues like MNA and family law issues. 

Episode Highlights: 

● 01:16 – Melanie Russell, explains what he does for a living. 

● 03:18 – What does the process of valuation look like? 

● 04:56 – What types of metrics does she use to come up with a number? 

● 07:00 – Valuation is ultimately a finance-driven study. 

● 10:07 – How is valuation looked at differently by different roles that people play? 

● 12:13 – What are some of the key factors that add to high valuations? 

● 15:00 – How much education or push-back does she get when dealing with valuations? 

● 16:32 – How does she go about normalizing expenses back into the cash flow? 

● 19:26 – How much does sweat equity create push back during the valuation process? 

● 23:36 – Melanie Russell discusses tax planning and estate freezes. 

3 Key Points 

1. Cash flow is generally what drives investors. 

2. Liquidity is one the biggest difference between private company valuations and public company valuations. 

3. Currently, the trend appears to be more capital-based sophisticated purchases versus just strategic ones. 

Tweetable Quotes: 

● “I am by background a legacy CA, CPA that specializes in the area of valuations.” – Melanie Russell 

● “Valuations are business assets that are used for various purposes, whether it’s trying to sell as business, whether it is trying to transition to the next generation or to employees, whether it is a dispute.” – Melanie Russell 

● “My value add is telling business owners or asset owners what someone might pay based on logical, rational thinking.” – Melanie Russell 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website

● Linkedin – Melanie Russell

● Kalexvaluations.com – Website for Kalex Valuations 

● Linkedin – Melanie Russell’s Phone Number: (416) 488-9590 Ext. 225 

● [email protected] – Melanie Russell’s Email

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Jonah Mayles, Partner, Tax and Estate Planning at Sterling Park Financial. Jonah Mayles shares his wisdom derived in the field of tax law as well as insurance, and the often overlooked topic of insurance tracking shares in reference to estate planning. 

Episode Highlights: 

● 01:16 – Jonah Mayles explains what he does for a living. 

● 02:14 – What is the concept of insurance tracking shares? 

● 03:11 – What are the benefits of insurance tracking shares? 

● 11:00 – How does the tax implication math happen upon death? 

● 13:10 – Can beneficiary children buy shares directly from the estate? 

● 14:07 – They discuss how taxes will be affected by COVID-19. 

● 15:00 – What does the CRA speak to in reference to insurance tracking shares? 

● 16:32 – Has Jonah seen financial arrangements where clients have borrowed from the policy as well? 

● 19:17 – Jonah Mayles shares various use cases that solve several customer dynamics. 

● 22:36 – The two types of lawyers that will always be busy: family lawyers and estate litigators. 

3 Key Points 

1. The cash surrender value of the policy contributes to the value of the fair market value of your shares. 

2. We are headed towards the biggest wealth transfer in history with the Baby Boomer generation dying off. 

3. Insurance is not only great for the client, but the government also gets to receive their money way faster. 

Tweetable Quotes: 

● “What I do at Sterling Park, my partners are all insurance guys, been in insurance their entire careers, whereas what I do is the tax and estate planning that goes into the insurance plans that we implement for our clients.” – Jonah Mayles 

● “Insurance tracking shares is essentially a class of tracking shares that is created for a corporation that is going to acquire a whole life insurance policy.” – Jonah Mayles 

● (Insurance tracking shares) “What it does is it tracks the value of either the cash surrender value of the policy or the death benefit, or both.” – Jonah Mayles 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Jonah Mayles

● SterlingParkGrp.com – Website for Sterling Park Financial Group 

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Kevin Kliman, Co-Founder and Co-CEO of Humi. Humi is an online platform for managing basically everything that has to do with people in your business. Kevin Kliman talks about HR advice, strategies, and pitfalls to avoid for human resources in its relationship to financial planning. 

Episode Highlights: 

● 01:32 – Kevin Kliman explains what Humi is and the work he does with them. 

● 03:24 – What does hiring people and turnover cost people aside from their salaries? 

● 11:09 – What are some best practices around onboarding that really work effectively and have an impact? 

● 13:21 – Kevin talks about the consequences of not having paperwork taken care of properly. 

● 15:14 – What should employees be doing to address onboarding concerns? 

● 17:22 – Kevin discusses firing people, dismissal and the risks surrounding that. 

● 21:29 – When it comes to payroll, remove all the friction. 

● 25:34 – What are some best practices for onboarding and maintenance of the plans in

general? 

● 38:41 – Trust is earned. 

● 39:17 – Kevin Kliman shares his final thoughts 

3 Key Points 

1. When hiring, make sure you are filtering for company culture fit, use recruiting 

to signal to them what your expectations are, and be authentic. 

2. Build an emotional bond between new employees and the rest of the team. 

3. The Employment Standards Act (ESA) is the bare minimum for companies as 

to how they have to treat employees. 

Tweetable Quotes: 

● “Humi is a cloud-based employee system of record for Canadian businesses with 5 to 500 people. It’s kind of a fancy way of saying that we combine payroll, HR, health benefits into a single simple system, cloud-based system that can be accessed from any device.” – Kevin Kliman 

● (Humi) “We are really replacing paper contracts, Excel spreadsheets, all the multiple siloed systems that people use to manage the people side of their business.” – Kevin Kliman 

● (Humi) “The company is four and a half years old. There are now over 1000 companies that are on Humi and they employ over 30,000 people.” – Kevin Kliman 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Kevin Kliman’s Linkedin 

● Twitter – Kevin Kliman’s Twitter 

● Humi.ca – Website for Humi 

● [email protected] – Email Kevin Kliman 

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In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Ryan Mallough, Director of Provincial Affairs for Ontario at the Canadian Federation of Independent Business. CFIB is the largest advocacy group for small business owners in Canada. Ryan Mallough talks about what CFIB does and why small business owners should consider becoming members. 

Episode Highlights: 

● 01:13 – Ryan Mallough explains what CFIB does. 

● 04:33 – What have been some of CFIB’s big wins in the past? 

● 11:09 – Aside from COVID-19, what are some of CFIB’s other big advocacy issues currently? 

● 13:21 – They talk about how construction can infringe on businesses. 

● 17:30 – How have they lobbied for businesses affected by COVID-19? 

● 21:28 – What has been the feedback on commercial real estate subsidies? 

● 26:44 – What else does CFIB offer it’s members? 

● 29:16 – What does it cost to join CFIB? 

3 Key Points 

1. CFIB is informed by their 110,000 members’ opinions through regular surveys and mandate questions. 

2. Right now in Canada, it is easier and more lucrative from a tax perspective to sell to a third party than it is to sell to a family member.

 3. CFIB has been pushing for all Canadian governments across the country to start building in construction mitigation programs, including financial compensation for businesses that are disrupted by huge construction projects. 

Tweetable Quotes: 

● “The Canadian Federation of Independent Business has been around for 49 years now and we represent the big voice for small businesses. We operate across the country. We have offices in all 10 provinces.” – Ryan Mallough 

● “We advocate for things that small businesses are looking for. So, things like reduced small business or corporate tax rates, changes to employment standards law, cutting red tape and regulations, permit signage, that sort of thing.” – Ryan Mallough 

● “How can we help the business owners succeed? How can we make their lives easier when it comes to dealing with the government, while at the same time ensuring that the government understands the realities of running a small business?” – Ryan Mallough 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Ryan Mallough’s Linkedin 

● CFIB.ca – Website for Canadian Federation of Independent Business

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