In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Terry Richie, Partner and Vice President at Cardinal Point Wealth Management. Cardinal Point is a firm that specializes in dealing with U.S./Canadian cross-border issues. Terry Ritchie discusses tricks and traps that Canadian business owners are exposed to when they are also United States tax residents. 

Episode Highlights: 

● 01:02 – Terry Ritchie describes what he does in his career. 

● 02:44 – What are U.S. residents for income tax purposes? 

● 05:57 – COVID-19 is affecting ‘snowbirds’ from a tax prospective who can’t travel. 

● 08:42 – You could have zero assets in the U.S. and a U.S. resident living in Canada. But you still have to file your taxes in the United States. 

● 10:10 – Terry Ritchie addresses gift taxes 

● 12:05 – What are the potential penalties for not filing income taxes? 

● 17:38 – If you have interest in Canadian company, what IRS forms need to be filed? 

● 19:22 – What were some of the tax changes when Trump became president? 

● 21:05 – Terry shares the come advice for American clients setting up a business in Canada. 

● 22:29 – What are the differences in homeowner taxes in the US and Canada? 

● 26:26 – Which business industries does it make sense to get incorporated? 

● 28:27 – What are your filing requirements for a corporation? 

● 30:20 – What is one of the big detriments to being an American taxpayer when you are a Canadian business owner? 

● 34:32 – Terry discusses the reasons why it is important to become compliant. 

● 41:50 – How will passports be affected by tax debt? 

● 42:52 – What is the difference between having a green card or when you are actually considered a citizen? 

3 Key Points 

1. There are 9 million Americans that live outside of the United States and just below 1 million Americans that live in Canada. 

2. U.S. residents for income tax purposes are citizens of the U.S. that were born there, those that hold green cards, traditional ‘snowbirds’ who consistently spend generally at least 4 months in the United States for 3 years in a row. 

3. Income that you leave in a foreign entity is taxed at the highest margin rate for U.S. tax purposes. 

Tweetable Quotes: 

● “‘We’re not just book smart, we live it.’ So, I live in Phoenix and Calgary. We have offices in California, Florida, Phoenix, Toronto, and Calgary. All my kids are dual citizens. I’m married to a U.S. citizen.” – Terry Ritchie 

● “In the U.S., generally more than 90% of the companies in the U.S. are all flow-throughs, tax corporations, S-Corps, LLCs.” – Terry Ritchie 

● “Sometimes, when you make them aware of the way that we tax in the US on the Canadian side, it sometimes it makes sense to just be a sole prop, and just file a good old C-2125 and a scheduled C.” – Terry Ritchie 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● Linkedin – Terry Ritchie’s Linkedin 

● [email protected] – Email Terry Ritchie 

● Linkedin – Terry Ritchie’s Linkedin 

● cardinalpointwealth.com – Website for Cardinal Point Wealth Management 

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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 Scott Terrio, Manager of Consumer Insolvency at Hoyes Michalos. Hoyes Michalos is a Toronto-based license and insolvency trustee. Scott Terrio talks about what insolvency means, what the options are, and how business owners can protect their assets in the event of insolvency. 

Episode Highlights: 

● 01:15 – Scott Terrio explains the work that he does. 

● 02:55 – What is the process and options for when people get into debt issues? 

● 04:18 – What are consumer proposals? 

● 06:50 – How are consumer proposals different from bankruptcies to the consumer? 

● 10:30 – Business debt is quite different from consumer debt. 

● 13:33 – Can a spouse become liable for their other spouse’s debt? 

● 14:57 – How much back and forth typically happens with consumer proposals? 

● 17:07 – What is normally the timeline differences between consumer proposals and bankruptcy? 

● 19:36 – What if someone goes through a consumer proposal and gets in financial trouble again? 

● 21:08 – What are the misconceptions about bankruptcy in Canada? 

● 24:25 – Which types of assets do creditors not have access to? 

● 27:37 – Consumer debt usually costs you more over time. 

● 28:38 – What do RESPs, TFSAs, RDSPs look like in a credit situation? 

● 30:23 – Which bankruptcy programs are relevant to this COVID-19 moment? 

3 Key Points 

1. Hoyes Michalos is a Toronto-based license and insolvency trustee firm with 25 offices across Ontario, Canada and did about 5800 files last year. 

2. Consumer proposals are for individuals, not a business, with $250,000 in unsecured debt or less, and are making an agreement to pay a percentage of your debt. 

3. About 70% of consumer proposals go through as offered and about 99.9% co ahead with a counter-offer. 

Tweetable Quotes: 

● “Sooner is always better when you are talking about debt. Most small business owners, once they’ve gotten into a little bit of trouble, whether it is tax debt or supplier debt or bank debt, they keep digging.” – Scott Terrio 

● “What a proposal actually is, is you are making a legal settlement with all of your unsecured creditors as a group, through a trustee, through the courts.” – Scott Terrio 

● “You file a bankruptcy, you get an R9 rating for 6 years after your bankruptcy discharge. So, that is either 9 months or 21. The R9 isn’t as bad as people think, because I’ve had all kinds of people get mortgages.” – Scott Terrio 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website 

● [email protected] – Email Scott Terrio 

● Linkedin – Scott Terrio’s Linkedin 

● Twitter – Scott Terrio’s Twitter 

● hoyes.com – Website for Hoyes Michalos

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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 Sheldon Brow, Independent Mortgage Broker. Sheldon Brow talks about how mortgage lending and debt in general work differently for business owners than they do for the average consumer. He also provides guidance and tips on how to make your life easier as a business owner when you need to apply for debt. 

Episode Highlights: 

● 01:12 – Sheldon Brow describes what he does in his career. 

● 02:44 – Why do business owners have such a hard time getting mortgages? 

● 05:53 – Why are independent mortgage brokers such a beneficial option? 

● 04:20 – What does the approach to applying for debt look like? 

● 10:12 – The vast amount of financial training is unfortunately focused on sales. 

● 11:20 – What are his best practices to make access to credit easier for business owner clients? 

● 14:17 – Sheldon talks about various types of business loans that people commonly need to take out. 

● 21:25 – For business lending, it is really helpful to have big, extensive contracts with big companies, reliable cash flow, assets, and invoices that you have coming in. 

3 Key Points 

1. Among the plethora of business mortgage lending, some of the variables 

include not just credit scores, but also debt-service coverage ratio. 

2. Seek a long-term relationship with your broker with an ecosystem of financial 

experts, not just a transactional situation. 

3. The better you know your client, the better you can advise. 

Tweetable Quotes: 

● “I broker mortgages. I am able to shop across more than 30 different lenders and many, many different types of products for both personal and business lending.” – Sheldon Brow 

● (Business lending) “A lot of people think you just need a good credit score, and that is a huge misconception.” – Sheldon Brow 

● “Why brokers are better in every level of finance, in my opinion, is because they’re not just giving the kind of tunnel vision of what is appropriate at that bank.” – Sheldon Brow 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Jason Pereira Website 

● sheldonbrow.com – Website for Sheldon Brow 

● Linkedin – Sheldon Brow

● Call Sheldon Brow – (902)440-2663 

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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 Lee Fernandes, Senior Wealth Consultant at Cidel. Cidel is a company that helps high-wealth Canadians establish structures and planning to help them meet their needs. Lee Fernandes discusses one of Cidel’s core offerings, trust services. This episode provides a general education on what trusts are, how they can be used, common use cases, and why they are beneficial to people. 

Episode Highlights: 

● 01:12 – Lee Fernandes describes what Cidel is and does. 

● 01:53 – What is a trust? 

● 03:28 – Jason Pereira provides a simple example of an irrevocable trust. 

● 04:20 – They discuss the perception of trusts being scandalous. 

● 06:31 – Lee discusses asset protection trusts. 

● 09:09 – What questions do Lee’s clients often have? 

● 11:51 – Lee clarifies the trustees’ and settlers’ duties. 

● 18:17 – How many trustees should you have? 

● 22:11 – What is a graduated real estate (GRE)? 

● 25:22 – What are the advantages and disadvantages of inheriting? 

● 30:53 – Henson Trust is only available to beneficiaries that have disabled needs. 

● 33:33 – What are spousal trusts, alter ego Trusts, and foundations? 

● 40:00 – Individuals try to set up a private foundation after the beginning August, it’s not going to happen that year. 

● 43:58 – Trusts are very useful tools that can be very dynamic. 

3 Key Points 

1. The three certainties that a trust needs to meet is the certainty of intent, 

certainty of subject matter (what), and the certainty of object (for who). 

2. Trusts come down to wealth protection and control versus taxation. 

3. Trusts now pay the highest marginal tax rate in Canada. 

Tweetable Quotes: 

● “Cidel is a Canadian-based global financial services company. We are a private bank, so we deal with private clients, both globally and domestic, and the objective is really to work with families to preserve wealth.” – Lee Fernandes 

● “If you are setting up a structure, and the true intent of that trust is to asset protect, then look at a different jurisdiction. An asset protection trust doesn’t cross any tax lines. It is tax-neutral.” – Lee Fernandes 

● “‘What is it that I need to have to qualify for a trust?’ And it isn’t really about net worth. It is around, what do you need to have the trust for? Let’s have a more meaningful discussion around the use of a trust.” – Lee Fernandes 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website

● Linkedin – Lee Fernandes’s

● cidel.com – Website for Cidel 

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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 Stephanie Choo, Partner and Head of Investments at Portag3 Ventures. Portag3 Ventures is a venture capital firm that specifically invests within the fintech financial technology space. Stephanie Choo explains what venture capitalists are, how to approach them, what they are looking for, and how to know if you are someone who should be taking on venture capital. 

Episode Highlights: 

● 01:14 – Stephanie Choo describes what Portag3 Ventures does. 

● 03:03 – ​What is a venture capital firm? 

● 05:38 – What would make a business not be a good fit for a VC? 

● 09:31 – Portag3 Ventures are looking for 10x returns or more on their investment. 

● 11:18 – Stephanie talks about the automated pizza business play. 

● 13:05 – What are VCs typically looking for in businesses to show them to convince them to invest? 

● 18:42 – Stephanie explains what they want to see in a business’ team and their innovation. 

● 23:38 – Be able to prove what is proprietary, protected, or defensible about your product or service. 

● 25:30 – When a VC is ready to invest, what is a term sheet, and what goes into that? 

● 28:12 – What are other misconceptions about venture capital firms that businesses should be aware of? 

3 Key Points 

1. Venture capital firms are sources of capital for certain early stage businesses that are very high growth that are generally technology orientated and scalable, typically with a venture portfolio approach. 

2. Venture capital may not be for you if you are a cash-generating cash-flowing business that is not particularly scalable and not growing by 100% or more a year that doesn’t have an exit

strategy and isn’t planning to return capital in about 10 years. 

3. Most venture funds look at the strength of a company’s team, why now is the right time for this business, and what problem does the business solve. 

Tweetable Quotes: 

● “Portag3 is a global fintech-specific venture fund. We invest across seed Series A and Series B. But, we’re really looking for companies in the fintech space that are going to transform the future of financial services.” – Stephanie Choo 

● “We typically invest at the stage where companies have what is called ‘early market fit,’ which means they have early traction. They’ve got customers. They’ve got some revenue.” – Stephanie Choo 

● “They are investing on what is called the ‘power law basis,’ which is a very small number of your portfolio will end up generating 90% or plus returns for you.” – Stephanie Choo 

Resources Mentioned: 

●​ ​Facebook​ – Jason Pereira’s 

●​ ​LinkedIn​ – Jason Pereira’s

●​ ​FintechImpact.co​ – Website

●​ ​jasonpereira.ca​ – Website 

● ​Linkedin​ – Stephanie Choo’s 

● ​P3vc.com​ – Website Portag3

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Summary:

In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host interviews Cato Pastoll, CEO at Lending Loop, an alternative lender to small businesses. Cato Pastoll talks about personal and business credit ratings as well as his work at Lending Loop. 

Episode Highlights: 

● 00:39 – Jason Pereira introduces Cato Pastoll. 

● 01:00 – Cato Pastoll describes who he is and what he does. 

● 01:50 – What are personal credit scores, how do you get them, and what impacts them? 

● 05:50 – What is a healthy credit utilization amount? 

● 08:48 – Payday loans can hurt your credit more than loan-term bank loans. 

● 09:38 – What are the differences between a soft hit and a hard hit to your credit score? 

● 11:31 – The length of your borrowing history also affects your credit score? 

● 13:18 – What advice does Cato have for people to maintain a good credit score? 

● 15:53 – Check for errors on your credit report. 

● 16:30 – Have accounts and credit cards with different banks and lenders. 

● 18:23 – What goes into a corporate credit score and how does it differ from personal credit scores? 

● 21:20 – What is firmographic data? 

● 22:32 – Businesses that have liens against them represent risk to lenders. 

● 26:15 – Collections and judgements do come into play on corporate credit scores. 

● 28:43 – Lending Loop is the first of its kind in Canada. 

● 31:22 – Lending Loop helps businesses establish credit and sources of financing. 

● 32:27 – How do they onboard people and provide them with information on quotes? 

● 34:50 – Lending Loop is handling loans from anywhere between $5000-$500,000. 

● 35:14 – Their interest rates range from 5.9%-26.5%. 

● 36:33 – How much can lenders offer a business and what is the process? 

● 38:38 – Cato Pastoll discusses Lender Loop’s proprietary risk score. 

3 Key Points 

1. The 5 factors that impact your personal credit score are payment history, 

utilization amount, credit history, inquiries, and the length of your borrowing history. 

2. Set up pre-scheduled credit card payments to prevent being late. 

3. Keep credit utilization under 35%. 

Tweetable Quotes: 

● “Lending Loop is an online marketplace lending platform. What we do is connect small businesses that are looking for an affordable source of financing with investors that want to lend money to their businesses.” – Cato Pastoll 

● “Being diligent with your payments, it’s not just going to help your credit score, it is actually going to help when lenders or other people look at your credit report. Is this someone who is reliable?” – Cato Pastoll 

● “A lot of business owners when they get started will either borrow against their personal home equity or they will borrow on personal credit cards, and that actually doesn’t necessarily benefit their business credit.” – Cato Pastoll 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Website

● Linkedin – Cato Pastoll’s Linkedin 

● lendingloop.ca – Website for Lending Loop 

● getloop.ca – Free Personal and Business Credit Scores from LendingLoop 

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Summary:

In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Guy Anderson, Full-Licensed Investment and Financial Planner with Aligned Capital about Canada’s response plan to the COVID-19 coronavirus pandemic. 

Episode Highlights: 

● 01:24 – Guy Anderson introduces himself and what he does 

● 01:50 – They go over the first category of benefits for businesses: avoiding layoffs and rehiring employees. 

● 05:05 – What is involved in the ‘extending the workshare program’? 

● 06:09 – The temporary changes to the Canada Summer Jobs Program 

● 07:04 – Reduced and Deferred Payments refers to income taxes and sales remittances. 

● 07:34 – Jason Pereira explains the Business Credit Availability Program and the Canada Emergency Business Account. 

● 09:58 – Many business owners don’t qualify for some subsidy programs because pay themselves in dividends. 

● 10:34 – The Launching an Insured Mortgage Purchase Program is up to $150 billion dollars. 

● 11:46 – The Bank of Canada is creating some liquidity in the housing market. 

● 13:55 – The Office of the Superintendent of Financial Institutions has lowered the domestic stability buffer by a point and a quarter. 

● 16:27 – Jason goes over the tax deferrals for the self-employed and industries that were hit hard by the coronavirus pandemic. 

● 18:22 – Industries that have been set back by COVID-19 include airports, agriculture, food distribution, job placement and recruiting, and the film Industry. 

● 19:39 – The government has planned support for individuals and families, including the increase to the Canada Child Benefit. 

● 22:32 – Jason and Guy discuss mortgage support. 

● 24:50 – The Indigenous Community Support Fund is of $305 million. 

● 26:40 – What is the Reaching Home Initiative, and the support for living shelters? 

● 28:13 – What types of support is being provided for mental health and for seniors? 

● 33:07 – What programs are assisting students and recent graduates? 

● 34:38 – Every province in Canada has their own support nuances. 

● 35:38 – Kind.Wealth.ca has organized pro-bono initiative of independent financial planners who are offering their services for free to people in need. 

● 36:38 – Cato 

3 Key Points 

1. The government will cover up to 75% of wages for up to 12 weeks, up to a threshold of up to around $58,000. 

2. The Canadian government has extended the tax filing deadline and the tax payment deadlines can be deferred until August 31st. 

3. The Bank of Canada has dropped interest rates to about 25 basis points. 

Tweetable Quotes: 

● “The amounts that they are covering, the 15%, that seems fair because for the period that they are talking about. Most businesses probably didn’t see the drop off right away. So, 15% seems fair.” – Guy Anderson 

● “Anyone that hires a student under the Canada Summer Jobs Program will basically receive 100% of the minimum wage in the province they are in, covered. So, I got to tell you, I’m very much looking forward to hiring an army of students.” – Jason Pereira 

● (Canada Emergency Business Account) “It is a line of credit of $40,000 for basically an interest-free line of credit. This one is very interesting. It is interest-free for the first year.” – Jason Pereira 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – J. Pereira’s Website 

● Linkedin – Guy Anderson’s Linkedin 

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

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Summary:

In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host interviews Trevor Parry, President of TRP Strategy Group and Tax and Estate Expert. Trevor Parry discusses the ins and outs of post-mortem planning to prepare for what happens to the investments in your holding company after you pass away. 

Episode Highlights: 

● 00:47 – Jason Pereira introduces Trevor Parry. 

● 01:35 – Trevor Parry describes who he is and what he does. 

● 02:16 – They talk about what happens to investments when the owner of a holdings company passes away. 

● 06:22 – What is a loss carry-back and pipeline transactions? 

● 09:28 – How could a corporation essentially be double taxed? 

● 13:44 – Capital dividends have no relevance in a pipeline. 

● 16:24 – What is a spousal role and redeem? 

● 18:31 – How can you reduce the cost of insurance through leverage? 

● 22:38 – They aren’t going to get rid of capital dividend credits. 

● 23:50 – Post mortem planning can be made understandable but not simple. 

● 25:01 – United States rules regarding permanent life insurance are very different from Canada’s. 

3 Key Points 

1. Deemed dividends will be taxed as an ineligible dividend, a non-eligible dividend, or a little of both. 

2. Post-mortem planning options include loss carry backs, share redemptions, pipeline transactions, and also a mixture that involves life insurance. 

3. What is your gut sense of risk? 

Tweetable Quotes: 

● “I am the self-described tax mercenary. So, I am a lawyer by training, collecting a few tax degrees over the past few years and I have a religious devotion to helping entrepreneurs prudently and safely save money.” – Trevor Parry 

● “Corporations are legal persons. They survive you. So, though the value of your shares now has been counted in your terminal return, assuming no roll-over, you still have to do with, or your estate has to do with that corporation.” – Trevor Parry 

● “Canada, without a doubt, has the positive rules and regulations in the G7 when it comes to permanent life insurance.” – Trevor Parry 

Resources Mentioned: 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● FintechImpact.co – Website for Fintech Impact 

● jasonpereira.ca – Jason Pereira’s

● trevorparry.com – TRP Strategy Group 

● [email protected] - Trevor Parry’s Email 

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Summary:

In the 4th episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host of the podcast Fintech Impact, welcomes Greg Markell of Ridge Canada, a cyber security insurance firm. They discuss the origins of cyber insurance, how to protect yourself and your business from breaches, and more. 

Episode Highlights: 

● 01:06: – Ridge Canada is a wholesale underwriting shop that focuses on cyber and privacy liability insurance. 

● 01:36: – Cyber security is quite new, but it can cover measures to avoid liability for breaches or to solve the problem, and can cover the liability itself in the event that you’re sued. 

● 06:04: – One of the biggest issues right now is understanding cyber connectivity across the country. 

● 06:47: – We’re about halfway up the learning curve for brokers being able to communicate to end clients what their policies can do and how to use it. 

● 08:02: – A Canadian census by Stats Canada of small businesses in the country actually asked for the purchasing rates of cyber insurance and it was only 7% as of 2017. 

● 10:58: – Canada is the first country to have federal notification legislation mandating that companies notify their customers when there’s been a privacy breach. 

● 15:26: – 40-50% of the applicants they see are indicating some form of loss, mostly from ransomware. 

● 18:42: – You don’t need to be an obvious target to be hit with ransomware. 

● 22:20: – Awareness is key to avoiding cybersecurity threats, including employee training. 

● 26:45: – Two-factor authentication and password strength are crucial, and you can use technology like LastPass and other password managers to make it easy. 

● 28:46: – There are multiple versions of two-factor authentication, including built-in authentication in Office365. 

● 30:03: – Authentication where you are texted a code is the weakest form; even Jack Dorsey’s Twitter account was hacked by duping his phone’s SIM card. 

● 34:30: – The strongest option is a physical USB key. 

● 44:32: – Greg’s number one tip is to have a disaster recovery plan that includes getting hit by ransomware. 

3 Key Points 

1. Every business that has ever collected payment information from customers is at risk of 

a cyber security and privacy breach. 

2. Ransomware or malware are as big a threat as standard data breaches. 

3. Never think you’re immune or not at risk of being hit with ransomware or a breach. 

Tweetable Quotes: 

● “The bottom line is if you take any form of client data and that data ever touches anything but a piece of paper, and that piece of paper isn’t shredded, you’re at some form of cybersecurity risk.” –Jason Pereira 

● “I think there’s a lot of strength to the cloud, it’s how you manage things within the cloud. Always always always, if you’re using cloud-based technology, two-factor authentication, it’s a must.” –Greg Markell 

● “Make sure you have that instant response plan in a robust manner and so you’ve identified the lawyer that you're going to call who’s an expert in these types of scenarios because your general lawyer is not going to know how to get Bitcoin.” –Greg Markell 

Resources Mentioned: 

● Website – Jason Pereira’s Website 

● Facebook – Jason Pereira’s Facebook 

● LinkedIn – Jason Pereira’s LinkedIn 

● Jason’s article about RCAs 

● Ridge Canada website – https://www.ridgecanada.insure/ 

● Email Greg: [email protected] 

● Call Greg: 416-646-6239

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Summary:

In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host interviews Zak Goldman, Managing Partner of Sterling Park Financial Group in Toronto, Canada. Sterling Park is one of the more better-known high-end insurance operations in Canada. Zak and Jason discuss why business owners need to consider insurance and the key benefits of it. 

Episode Highlights: 

● 01:25: – Zak Goldman introduces himself and what he does. 

● 07:20: – Zak talks about some of the frustrations with the insurance Industry. 

● 09:44: – Sterling Park has seven people in their office which isn’t usual for an insurance firm. 

● 11:23: – Insurance will be a tool to do financial planning. 

● 14:26: – The vast majority of investment advisors are giving incorrect advice. 

● 15:24: – Why does insurance work? 

● 16:58: – Large tax bills often can’t be paid because the liquidity isn’t available. 

● 19:07: – What are some of the basic use cases for insurance for business owners? 

● 19:52: – The most common and easiest use of insurance is for a partnership. 

● 23:33: – Why is insurance and tax planning so important for when you die? 

● 27:30: – Insurance in a corporation is not to be used for an insured retirement plan. 

● 32:18: – Make sure whoever is doing your financial planning are doing comparisons. 

● 35:00: – Provide value to your client. 

● 38:26: – Insurance policies can be tax shelters while you are alive. 

● 41:08: – Corporate capital grows tax-free and at death gets paid out tax-free. 

● 43:30: – At Sterling Park, you can’t take the corporate asset and get a personal loan against it. 

3 Key Points 

1. The average insurance advisor in Canada is $37,000-$49,000 in gross income that they have to run their business out of. 

2. Insurance is a payment that happens on a periodic basis that leads to a much larger payment later on that is tax-free. 

3. Zak Goldman says that Insurance is benefitting two groups: widows and orphans. 

Tweetable Quotes: 

● “If we can open people’s eyes to insurance and not that cheesy, salesy way, but actually a factual number-based analysis. That’s why we do it and I think that’s why we have success in doing it.” – Zak Goldman 

● “This industry doesn’t hold itself up to the standards that it should. People do not have the expertise, the backgrounds, the letters behind their name.” – Zak Goldman 

● “Tax and mortality. Those are two things that make insurance work.” – Zak Goldman 

Resources Mentioned: 

● Facebook – Jason Pereira’s 

● LinkedIn – Jason Pereira’s 

● FintechImpact.co – Website

● jasonpereira.ca – Website

● Linkedin – Zak Goldman’s 

● Sterlingparkgrp.com – Website

● Linkedin – Sterling Park Financial Group

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