I invited Mike Flux, VP of Connor Clark & Lunn Private Capital to summarize for me what has happened in the global markets during the 3rd quarter of 2012.
He not only explains what happened but explains what their strategy is moving forward.
Tag Archives: scott plaskett
Six Reasons You May Want To Sell Your Business Now…
Is Now the Time To Sell Your Business?
Have you been thinking about selling your business but just can’t decide if now is the best time? Do you find yourself repeatedly analyzing the economic situation and wishing you had a crystal ball? There are positive signs and there are negative signs….
If you’re still up in the air and can’t quite decide whether or not to hit the eject button, here are six reasons you might want to consider getting out now.
1. You’re less interested in fighting the good fight
A lot of business owners took the Great Recession in the teeth. If you’ve got your business stabilized and the prospect of possibly having to fight through another recession leaves you panic-stricken, it could be time for you to get out.
2. The worst is behind you
Let’s say you were mentally ready to consider selling a few years ago and then 2008 hit, and in 2009 you made cuts and adjustments, and now you’re seeing some profit and revenue growth. With your numbers going in the right direction, now might be just the right time to make your move.
3. The tax man is coming
Governments around the world are looking for money to fund the cost of an aging population. At some point this will mean increased taxes.
4. Nobody is lucky forever
If you’re lucky enough to be in a business that actually benefits from a bad economy, congratulations… you’ve probably just had the four best years of your business life. But no cycle lasts forever and right now might be a great time to take some chips off the table.
5. The coming glut
As a business owner, demographics are not on your side. As the baby boomers start to retire in droves, we’re going to have a glut of small businesses coming on the market. That’s great if you’re buying; but if you’re a seller, you may want to avoid the flood and head for higher ground now.
6. The closing window
Since 2008, it’s been tougher for private equity companies to raise money; so many firms had their last successful round of fundraising a number of years ago. Many of these funds have a five-year window in which to invest or they have to give the money back to the people who gave it to them. Some boutique private equity firms will make investments in companies that have at least one million dollars in pre-tax profits (larger private equity firms will not go below $3 million in EBITDA); so if you’re in the seven-figure club, you could get a bidding war going for your business among private equity buyers keen to invest their money before they have to give it back.
The bottom line is that now could be a tremendous opportunity for you to take advantage of. But, doing so could be very challenging in terms of time and effort on your part.
Why not find out now if your business is sellable?
This free online tool is the only no-risk step you can take to determine if your business is ready to get full value. Fast-track your analysis by taking advantage of this free, no-obligation free online tool.
This Sellability Score you instantly receive is a critical component to any business owner’s complete financial plan and is something that, until now, we have only made available to existing clients.
However, we recognized that there is value in knowing in advance of working with a financial planner whether or not your largest asset is ready to be exchanged for your retirement nest egg. Our view is that you are better to learn more about your businesses sellability today and find out how your business scores on the eight key attributes so that you can ensure you obtain full value.
If your business part of your retirement plan, finding out your sellability score will be the best 10 min. you could ever spend working “on” your business.
Take the Quiz here: The Business Sellability Audit
For more free information on Creating A Business Owner’s Dream Financial Plan, you can listen to a free, eight part series we did exclusively for business owners. The show is also available to subscribe to for free via iTunes.
The Key To A Successful Canadian Retirement
I have recognized that there is one single problem facing Canadians today (really, it’s not just Canadians but for this post, I’ll only discuss issues that relate to Canadians) and this problem, is erratic, irrational and unpredictable.
- Government decisions to keep interest rates low – they are artificially low to keep the economy moving but there will come a day that we can’t hold them down any longer and then inflation will go through the roof.
- Governments are focusing on removing tax-exempt strategies – take advantage of what is available now – otherwise you will lose the opportunity.
- Regulators are changing the rules on the insurance industry forcing them to either close their doors or to increase rates.
- Financial community is focused in embedded commissions and people aren’t getting value for what their advisor is receiving in most cases.
(the problem is government decisions)
So, what is the key to retiring in Canada – you guessed it – working with a Canadian financial planner you can trust.
Tax Free Savings Accounts and Deferred Sales Charges
There is a potential time bomb lurking in Tax Free Savings Accounts (TFSA) that have investments in them that were purchased using a Deferred Sales Charge (DSC) compensation model.
When I did the math on this, it just reinforced my rationale for encouraging advisors to invest their clients money using no-load investments.
The best way to illustrate this issue is by way of an example.
Mary has a TFSA worth $25,000. She purchased her investments in the TFSA on a DSC basis.
(NOTE: DSC simply means that you as the purchaser are not charged a fee up front to purchase the investments and the advisor who sold the investment to you is paid a commission from the investment company for placing your investments with that company. If you redeem these funds prior the the expiration of the DSC schedule, you as the investor will have to pay all or part of the commission initially paid to the advisor, back.)
Now, a few years later, she needs some money to fund a kitchen renovation. So, she redeems $25,000 from her TFSA because she knows that any withdrawals from the TFSA are considered “Tax-Free”. And, since the TFSA rules allow you to replace your withdrawal from the TFSA in a future year, she feels confident that this is the best place to redeem the cash from.
This feature of being able to re-contribute any withdrawals back into the plan in future years is one of the greatest features of the TFSA, next to its ability to grow the assets on a tax-free basis.
But, when her cheque comes in, it is for $23,750? Why is that?
Well, now we are beginning to see the negative impact of the DSC.
In this example, not only was there a 5% DSC fee that had to be paid before Mary received the funds, but when it comes time to put the money back into the TFSA, she is only able to put back $23,750 as opposed to $25,000 because the DSC fee is considered a charge to the TFSA and is not considered as part of her withdrawal. The rules state that she can re-contribute what was previously withdrawn but she only withdrew $23,750.
What happens to the $1,250 in room that she looses? She looses it forever…
So, when you are purchasing your investments, make sure you are clear on the load structure of the investments. If the load structure is DSC, you want to really understand why this is in your best interest.
Mike Flux – Alternative Investments Q2 2012
In this video, I speak with Mike Flux, VP Connor, Clark & Lunn Private Capital to get an update on the Alternative Asset Classes they offer (Commercial Real Estate, Infrastructure and Private Equity).
This video will provide a plain english update on three of the most exciting investment categories available as a complement to a well diversified portfolio.
The video is about 19 minutes long…
The Evolution Of Group Benefits with Roger Thorpe
In this episode, I interview Roger Thorpe, President of Thorpe Benefits and we have an in-depth discussion about Employee Benefits. Roger reveals to us his perspective on how business owners can better utilize their group benefits plans to enhance their employee experience.
If you’re a business owner looking for a group benefits plan for your company, you will want to listen to this episode.
Free Items Mentioned In This Episode:
Mike Flux – Investment Review and Market Outlook Q2 2012
Hello everybody and welcome to another one of IRONSHIELD Financial Planning’s “Fly On The Wall” webinars.
If this is your first time tuning in to a “Fly On The Wall” recording, let me quickly explain to you what this is.
You are going to experience what it’s like to be a “fly on the wall” during one of my update calls with a member of our Top Guns Network. This network is my personal network of specialists.
Every so often, I ask a member of my network to touch base with me to bring me up to speed on the latest happenings in their area. And when they call me, I record the call so you can be a “fly on the wall” for that call.
On this episode
I invited Mike Flux, VP of Connor Clark & Lunn Private Capital to summarize for me what has happened in the global markets during the 2nd quarter of 2012. He not only explains what happened but explains what their strategy is moving forward.
Please click on the video link above to watch & listen to the call.
KEY023 | The Evolution Of Employee Benefits With Roger Thorpe
The Evolution Of Employee Benefits (Interview with Roger Thorpe, President of Thorpe Benefits)
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IN THIS EPISODE
In this episode, I interview Roger Thorpe, President of Thorpe Benefits and we have an in-depth discussion about Employee Benefits. Roger reveals to us his perspective on how business owners can better utilize their group benefits plans to enhance their employee experience.
If you’re a business owner looking for a group benefits plan for your company, you will want to listen to this episode.
And if you’d like to get a jump start on finding the answers to your key financial planning questions, using our proven system, you can book your risk free, no-obligation initial meeting. One of our specifically trained Certified Financial Planners will be pleased to walk you through The KAIZEN Financial Planning Process™.
Visit us online, at www.ironshield.ca, to obtain our contact information, then simply call or email to book your free initial meeting.
ITEMS MENTIONED IN THIS EPISODE
- Free Group Benefits Evaluation Checklist – Find out how your group benefits plan consultant stacks up…
- Free Consumer Awareness Guide – How To Choose And Work With A Financial Planner You Can Trust
- Six Mistakes Retirees Make With Their Finances – And How To Avoid Them!
- 12 Key Questions You Must Ask A Financial Planner Before You Hire One!
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