Glen Silvestri

Is Canada at further risk of “brain drain”? 🧠 The federal budget presented on April 16th has sparked significant concern amongst Canadian physicians! As we know, the budget proposed taxing two-thirds of capital gains (up from one-half). While the government claims that 99.87% of Canadians won’t face increased PERSONAL tax with this rule change (as the increased rate only applies to gains above $250,000 for individuals), ALL CAPITAL GAINS REALIZED BY CORPORATIONS will face the new inclusion rate. The Canadian Medical Association is urging the federal government to reconsider. Why? Because many doctors incorporate their medical practices and invest for retirement within their corporations. The proposed changes will hike taxes on these investments and this could have a negative impact on the recruitment and retention of physicians in Canada. The Ontario Medical Association echoes these concerns, emphasizing the potential negative impact on physicians and the threat it ultimately poses to patients’ access to care. Canadian physician Dr. David Poon has been vocal in leading the charge against these changes. As he sees it, this is effectively a retroactive tax on doctors’ hard-earned savings and comes at a time when Canada is grappling with a family doctor shortage and increased burnout. He fears the proposal could worsen the situation and push more physicians to consider leaving Canada for countries with better pay and/or more favourable tax environments. In Dr. Poon’s words “I cannot think of a better way to disincentivize physicians to work, to decrease productivity and to harm the already strained health-care system than to increase taxes on doctors. If the government intends to tax physicians after we were pushed to the edge during the pandemic, this shows doctors, particularly young ones, that our work is not valued, that if we work harder, we should be taxed more.” If Canada wants to strengthen its health care system, we need our government to prioritize physician retention. My fear is these proposed changes may have the opposite effect! 🩺💡 #SmartMoney This information has been prepared by Ryan Secord who is a Senior Investment Advisor for iA Private Wealth Inc. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth Inc. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.

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Bank of Canada and ECB both kickstarted the easing cycles in June but neither is expected to race rates to the bottom.

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Considering having a family meeting to review your affairs with your family.

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The Liberal capital gains tax plan introduces confusion and unnecessary complexity, forcing hardworking Canadians to consider accelerated tax payments, which disrupts years of personal planning. Many individuals have diligently crafted their financial independence plans to reduce reliance on government programs. Simplifying the system with a flat tax could eliminate confusion and ensure fairness across the board

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Annual TFSA contribution limits are going up in 2025.

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Yup, it has been painful but ever since the Bank of Canada started cutting rates, what a rally in the REIT space! Although moves off a bottom tend to be quick and violent. As the article notes, the catalyst is BoC rate cuts coupled with dividend yields too high to ignore. Many investors, like ourselves for our Income Portfolio, were waiting for that first rate cut with signals of more to come before deploying capital. In addition, residential & industrial REITs largely delivered impressive rent growth in Q2, adding to their attractiveness. This simply reinforces the fact that high-quality assets can generally deliver during tough environments.

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Recent article on the increasing demands on Board Directors!

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This is a great work around for income splitting! As you know, there are numerous income splitting strategies, including pension income splitting...but the CPP payments don't qualify. The purpose of income splitting in general is to try to even out income (and therefore tax rates) throughout retirement, which can be many decades. That length of time comes with significant consequences if you don't plan correctly for it. The article lays out that you're still able to split your CPP income, but not via the same mechanism as other pension and RRIF/LIF income. Rather, you need apply for it through Service Canada. Every little bit helps, right?

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I talked to a business owner the other day who's considering employee ownership now that we have a good model here in Canada with valuable tax incentives. He said he's had more calls from private equity funds the last few weeks, and they're saying: "we know this employee ownership thing is coming, so we're willing to pay more right now so you won't consider it." That...is unexpected. Any business owner looking to sell their company should understand what the new Employee Ownership Trust is, and how it works. If it's already scaring PE, it must be worth looking at! I wrote this article trying to explain it a way that I (as a non-lawyer, non-accountant former business owner) would understand. At SCP we don't provide any services to support or finance EOTs, but I'm happy to chat/communicate with anyone and provide some suggestions on who can help. https://lnkd.in/gntX24nV

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A great article by my colleague, Andrew Jeffery, CPA, CA, on how lottery winners can best navigate their new found wealth. My favourite quote from Andy: "The key is to take your time, stay focused on your long-term goals, and build a strong team of trusted advisors who have expertise and experience in helping lottery winners navigate this unique journey." Sage advice that applies to anyone looking to manage their new-found wealth wisely.

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Why private investments in Canada are booming right now and what you should know about them.

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We need more doctors, farmers and entrepreneurs and not less. How will going after them with punitive tax changes help? We need to grow our way out of this affordability crisis with more small and medium business jobs - and with that much needed capital. This capital will bring innovation, disruption and growth! But last week's Federal budget pushes us in the other direction where we're gambling our future on a 2025 election instead of investing for better times. https://lnkd.in/gMVEft23

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Proposed increases to capital gains taxes in Canada are likely to have widespread negative effects. Key Concerns: 1. Impact on Self-Employed and Small Business Owners: The claim that only 0.13% of Canadians will be affected is misleading. Small business owners and the self employed rarely enjoy pension plans available to public servants and elected officials. 13.2% of employed Canadians are self-employed and most will be impacted as they rely on investments for retirement. 2. Equity Issues: A $250,000 credit for individuals while fully taxing corporations unfairly impacts small businesses owners, including our farmers and medical professionals. 3. Broader Economic Impact: Economist Jack Mintz suggests this could affect 4.7 million investors, potentially leading to 414,000 job losses and a $90 billion economic hit, largely affecting the middle class. 4. Effects on Entrepreneurship and Productivity: The policy may discourage business growth and exacerbate productivity challenges. 5. Indirect Effects: Reduced investment in Canada could impact worker incomes, government revenues, and capital markets, affecting all Canadians' wealth and retirement funds. This policy also undermines Canadian competitiveness, especially as the U.S. moves towards lower taxes. Prime Minister Justin Trudeau should reconsider this policy based on extensive analysis now available on the likely detrimental impact on the Canadian economy.

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Canada should take note of this as well. In the majority of these beauty pageants, "award winning funds" are actually chosen by the "award winning advisors" and vice versa. Growing up my friends and I had a saying to the effect of "He's great......just ask him and he'll tell you himself". #finance #financeindustry #investments #investmentindustry #incentives #accolades

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