"WHAT'S IN IT FOR ME" FROM A CLIENT'S PERSPECTIVE
- A strategy with a stated time frame to transition the operation and, eventually, the ownership of the business;
- A succession plan that maximizes net cash flows for the remaining lives of the owner and spouse, and, if possible, creates a legacy for surviving family;
- A transition of the business operations to the future owner that maximizes the potential for continued growth and financial success;
- Overnight of the succession plan;
- During the succession period, capital that is available primarily for personal income needs, can also be for emergency business operating needs;
- A succession plan that creates certainty;
- A plan that will greatly reduce risk to tolerable variances;
- A plan that is simple - all aspects are completely transparent;
- A plan that does not require re-balancing or additional consulting fees.
Each situation is unique - there are no cookie cutter solutions. We believe that it is imperative to listen and completely understand our client's goals, wishes, and needs.
"MacDonald MGMT" did a wonderful job analyzing my firm. Their visual tools and reports really helped me understand my current situation and options for the future. Using these options I have implemented a plan that will exceed my initial hopes as to the future welfare of both my family and my business. My Chartered Accountant even recommended them. It's a pleasure to deal with real professionals."
- Andrew M.
President of a Non-destructive Testing Company,
"Many years ago John Lindsay stopped by my office and showed me a concept that at the time seems to counter the known strategies with which I was already too familiar: Bonus out and pay tax, or pay tax on dividends" I could see all my hard work just going for tax, there had to be a better way.
As an accountant and business owner, I was already aware of the difficulties in creating liquidity for a privately owned company and was looking for a way to get the equity out, tax-free.
He completed an intensive analysis of my company(s) holdings to determine the sustainable after tax cash flow and an earnings valuation.
He selected an investment portfolio that would grow tax free. The investments were and still are, Canadian government bonds and equity investments in large blue chip dividend paying, undervalued stocks.
The investment has performed very well and I am almost on track with John's prediction, all those years ago. I get periodic reports on the investment from an independent advisory service on a continual basis. I have thanked John for these reports many times.
My corporate owned life policy has proved to be excellent collateral and has the capacity to accept for future earnings from operations as well as larger capital injections from the sale of my business assets.
So now I have more cash and peace of mind for the future."
"While many sophisticated investors have ... scorned the use of life insurance, the new environment means that they should ... look at it in the light of the new tax rules.
While it may not have the emotional attractions of real estate or stock market investments, the after-tax return and the timing attractions of the pay-off may suggest an enhanced role in the planning generally and estate planning in particular"
(The Canadian Taxpayer, 20 Oct 1987) - Arthur Drache on Life Insurance as an investment.
West Office 403-450-3480
East Office 416-528-1854
East Office 416-930-2875
West 1700 Varsity Estates Dr. NW
Calgary, AB T3B 2W9
East 84 Lift Lock Rd. W
Kirkfield, ON K0M 2B0