There’s someone you should have a chat with…
As we approach the end of the calendar year, there is someone we recommend you have a friendly conversation with: your accountant. The end of the calendar year carries its own due dates that create boundaries and opportunities for you. A coffee with your accountant would be a smart move. Here are a couple of things you might want to say [choose your own words, of course] to spark some useful and potentially profitable conversation:1. There’s a rumour out there that non-eligible dividend tax rates are rising in 2014. Should I pay out a larger dividend in 2013?2. I heard that there are changes in how we have to report my foreign assets – is there anything new I need to put together to help you prepare for tax season?3. I have a feeling that interest rates are going up – should I top up my loan to my spouse?4. I sold my business in 2013 and have been thinking about giving back a bit, or getting more serious about philanthropy. Do I need to make a donation before year-end to offset this one-time tax hit? Is there anything I can do to still give me some time to strategize, or do my gifts need to be finalized by the 31st? Also, there are less urgent, but not necessarily less important, tasks like:
Review the beneficiary elections on your insurance contracts
Any contributions you might want to make to TFSA, RRSP or RESP accounts
Update wills and shareholders’ agreements
Finally, to take this up to our more customary big picture, before you make decisions on financial issues, it’s an excellent moment to think about four things: your values, the vision for your family and wealth, the mission you’re working to accomplish, and the specific goals you are working to achieve.This is a good time of year for you to have a conversation with your key advisors, and especially your accountant. Your decisions are worth the extra few minutes.
