The Millionaire Program is an effective tool to help you to increase your Net Worth.
At Prospera, we define Net Worth as an increase in your financial assets and personal
self worth, thus enabling you to make a bigger difference in the world.
Creating personal prosperity is the goal. Creating a better world by using these assets wisely is the
ultimate goal in making our world a better place.
Our Four Point Service Commitment To Our Clients:
Prosperity Net Worth Statement
We will help you to measure your current net worth and update it annually
Prosperity Road Map
We will help you to create your financial goals for 1 year,
5 years and 10 years, setting realistic wealth targets.
We will give you a clear outline of the financial and tax planning ideas most beneficial to your personal situation.
Prosperity Management Plan
We will outline for you the tangible steps to follow in the next year to
meet your short term financial goals and liaise with other professional advisers
to keep everyone’s focus consistent.
The following information will get you started in thinking seriously about your financial future.
Measuring Your Success: Are You There Yet?
The following table may surprise you. It measures the average net family wealth of the Canadian population from the
lowest 20% to the highest 20% at different age ranges. We want to assist you to surpass the top 20% of Canadian households
and create at least 1 million dollars in net wealth, excluding your primary residence.
Exactly how much that should be is a personal decision based on many factors.
- Your lifestyle expectations now and in your retirement
- Your desire to leave a legacy to your children
- Your desire to leave a legacy to your community
We will help you to create a plan, implement your financial strategies, measure
your success year to year, coordinate the professionals involved in the
implementation and keep you focused on your future.
We see ourselves as quarterbacks in your financial life,
guiding you in taking the right steps to save and prepare
yourselves for future financial success. We are not financial
advisors and cannot give advice on specific investment selection.
your change in net wealth.
How Do You Spend Your Money?
There is a truism, often quoted in the financial planning
industry, that in order to create a successful financial
future, you need to spend less than you earn. With the average
Canadian household creating unprecedented debt, there is
a kernel of truth in this statement. In order to understand
how much you can save, it is important to understand how
much you are spending at present. Try this test to see where
you stand. Monthly Spending Habits.
Our organization can give advice in many of the areas of spending in
the table. As you read the following, highlight those that are a priority
1. Personal Income Taxes
As an entrepreneur, you have a unique opportunity to influence the amount
of tax that you pay. The following influences this:
a: Should you be incorporated or not?
b: Pay tax corporately or personally?
c: How to you compensate yourself – salary, fees or dividends?
d: Can you split income with family members?
e: Should you defer taxes into the future?
This is an area where we can give you several alternatives to plan your financial
affairs to structure them most tax efficiently.
One of the biggest questions you may have is – Do I pay down my mortgage or contribute to RRSP’s?
a: I think wiser questions may be – Can I make my debt tax deductible?
b: How do I minimize my non-tax deductible debt?
c: Associated with this area may be the questions of deductions for home office and saving to buy a house with RRSP’s.
Entrepreneurs can benefit from writing off their costs of transportation,
as they are incurred for business purposes.
We can discuss:
a: How to most efficiently charge your business for vehicle usage?
b: Should your business own your vehicle?
c: Is it better to lease or buy?
4. Personal Life Insurance
There are two strands to our discussions in this area.
a. How much Life Insurance is required to keep my family in the same lifestyle as they presently enjoy?
b. Are there strategies available to use life insurance as an investment in my company, or a part of my succession plan or part of my estate plan?
We can also discuss the necessity for disability or critical care insurance.
And, while we are talking about death, do you have a will?
5. Retirement Savings
This is an area of growing importance to many entrepreneurs. We need to expand
our retirement savings thinking to encompass many more areas than RRSP’s.
a.The tax effective use of investments
b.How to create the most retirement assets
c.How much will I need to retire
d.When can I retire
e.Where will I get my retirement funds?
- Savings in my company
- Sale of my company
- An internal succession plan
- Personal investments
- Individual Pension Plans
6. Household Expenses and Clothing
This is an area outside our expertise and one area CCRA just says no to tax deductions.
7. Personal Health Care
The use of a Private Health Trust can be a very effective tax-planning tool to allow maximization
of your tax deduction for health and medical costs. For larger companies, a review of the merits
of health dental and group insurance plans can be beneficial.
The last consideration in this area is the setting of budgets. For some this is a simple task and for others a drudgery.
As a minimum try establishing realistic but aggressive debt reduction targets, regular savings goals and meeting insurance
needs. Take the money for these priority items out before spending the balance.
We also remember that priorities do change depending on age, children, debt levels and the stage of your business.
What is essential is that we create a plan, set goals and measure success annually.
Measuring Your Family Wealth
The Millionaire Program
Other real estate__________
Retirement Savings (RRSP, LIRA, RRIF)__________
Estimated value of RPP__________
Cash or GIC__________
Shareholdings – Public __________
Shareholdings – Private Investments_________
Bonds, debentures and loans owed to you __________
Other – Residence contents _________
- Antiques, paintings etc. _________
CSV Life insurance __________
TOTAL ASSETS ___________
Mortgage – Principal residence _________
Mortgage – Other properties _________
Car or RV Loans _________
Credit card balances – high rate < 8% _________
Credit card balances – high rate > 8% _________
Student loans __________
Life insurance or other loans __________
Other debts __________
Total Liabilities __________
Net Family Wealth (Assets less Liabilities) __________
One of the complaints we often hear about the financial planning process is the lack of follow up once the initial plan is
implemented and your inability to know if it is successful. We also understand the problems with commission-based advisers
being able to offer unbiased advice.
This program is designed to answer many of these concerns. It is a ten-year commitment by Prospera to be at your side as
you create substantial net worth to build a comfortable lifestyle.
We will offer the following services for one full year with a renewal option, based on the success of the program for you.
Quarterly workshops to educate you and your family on the basics of financial knowledge and create an in-depth
understanding of tax and financial planning strategies.
Eight individual family counseling sessions to help to build a personalized financial plan, set realistic goals and measure your success.
Creation of the crucial documents in the planning process:
A Prosperity Net Worth Statement. We will together create a clear picture of where you are today.
We will analyze the statement together and use it as the starting point for the planning process.
A Prosperity Road Map. We will analyze with you the lifestyle and retirement objectives you expect
and create a 1, 5 and 10 year goal. We will help you understand how much you will need in retirement
and how much it is realistic to expect to attain given your current earnings potential. We will also
help you explore alternatives to increase this cash flow.
Prosperity Strategies. This will outline the tax and financial planning strategies best suited to your
situation. You will get a clear idea of the reasons for choosing the strategy and the cost benefit analysis
of these and the strategies we have decided not to pursue.
Prosperity Management Plan. We will coordinate your plan with all the other financial advisers, lawyers
and professionals on your team, so all understand and can input into the process.
The Millionaire Program is intended to help you to increase your Net Worth.
At Prospera, we define Net Worth as an increase in your financial
assets and personal self worth, thus enabling you to make a
bigger difference in the world. Creating personal prosperity
is the goal. Creating a better world by using these assets wisely
is the ultimate goal in making our world a better place. In
summary you receive education, a statement of where you currently
stand, clear written goals, an ongoing monitoring and support
system, coordination of your plan with all your professional
advisers and unbiased honest advice and feedback.