Ajay Poddar’s Post

Most ICs and leaders tell us they want to retire early. 'I can't do this forever...' 'I don't want to be an IC at 60...' 'I can't be under this pressure forever...' The problem we see is that very few are saving enough. Impact - having to work longer, retire with less income, or both. Imagine working in software sales for decades, being very successful, but finding you cannot afford to retire and won't have much income to enjoy. I don't want that for anyone. Why pension? Pension = you keep more of your hard earned income. Assume £200k earnings - You pay £40k into pension from savings - HMRC add £10k automatically (£50k saved for your future) - £12.5k tax also reclaimed and paid back to you, not into pension - Net contribution of £27.5k = £50k to your retirement pot - £22.5k tax saving - £50k grows tax-free (completely hands-off) - £50k x 5% return x 20 years = £132k more for your future Getting your tax planning right is like another deal every FY.

CPP can be a key factor when you plan for retirement. Do you you that you can start taking your Canada Pension Plan as early as 60. But once you start taking CPP, can you pause payments if you decide you'd prefer to let the value grow a few more years? If you're quick it may be possible, says Nicole Ewing, Director, Tax and Estate Planning, TD Wealth. She joins Kim Parlee to discuss how you can feel confident you're making the best decision.

GTM - check you're not missing out. 1) Old pensions - Do you know where they all are? - Have they been left in default funds? 2) Active scheme - Thought about investment strategy, or just gone default? - Do you have access to your online portal? Less growth = less income for retirement. 3) Maxed employer contributions - Have you checked what you pay and your employer pays? - If you increase, will the employer match/increase further? Less saved = having to work longer. 4) Salary Sacrifice or Relief at Source - Have you checked how your contributions are being made? - Have you claimed any tax owed from last 4 years? Old post that explains further: https://lnkd.in/eEFZSQyV 5) Emergency funds - Do you have 6 months expenditure saved for emergencies? - Are you paying tax on interest? These savings should be in ISAs, Premium Bonds, or potentially partner's name if lower rate taxpayer. 5% on £30k in a standard savings account = £1.5k interest. 45% (additional rate) taxpayers do not have any Personal Savings Allowance, so this interest is taxable at 45%. £1.5k x 45% = £675 to pay £825 net return, effective rate now only 2.75% (£825 / £30k). More tax = less saved. 6) Good savings habits - Are you funding an ISA each year? (£20k, tax-free, flexibly accessible) - Investing for long-term? (Maximising global equities) - Making personal pension contributions? (guaranteed tax saving) Example: GTM professional earning £200k Pays £40k comms into pension HMRC add £10k automatically (tax already paid, now reclaimed and kept) £50k invested, tax-free growth £12.5k reclaimed via self-assessment - repayment, not paid into pension £22.5k tax saving Missed opportunities = more tax, less saved. GTM - do the basics well. Get organised. Don't miss out.

My software developer client was told by his friend: “Don’t hire a Retirement Income Planner, it’s expensive” I see posts like this all the time And sure, I can agree that people with really simple situations may not need an ongoing planner But people with complexity, that’s a different story Some mistakes DIY clients make: 1. Missed RRSP withdrawals This person had a great career as an executive. They saved & invested a ton in RRSPs. Then they were laid off & had a few years that they had no income During that time, they did not realize they could be withdrawing from RRSPs while using up the lower tax brackets each year. Brackets they do not expect to see again. Then all these dollars could've compound tax free for the next 30+ years. They are now back to work making a good income & do not have this opportunity anymore. Moving this money to TFSA at a low rate and then compounding for the next few decades could have been a game changer 2. Not setup a corporation A person came to me as they were finishing their business sale. They built a really cool business and were selling it for a large dollar amount. The problem, they never worked with anyone and did not realize that both him and his spouse could have received nearly $2mil without paying any tax if they were setup as a corporation over 5 years ago. The difference was millions of dollars lost in taxes because they just did not know they should do that. 3. Poor Asset Location Asset location is about putting the right investments in the right accounts. This person had all equities in their pre-tax accounts, all bonds and cash in their TFSA, and then in their taxable account they had RRSP, high dividend funds, and a few tax inefficient mutual funds This is pretty much the exact opposite as you want This led to tons of extra taxes being paid at really high brackets and missed out on growth in their TFSA accounts over the last decades 4. Moving to all cash It's easy to stay invested with low dollar amounts, but when the money is in the multiple millions, it is way harder We have come across so many people who sat this last year out of the market and missed out on gains because of fear that was driven into them from social media. See.... this happens all the time and then getting back in is even harder after a rally. Again, I don’t think everyone needs an ongoing planner But people with more complex situations definitely should have trusted advisors!

A tax-advantaged account offers certain #taxbenefits to encourage saving and investing for specific purposes, such as #retirement, #education or #healthcare. Find out how to improve the tax-efficiency of your #financialplan.

When to invest in sales tax automation software Jump to: When to consider an automated tax software solution Benefits of sales tax automation software What if you don’t … The post When to invest in sales tax automation software appeared first on Tax & Accounting Blog Posts by Thomson Reuters. I am a dedicated Fiduciary Tax and Retirement Planner with extensive experience in helping clients plan for their financial futures. I specialize in creating personalized, comprehensive retirement plans tailored to meet individual needs and goals. I am committed to acting in the best interests of my clients, providing unbiased advice, and ensuring their assets are managed effectively. As a fiduciary, I am bound by law to act in the best interests of my clients. This means I am accountable for ensuring your retirement funds are invested wisely, managed efficiently, and taxed appropriately. Whether you're just starting to think about retirement or already there, I can help you navigate through the complexities of tax laws, investment options, and retirement strategies. My aim is to help you understand your financial situation and make informed decisions that will benefit your financial health in the long run. If you're looking for a dedicated, trustworthy advisor to guide you through your retirement planning process, feel free to connect with me. Let's plan for a secure and comfortable retirement together. Call at 480-270-2802 Visit us on our website: https://lnkd.in/gghwGBXG #Fiduciary #TaxPlanning #RetirementPlanning #FinancialAdvisor#law #assets #advice #goal #future #goals #client #futures #planner #experience #clients #retirement #retirementstrategy #investmentoptions #investmentoption #taxlaw #taxlaws #retirementfund #retirementfunds #retirementplan #retirementplans #beaccountable #investwisely #beto #informeddecision #informeddecisions #financialsituation #bestinterest #financialfuture https://lnkd.in/g48HxTDM

So we can start doing that five, even 10 years before we're contemplating taking our CPP-- working with our advisor who can help figure out what our retirement income goals are and how to best achieve those by taking CPP at different ages when they're looking at all of the other factors that will be relevant for you

My software developer client was told by his friend: “Don’t hire a Retirement Income Planner, it’s expensive” I see posts like this all the time And sure, I can agree that people with really simple situations may not need an ongoing planner But people with complexity, that’s a different story Some mistakes DIY clients make: 1. Missed RRSP withdrawals This person had a great career as an executive. They saved & invested a ton in RRSPs. Then they were laid off & had a few years that they had no income During that time, they did not realize they could be withdrawing from RRSPs while using up the lower tax brackets each year. Brackets they do not expect to see again. Then all these dollars could've compound tax free for the next 30+ years. They are now back to work making a good income & do not have this opportunity anymore. Moving this money to TFSA at a low rate and then compounding for the next few decades could have been a game changer 2. Not setup a corporation A person came to me as they were finishing their business sale. They built a really cool business and were selling it for a large dollar amount. The problem, they never worked with anyone and did not realize that both him and his spouse could have received nearly $2mil without paying any tax if they were setup as a corporation over 5 years ago. The difference was millions of dollars lost in taxes because they just did not know they should do that. 3. Poor Asset Location Asset location is about putting the right investments in the right accounts. This person had all equities in their pre-tax accounts, all bonds and cash in their TFSA, and then in their taxable account they had RRSP, high dividend funds, and a few tax inefficient mutual funds This is pretty much the exact opposite as you want This led to tons of extra taxes being paid at really high brackets and missed out on growth in their TFSA accounts over the last decades 4. Moving to all cash It's easy to stay invested with low dollar amounts, but when the money is in the multiple millions, it is way harder We have come across so many people who sat this last year out of the market and missed out on gains because of fear that was driven into them from social media. See.... this happens all the time and then getting back in is even harder after a rally. Again, I don’t think everyone needs an ongoing planner But people with more complex situations definitely should have trusted advisors!

Let’s chat about pensions, shall we? Now, before you scroll past thinking, "Oh, another boring finance post," stick with me for a moment. I promise it will be useful! If you're a company director, this one's for you. Did you know paying into your pension from your company can save you a hefty chunk on tax? Yes, it’s true. But here’s the thing: don’t funnel those contributions through the payroll. Instead, make direct company contributions to your SIPP (Self-Invested Personal Pension). Here’s why: Tax Efficiency: Company contributions to your SIPP are treated as a business expense. This means they can be deducted from your company’s profits before tax, reducing your corporation tax bill. As corporation tax can have a marginal rate of 26.5%, this could be significant. Avoid Contribution Limits: When you contribute personally through the payroll, you're restricted by the limits on net relevant earnings (for most people that's salary - NOT DIVIDENDS). Many company owners only pay themselves a small salary and a large dividend. This impacts how much you can pay in personally to the pension scheme. But with company contributions, you sidestep this issue entirely, meaning you can pay in a maximum of £60k - more than enough for most people. Flexibility and Control: With a SIPP, you get greater control over your investment choices. Remember - with pensions starting early is crucial, so don't delay... Curious about how this can work for you? Feel free to reach out, and I can tell you more about it (although, for proper advice, legally, you have to go to a financial advisor - there is only so much I am legally allowed to say). #Pensions #TheAccountingStudio ---- I'm Gareth Atkinson, Chartered Accountant helping small business owners navigate the complexities of owning and running a company ♻️Repost if you found this helpful 👀 Follow me to make sure you never miss an update 📫DM me if you feel like you need support with your accounting and tax for your small business

GTM professionals - check you're not missing out. 1) Old pensions - Do you know where they all are? - Have they been left in default funds? 2) Active scheme - Thought about investment strategy, or just gone default? - Do you have access to your online portal? Less growth = less income for retirement. 3) Maxed employer contributions - Have you checked what you pay and your employer pays? - If you increase, will the employer match/increase further? Less saved = having to work longer. 4) Salary Sacrifice or Relief at Source - Have you checked how your contributions are being made? - Have you claimed any tax owed from last 4 years? Could be leaving money on the table. 5) Emergency funds - Do you have 6 months expenditure saved for emergencies? - Are you paying tax on interest? These savings should be in ISAs, Premium Bonds, or potentially partner's name if lower rate taxpayer. 5% on £30k in a standard savings account = £1.5k interest. 45% (additional rate) taxpayers do not have any Personal Savings Allowance, so this interest is taxable at 45%. £1.5k x 45% = £675 to pay £825 net return, effective rate now only 2.75% (£825 / £30k). More tax = less saved. 6) Good savings habits - Are you funding an ISA each year? (£20k, tax-free, flexibly accessible) - Investing for long-term? (Maximising global equities) - Making personal pension contributions? (guaranteed tax saving) Example: GTM professional earning £200k Pays £40k comms into pension HMRC add £10k automatically (tax already paid, now reclaimed and kept) £50k invested, tax-free growth £12.5k reclaimed via self-assessment - repayment, not paid into pension £22.5k tax saving Missed opportunities = more tax, less saved. Make sure you do the basics well, stay organised and don't miss out. #financialplanning #softwaresales