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Paul Drouin of Raymond James
Established in 1962, Raymond James is one of North America's leading full-service investment dealers with an extensive presence across Canada and the United States. They offer a wide-range of services for personal, institutional, and corporate investors. Their Financial Advisors have access to a complete offering of high quality investment products and services, providing them with the resources to customize investment solutions for their clients. Their Equity Capital Markets division provides expertise in Investment Banking, Research, Corporate Finance, and Institutional Sales & Trading.
At Raymond James, Paul Drouin is a Private CFO® (Chief Financial Officer) who strives to look after every detail of your financial affairs and coordinate the activities of all your professional advisors - whether it's your tax accountant, estate lawyer or even a real estate agent. As a Private CFO®, Paul specializes in providing entrepreneurs, retirees, professionals and farmers comprehensive wealth management services, including investment and estate planning. He can bring you the expertise of a team of specialists that will focus on every detail of a personalized directed wealth strategy that will fit your needs and your goals. Just like you, all his clients have unique financial needs, face unique investment challenges, and require unique financial solutions. Paul will provide you with the personalized and professional financial management and investment services to help you feel confident about your financial future.
At last week's luncheon, Paul shared with members an investment strategy that he uses with his clients. He began by explaining that in the Tax Act, all income is not created equal and showed examples of this starting with the less tax efficient interest and moving along the line to finish with the more tax efficient Compound Growth Deferrral. He discussed how to achieve a tax free income through the Dividend Tax Credit Class (a NexGen Funds group of funds). This strategy is ideal for clients with little or no other sources of income, students, homemakers and corporations that have earned eligible Canadian Dividends.
Paul used an example to take members through the 6 steps involved in his strategy.
- Step 1 - Investment decision
- Step 2 - Income decision
- Step 3 - Secure additional after tax income (via Return of Capital)
- Step 4 - Clean up historical tax loss
- Step 5 - Invest balance in Tax Deferred Growth portfolio
- Step 6 - Once tax loss is cleaned up, invest capital for long-term tax deferred growth (Simple tax free adjustments may be made for changes on Dividends rules and addition of CPP and OAS or client cash flow needs)
To conclude his example, Paul presented a graph comparing the portfolio value over time using his strategy (NexGen Funds) vs. Bonds. The portfolio value of the Bonds decreased over the term whereas the portfolio using the NexGen Funds remained fairly constant over the term.
Paul then talked about Incorporated Investment Portfolios (IIP) and explained the 3 Important Corporate Account Investment Principles listed below.
- Investment low-taxed practice income inside the PC for optimum tax deferral
- Avoid high-taxed investment income through tax deferred compounding
- Take advantage of family income planning opportunities (generate capital gains and "eligible" dividends for tax efficient withdrawal)
He also provided a summary of the DOs and DON'Ts of IIPs
- If the objective is to grow the funds:
- do not create any investment income (Compound Free of Tax)
- NexGen Compound Growth Class
- Avoid high-taxed income
- Take advantage of income splitting opportunites
- Generate Capital Gains and Dividends for tax efficient withdrawal
- NexGen Capital Gains, Dividend Tax Credit and Compound Growth Class
A good lead/referral for Paul is someone who is an Entrepreneur or Professional with a minimum investment of $500,000. Paul works on a fee for service basis with no commissions.
To learn more about Raymond James and the products they offer visit Paul's website at www.yourprivatecfo.com. If you know of a good lead for Paul or would like to discuss/learn more about the NexGen Funds investment strategy mentioned above contact Paul
at (613) 788-2182.
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