Ways to Build Wealth
wealth building checklist to reduce your business and personal taxes
Creditor Protection for your Business
As a business owner, you assume all the risk, and the risks are considerable. Very few are out to milk the system, but it is important that your life’s work and your retirement nest egg isn’t put into jeopardy if the business should fail. It’s paramount to work on protecting yourself and your family’s future from this occurring. This is why it is important for business owners to look at methods of creditor protection.
Investing your retained earnings
Some business owners have retained earnings not actively used for the day to day running of your business. These could be held in the form of investment accounts like GIC’s or Equities. These assets could be easily earmarked by creditors or in a liability claim in the case of getting sued. One way of mitigating against this happening is to put these investments into a Segregated Fund. Segregated Funds (Seg Funds) offer most of the same investment options but is considered an Insurance product, with a designated beneficiary and in most circumstances would be creditor protected.
company-sponsored pension plans
Another option for business owners is to have a Personal Pension Plan or Individual Pension Plan sponsored by the company. Because a pension falls under the strict adherence of pension regulation it too is a safeguarded asset to a business owner and protected in a lawsuit or bankruptcy proceeding. This is an excellent way to protect yourself from creditors.