This session highlights what entrepreneurs should consider at the start of their venture, what they need to do as the company grows and what needs be done as the business matures and the owner contemplates an exit or retirement.

1. #MaRSBP

2. Start Up
Your Financial Future
Zoe Adrian, BASc, CIM
Investment Advisor
(416) 359-6383
Zoe.adrian@nbpcd.com

3. Agenda
• Where Will You Be?
• Protecting your personal finances
• Tax Efficiency
• Risk and Reward
• Retirement and Succession Planning
• Managing Corporate Assets
• Plan for the Unexpected

4. Where will you be at 65?
Pick 200, 40-year-olds today. Where will
they be at age 65?
Men
Women
• Wealthy 1 1
• Financially Secure 8 2
• Must continue to work 14 11
• No longer alive 24 4
• Require financial assistance 53 82
Who do you want to be?

5. Protecting
Your Personal Finances
• Keep business separate from personal
finances
• Credit Cards
• Incorporate
• Consider creditor-proof investing options
 eg. Seg funds
 Your RRSP may be
 A pension plans is

6. Have a Personal Plan
• Business owners don t have time to think about personal
financial plan, but they do worry about it.
• Near Term Goals
 Pay down debt in 5 years
 Buy house in 3 years
 Save for child’s education by 2020
 Build up emergency fund by 2013
• Long Term Goals
 Freedom to do the things you want to do
 Retirement in 2030
• Delegate!

7. Your Comprehensive Wealth

8. Savings Strategy
• What percentage of your income do you
currently save?
 Rule of Thumb - At least 10% of net income
 Gold Star – Maximize your RRSP and TFSA
contributions

9. Tax Efficiency
Registered savings
 TFSA (Tax-Free Savings Account)
 RRSP/RRIF
 RESP s
Non-Registered Savings
 Investment Accounts
 Universal/whole Life Insurance

10. Paying Yourself Tax Efficiently
Total Income by Age
DividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividends
T4 Income
DividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividendsDividends
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Dividends T4 Income
Retirement:
Age 65
Incorporate
Business:
Age 35
Initiate
Pension Plan:
Age 45
TFSA
RRSP IPP

11. Risk and Reward
What is your investing strategy?
• Tailor your investment risk to suit overall
risk
• Risk vs reward – expectations
• Historical return of stocks/bonds/cash

12. Asset Allocation
With Increased Risk Comes The Potential For
Increased Return

13. -80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
0.2
0.7
1.2
1.7
2.2
85%
48 months
81%
43 months
-17%
6 months
63%
32 months
82%
40 months
-26%
17 months
-15%
8 months -25%
13 months
-35%
11 months -39%
12 months
288%
81 months 253%
61 months
-25%
4 months
44%
25
months
-20%
10 months
203%
90 months
-28%
4 months
109%
24 months
-38%
13 months
16%
6
months
-21%
6 months
168%
68 months
-43%
9 months
59%
34 months
320
240
160
80
0
-30
56 60 65 70 75 80 85 90 95 00 05 11
S&P/TSX Composite Index to December 2011
Market Volatility Bull & Bear Facts*
Average gain in bull market: +121%
Average length of bull market: 46 months
Average loss in bear market: -28%
Average length of bear market: 9 months
* Based on data since 1956. See page 2 for more details.
%Change(logscale)
Source: Mackenzie Investments (Datastream: month-end data points as at December 31, 2011; total return, local currency)

14. Succession Planning
• This is a significant part of your planning
• When to harvest value from your company?
 What are the trigger points?
• Who is going to buy it?
 Partner, children, key employee, another company?
• Be proactive!
• Discuss with your advisory group – accountant,
lawyer, investment advisor etc.

15. Retirement
• When to retire?
• What will fund retirement?
 OAS, CPP, RRSP, Sale of company…
• How much will you need?
• What if you can t sell the company?
• Importance of Planning
• Discuss with your advisory group – accountant,
lawyer, investment advisor etc.

16. Managing Corporate Assets
• Corporate Cash
 Need to keep liquid and secure
 1 million+ consider active cash management to get
some return
 Remember – Banks are proprietary. Ie. No incentive to
give you the best rate.

17. Plan for the Unexpected
• What happens to your business if something
happens to you? Or worse, something happens
to your partner?
• Insurance
– Life
– Disability
– Key Employee
– Buy-sell agreements

18. Summary
1. Protect Yourself
2. Be proactive
3. Delegate
4. Use the right tools at the right stage of your
business to be tax efficient
Questions?

19. BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée provide this commentary to clients
for informational purposes only. The information contained herein is based on sources
that we believe to be reliable, but is not guaranteed by us, may be incomplete or may
change without notice. The comments included in this document are general in nature,
and professional advice regarding an individual’s particular position should be obtained.
BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée are indirect subsidiaries of Bank of
Montreal and Member-Canadian Investor Protection Fund. “BMO (M-bar Roundel
symbol)” is a registered trademark of Bank of Montreal, used under licence. “Nesbitt
Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited, used under
licence.® BMO (M-bar roundel symbol) is a registered trade-mark of Bank of
Montreal, used under licence. ® Nesbitt Burns is a registered trade-mark of BMO
Nesbitt Burns Corporation Limited, used under licence. BMO Nesbitt Burns Inc. and
BMO Nesbitt Burns Ltée are indirect subsidiaries of Bank of Montreal. The comments
included in this publication are not intended to be a definitive analysis of tax law or trust
and estate law. The comments contained herein are general in nature and professional
advice regarding an individual’s particular tax position should be obtained in respect of
any person’s specific circumstances. All insurance products and advice are offered
through BMO Nesbitt Burns Financial Services Inc. by licensed life insurance agents,
and, in Quebec, by financial security advisors. If you are already a client of BMO Nesbitt
Burns, please contact your Investment Advisor for more information. The comments
included in the publication are not intended to be a definitive analysis of tax law: The
comments contained herein are general in nature and professional advice regarding an
individual s particular tax position should be obtained in respect of any person s
specific circumstances.
Disclaimers