Edmonton Business Consultant | Business Boot Camp Q&A Part 3
So we’re going to answer a couple more questions here. What we’ve given you a little bit of some of the jury news on five, five, five o’clock mornings so and paper click wallets. So we’re going to cheer everybody up with some ice cream.
Yeah, I can see why I can be because it’s not
[inaudible]. Okay, so we’re still going to park that one. The one numbers that you should be looking at. Thoughts on that. Thoughts on RSB and mutual funds. I’m to do the RSB. I’ll let Matt do the mutual funds. Um, so RSPs will likely not make sense in most scenarios. For most business owners and starting out, you’re going to want little liquid funds and if you were going to save it, we have a really regimented process and how we do our tax planning, but nine times out of 10 in the first five years it’s going to work out that work. If you’re doing savings, we’re going to do it within the corporate structure itself. It can change a little bit. Unfortunate, that’s not a one size fits all solution, but it’s likely gonna lean towards saving within the corporation itself. Unless we’re going to use the RSPS for the home buyers plan, unless we’re going to use the RSPS to purchase your Edmonton Business Consultant home buyers plan, it’s unlikely. Not Impossible. Unlikely. So it’s, it’s difficult for me to make that. I’ll just tell you that the probability on that one that if you’re doing RSP because you think that’s the right one, it’s probably not the
right one. Um, with I would say probably, uh, if you’re, if you’re not buying your first house with probably a 90% certainty in the first five years of your business. Yeah, very, very, very few of my corporate clients. Um, and one of the main reasons why is in terms of the tax planning is CPP. Um, when you’re a business owner, you pay both sides of CPP, right? Um, as an employee, you’re only paying half of that. CPP Fraser Institute did a study to research financial research company. Basically, uh, the rate of return as an employee, you’ll get on that CPP benefit if you live to about age 90 is 2%, two to 3%. Now if you’re paying both sides, what do you think that does? The rate of return, you’ll never see that money back unless you live to a hundred, especially more. Um, the business side, the business owners side of CPP is more of a tax.
It’s not really contributing to pension. It’s actually more of a tax now to make sure that CPP benefits still paid out for all the current pensioners and pensioners are going to be retiring in the near future. Um, so as a business owner, it almost never makes sense. However, if you’re not doing CVP need to be to be making sure that you are saving because you’ve got no pension plan and your disability insurance needs to be in tact because you won’t get CPP disability then. So you’d better have disability insurance if you’re not contributing to CVP. But that’s really with one of the main reasons why our fees are not for business owners. They are protected from creditors, which is kind of a nice thing. Um, but if you’re going into business, started already, protect yourself from creditors, might not have a good business plan. My Name Josh and mutual funds, mutual funds are fine.
I mean they’re, they’re an investment vehicle. That’s all they are. A mutual funds in and of themselves is not good or bad thing. It’s like saying what are you, what’s your thought on checking accounts? Well, if you’re paying $100 monthly fee for a checking account, you should probably do something different. So there are some mutual funds are fantastic. Mauer is a great company that I don’t offer, but if I ever did it myself and they’ve got a balance fund, this destroyed the market for like 15 to 20 years. You could do it yourself, go directly to them and pay 0.9% an average mutual fund at a bank is probably 1.9 to 2.2% so you can do it yourself. And that’s what most people don’t understand about investments is that there’s actually two fees being paid. One of the classic taglines is, Oh, don’t worry, you don’t pay me.
The fund pays me for the company pays me. Who’s the fund? It’s your money. It’s your money. So you are paying that advisor. So the question is whether or not that advisor is actually providing them value for you. Most of the time I see people who’ve never talked to their advisor, they come to you. The statement, I look up the fund that’s called a commission based unit. So you’re essentially paying a commission to an advisor who’s never calling you. Imagine if your accountant did that. They never called you. They never filed your taxes, they never did anything, but you paid them 250 or $500 a year. Would you do that? No. Well, simple. Do yourself Q trade, quest, trade. These are all companies that you can do for 0.5 to 1% and have all your money invested professionally managed portfolio. If you don’t want an advisor, if you want an advisor, then that’s where you know what fee paying.
So if you’re paying commission based unit, let’s say you have $100,000 in mutual funds, take 1% of whatever you hold, that’s how much your advisors making, or at least the company that they work for is making generally. So they’d be making about a thousand dollars. Ask yourself a question, would you, for that relationship and advice and service that you provided that that person providing you, what’d you pay them $1,000 or whatever that 1% number is at the answer is yes, great. You might have you private good advisor or you know, a number of different things, but if they’re not, take that money away from them. Invest in yourself or find an advisor who is actually going to work with you and do a financial plan and actually do update reviews with you and be proactive in your financial situation. Do they go, why do I not trading stocks?
I refer that out to portfolio managers. I’m not wire out watching the market. I’m not technically an investment manager. Um, I’m a financial planner and advisor and I know the financial industry. I know how to sift through a bunch of crap out there. Um, and so I refer that off to a manager who is going to be doing that 100%. A lot of people think their mutual fund advisor is actually creating their returns is not the investment managers, whoever’s managing that fund is and that’s a fee and pay regardless. So I’m just the advisor that would help you understand where to put that money. What managers are good. What makes sense for you in terms of your tax or business or whatever strategy we need to employ? That sets my room at all.
Um, I’ll, I’ll touch on like the self managed ones. Earlier in my career I was much more um, suggested of smells, self managed stock portfolios. But what I see is that they’re, um, they’re basically conflict with your goals as an entrepreneur because it just goes back to that 168 hours a week. So now you’re thinking about, okay, I’m going to do my self managed investment portfolio instead of doing my content. That’s going to give me thousands of dollars of revenue next month right away. Um, or I’m doing myself manage investment portfolio instead of spending that two hours of the night with my family. So that I, although the math kind of conflicts a little bit with the uh, uh, the goals as an islander,
are there restrictions on top, to give you an idea, let’s say you had $50,000, 1% would essentially be what I’d use, like a wealth simple where you pay me pay well, simple like that’s all in 1%. It’s $500 $500 a year is how many hours of your time and so that for yourself, is it five hours, is it 10 hours, is it two hours? How much is the actual like peace of mind, the uh, financial knowledge, the advice, all of that to factor into your situation
in terms of the time that you would actually need to do to research all the questions that you could probably have answered about five seconds if you haven’t had or could have good advisor. So we’re going to answer a couple more questions here, but we’ve given you a little bit of some of the jury news on five, five, five o’clock mornings, so, and paperclip wallets. So we’re going to cheer everybody up with some ice cream. Well we’ll keep asking the questions about the coming. So, um, okay, so someone said you guys have a great sacrifice flag. I have it written. I’ll sacrifice by I think I know what you mean. They’re like your question, right? I think I know what you mean by the time I go to personally have a written note. Facts by climate. We’ve written down the things that I am giving up because, and I’ll tell your wife is because I am like maniacally focused on my, your calendar.
So I am just focused on that calendar. Um, so like kind of the running joke is that you want Josh to do it even last if you want, you also do anything, just stick it on his calendar. I will literally do whatever that calendar says the next day we’ll do. So I don’t really have to focus on what I’m not doing because I only have one goal that how do I, yeah. Um, the part about having that count when you have a ridiculous schedule like that, the key is, is it’s a set schedule. So the key is, is that it really does end at seven o’clock. So if you’re going to work any sort of ridiculous schedule, you better be regimented about it. So at least it might not be the schedule that everyone else, but if the schedule you can count, right? And sometimes you for your mouth that you can plan on things that if you can be regimented and the schedule, now you can actually plan all these different events. Do you only have two hours, but you only needed two hours to go see a movie or you’re involved in data air or you don’t pay to get swimming or do whatever you’re going to do, but you can actually count on it. Right. So that’s going to happen. So it’s just that when focus on that calendar, probably I think
I have in addition to the calendar too, if you have a calendar, it’s easier to pick what you’re going do [inaudible]. So if you, if you know what you’re going to be in the future, you can literally buy, when did they take your vacation and went to spend that time. Um, and also in that time you’re not going to be thinking about 50th because you already put any scheduled. Why did you, so when you’re taught, when you look at time off for your, for your personal reasons, it is for your personally what you were talking about as a family and running your Edmonton Business Consultant business. How are you involving in making a plan either for yourself or others about the latte factor? Are you going to stop yourself and make coffees from four to five days a week versus going everyday? Are you going to put on below as often so that you have invested in the business versus the luxuries that again, you’re not entitled to get that state if you’re willing to do, to get what you want.
Frequent conversation about these things, challenges here, but you want to run through where we’re at, where we can be in just a couple short years through that process. I’m definitely involved in involving her in that cause she needs to know she’s sacrificing a lot right down to the side, decide the lecture. She stays at home, she cooks meals, take care of our four kids, you know, educate them on what Daddy’s doing for 12 hours a day. They really don’t understand it. But um, I know she is, she is, she knows him. She, that’s how she managed it. She sees it as her household business. Um, so I have that luxury and probably just, you know, we’re on the same page. We’re on the same team and we’ve kind of figured that out. That’s where we’re at for right now. And when the kids are in school, we kind of had to reassess where things are at. I got, I definitely got some last time. The owner for sure.
I think you’ve had this experience where I could be standing there on my phone or doing anything according to have a baby on her hip. You know, wiping somebody else’s bong and then the other kid is still going to go right past me and say, mom, I can’t necessarily answer that for you. Talk to women entrepreneurs who have managed for us, it was actually deciding that reporting the sideline, we made a decision for courting the sideline or [inaudible]. I can’t [inaudible] I go back to like the, the, uh, uh, in one of my friends did about, you know, going through interviewing successful entrepreneurs and the answer that they used was ridiculously early before the kids were off. So that was the sacrifice, right? Because they’re just asleep.
Um, is, and that’s why it’s like you can’t start later because the kids would be up in there. That’s it. Right. So it’s, I’ve never done it, but from what I’ve looked at is the answers. Ridiculous. Lee, her. Yeah. And probably more important for women in that case. Salt. Um, how have you both might like my family? Like I have, uh, like a really defined personal goal of what I want to do. You know, I have that, uh, my, my best life is one week vacation every single month. Will you work less out? No, I will still work 82 hours a week. I’ll still do that schedule. I would just do that schedule three times a week instead of four times a week. I’ll still be working 240 hours a month. Everyone else, hundred 60 hours. But I’ll just do that. And that’s just my personal goal because I don’t shut off very well. So if I get off at 3:00 PM, I’m still tiny of a little bit distracted in my head, but if I have a whole week off, that’s going to be a fun week. I’m going to forget it. I was an accountant, uh, you know, one or two days into it. I don’t like exact same way. So that’s, that’s my goal as a very defined goal
where I’m going. So, um,
you got all Archie lucky to work in the morning. You’re a mortgage, you’re keeping Eli and pay interest only is more than likely if you’re a business owner. I would be telling me to keep the law because you need the flexibility. Um, if you’re an employee, I probably give you the exact opposite advice. Oh, here you’re paying 4.45% interest in your mortgage is three. Just kinda assess whether that cost for the inflexibility of the mortgage payment versus a he lock is what you want to have. So I’d be the same way. Um, most likely we’ll keep the lock. Um, unless your Edmonton Business Consultant situation was to a point where we can really plan that in and have stable income to pay the mortgage.
There you go. Business Name. How do you come over to visit me? Uh, do a Google search first and make sure no one else has a domain name. Like, so come up with a couple of names and make it a little, I wouldn’t, I tend to like the ones that are a little more than liberal, so we know what it’s not in the name. You know the name itself, you know, put the descriptor word after it.
It’s not banking holdings with the bank banking real estate. We want that real. If just the bank, the enterprises, what the heck does this guy do? Right? Like you want to know, um, so I’m going to be a little more literal with that descriptor word, but do a Google search cause see who you’re up against first cause you can do a nuance or two. We’re going to do a nuance searching before we incorporate someone to see, uh, if there’s a conflict, someone else already has that name, but do a Google search first and see if there’s something close or similar on that name. Um, like someone came to us other day and they want to true north something or other. I’m like Trudeau, anything is taken. Like everything. Like everyone has come up with like don’t call Your Edmonton Business Consultant Business Fx, uh, graphic design where everyone has FX, this and that.
So be a little bit and make sure it’s unique. Make sure it’s far enough away from your Edmonton Business Consultant competitors and make sure you can get that domain name. In fact, I would even do the why the spend the 20 bucks to buy the domain name for our and do the nuanced search and do the appropriation is amazing. Had coming out of my answers, will walk you through a process in the branding that might give you a little bit more. So there’s another half of that by walk you through the process and the branding where you know, people look at branding first, but there’s a number of steps you should do before branding and your business, which most people are. Let’s start with the name and logo first and then figure out what we’re going to do later. Now let’s figure out who we are first and then let’s figure out what we’re going to call ourselves and what that branding is going to look like.
So, um, can you tell us about how to file taxes as an entrepreneur or resolve the claim if you are filing your Edmonton Business Consultant own taxes as an entrepreneur self employed, you’re not an entrepreneur by yourself. So I’m going to school for seven years to be a rookie at it. Now I’m creating my rookie season. Some of them have been with me seven years themselves and we’re still getting in there. So for me to answer it in the question, you’re going to have to hire someone to be your accountant. You’re going to have to hire someone to be your Edmonton Business Consultant lawyer. He gets sued. Um, you know, that’s going to represent yourself in the courtroom full of our clients. Again, 200 $5,500 to file taxes as a sole proprietor. What does that for your time and the potential expense of going through an audit because you messed it up or number of different things.
Psi worth the mess. That’s expensable too. You’re going to expense that in your business. So like there’s just no point to file your taxes and entrepreneurs. So I’ll, I’ll take that even a step further. People go with the bookkeeping and I say, okay, it was a common thing is one person’s going to do the business and other person’s going to do the administration, the bookkeeping. Like, do you know how easy and how cheap it is to outsource the bookkeeping? Uh, you know, he always see starting from like $150 a month. So often we have a spouse who’s full time focus. Maybe they’re doing a little more work in hall at the home fraud and they’re doing no, but I’m doing the bookkeeping is okay. So you’re adding about $150 a month of value to the business. That’s all you’re doing with your 30 hours a week and you’re putting in $150.
Um, and then, you know, what I tell them to do is get both spouses hunting for new clients. That’s the hardest part of your Edmonton Business Consultant business is bringing in new clients. How can you have that person who was doing some networking? Can you get them going out and doing the initial consults? Can you go to them and how have you know, calling those ideal and likely buyers, those people who can refer you time and time again, can they build relationships with those people? That’s really hard to find it, to hire someone to do. So what you really want to do in most family businesses is you start, how do you want to have, if they’re both actively involved in the business, have them both playing offense, not one, you know, in the back office and one playoff, no, have them both playing office. Cause that’s the hardest thing to actually go do, uh, as an entrepreneur is it puts them in that role. So that was actually my question.
You know what to keep in mind with regards to taxes, even if I don’t do the pilot and myself. So what you do is, uh, go schedule a free consult with us. Um, and we’ll all have to walk right through. You all determine should you be incorporated shooting, not be incorporated first. And then we’ll determine if you’re not incorporated. This is exactly what you need to track, need to bring them back to us in March next year. These are the categories, right? And it’ll be different depending on the type of your Edmonton Business Consultant business, but you know, we’ll do that, uh, consult all, all day long. It’s a free consult. You can get a copy of my, um, my favorite business book. Um, and you can sign up at the front on that yet. We’ll get you on the straight and narrow. So it’s a lot easier than people think in. A lot of people go into it thinking, well, I’ve got to download quickbooks and I gotta learn this. Like, no, don’t eat. You’ve got to get more clients. This is what you got to do to get our customers. Spend all your Edmonton Business Consultant time doing that in as little time doing. Um, that probably is as, as possible. It’d be different if you’re a solo preneur. You’re, are you starting with a shock with 10 employees? We’ll recommend something different right there. We’ll flush that out in the console. Yeah. Um, okay, so let’s move into, or are we.