What investment vehicles should you choose?
Traditional investment vehicles are the best choice available for both self-employed and salaried workers,
however, they can vary greatly depending on whether you choose to pay your salaries or choose a company dividend.
For example, if you decide to issue dividends for yourself, you may not be able to participate in an RRSP,
or get paid to qualify for his advice: TFSA is the solution of choice because it allows self-employed workers to invest,
and Benefit from tax-free profits.
You can also adjust your investments so that they can reinvest any profit they make,
which is quickly added to the right amount of savings capital in a TFSA, as well as allowing you a certain amount.
Have the cash to support your company. Through growth stages
However, if you are self-employed and the company is financially independent, RRSP is the best savings solution for you.
RSP for self-employed workers
For a self-employed worker who pays his salary and runs a financially self-sufficient business,
RRSP can offer many benefits, as well as an attractive savings tool for those interested in
reducing their taxable income by buying their first property. Or are planning. For retirement
Automated savings can be an effective tool to reap the tax benefits of an RRSP and achieve your financial goals.
To determine the actual savings amount, you can calculate your average
annual RRSP contribution over the past three years and divide that amount by the number of withdrawals you want.
However, you will find that with regular savings throughout the year,
they easily include your contributions in your living expenses, for savings of $ 2,500 per year,
for example, you have about $ 48 in Help Week.
How much should you save?
However, it is important for self-employed workers to understand that
they are saving for their retirement alone because they are the only ones who save money.
When you are employed, the employer also contributes to the Quebec Retirement Plan or QPP.
Therefore, without that extra source of savings, you should increase the amount you set aside to match the workers’ savings.
An employee who pays the maximum amount allowed under the Quebec
A retirement plan must save 15% of his or her salary if he or she wants to maintain a standard of living during retirement.
Without QPP, a self-employed worker with the same goal would have to set aside 20 to 25 percent of his or her income.
However, self-employed workers do not have as much deduction as an employee at the source of the deduction,
which represents a great savings opportunity!
How can you successfully manage your business while planning your retirement?
Finding Time to Manage Your Investments and Savings Of course, when you need to spend more energy running and building your business, your business finance expert, David Decary, highlights several support options, however, that are available to you.
With the help of a financial advisor or thanks to mobile investment programs like Wealthsimple or Hard Bacon, it is easier than ever to grow your money, even with small amounts.
Creating an annual savings target based on your expected income is also a great way to adjust your savings retirement plans to the financial structure of your company.
By saving a certain amount per week, every two weeks, or every month, you can split your savings throughout the year. This allows you to monitor your income against savings and determine if you are on track to reach your goals.
This makes it easier to adjust your expectations or even increase your savings to compensate for any future revenue cuts
