| One
of the best ways to maximize your RRSP contribution
each year is to set aside a specific dollar amount every
month. Many people refer to this strategy as paying
yourself first. You’ll be surprised at how quickly you
adjust to the withdrawal, and how quickly your retirement
nest egg starts accumulating.
Another advantage of making monthly contributions is
called dollar cost averaging. Dollar cost averaging
is a simple and convenient way to eliminate the guess
work of knowing when to buy – allowing volatility to
work in your favour. Purchasing a fixed dollar amount
each month, buys more of an investment when the price
is low and less when the price is high. This disciplined
strategy takes the guesswork out of investing, and it
prevents you from trying to time the market. This strategy
helps to reduce the total price paid for your portfolio,
and helps to build stronger returns. In the long run,
this technique is one of the best ways to take advantage
of volatile markets.
You may wish to consider a spousal RRSP which by design
will lower your future taxes. Many couples are not aware
of the advantages of spousal RRSP’s, and are missing
out on one of the few income splitting techniques that
can lower their future tax bill. In using a spousal
RRSP, you’re essentially shifting retirement income
from one spouse to the other in an attempt to equalize
retirement incomes and avoid having one spouse in the
highest tax bracket. By spreading future taxable income
between spouses, your overall tax bill may be reduced.
If you contribute monthly to your RRSP and typically
anticipate a tax refund after year end, consider filing
a “Request to Reduce Tax Deductions at Source” (form
T1213) with Canada Revenue Agency. This option reduces
the amount of income tax deducted from your pay throughout
the year. It’s like getting back your tax refund on
every paycheque instead of in a lump sum after year
end. This will increase your cash flow on a monthly
basis, and in turn, can make it even easier to make
your maximum RRSP contribution.
Tom Allain, CFP - Allain & Associates, is an Independent
Certified Financial Planner, specializing in comprehensive
Retirement, Investment, and Insurance Planning to Business
Owner/Managers, and Professionals. Would you like to
learn more? Visit us at www.allainassociates.com
or e-mail us at tom@allainassociates.com,
(905) 796-1219.
Stop
your selling and listen
Has the urge to talk more than you listen ever cost
you a sale? Jimi Hendrix once said, "Knowledge
speaks, but wisdom listens, and as small business owners
we need to pay attention to this statement. We may be
knowledgeable about our products or services, but if
we really want to understand our clients’ needs, we
need to listen.
Listening does not happen by accident; it is a skill
that requires practice. It can be likened to the game
of tennis. One person prepares to serve; the other prepares
to receive. It is a two-way process, but unfortunately
many people believe they should dominate the conversation
and talk more than they listen. As a result, they miss
out on the other person’s message, and instead of closing
the sale they lose it.
The following tips will assist you in improving your
listening skills, and hopefully close more sales:
• Create rapport. Begin to build a relationship of trust
with the individual as people tend to do business with
people that they like and trust. Look directly at the
person. Smile and nod to show that you are genuinely
interested in what’s being said.
• Screen out all distractions. Give the person your
undivided attention. Concentrate on what’s being said
rather than attempting to multi-task. Some people have
the habit of answering their phones or scanning their
blackberries during a discussion. This is the time to
focus entirely on the person speaking. This tells them
that you respect and value their opinion.
• Be prepared. Keep a pad and pencil close at hand to
jot down notes. This gives the impression that you are
well-organized, engaged and business-like. It also gives
you a chance to review your notes and ask for clarification.
• Do not Interrupt. Sometimes you may be tempted to
throw in your own thoughts, or finish the sentence,
probably because it’s a subject matter that you know
a whole lot about. Instead of interrupting, listen attentively
and if you have heard the story before, pretend you
are hearing it for the first time.
• Rephrase and Clarify. Rephrase what the person has
said to show that you are paying attention. “So, are
you saying that you would like to develop an interactive
website, but you lack the skills?” If you are able to
recap or rephrase the person’s words, it gives them
an opportunity to clarify and say exactly what they
mean and they will be flattered that you took the time
to listen.
It is said that we were given two ears and one mouth
so we can listen twice as much as we talk. That may
be true, but when you genuinely practice to listen,
it increases your business opportunities and puts you
in a better position to address the other person’s needs.
So, the next time you are tempted to take over a conversation,
remember it’s a two-way process. Aim to listen 75 percent
of the time and talk 25 percent.
Daisy Wright is a career transition coach and professional
resume writer. She can be reached by phone at (905)
840-7039, by email at careercoach@thewrightcareer.com
or www.thewrightcareer.com
Women
and business travel trends
Like anyone traveling on business--and it's worth noting
that women now constitute 43 percent of all North American
road warriors, according to the Travel Industry Association--the
woman traveler just wants a little respect and consideration.
Today, as more and more of them are hitting the road
on behalf of their companies, that message is reaching
airlines, hotels, restaurants and many other service-providers
in the travel industry.
It's thanks to these hard-working women that hotels
have installed magnifying mirrors in the bathroom, skirt-hangers
in the closet and double locks on the guestroom doors.
It's because of these solo travelers' insistence on
security that hotels have created restricted-access,
women-only floors. Women who value comfort and smart
design are the reason why boutique, less-than-100-room
hotel properties are booming. Women who refuse to order
room service when they could enjoy a leisurely meal
in an elegant setting are the reason restaurants now
offer discreet tables for one, wine lists with a variety
of half-bottles and reading material upon request. They're
the reason that airlines' business and first-class amenity
kits are available with toner and moisturizer instead
of razors and shaving cream.
Security remains a top priority for women on the road,
which recently prompted one U.K. company to create the
country's first women-only private taxi service. Passengers
sign up with the Pink Ladies cab company as members,
pre-pay using a credit card, and are driven around London
in style in a fleet of bright pink Renaults. Clients
are sent text messages to alert them that their ride
has arrived (thus avoiding that wait on the street)
and all of the drivers are women, trained in self-defense,
who never zip off to pick up their next fares until
their passengers are safely inside their destinations.
Travel agents, too, are responding to the typical women
business traveler's increased expectations. Whereas
men tend to focus on what combination of flights, hotels
and rental cars will earn them the most points and what
itinerary will get them in out and of town most efficiently
(a task at which experienced corporate travel consultants
excel), women worry less about price and more about
quality. They're willing to upgrade to business or first
on long-haul flights, something which is much more affordable
than in the past. They also turn to their travel agents
for advice on which hotels are best suited to solo women
guests, featuring guestrooms equipped with full-length
mirrors, "chick flicks" on the in-room movie
menu, irons and ironing boards in the closet, luxurious
beds and spacious, spotless bathrooms with convenient,
portable hair dryers and upscale amenities.
Women embrace business travel as an opportunity to enjoy
some rare time all to themselves. As a result, their
loyalty to travel suppliers who pay attention to their
needs is apparent. It stands to reason that if their
travel experience is a positive one, they are likely
to be repeat customers--and perhaps next time they'll
have a partner or children in tow.
Malcolm Slater is owner of Uniglobe Plus Travel Group
(905 454 4949 ext 225)
Why
are you in business?
You are at a cocktail party or at a networking function
and someone will almost automatically ask the question:
“What do you do?” If you are like most people you will
respond with something like:
1. I repair automobiles
2. I own and manage a grocery store
3. I sell life insurance
4. I run my own HR / Learning consulting business
Looking at the first three answers, it would appear
to be quite evident what the person does. Or so it seems
to the individual receiving the information. This is
because they have a visible product or clearly identified
service they can relate to.
However, when you get to the fourth response, the understanding
gets more than a little vague. For many people the only
time they have heard the term Human Resources it involved
hiring or firing of people. When they heard the term
“learning” it was related to attending an academic institution,
something they may have done only because it was expected
of them. At this point, generally you get a smile and
a polite “that’s great”. For all four responses, that
is often the end of the conversation.
Let’s take a look at some responses that might help
you get better known and understood using the same four
businesses:
1. I ensure that my customers have reliable transportation
for themselves and their family
2. I provide a variety of food and other products that
a family requires on a regular basis
3. I provide peace of mind for individuals
4. I help employees and employers get the most out of
their association
The second responses will more often than not promote
further discussion. These further discussions will allow
you to explain in your own words why you are in business.
Sure, each of us is in business to make money. That
said, primarily we are in business because we want to
do something for our clients.
The challenge for each of us is to first answer the
question for ourselves “Why Am I in Business?” The answer
to that question will both provide you with a clear
way of answering the question “What do you do?’ and
will provide us with a clearer understanding of why
we continue to work in our enterprise. For me it is
to see the light come on for one person after a workshop.
What is it for you?
Gordon J. H. Newman, CPT
Gordon is President The Newman Learning Group Inc. an
organization dedicated to providing value add solutions
to improve the bottom line performance of organizations.
Gordon is also an associate with HR Management Consultants
Inc. Gordon may be reached at gordon@newmanlearning.com
or 905-790-2944
Do
you have enough assets for retirement?
Part six of a nine-part series, “Eight critical questions
every small business owner should answer.”
Building your successful business was no easy task
– it took vision, expert knowledge, the right strategies,
discipline and flexibility. Your retirement plans require
that same kind of attention. A comprehensive financial
plan is built from a detailed analysis of your current
situation and explores opportunities that will ensure
you are on the right course to retiring the way you
want.
A plan
As a business owner, you have a lot more on your plate
than most. Your retirement plans need to take special
needs into account, including:
- Cash management – Accounting for the natural peaks
and troughs of your business cycle and making sure you
have a comfortable income stream during your transition
period and during retirement.
- Debt management – Ensuring your business is using
effective options to finance success
- Tax planning – Maximizing your corporate and personal
income by minimizing your tax obligations
- Investment planning – Creating the right investment
mix to achieve your financial goals
- Risk management – Protecting your family, assets and
business
- Estate planning – Building integrity and value into
your estate and ensuring that business needs are appropriately
delegated
Banking success
When the time is right for you to transition from your
successful business to the retirement of your dreams,
there are a number of issues you need to consider. A
comprehensive plan can help you with:
- Transitioning your business – protecting your income
stream
- Effective cash management – giving you the time you
need to weigh your long-term investment options
- Investment options and advice – to help you choose
a solution that fits your new lifestyle and protects
your wealth
- Tax strategies - that minimize the tax on sale to
give you more monies for retirement
Maintaining
Once your retirement income needs have been identified
and the strategies have been decided, it is just as
important to monitor your progress to ensure your detailed
financial plan continues to provide enough income to
support your retirement lifestyle.
Mike Huet is Vice-President and an Investment Advisor
with RBC Dominion Securities Inc. in Brampton. Mike
can be reached at 905-450-1042 or at mike.huet@rbc.com.This
article is not intended as nor does it constitute tax
or legal advice. Readers should consult their own lawyer,
accountant or other professional advisor when planning
to implement a strategy.
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