Call 1 855 GTA WLTH (855 482 9584) or use our convenient contact form to contact GTA Wealth Management Inc. to speak with a financial advisor about the right severance package options for your requirements.
Losing your job is a stressful event. It can also mean receiving a large sum of money that will need to be managed efficiently. For example, the taxman is not sympathetic with your situation and the severance pay will be taxable. In addition to the tax burden, you will need to manage the severance pay effectively with a diversified investment plan. However, there are tactics you can employ to reduce the tax hit and have an investment plan structured to meet your goals. The opportunities for your severance package that should be explored are as follows:
Maximize your severance package and accomplish your financial objectives with GTA Wealth Management Inc. GTA Wealth Management Inc. has three convenient locations in Toronto, Markham and Mississauga.
Call 1 855 GTA WLTH (855 482 9584) or use our convenient contact form to contact GTA Wealth Management Inc. to speak with a financial advisor about the right severance package options for your requirements.
When Sarah came to GTA Wealth Management Inc, she was under a lot of stress and was overwhelmed by the decisions facing her. She had no idea what all the papers were and no idea what options to take.
Sarah had worked for CIBC for many years, and then Sarah had been downsized. She had received much paperwork to go through. She was given a number of options to evaluate. She was given a discounted lump sum option, a periodic payment option and salary continuance option. Sarah had no idea about which option to select. We discussed her future goals and objectives with Sarah. The periodic payment options were restrictive because the payments would stop if new employment was engaged. Sarah decided on the discounted lump sum option. GTA Wealth helped Sarah invest her severance payment. Sarah currently had a stock portfolio that was based in the Canadian stock market. GTA Wealth reduced her risk by recommending a global portfolio that was invested around the world. This provided geographical diversification for Sarah. The investment firm we selected to manage the money has 800 analyst across the globe - extensive reach and research to provide our clients with top performance.
Sarah was concerned about the tax implications of her lump sum payment. She was correct; there would be a big tax hit on the lump sum payment. However, Sarah had a large Rsp contribution room. We elected to transfer a majority of the severance to her Rsp; a big tax savings. Retiring allowance can be available to some severed employees, but Sarah did not meet the criteria for the retiring allowance transfer.
Sarah also had a pension with CIBC that came with a few options upon termination. Sarah was confused about which option to select. Sarah wanted to control her pension. So, Sarah chose to transfer her pension to a locked in retirement account (LIRA). We helped Sarah complete the appropriate paperwork and helped Sarah select risk appropriate investment options. Our goal was to minimize Sarah’s risk and maximize her return which was successfully accomplished.
Sarah now has reduced stress and a much more secure and positive financial situation. Another happy client for GTA Wealth Management Inc.
Maximize your severance package and accomplish your financial objectives with GTA Wealth Management Inc. GTA Wealth Management Inc. has three convenient locations in Toronto, Markham and Mississauga.
Call 1 855 GTA WLTH (855 482 9584) or use our convenient contact form to contact GTA Wealth Management Inc. to speak with a financial advisor about the right severance package options for your requirements.