Severance Package?

Termination pay or severance package? GTA Wealth offers financial planning and tax planning strategies to make the most of your severance pay.

Received a severance package or termination pay?

Termination pay or severance package? GTA Wealth offers financial planning and tax planning strategies to make the most of your severance pay.

Have you received a severance package? How will you manage the severance package? Can you reduce the tax that you will pay? Do you need legal advice to ensure that you will receive a fair severance package? The advisors at GTA Wealth Management Inc. can answer your questions.

Losing your job is a stressful event. You may have been employed with your current / former employer for many years and now you are without work. First things first; you will need some answers to a few questions. GTA Wealth has associate lawyers that can be consulted to help you ensure that you receive fair severance pay and answer any legal questions you may have. You will need to determine the amount of severance pay you'll be receiving if you do not know this already.

Once you determine the amount of the severance, you will need to calculate how much you will need for the short term and how much you can invest for the long term. You may have to do a budget to assist with this decision. You will need to determine how much money you will need to live on before you will find new work. You will also have the opportunity to transfer your group Rsp or pension plan to your own Rsp or a locked in retirement account. A financial advisor at GTA Wealth can assist with the transfer of your group Rsp or pension plan. Reducing the tax on the severance should be reviewed, as well. In some situations, there are opportunities to reduce your tax bill on the lump sum; the tax grab can be significant on the severance pay.

Quick Facts about Severance Packages:

  • Consider transferring your group Rsp / pension to your own Rsp or a locked in retirement account.
  • Review your tax position and determine if you can reduce the tax on your severance pay.
  • Review your Rsp contribution room.
  • Consult an associate lawyer of GTA Wealth to ensure your severance pay is fair.
  • Consider a trust to minimize tax.

Tax on severance pay can be steep. The unfortunate thing about a severance package is that it may push you into a high tax bracket and your marginal tax rate may be slightly over 45%, ouch! It is definitely a benefit to receive the severance; however, it is painful to see large portions of your hard earned money go to the government’s bank account. There may be options to help you reduce your tax bill. The financial advisors at GTA Wealth can help review your situation and determine a tax efficient structure and minimize losses to income taxes.

Completing the paperwork for transferring your existing group Rsp and pension plans can be an onerous task. The financial advisors at GTA Wealth can help reduce the overwhelming burden of the financial paperwork. We can also recommend investments that meet your risk tolerance so you can meet your investment objectives. The multidisciplinary team of labour lawyers and financial advisers at GTA Wealth will reduce the stress of losing your job, and enable you to concentrate on finding your next high level position.

The GTA Wealth Advantage and Your Severance Package

  • Independent:  GTA Wealth has an independent financial team. GTA Wealth can access more that 50 investment firms including the banks to service your needs . We will select the investments that best suit your needs without any allegiance to a particular company; as opposed to an employee working for one company.  We work for you, not an employer.
  • More resources:  GTA Wealth can access investment firms with offices around the globe and more than $1.6 trillion in assets under management (Fidelity Investments); larger than all the assets under management of the Canadian banks.
  • Unique investment opportunities: Access to institutional investment managers that have experience managing corporate and government pension funds for more than 40 years.This expertise leads to consistent performance and in come cases, capital preservation. Access to currency neutral options, and the ability to trade in European countries via Jitney that competitors don’t have legal filings to do so.
  • Multidisciplinary approach:  GTA Wealth can provide multiple financial and legal services, working in close co-ordination, that will result in efficiency for the client and superior results in order to get the most benefit from your severance package.  We are able to analyze various facets of your wealth building plan, such as, tax, investments, debt, insurance etc.  Why go to a multitude of financial advisors when you can come to one; a financial advisor that is knowledgeable about your entire wealth management plan. Capitalize on the synergy.
  • Tax efficiency: Access to corporate class funds and tax efficient systematic withdrawal plans.
  • Flexible: The client can set up monthly contributions from his/her bank account. Monthly contributions amounts can be changed at any time.  Systematic withdrawal plans can also be set up for clients that need a consistent cash flow.
  • Expertise: GTA Wealth has tax accountants and certified financial financial advisers and planners to answer all your tax and investing questions.
  • Enhanced reporting: Clients can access their accounts online and receive statements electronically.

View this time as an opportunity. Take some time and find a better job while the financial advisers at GTA Wealth Management Inc. take care of your financial needs. The financial advisors and tax accountants of GTA Wealth Management inc. will work to protect your financial interests and reduce the taxes you pay; it is the core of our company. If you don’t succeed, we don’t succeed. GTA Wealth would welcome the opportunity to help you make the most of your severance package as we have done for many happy clients.

Contact or call the GTA Wealth Management Inc. tax accountants and financial advisers toll free at 1 855 GTA WLTH (855 482 9584) for tax and financial planning assistance with your severance package. GTA Wealth Management Inc. has three convenient locations in Mississauga, Toronto and Markham to serve you.

Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp.