Poverty and Real Wealth Management: It Begins with Tax Literacy
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

Poverty and Real Wealth Management: It Begins with Tax Literacy

Poverty and Real Wealth Management: It Begins with Tax Literacy
 
 
Evelyn Jacks: Poverty and Real Wealth Management: It Begins with Tax Literacy
Can the principles of Real Wealth Management™ apply to family units affected by the dark cycles of poverty, or a profound lack of trust in the family?  This is a question I was recently asked and happy to respond: yes.
 
 
Real Wealth Management is the strategic framework for a multi-stakeholder approach to joint financial decision-making in the areas of tax, investment, retirement, succession and business planning. It is taught exclusively by Knowledge Bureau.
This framework has developed over decades of collaboration with both tax and financial advisors, but also as a result of speaking to and working with millions of Canadians who struggle with their tax and financial literacy.
It provides a strategic process for financial empowerment that can apply to any household  on a consistent, measurable basis, without discrimination or judgement. It works because financial illiteracy is a common challenge across all socio-economic boundaries.     
Real Wealth Management is not just about money; it begins with financial behavior – how individuals and families can move from a “present orientation" to a “future orientation” in managing their finances. When this happens, families can start to work towards the goal of building Real Wealth. 
Real Wealth Management begins with an understanding of the 4 stages of the Use of Money:
Stage 1 - Non-discretionary (planning for food, clothing and shelter),
Stage 2 - Discretionary (planning resources to ensure food, clothing, shelter for the future),
Stage 3 - Use of Capital (planning for the use of financial capital to manage risk) and
Stage 4 -Sustainable Net Worth (planning for assets to exceed liabilities, and maintain their income-producing value)
Most families – whether of wealth or poverty – never move beyond Stage 1 or 2 because of circumstance or choices. 
To get to the desirable Stage 3 and 4 in the Uses of Money, individuals and families must be able to accumulate, grow, preserve and transition capital
This takes tax efficiency: maximizing refundable and non-refundable tax credits, minimizing tax withholdings from income sources and using tax efficient investments like the TFSA or RRSP as starting blocks in building wealth.  
Whether trapped in a cycle of poverty or a high net worth family in need of financial governance, those who can execute on Real Wealth Management principles for their clients bring them closer to the utopian state sustainable financial security. Tax literacy is a big part of this. 
It’s Your Money. Your Life. Human capital can be fragile. When people have capital, they can manage the future risk of losing jobs or health. Ask your tax professional about helping you manage economic risk by preparing the best return for your family unit and equipping you with a Real Wealth Management strategy to invest your family refunds.
 
 
 
 
 
 
 
 
 
 
 
 
 

0 Comments to Poverty and Real Wealth Management: It Begins with Tax Literacy :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment