Tax Shelters For Business Owners

"Jerry White, financial commentator, in The Costco Connection Magazine, Jan/Feb 2001, in an article titled, “Building Your Net Worth In 2001” and subtitled, “Invest In Life Insurance”, addressing small business owners said, “The best retirement, tax, investment, and estate vehicle for owner-managers is Universal Life Insurance. Abandon the RRSP myth and avoid the trap. Tax-free is always better, and Universal Life is the financial answer.”

When you venture out into small business ownership you will need to not only create a Marketing Plan but also a Tax/Investment Plan. After all, one of the reasons you got into business for yourself is to make more money than you can make in a job. Once you start making that money you need to have a tax and investment plan in place to protect as much of your money as possible. As Jerry White stated in 2001, "Tax-free is better".

A couple of years after I started my first business I signed up for a 'Universal Small Business Life Insurance' plan for me and my partners. For more information you can sign up at The Canadian Financial Security Program which provides a free membership to access e-books on various financial topics. Check out: 'Invest Safely For Your Future' and in regards to this post topic; Chapter 18 'Using Universal Life Insurance as an Investment'.

Not only is this form of Life Insurance one of the only remaining tax free or tax shelters available in Canada today, after a determined amount of time, in my case 2 years, the money invested in this plan is also protected against creditors in the event of bankruptcy. No one wants to think about failure but it should be planned for as a contingency to protect some of your money. Because it is not locked in or protected until after 2 years then this means you should start a Universal Life Plan ASAP.

I would appreciate any comments, especially from financial advisers, on this topic for my readers across Canada and the United States.