BC Finance Minister Carole James delivered the province’s 2019 budget update on February 19, 2019. The budget anticipates a surplus of $274 million for the current year, $287 million for 2020 and $585 million in 2021.
The biggest announcements are:
- BC Child Opportunity Benefit
- Interest Free Student Loans
BC Child Opportunity Benefit
The BC Child Opportunity Benefit covers all children under 18 and can be applied for starting in October 2020. (This replaces the Early Childhood Tax Benefit where the benefit ended once a child turned six.)
Starting October 2020, families will receive a refundable tax credit per year up to:
- $1,600 with one child
- $2,600 with two children
- $3,400 with three children
Families with one child earning $97,500 or more and families with two children earning $114,500 or more will receive nothing.
Interest Free Student Loans
The provincial portion of student loans will now be interest-free effective as of February 19, 2019. The announcement covers both current and existing student loans.
Medical Services Premium
As previously announced in the last budget, effective January 1, 2020, the Medical Services Premium (MSP) will be eliminated. In last year’s budget update, MSP was reduced by 50% effective January 1, 2018.
Public Education System
The public education system will receive $550 million in additional support.
Pharmacare program will be expanded with an additional $42 million to cover more drugs, including those for diabetes, asthma and hypertension.
To learn how these changes will affect you, please don’t hesitate to contact us.
Financial Planning for business owners is often two-sided: personal financial planning and planning for the business.
Business owners have access to a lot of financial tools that employees don’t have access to; this is a great advantage, however it can be overwhelming too. A financial plan can relieve this.
A financial plan looks at where you are today and where you want to go. It determines your short, medium and long term financial goals and how you can reach them. For you, personally and for your business.
Why do you need a Financial Plan?
- Worry less about money and gain control.
- Organize your finances.
- Prioritize your goals.
- Focus on the big picture.
- Save money to reach your goals.
For a business owner, personal and business finances are connected. Therefore both sides should be addressed: Personal and Business.
What does a Financial Plan for a Business include?
There are 2 main sides your business financial plan should address: Growth and Preservation
- Cash Management- Managing Cash & Debt
- Tax Planning- Finding tax efficiencies
- Retaining & Attracting Key Talent
- Investment- either back into the business or outside of the business
- Insurance Planning/Risk Management
- Succession/Exit Planning
What does a Personal Financial Plan include?
There are 2 main sides your financial plan should address: Accumulation and Protection
- Cash Management – Savings and Debt
- Tax Planning
- Insurance Planning
- Health Insurance
- Estate Planning
What’s the Financial Planning Process?
- Establish and define the financial planner-client relationship.
- Gather information about current financial situation and goals including lifestyle goals.
- Analyze and evaluate current financial status.
- Develop and present strategies and solutions to achieve goals.
- Implement recommendations.
- Monitor and review recommendations. Adjust if necessary.
- Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals.
- Feel confident in knowing you have a plan to get to your goals.
Get in Touch
Clear Path Financial Planners
4603 Kingsway, Suite 210
Burnaby, BC V5G 4M4
Clear Path Financial Planning
About Clear Path Financial Planning
We believe in empowering our clients to participate in the creation and maintenance of their overall financial well being through proper education and ensuring an understanding of the possible outcomes involved in each decision. It always surprises us to learn that so many individuals are removed from their planning and rely on their advisers to recommend the best course of action. This tends to be the result of a lack of understanding of the proposed concept/situation on the part of the client or their financial team not spending time to ensure the client fully understands and appreciates the possible benefits/disadvantages of each proposal.