Group
benefits for BBOT members
Office overhead relief for
disabled business owners
Most business owners buy insurance that provides them
with a personal income if they can’t work because of
an illness or accident. But if you can’t work, how do
you pay expenses that will keep your company intact
until you can get back to it? With the Chambers Plan,
you choose Business Overhead Benefits, along with your
disability coverage.
Business Overhead coverage is designed to pay the actual
expenses you normally incur running your business. The
benefit takes effect 30 days after you become disabled,
and continues for up to 18 months. If you’re a partner,
rather than a sole owner, the coverage pays your assumed
portion of eligible expenses.
What bills can the benefit pay? The broad range includes
office rent, power, and phone expenses. For salaries,
the benefit pays the people who do not generate income
for your company but are essential to its operations
while you’re disabled.
Business and property taxes are eligible, as are license
fees, leasing and amortization (including your company
vehicle), and the professional services of an outside
accountant.
Even regular office supplies and postage are included,
as is interest on mortgage payments, lines of credit
and unpaid bills. Your Chambers Plan agent can walk
you through a complete list of the coverage’s many included
items.
Choose Business Overhead and you’ll tailor your plan
to the level that suits your expenses. You can apply
for benefits in increments of $100, from $500 to $2,000
per month.
So don’t let an accident that happens to you disable
your business, too. Plan to cover key expenses through
your Chambers Plan group benefits provided through the
The Brampton Board of Trade -brought to you by your
Chambers of Commerce Group Insurance Plan® agent, representing
Canada's premier group plan for small and medium sized
business. Visit www.chambers.ca for more information.
back to the top
The
Canadian Way
Canadian workplace culture and cultural diversity
“Canadian diversity is increasingly recognized as an
asset in both the domestic and international market
and as a major contributing factor to Canadian economic
prosperity”- Creative Immigration and Business Consultants
Ltd. Website, (www.creative-bd.com)
Culture influences every aspect of our lives, yet many
employers are unaware of this. If asked whether or not
culture has a significant impact in the workplace, many
will answer that it does not, based on their understanding
that culture means music, literature, arts and language
and that, therefore, only language (mother tongue other
than English/lack of sufficient proficiency in the English
language) has an impact in the Canadian workplace.
In fact, culture has a much deeper meaning and significance,
impacting what we do, how we feel, how we think and
act, how we communicate and interact, influencing all
aspects of our lives.
Culture is learned, taught and shared by a group comprised
of people from the same country of origin, ethnicity
or religious background and it represents, describes
and symbolizes common characteristics, behaviors and
beliefs of such a group.
Culture is as well, to a great extent, the lens through
which we see, perceive and assess others.
And although there are differences among people from
the same culture, there is no culture of one; culture
is a collective concept that manifests itself with some
variations among different individuals from the same
background.
We, Canadians, by and large are people whose work culture
points to the realization that respect for rules and
regulations is critical; that attendance and punctuality
are important; that respect for authority together with
personal initiative and team work is essential and that
performance and accountability must be observed and
assessed at all times. We are polite, civil, amiable,
respectful and non-confrontational in the workplace.
We are friendly but keep our personal and family life
mostly private and separate from our professional one.
For business we wear business attire, whether formal
or casual depending on the nature of position, the nature
of our duties and the specific corporate culture.
We welcome immigrants from all over the world to come,
settle, work and live in our country but, as employers,
we should not assume or take for granted that they share
our workplace culture, customs and ethics. However,
we should not assume either that newcomers’ cultures
are so different that they won’t be willing or able
to compromise and adapt to Canadian culture and the
specific corporate culture of the company.
Employers should pay more attention to the fact that
immigrants bring with them not only different languages
and experiences, but also different cultures to the
workplace.
On the other hand, quite often employers fail to see
the need for enlightening immigrants’ employees as to
the Canadian work culture and company’s specific corporate
culture.
These two sides of addressing the issue of employment
of newcomers to Canada can be summarized by a combination
of awareness and commitment based on immigrants cultural
adaptation / integration, and employers cultural tolerance
& accommodation.
In the Canadian workplace, cultural differences are
one of the most valuable assets of any business but
they represent, at the same time, a possible troublesome
source of conflict.
The failure of both employers and employees to fully
comprehend these cultural differences may lead to personal
and social problems affecting the harmonious functioning
of the workplace.
Failure to recognize and adapt to these differences
can mean the difference between success and failure
in building and managing a diverse workforce, with obvious
consequences to the bottom line.
In the workplace, communicating across cultures is
imperative, and it takes awareness, commitment and great
sensitivity to achieve successful inter-cultural communication.
By understanding other cultures both employers and
employees become more insightful and adaptable in their
communication efforts to work together as a productive
team.
As employers welcome and embrace cultural diversity
into the Canadian workplace, it is imperative that every
effort is made to learn about each other cultures to
be able to successfully work together and avoid conflicts
in the workplace.
After all, that’s the Canadian way!
Dr. Yamil H. Alonso is Program Coordinator, The Brampton
Board of Trade, Skills Without Borders. For more related
information visit The Canadian Way
Canadian workplace culture and cultural diversity
“Canadian diversity is increasingly recognized as an
asset in both the domestic and international market
and as a major contributing factor to Canadian economic
prosperity”- Creative Immigration and Business Consultants
Ltd. Website, (www.creative-bd.com)
Culture influences every aspect of our lives, yet many
employers are unaware of this. If asked whether or not
culture has a significant impact in the workplace, many
will answer that it does not, based on their understanding
that culture means music, literature, arts and language
and that, therefore, only language (mother tongue other
than English/lack of sufficient proficiency in the English
language) has an impact in the Canadian workplace.
In fact, culture has a much deeper meaning and significance,
impacting what we do, how we feel, how we think and
act, how we communicate and interact, influencing all
aspects of our lives.
Culture is learned, taught and shared by a group comprised
of people from the same country of origin, ethnicity
or religious background and it represents, describes
and symbolizes common characteristics, behaviors and
beliefs of such a group.
Culture is as well, to a great extent, the lens through
which we see, perceive and assess others.
And although there are differences among people from
the same culture, there is no culture of one; culture
is a collective concept that manifests itself with some
variations among different individuals from the same
background.
We, Canadians, by and large are people whose work culture
points to the realization that respect for rules and
regulations is critical; that attendance and punctuality
are important; that respect for authority together with
personal initiative and team work is essential and that
performance and accountability must be observed and
assessed at all times. We are polite, civil, amiable,
respectful and non-confrontational in the workplace.
We are friendly but keep our personal and family life
mostly private and separate from our professional one.
For business we wear business attire, whether formal
or casual depending on the nature of position, the nature
of our duties and the specific corporate culture.
We welcome immigrants from all over the world to come,
settle, work and live in our country but, as employers,
we should not assume or take for granted that they share
our workplace culture, customs and ethics. However,
we should not assume either that newcomers’ cultures
are so different that they won’t be willing or able
to compromise and adapt to Canadian culture and the
specific corporate culture of the company.
Employers should pay more attention to the fact that
immigrants bring with them not only different languages
and experiences, but also different cultures to the
workplace.
On the other hand, quite often employers fail to see
the need for enlightening immigrants’ employees as to
the Canadian work culture and company’s specific corporate
culture.
These two sides of addressing the issue of employment
of newcomers to Canada can be summarized by a combination
of awareness and commitment based on immigrants cultural
adaptation / integration, and employers cultural tolerance
& accommodation.
In the Canadian workplace, cultural differences are
one of the most valuable assets of any business but
they represent, at the same time, a possible troublesome
source of conflict.
The failure of both employers and employees to fully
comprehend these cultural differences may lead to personal
and social problems affecting the harmonious functioning
of the workplace.
Failure to recognize and adapt to these differences
can mean the difference between success and failure
in building and managing a diverse workforce, with obvious
consequences to the bottom line.
In the workplace, communicating across cultures is
imperative, and it takes awareness, commitment and great
sensitivity to achieve successful inter-cultural communication.
By understanding other cultures both employers and
employees become more insightful and adaptable in their
communication efforts to work together as a productive
team.
As employers welcome and embrace cultural diversity
into the Canadian workplace, it is imperative that every
effort is made to learn about each other cultures to
be able to successfully work together and avoid conflicts
in the workplace.
After all, that’s the Canadian way!
Dr. Yamil H. Alonso is Program Coordinator, The Brampton
Board of Trade, Skills Without Borders. For more related
information visit www.skillswithoutborders.com
back to the top
The
U.S. subprime mortgage crisis
You’ve likely seen the doom and-gloom headlines about
the growing subprime mortgage mess in the U.S. A few
months ago, most people had probably never heard of
“subprime” - an industry term used to describe mortgages
that are written for clients with less-than-ideal credit
histories.
So what just happened and why? And how is it affecting
Canadian homeowners? What happened, in short, is that
in the past year, massive waves of U.S. borrowers began
to default on their mortgages leaving lenders and their
investors bruised or even bankrupt. It’s a complex situation
but there are some key underlying factors.
Firstly, there was some unrealistic optimism in the
U.S. that house prices would continually rise. And secondly,
there were too many mortgages that should not have been
written without a more realistic look at the risks involved.
The popular 2/28 Adjustable Rate Mortgage (ARM), for
example, offered cash-strapped homebuyers a very low
teaser rate for two years, which was then re-set into
a much higher long-term rate. Thousands of borrowers
– completely unable to make payments at the higher rate
or even refinance – were pushed into foreclosure and
lost their homes.
Here in Canada, subprime mortgages represent a very
small portion of our overall mortgage business. And
mortgage brokers – the main sellers of subprime mortgages
– have done an excellent and diligent job here in both
protecting lenders from undue risk, and helping homebuyers
avoid credit and payment pitfalls. We’re just not experiencing
the same wave of foreclosures as they are in the U.S.
Our mortgage portfolios continue to exhibit strong credit
performance with relatively low levels of arrears and
losses, which is different from U.S. portfolios.
Still, we should expect to feel the economic rumblings
of the mortgage mess in the U.S. There could be an economic
slowdown in the U.S. that we could feel here in Canada.
And some Canadian subprime lenders have temporarily
pulled out of subprime lending while others have raised
rates to justify the risk for these kinds of mortgages.
This of course doesn’t apply to conventional “A” mortgages
that are available at the best rates to the typical
or standard borrower.
As we’ve seen before, financial bubbles do occur that
can shake the financial system for a short period of
time. You likely remember the 1987 stock market crash,
the Long-Term Capital Management / Russian debt crisis
of 1998 and even the tech bubble. This particular situation
could result in downward pressure on interest rates
in both Canada and the U.S. in order to keep the 2008
economy healthy, which is good news for those renewing
or looking to refinance.
Carol Kollar of Mortgage Architects Inc. is a mortgage
specialist. She can be reached at (905)789-8198 x 202
or by email at carol.kollar@mtgarc.ca.
back to the top
Managing
your family’s wealth
Three ways insurance can help
When people think of insurance, they usually think
about home, life and auto. But insurance can also help
you enhance and protect your family’s wealth. Here are
three ways insurance can help provide financial peace
of mind for you and your family.
1. Wealth creation
It’s important to know that your family would be financially
secure if you became unable to earn an income due to
illness or disability, or if you passed away prematurely.
Critical illness insurance provides a lump-sum payment
to help with your family’s day-to-day financial needs,
and assist with any costs not covered by the government.
Life insurance helps create wealth that you would
have created if you hadn’t passed away. The funds can
be used in any way your family needs – to help with
mortgage and debt payments, to fund children’s education
costs, or other expenses.
2. Estate preservation
You are probably familiar with Ben Franklin’s quote,
“In this world nothing is certain, except death and
taxes.” Unfortunately, death and taxes often go hand
in hand.
The only way to defer tax on death is to leave assets
to your spouse, otherwise there is a “deemed disposition”
of your assets at death which triggers tax. In other
words, the government considers your assets – whether
they have been sold or not – to have been disposed of
at fair market value, triggering the associated income
taxes.
Everything from stocks held outside registered retirement
plans to the family cottage is taxable. Any remaining
funds in your registered plans are taxable on your final
tax return – nearly half could go to the taxman.
To preserve the value of your estate, consider the
cost/benefit of life insurance to fund your estate’s
tax liability. A life insurance policy can provide a
fixed death benefit or grow with the tax liability.
3. Tax-exempt investing
If you hold interest-bearing investments in your non-registered
portfolio, you will be familiar with the costs of taxes
and inflation. With interest income being taxed at your
marginal rate, and inflation eroding away your purchasing
power, you’re almost better off putting these funds
under your mattress.
An interesting solution is tax-exempt insurance, where
income generated by your assets can accumulate on a
tax-deferred basis, as they do in registered plans.
And you can access the funds by taking out tax-free
loans using the policy as collateral.
Due to these advantages, many high-net-worth Canadian
families regard tax-exempt insurance as a third investment
pool, complementing their non-registered investment
portfolios and RSPs. However, there is also an insurance
benefit to tax-exempt insurance – a completely tax-free
death benefit that your beneficiaries can use to cover
estate taxes, or for any other planning purpose, such
as creating a family trust or for charity.
Steve Robinson, is an Investment Advisor with RBC Dominion
Securities Inc. This article is for information purposes
only. Please consult with a professional advisor before
taking any action based on information in this article.
Steve can be reached at 905-450-5946
back to the top
|
