M&A advisor Trisha Mossey shares her insights as a professional who also volunteers with two very different organizations
For the last two years I’ve worked fulltime as an advisor with MRSB Mergers & Acquisitions. This means I spend the bulk of my time making sure our clients are successful in buying and selling businesses. The business owners and entrepreneurs I work with are engaging, savvy and often entertaining people who want to enjoy professional and financial success.
Two years ago I joined the executive of Catholic Family Services Bureau (CFSB), a wonderful not-for-profit organization that helps families and individuals in Prince Edward Island overcome obstacles through professional counseling. As Treasurer of their board, I oversee CFSB’s finances. Just six months ago, I also joined the Biz Under 40 committee, a group of young professionals who organize fun networking events for other young professionals in PEI under the Greater Charlottetown Area Chamber of Commerce umbrella.
Obviously, my two volunteer roles are very different; thus they offer very diverse experiences. Here are a few reasons why joining a local board or committee (or two!) might be right for you:
- It increases your knowledge and experience
Overseeing the finances of a not-for-profit is totally different than working on specific client files for a private company. Each cog in the NPO machine has to live up to his or her role if the organization is going to thrive, especially in today’s climate when resources are often hard to come by.
In volunteer roles you often have the opportunity to work with more experienced people who know the organization inside and out. You have to set aside the private business mindset and open the doors to a new world with different priorities and goals. It’s also a chance to get away from your desk and take part in a host of events and meetings that can put you in a new mindset that is separate from your day-to-day.
- It expands your networks
I’ve met a lot of great people through both CFSB and Biz Under 40. Far from attracting people from the same walk of life, meetings are filled with lawyers, business owners, accountants, teachers and social workers to name a few. Cooperate with, learn from and make friends with these people; you never know when you’ll be able to help each other out in a professional capacity.
- It challenges you be a better team player
For Biz Under 40 we have to come up with fun, creative networkers that will get people out and increase overall attendance numbers. For CFSB the focus is to keep the organization ticking and effectively helping those in need. Two very different causes and both involving several stakeholders. Each role challenges me to look at what works for other committee members and for the organization at large. We each must be respectful of others’ opinions and viewpoints because we have to make important decisions as a group constantly, and often quickly.
One final tip
My main piece of advice would be to find an organizations you’re passionate about, as you will be helping to guide future decisions on its behalf. A board or committee position requires time and energy, so a personal connection to the organization can keep you motivated when things get busy or challenging. It also gives you a great chance to learn more about an organization you’re interested in. Don’t forget to keep your volunteer positions in mind when applying for your next professional role, and have fun!
Colin Younker, CPA, CA, FCA points out some important differences between these two savings vehicles
The Registered Retirement Savings Plan (RRSP) and the Tax Free Savings Account (TFSA) are two government-run tools for saving for your retirement. The question often is, which is a better investment? There are quite a few differences between the two that may influence which one you decide to invest in.
The best option for most Canadians is to invest in both the RRSP and TFSA. However, the amount of funds available in most cases will require a choice between one or the other, or a partial contribution to each.
When deciding whether to invest in the RRSP or TFSA, certain factors should be considered:
- If both your current and expected retirement tax rates are in the top tax bracket, financially both investments are the same
- If your retirement income is in the Old Age Security clawback range, the TFSA is a better option as the RRSP income increases the net income and the amount of clawback
- For taxpayers who have two or more dependent children, the RRSP is the best option for those in the $25,000 to $95,000 range as they will receive greater child tax benefits; this is because the RRSP contribution decreases net income
- The TFSA is a more flexible investment tool. If you withdraw funds from your TFSA there is no tax impact. If you withdraw from your RRSP the withdrawals are taxable
- If you withdraw from your TFSA your contribution limit is reinstated the following year, allowing the funds to be reinvested; this is not the case with an RRSP
- After you reach 71 there are mandatory minimum withdrawal requirements for RRSPs and you cannot make further contributions; these rules do not apply to the TFSA
- If you feel you require a savings plan from which you want to withdraw funds at different times, the TFSA is the better option, although one should bear in mind that a TFSA is easier to withdraw from and investors may not be as diligent to reinvest funds
There are a couple of other factors to take into account when deciding between the RRSP and the TFSA. For example, if your employer matches your contributions to an RRSP then you should be contributing at least the maximum amount the employer will match. Also, the tax savings you realize from RRSP contributions should be reinvested for maximum savings.
The advice above may not apply or provide maximum benefits for all taxpayers, depending on their income and investments. Each taxpayer should talk to a professional advisor before making changes to your retirement savings plan.