Tom Bollum, a seasoned optical industry executive shares valuable insights on practice real estate in a conversation with EyesWideOpen host, Roxanne Arnal. They discuss the importance of location and how a change of location could impact the practice. Must read lease negotiation tips are provided!


Tom Bollum

About the Guest

Tom Bollum combines a unique skill set:  Commercial real estate expertise with extensive C-suite experience in the optical world.

Tom successfully founded and built several optical retail businesses and was awarded the Canadian Entrepreneur of the Year award for this work.

He always enjoyed the “real estate” aspect of his optical career and made the leap in 2008 to become a licensed real estate Broker focusing on the marketing and sales of residential and retail development properties, as well as tenant representation.

Episode Notes

Tom provides an overview of his “optical world” history which included executive positions with some of the largest players in the Canadian Optical market including NewLook and Greiche and Scaff (Montreal).

He became quite familiar with the high-volume optometric practices with strong retail sales. Tom explains how and why he moved into the real estate business in 2008.

He delves into the importance of location when it comes to retail eye care, explaining why location is still a critically important decision for any practice and what patient retention a practice can expect from a move in physical location.

His objective view of the impact of moving a practice is advise worth heeding for any practice considering it.

He and host Roxanne Arnal each share their experiences with real estate ownership while Tom opines on the value of owning your own premises.

Finally, Tom has some great “insider tips” for practice owners negotiating a new lease. He reveals some of the hidden leverage points that eye care practice owners have and offers specific tips on getting the best deal.

Resources

Click the play button at top of page to listen.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS).  She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in  2012 to leave optometry and become a financial planning professional.  She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.


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Eye Care Business Canada Sponsors CAOS

Eyecare Business Canada and NextGen OD are pleased to announce their 2023 Sponsorship to the Canadian Association of Optometry Students (CAOS).

NextGen OD is a digital resource specifically for recent Canadian Optometry grads and Optometry students studying in Canada and in the USA. The site provides resources for Optometry Students and recent OD graduates, including information on career options in all facets of optometric practice.

As students enter their final academic years, progress through internships and externships, and possibly residency and fellowships, a host of options and opportunities lay ahead.  NextGen OD provides insights from students making these choices as well the paths of recent grads who are dealing with these important decisions.

The NextGen OD eco-system consists of a website (www.NextGenOD.ca), Facebook page, Instagram, and a Linked In Showcase Page.

APERTURE Magazine Contest Sponsorship and More
A unique aspect of NextGen OD’s sponsorship is to reward winning contributions to CAOS’ online magazine, APERTURE.

Student winners of the APERTURE writing contest will be recognized by publishing the winning entries in Optik Magazine in 2023, reaching over 10,000 Canadian eye care professionals.  Additionally $500 of prizes will be provided by the publisher to the winning entrants.

“As a broad spectrum B2B publisher in the eyecare space, identifying the next generation of leading peer influencers is an excellent opportunity to acknowledge the talent that lies within the student cohort and bring their fresh perspectives to the industry at large.said David Pietrobon, president of VuePoint IDS, which publishes both Eye Care Business Canada and NextGen OD, Optik Magazine and CRO (Clinical & Refractive Optometry) Journal.

In addition to the APERTURE Magazine contest sponsorship, NextGen OD is planning webinars bringing together Canadian students from across North America with various subject matter experts. Plans are also underway to provide peer-reviewed clinical pearls to both students preparing for Board Examinations and recent graduates that require continuing education credits. These will be provided through CRO (Clinical & Refractive Optometry) Journal and CRO Online CE, a division of VuePoint IDS Inc.

.About VuePoint IDS
VuePoint IDS Inc. is a private 100% Canadian-owned media and marketing services company focused on serving the information needs of the eyewear and eye care industry’s professional service providers including optometrists, opticians and affiliated personnel. VuePoint publishes print and digital titles for eye care professionals under the media brands Optik, (CRO) Clinical & Refractive Optometry, Eye Care Business Canada/NextGen OD and co-publishes IMAGINEM Magazine, a multi-lingual global eyewear fashion publication published in 5 languages.

VuePoint also offers services to eye care professionals, including accredited continuing education program development and delivery for Optometry through CRO Online (www.crojournal.com)  and for Opticians through OptikConEd (www.optikconed.com).

About  Canadian Association of Optometry Students (CAOS)
CAOS represents Canadian Students enrolled in optometry faculties across North America. CAOS has two chapters in Canada, University of Waterloo and Université de Montréal. There are currently nine chapters in US-based optometry schools. CAOS provides optometry students with a unified voice and advocates on behalf of students in shaping the future of optometry in Canada.


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Kicking off the Holiday Season is also a time to ensure that you have done the necessary year-end tax planning which can help lessen your tax bill come the new year.

Personal Year End

Regardless of the year end you have selected for your corporation, every person in Canada has a taxable year end of December 31st. Therefore, it’s important to review some key tax considerations prior to December 31st.

RESP

A Registered Education Savings Plan has some rules around both withdrawals and contributions. On the contribution side, eligible grant recipients are not only lifetime capped, but also annually capped. As a result, timing of contributions that generate grants is important to review prior to year end.

Withdrawals can be a little, I mean a lot, more complicated. You have six months after you have completed your post-secondary education to make a final request for grants, bonds and growth withdrawals (known as Education Assistance Payments or EAPs). In addition, for the first 13 weeks of a program, you can only request a maximum EAP of $5,000. Keep in mind that EAPs are deemed fully taxable income to the student. Therefore, as year end approaches, you may have an opportunity to withdraw a second EAP for a first year student who might have low taxes for 2022.

RDSP

You have until year end to make a contribution to be eligible for 2022 grants in a Registered Disability Saving Plan. These plans and associated grants are available to qualified disabled persons in Canada.

Strategic TFSA Withdrawals

Any withdrawals that you make from your TFSA are added back to your contribution room come January 1, 2023. Therefore, if you are looking to withdraw funds from your TFSA, it might be wise to do so prior to year end. This can be especially valuable if you are moving from a bank TFSA savings account into an investment early in the new year for example.

Paying Corporate Dividends

If you plan to pay dividends over the winter, consider the tax timing for both you and your corporation. Any 2022 dividends declared for a corporate year end prior to December 31 will be taxable on your 2022 personal tax return. You will want to weigh out the timing based on other income you have earned in 2022 and what you expect to earn in 2023 to determine the best timing.

Corporate Investment Earnings

Because corporate investment earnings over $50,000 in a year will erode your small business deduction tax break, it is important to review the earnings regularly and make adjustments either through strategic payments, setting up an Individual Pension Plan (IPP) or purchasing corporate owned exempt life insurance for example.

Tax Loss Selling of Investments

Given the market volatility we have seen this past year, your non-registered accounts may have capital losses. These losses can be triggered and used to offset taxable capital gains from the past three years (and can be carried forward indefinitely – so be sure to keep track of them). Therefore, if you have been sitting on a shareholder loan repayment, it might be a great time to liquidate some corporate investments to pay yourself back, all the while triggered a tax credit for your corporation and transferring tax free money to your pocket!

Likewise, it may be a good time to withdraw from your personal non-registered accounts to cover off some debts you are carrying, pay for home renos, or create cash to reinvest in your RRSP.

Income Splitting & Prescribed Rate Loans

The use of prescribed rate loans might be worth looking at if one spouse is in a high tax bracket while the other is in a lower tax bracket. The current prescribed interest rate is 3% and is set to increase to 4% January 1, 2023. Once the loan is set, the interest rate remains for the duration of the loan. This is higher strategy planning that also needs to involve your accountant and lawyer and should be discussed in greater detail should you wish to review this option.

Charitable Donations

Receipted donations are grouped together and are eligible for a 15% federal credit (and typically additional provincial credit) on the first $200. On amounts exceeding $200, the federal rate jumps to 29% (and is actually 33% if your taxable income exceeds $221,708). So if you are thinking of donating in January, you might want to move that forward!

RRSP

I know you are wondering why this is so late in the list – but the 2022 RRSP contribution deadline isn’t until March 1, 2023.

As you finalize your earned and taxable passive income for 2022, your next step is to review optimal RRSP contributions for overall average tax rate management, now and in retirement.

Understanding your 2022 income and available cash flow is key to ensuring you have drawn out appropriate salary and dividends from your professional corporation prior to December 31.

So Many Options

There are so many options and opportunities to save tax if you plan ahead. Of course, the best fit options are based on your personal situation and goals.

Advisory

As your Chief Financial Officer, I am here to help you sort out the options that make the most sense for you. Helping you understand your money and assisting you in making smart decisions about your debt repayment, insurance protection, tax management and wealth creation, are just some of the ways that I work as your fiduciary.

Have more questions than answers? Educating you is just one piece of being your personal CFO that we do. Call (780-261-3098) or email (Roxanne@C3wealthadvisors.ca) today to set up your next conversation with us.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission of Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS).  She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in  2012 to leave optometry and become a financial planning professional.  She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.


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