The Wealth Algorithm for IT Consultants: The Independent Consultant's Guide to Maximizing Revenues, Tax Efficiency, and Retirement Planning

By Eric Chevrette

The Finance Manual Your Advisor Doesn't Want You to Read

Whether you're already an independent IT consultant or considering becoming one, you probably have some questions and concerns about your finances: how can you make the most of your money, minimize your taxes, maximize your returns, and protect your personal and fa

• Language: English
• Publisher: Editions TI360
• Release date: May 31, 2024
• ISBN: 9781988179698

Book preview

The Wealth Algorithm for IT Consultants

The Independent Consultant’s Guide to Maximizing Revenues, Tax Efficiency, and Retirement Planning

Eric Chevrette

Macintosh HD:Users:rob:Downloads:brightflame BW.png

President, IT360 Financial

Copyright © 2024 by Eric Chevrette. All rights reserved.

First Edition. Published in Canada by BrightFlame Books, Burlington, Ontario. www.BrightFlameBooks.com

No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical reviews and articles in their entirety.

Limit of Liability/Disclaimer of Warranty: The information in this book is presented for entertainment purposes only. The publisher and authors make no representations or warranties with respect to the accuracy or completeness of the information contained in this work and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a qualified professional advisor where appropriate. Neither the publisher nor the author shall be liable for any loss of income, profit, or any other commercial damages, nor any emotional or psychological distress, including but not limited to special, incidental, consequential, or other damages.

Disclaimer

The content of this book is provided for informational purposes only. It is not meant as legal or investment advice and should not be considered a recommendation to purchase or sell any security or products, whether mentioned explicitly or not.

Content contained or made available through this book is not intended to and does not constitute legal advice or financial advice, and no fiduciary relationship is formed. The publisher and the author are providing this book and its contents on an as is basis. Your use of the information in this book is at your own risk.

This book is not to be construed as a form of promotion, an offer to sell securities, or a solicitation to purchase securities or products. This book has been produced as a source of general information only. It does not constitute specific advice with respect to your financial situation and should not be construed as financial, legal, accounting, tax or other advice.

The publisher and the author do not make any guarantee or other promise as to any results that may be obtained from using the content of this book. To the maximum extent permitted by law, the publisher and the author disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations contained in this book prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. Neither the author, IT360 Financial, nor the publisher shall be liable for any loss of income, profit, or any other commercial damages, nor any emotional or psychological distress, including but not limited to special, incidental, consequential, or other damages.

Commentary contained within this book reflects the personal opinions of the author at the time of writing. These opinions may change at any time, depending on market developments and other factors. We assume no responsibility for updating this content. It was developed from sources that the author believes to be reliable. The publisher and the author cannot be held responsible for any inaccuracies. Please consult your professional advisor before making any investment decisions.

The content of this book is protected by applicable copyright laws. You may use and reproduce it for your own personal, non-commercial use, provided that you do not modify it and that you retain the copyright notice and other legal notices. You may not download, transmit, store, copy, distribute, reproduce or publish any information provided in this book without permission.

Certain names, phrases, logos, graphics or designs on this book are registered or unregistered trade names or trademarks (collectively, the Trademarks) of their owners and their affiliates or of third parties, which the author uses under license.

Always read the prospectus or fund overview before investing. Mutual funds are not guaranteed, their values change frequently, and past performance is not indicative of future results.

Acknowledgements

This book could not have happened without the help and support of many people.

First, I could not have built IT360 Financial into the business it has become had I not been part of a great network of financial advisors through Desjardins and the Desjardins Financial Security Independent Network. Having a great team behind you is incredibly powerful in business, and the Desjardins network has always felt like a vast, supportive extended family.

Second, I had the backing of everyone in my financial centre. Thank you to SFL QMA for supporting me in my adventure. Focusing on a very narrow niche right at the start of my business was a big risk, but they believed in me and let me carve my own path.

Third, IT360 Financial would not be what it is without my team. I have been fortunate to bring together a wonderful group of people. IT360 Financial is built on teamwork, laser focus and innovation, none of which could happen without this exceptional group. Each of them treats the company and, more importantly, our clients as though it were their own business. Every decision they make is with the best interests of the client and the firm in mind, and they are always looking for ways to make things better and more efficient.

Fourth, within the IT360 Financial team, this book would never have happened without one person in particular, Sam Cellini, and his persistence and belief in our mission. He pushed me to put pen to paper and get the story of IT360 Financial out into the world. It took three years, but that persistence and belief paid off. In the end, he mocked up a cover with the company’s logo, printed it in colour, wrapped it around a book he picked up off the shelf, and shoved it in front of me so I could visualize what the book would look like.

Eric, he said, What you and the team have built is incredible. More people need to know it. You need to write a book. This is how we get our mission out there, educate people, and transfer your knowledge to a wider audience!

Beyond that, he was there throughout the writing process, helping me organize my ideas, contributing client stories and content, and reading and providing feedback on each draft.

Sam was also the one who introduced me to Rob Cuesta and the team at BrightFlame Books. Rob helped tremendously with the overall organization and writing of the book, and his team turned everything into the neatly packaged book you are reading now.

Next, I want to thank my family, starting with my parents, who taught me the value of hard work, the personality traits to succeed, and a sense of entrepreneurship, without which I could not have built the business I have. Finally, of course, I thank Nathalie Chabot. She has always been my biggest cheerleader, pushing me to accomplish things I didn’t even think were possible. Today, thanks to her, my business brings in more each week than I ever thought I’d make in a year. Beyond that, though, she is also the voice of sanity, telling me when I’m doing something crazy and always willing to tell me the truth—and annoyingly, because she knows the industry and business very well herself, she’s invariably right.

Foreword

By Michael Leacy, President, National Association of Canadian Consulting Businesses

I was delighted when Eric asked me to write the foreword for his new book The Wealth Algorithm: A Complete Financial Guide for Independent Consultants.  In today’s dynamic business landscape, the role of independent consultants has never been more vital. You are a driving force behind innovation, growth, and transformation within various industries. Your dedication fuels the success of countless enterprises across Canada.

The Wealth Algorithm is not just another financial guide. It is a tailored roadmap, designed exclusively for independent consultants. It includes decades of Eric’s wisdom and insights, as well as best practices, along with contributions from many seasoned professionals who have worked with Eric directly.

The strategies in this invaluable guide will empower you to take control of your finances, maximize your profitability, and secure your financial future. Everything—from managing expenses to optimizing taxes and planning for retirement—is included.

I extend my heartfelt gratitude to Eric Chevrette for his generous work in making The Wealth Algorithm a true reflection of the independent consultants’ dedication to success. I am honored to present this invaluable resource, and I hope you find it very valuable. Embrace the teachings within this guide and propel your businesses and industry to new heights!

Introduction

If you’re reading this, I assume you’re either an independent IT consultant or considering becoming one. I’m also going to assume that you are worried about your finances: how can you make the most of your money, minimize your taxes, maximize your returns, and protect your personal and family wealth for the future?

You may be thinking about retirement and wondering whether you’ll have enough to see you through your later years. Or you may be much earlier in your professional journey, and you just want to ensure that you can enjoy the benefits of your hard work now but know that there will be enough money for times when you’re between clients.

There’s a lot of financial advice out there, and Independent Consultants like you are typically a lot better off than the average Joe (or Jill), which means you probably get approached a lot more than most people by advisors. But how do you know whether the advice you’re getting is not just right but right for you?

Beware of Broken Paradigms

In Canada, independent business owners like you make up less than 10% of the working population, which means that more than 90% of people are T4 employees. As a result, the financial advice industry is set up overwhelmingly to meet their needs: retail products are set up with employees in mind, and the training which advisors receive focuses heavily on that group.

However, you’re not a T4 employee: you’re a business owner who owns a corporation, which means you have access to products most people can’t buy. More importantly, your corporation is taxed under entirely different rules from other people. That gives you a huge advantage when it comes to planning your finances, as long as you (and your advisor) know how to leverage those different rules and tax laws.

And that’s the problem: most advisors you