I run an AI-powered Accounting firm based in Edmonton. Conventional accounting is almost always WRONG, inefficient, and drastically holds you back. Taxes, payroll, and housing are the only 3 costs that matter. Failing to optimize those will hurt your finances. If you use mainstream accounting, you should not be surprised if you waste the best time to be alive, having to work forever with almost no chance of recovery. If their service worked, everyone would be well off and rich. You do the math. Please reach out to us at firstname.lastname@example.org
1. #1 lowest small business taxes in the developed world
Combined, the corporate and personal taxes in Alberta amount to only 14% of earnings for $300,000 in income (compared to 20% in Switzerland). In Alberta, you can earn more than $20,000 per month after-taxes and become a multi-millionaire within a short time. Making more money has a bigger impact on your financials than reducing your spending since there is a ceiling to cutting costs, you can not go below 0 while there is no ceiling to earning.
2. Low-cost Housing vs Zug, Switzerland (#2 lowest tax), Vancouver, Toronto
Until you have the cash to optimize your taxes and your mortgage interest you should be keeping your cash flow down by renting. It is a common mistake to think that buying a house saves you money. Buying an asset with debt is merely renting money you don’t have. In addition to the interest, buying a house has more costs: property taxes, home maintenance, repairs, upgrades. A $700,000 house can be rented for $2,550 CAD, so the price-to-rent (P/R ratio) is 23 (700k/ (2550*12)). You should only buy if the P/R ratio is less than 15 unless you are optimizing your opportunity cost of other assets (a scalable business). Focus on delivering value, and you’ll see the priorities in building a scalable business since real estate does not normally add comparable value except in gentrification during times of shortage.
3. High Diversity, Inequality, Complexity
Diversity is the raw material of natural selection and pushes evolution forward since inequality is not only natural & inborn, it grows with the complexity of civilization. Compounding inequalities can give you 3x+ after-tax earnings of the median household.
Canada is developed enough to avoid stress from real problems like feeding yourself, while still raw enough that it is not too structured, too perfect and too developed like Switzerland.
In Canada, we are forced to listen to what people from around the world have to teach us about the new world. Asian management is all about doing- not about planning. Living in places like Vietnam have made clients better at living with insecurity and therefore better at embracing risk.
1 Thing Switzerland does better than Canada
In Canada, we have a system where the cost of health care is built into our taxes and dependant on our income and not on our risk optimization like in Switzerland.
In Switzerland, you can pay out of pocket for everything under your deductible. Costs above your deductible are taken care of by your insurance policy to which you pay a monthly premium. You can reduce your monthly premiums by reducing your deductible. The Swiss system is more sustainable since there is less asymmetry (where the largest cost to the Canadian health care system is also the smallest contributor).
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