Tick Tock: RRSP Season is Here!
I am continually amazed at the number of people, who have high incomes and savings, that fail to take full advantage of the preferential tax treatment of RRSPs versus other types of investment or savings accounts. This is especially true for business owners who often have retained earnings in their corporations while also having massive […]
Procrastination – Your Financial Dream Killer
Despite what many people think, the number one financial dream killer isn’t portfolio losses, or financial emergencies, or unemployment, and not even natural disasters. The number one reason people fail to reach their financial goals is procrastination – putting off the inevitable until the cost of your dreams or goals become prohibitively expensive. Why […]
Don’t Bet Your Retirement on a Simple Approach
You have probably heard about the old 70 percent rule that suggests retirees will need the equivalent of about 70 percent of their current income level to maintain their lifestyle in retirement. This assumes that retirement living costs will be 30 percent less during working years. While it may have been applied appropriately for retirees […]
There is Risk and There is Risk
The penny finally dropped a couple of months ago during a client conversation about the risk of investing in the equity markets. The client was reluctant to commit money to the investment markets and gave me several reasons – “the markets were too high and ready to crash”, “there were safer alternatives”, “I never fully […]
Four Financial Promises to Keep
We’ve had a few weeks to make and break our New Year’s resolutions. Now is a good time to make some promises to give your finances an extra boost in 2018 and help see you better off by year-end. 1. Promise to make the biggest RRSP contribution you can. When it comes to improving […]
The Magic Number!
The conversation with clients about retirement income planning is much different from those conversations that occur over the years while they are building retirement assets using vehicles such as pensions, RRSPs, LIRA’s, TFSAs and so on. Often, their focus is on being “conservative” because their understanding from public sources suggest that this is the appropriate […]
A Little Knowledge Can Make Life Less Taxing
It doesn’t take long after receiving your first paycheck to realize that all of your money is not your own. The Canadian government is an active partner in your earnings, and the more money you make, the larger it takes. A better understanding of taxes and how they apply to you can result in […]
Grandma and Grandpa Santa
Is it Christmas again already? Time passes too fast when you achieve grandparent status, and George and Grace are wondering once again what to give their grandchildren. Some years ago they realized they had no idea what toys were suitable, so started giving them cash. It seemed to get frittered away on things that soon […]
Government Pensions and Retirement Planning
Canadian couples rely upon Government pensions, CPP and Old Age Security (OAS) for a significant portion of their total retirement income planning, which can equal 20% to 50% or more, of their actual or projected total retirement incomes. Corporate and personal pensions (such as RRSPs and TFSAs and other savings) are other sources of retirement […]
Get It When You Can
We’ve all read or heard about the unlucky family that is wiped out by a house fire and didn’t have any fire insurance. All too often, people mistakenly believe that it won’t happen to them. The reality is that bad things CAN happen and there is nothing that guarantees they will be immune from disaster. […]
Joint Ownership Alternatives
Joint ownership is used by millions for various reasons. When problems arise, they are usually unintentional and it can be too late to remedy them. For example: Jane wants to avoid probate with as much of her estate as possible. She also wants her daughter, Sally, to have easy access to her cash at […]
Proposed Tax Overhaul for Private Corporations
Standard financial and tax planning advice for the past several decades for business owners has included the use of incorporation to both insulate Canadians from business risk and liability and for asset building and income cash flow planning. The validity of this tax policy is now under attack, as you have likely heard, now […]
How’s Your Net Worth?
His banker asked Trent what his net worth was for a loan he was applying for. He had trouble answering the question right away. What is Net Worth? Quite simply, net worth is the difference between what you own and what you owe. But true net worth may not be quite that simple. […]
Will Your Estate Have Enough Cash?
We’ve all heard that life has two certainties – death and taxes. You need to know the two often coincide. While Canada does not have an official death, estate or inheritance tax, there are some postponed taxes that become payable on death. There are other obligations that need to be taken into account as well. […]
Era of Rising Interest Rates
The recent increases in the Bank of Canada and Federal Reserve prime rate in the past few months signal the end of historically low interest rates. According to a Bank of England study released in early 2016, current low interest rates are the lowest in 5000 years of recorded history*! Media reports in July […]
Making the Most of Your TFSA
Being such a new program, many Canadians do not fully understand the long-term power of the TFSA tax savings opportunities. It is much more than just an opportunity for saving — it can be a powerful and incredibly effective tool for an overall investment strategy. Here are some ways that you can use the TFSA […]
Helping Elderly Parents Manage Their Money
It is always a difficult transition when people move from being the ones taking care of their family to the position where their family takes care of them. This is especially true when it comes to finances. Because these changes usually happen very gradually, many adult children do not immediately recognize the need their […]
Build Your Wealth Together
The wedding and honeymoon are over and you’re settling in to your new life. You’ve accomplished many goals together over the past year with compromises being made over wedding plans, honeymoon destination, and a million and one other details. As you settle in for a long and fruitful life together, it’s an ideal time to […]
Investment Risk in Retirement Years
As Joe Farnsworth* from Toronto discovered, published return percentages do not necessarily tell the whole story of an investment portfolio performance. Joe retired 9 years ago from the Toronto Police Service from which he collects a serviceable pension each month. When Joe retired he decided to try investing his life savings ($300,000) on his […]
Yellow Ducks and Free Money
A minor fire storm of gossip and criticism hit the Toronto talk radio airwaves in early June as preparations for the Canada 150th birthday celebrations were fully underway! The Province of Ontario, as part of the Ontario 150 tour, gave away a large grant funding (free money) with a portion going towards the rental […]
Saving Up For The Adolescent Years
Have you considered putting aside extra funds for the teenage years? If you have not thought about this, then you may want to if you have a child that is quickly headed towards the adolescent years. This can be a turbulent time, not just with the emotion and drama it can bring, but also […]
What to Do After a Loved One Dies
No matter how much we desire to protect the people most precious to us, the death of a family member is almost always met with some level of disbelief. In addition to the grief and mourning that follows the passing of a loved one, survivors are also left with the task of handling a variety […]
Back to Basics
What problems does the financial industry solve for Canadian consumers? Where is the value added for interacting with the financial industry and why use an Advisor versus doing it yourself online? To address these questions, here is a refresher on why the financial industry exists in the first place. Simply speaking, there are […]
Identifying Alzheimer’s Symptoms
As the human brain ages and matures, it’s perfectly natural for memory to undergo a great deal of changes. The brain becomes less pliable and less able to form memories, which can lead to occasional forgetfulness or absent-mindedness. More severe symptoms might be a sign of something more serious, such as Alzheimer’s. According to […]
Principal Residence Exemption Rule Changes
The new October 2016 Federal Government Principal Residence Exemption (PRE) rules are causing many Canadians to review and revise existing Wills and Estate Planning strategies according to STEP (The Society of Trust and Estate Planners). To track the capital gains that foreign buyers have been avoiding on the purchase and sale of Canadian residential […]
Critical Tips for Avoiding Identity Theft
No one wants to think about having their identity stolen or experiencing a theft of their finances. It is unpleasant, distasteful, and often feels like the type of thing that happens to other people, not to ourselves. The sad truth is that, every single year, identity theft crimes result in billions of dollars lost […]
Long-Term Care Solutions
There is a common misconception that, if left unaddressed, can having a devastating effect an individual’s long-term financial well-being. It is the belief that long-term care costs are fully covered by provincial health care plans if you or a loved one ever need this special type of care. Unfortunately, this is simply not the […]
Remember Me!
With spring just around the corner, many Canadians have young people in their lives who are graduating from university, professional schools or community colleges. When the excitement of Commencement wears off, they are faced with the challenge of finding their first full-time paid jobs. The following are a couple of ideas from a book […]
Your Most Valuable Asset
What is your most valuable asset? Many people will think about this question and come up with a variety of answers, but most people will likely say their home is their most valuable asset, while others may say a business they own or a retirement portfolio. But for some people, understanding the answer to […]
Avoiding Family Conflicts After a Death
No one likes to think about their own mortality, but making a proper estate plan can help to lessen the grief of loved ones left behind. Alternately, without a written estate plan, surviving family members are often saddled with the responsibility of making estate decisions without a clear understanding of the deceased’s wishes. The […]
