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 […]
Regulators Target Compensation Structures
The current compensation model for financial industry participants*, who promote the use of investment funds and other managed investment products for retail clients, has been mostly unchanged for over 30 years. Regulators, led primarily by the Canadian Securities Administrators, (CSA – a national committee representing most Provincial Securities Regulators) have been studying and reviewing […]
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 […]
Fulfilling Your Wishes
With many Baby Boomers now moving into their sunset years, the growing concern is how they will efficiently and effectively plan for the transfer of their wealth to the next generation? A recent survey by RBC Wealth Management estimated that the amount of money changing hands over the next twenty years is about $400 […]
It Doesn’t Pay to Procrastinate
Many people have no idea. Some people have a vague idea. A few people, a very few, have it all worked out. When it comes to retirement planning, many people do not take action until forced to by a mid-life event (career change, death of loved one) or by hearing about seniors running out of […]
RRSP Vs. TFSA: Which is Better?
With the lifetime contribution room of a TFSA now at $52,000 for most people, TFSAs are now a serious portfolio and investment planning alternative to making RRSP contributions. So which is better you ask? Well, it depends… If you are a Canadian with significant assets and savings then maximizing your TFSA makes sense as […]
How to Start An Investment Plan
Wouldn’t life be better if it was easier to get ahead? For many, there’s just too much month left over at the end of the pay cheque. After all, you’ve got a mortgage or rent and utilities to pay, food and clothes to buy, and a vehicle to operate. First, let’s understand the difference […]
Mental Health Impacts Retirement Planning Strategies
The unfortunate truth about aging is that the human brain deteriorates as we age. While the process is vastly different depending on the individual and their health and circumstances, the rate of deterioration cannot be predicted with any level of certainty. It doesn’t cater to genetics, family history, or life habits. Sometimes clinical diagnoses […]
Getting the Most from your RRSP
Since its inception several decades ago, the Registered Retirement Savings Plan (RRSP) has become the most widely used retirement savings vehicle in Canada. In order to get the most from an RRSP, it is essential to plan ahead for future investments to avoid panicked deadline decisions or taking action without fully understanding the long-term impact. […]
‘Just-In-Time’ Living
Multiple media reports note that almost 50% of Canadians have no emergency savings and are unable to cover the cost of an unexpected expense of $500 – $1000, let alone deal with an unexpected job loss. Other reports from credit agencies such as Equifax state that even a 0.25% increase in mortgage rates will cause […]