Finance

No Aversion to RRSP Conversion

Posted by on Jul 4, 2014 in Finance | 0 comments

No Aversion to RRSP Conversion

A registered retirement savings plan (RRSP) is a great way to invest for retirement and reduce income taxes. But, like most good things, it must come to an end. You are required by law to wind-down your RRSP by the end of the year in which you turn age 71. In reality, most people start drawing on their RRSPs for retirement income before then. So, when that time comes, what are your options? You have three basic choices: Convert your RRSP to a registered retirement income fund (RRIF) Purchase an annuity, or Collapse the plan and take the cash A RRIF and an annuity have a similar purpose –...

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Tax Time Tip

Posted by on Apr 23, 2014 in Finance | 0 comments

Tax Time Tip

Here’s something to consider as you prepare your annual tax return. The Federal Pension Income Credit is a non-refundable tax credit which you are allowed if you receive pension income. Federally, you are allowed a credit of up to $2,000 each year, while provincially the amount varies. Note that a similar credit is available in Québec for up to $2,090 of pension income. However, some particularities apply to the Québec credit. The federal credit is calculated on the lowest tax rate of 15 per cent; thus a $2,000 credit produces a federal tax savings of $300. This credit is not indexed...

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Securing your child’s future

Posted by on Nov 8, 2013 in Finance | 0 comments

Securing your child’s future

You want the best for your child – and for plenty of powerful reasons; a college or university education is one of the best things you can do to give your child a great start in life. There’s the increased earning potential, of course – the average university graduate earns almost twice as much as someone with a high school diploma. Over a 30 year career, that could add up to $1.2 million of additional income1. There’s the increased opportunity for employment – seven out of ten jobs now require a post-secondary education and having a degree or diploma is bound to become even more...

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Crossroads: Mortgage or RRSP?

Posted by on Oct 10, 2013 in Finance | 1 comment

Crossroads: Mortgage or RRSP?

Have you ever wondered whether it makes more sense to pay off your mortgage or to contribute to a Registered Retirement Savings Plan? Perhaps you’re expecting to receive some extra money from an inheritance or an employment bonus, and you’re not sure which route to take. The truth is, there is no easy answer. There are many variables that must be taken into account. Concentrating on paying down a mortgage may be the best route for one person, while focusing on an RRSP may benefit another. Here are some factors to consider: Your Age: When you’re young, it is wise to make your RRSP a...

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Family heirlooms and the family

Posted by on Sep 2, 2013 in Finance | 0 comments

Family heirlooms and the family

One of the most contentious issues when distributing an estate can be the division of personal effects and heirlooms. Unlike monetary assets, many personal effects evoke emotional reactions from family members who may have very strong memories attached to a particular item. Therefore, even though some of these items may not have significant financial value, they can be a lightning rod for disputes among family members. Here are some of the things you can do to minimize arguments after you are gone. Discuss the issue with your family Have an open and frank discussion with your family about how...

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Having “the talk”

Posted by on May 30, 2013 in Finance | 0 comments

Having “the talk”

Do you remember when your parents sat you downto have “the talk”? At that time, it was the last thing you wanted to hear and likely included some anxious moments and uncomfortable feelings. Well, it could be time to think about another “talk” but, not with your kids – with your parents. Many of us are reluctant to discuss health and finances with our parents until a crisis occurs. A sudden health issue can reduce estate planning options, as well as increase costs. That’s why discussions and preplanning are so crucial. “The talk” can be a difficult and emotional conversation to...

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Get Ready for the RRSP Ads!

Posted by on Feb 9, 2013 in Finance | 0 comments

Get Ready for the RRSP Ads!

Well it is that time of year again. Everywhere you look, you will be bombarded with advertising for RRSPs. Unfortunately a large portion of the Canadian public spends more time planning for their annual 2-3 week vacation than they do planning for the longest vacation they will ever take … buy viagra online Retirement. The many advertisements offering RRSP solutions can be helpful to remind us to do something, but more often than not they tend to help us assuage our guilt of not having paid attention to financial planning. The countdown begins in February and many flock to a financial...

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Get Physically & Financially Fit

Posted by on Dec 12, 2012 in Finance, Sports | 0 comments

Get Physically & Financially Fit

It may be the Season To Be Jolly, however; it may take more effort than one can muster when considering the state of our world. The combination of stress and less daylight makes it easier to slip into a hibernation mode. Therefore, it is the perfect time to dust off the sneakers, dig out a cozy sweat suit and head out for a brisk walk, easy run or over to your local gym. In order to make the experience more like fun than work, invite a friend or two to join you. As a Financial Advisor with a background in playing and coaching sports, I see the fundamental principles of physical fitness as a...

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Your Insurance Policy

Posted by on Nov 28, 2012 in Finance | 0 comments

Your Insurance Policy

  I urge all my clients to carefully consider who owns (and controls) their insurance policies. Especially in a divorce situation, this can be a very touchy subject. Most divorce settlements include some sort of requirement for the male person to retain some life insurance, especially if there are children involved. The tricky part is to make sure this remains in place, as insurance policies are valid only as long as premium obligations are met. Let me tell you a story to illustrate my point. I have a client who has a 9 and 11 year old. When she separated from her spouse, part of their...

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Coming Out About Cars

Posted by on Nov 19, 2012 in Finance | 4 comments

Coming Out About Cars

Since cars and status are a big part of North American society, and especially in North American business culture, this article has taken some time to transform from idea to publication. Why? In my industry (mortgages, leasing, insurance) and related industries (real estate and financial markets), I’ve noticed for years that a ‘nice’ car is often seen as synonymous with success, and I was concerned about how I might be judged by industry people with whom I work to source and service clients. Also, I was concerned that potential clients would learn that I drive a “non status symbol”...

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Separation, Divorce, and your Mortgage

Posted by on Sep 25, 2012 in Finance | 4 comments

Separation, Divorce, and your Mortgage

It happens more than you might think.  I get a call from a woman (rarely men it seems) who is preparing to leave her spouse.  Sometimes he doesn’t know yet. She wants to buy her new home in advance, without him on title or on the mortgage. Even more challenging, the separation isn’t final and all her net worth is tied up in their house. Sometimes she doesn’t income-qualify on her own, so she doesn’t think she can buy him out. Most “A” type lenders are going to ask for a copy of a separation agreement. Why? For starters, they need to know that the person...

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Are Canadians complacent about mortgage rates?

Posted by on May 30, 2012 in Finance | 0 comments

Are Canadians complacent about  mortgage rates?

In my opinion, yes.  When I tell people there are opportunities to lock in for 10 years at 3.99% to avoid sticker shock  at renewal  time, or suggest that they could get a free down payment mortgage for 5.24%, or get 3% of their purchase price back with a cash-back mortgage at 4.09% to tame their debts, I am frequently hearing “That’s a lot!  I want a 5 year at 3%”. Let’s look at some history: 1. When I was selling real estate back in the 90’s, I had to buy a new amortization schedule book when rates went down below 7%. People were ecstatic! 2. Since 1981,...

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