Find “Hidden” Money
Investing regularly is important. If you’re going to achieve your retirement and other financial goals, you should consistently contribute to your registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs) and non-registered investments. “Paying yourself first” through monthly contributions is an excellent strategy to build an investment portfolio. If you’re like most Canadians, however, you are not sure where to look to find the extra money needed to invest. There is a way – in fact, there are four good ways to perhaps uncover “hidden” money you already...
Read MorePlanning For The Unexpected
You’ve worked hard to make your business a success. There may have been times when you gambled on a business strategy and won – but, for the most part, you stuck to the meticulous business plan that has been your blueprint for growth and achievement. Now, it’s time for a new plan. What would happen to your business if you were taken away from it, even temporarily? Would it survive? If you’re like most small business owners, the odds are that your years of careful nurturing and building could come tumbling down without your energetic hands on the reins – because you are your...
Read MoreRetirement Readiness
How ready are you? Almost one-quarter of Canadians are not saving enough for retirement. Are you? A popular topic in the media these days is that of Canadians’ financial readiness for retirement. With ample evidence suggesting that many individuals are not saving enough to fund the retirement they desire, and with Canadians living longer than ever before, having a financial plan for your retirement has never been more important. But when it comes to getting prepared for retirement, you may be surprised to learn that one of the most important steps you can take to improve your chance of...
Read MoreNo Vacation From Inflation
If you’re like many Canadians, you may have a fair bit of your money tucked away in savings accounts, term deposits, money market funds and GICs. Investing in conservative products like these can provide you with some peace of mind given that you are likely trying to shelter that money to preserve your capital. But are you really preserving your capital? Just because you’re not losing money doesn’t mean you’re not losing ground. You may in fact be preserving the face value of your capital but eroding your purchasing power – which is equivalent to being able to buy less in the future...
Read MoreA Smart Way To Save
Tax-Free Savings Accounts (TFSA) have been hailed as the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP)¹. TFSA grows tax-freeIf you are a resident of Canada and are at least 18 years of age, you can contribute up to $5,500 per year to a TFSA and then watch your savings grow without being subject to tax throughout your lifetime. If you don’t plan to contribute to a TFSA right away, your unused contribution room will accumulate year after year. When you decide to withdraw money from your TFSA, the full amount (including...
Read MoreNo 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 –...
Read MoreTax 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...
Read MoreSecuring 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...
Read MoreCrossroads: 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...
Read MoreFamily 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...
Read MoreHaving “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...
Read MoreGet 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...
Read MoreGet 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...
Read MoreYour 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...
Read MoreComing 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”...
Read MoreSeparation, 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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