Passing it on to Your Heirs
Ralph and Mary have accumulated a nice estate, a good portion of it in cash. They want to leave it all to their children when they die, but they also want to do something for them today. Being part of the Savings Generation, they are reluctant to give large sums to their kids today, as […]
Anatomy of a Market Correction
The origin of the recent stock market correction started earlier in the spring of this year. During the month of April, the Canadian, U.S. and many other global stock markets achieved new record highs. Instead of celebrating such a numerical milestone, many media commentators started wringing their hands in worry and expressing their fears […]
What Will Be Sacrificed
Many believe that if they need long term care, either in their home or in a facility, that the cost will be covered by provincial health care or other government agencies. While there are certain programs available, a significant portion of these costs are the responsibility of the patient. Ted and Martha had been […]
The Big Squeeze!
“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.” – Frederic Bastiat By the time that you read this article, it is very likely that the Federal elections will soon be over. When all the back slapping, hand wringing and hyper-analysis is […]
How Should I Insure My Mortgage?
Ron and Susan are arranging a mortgage and the banker asks if they’d like to include life insurance to pay it off on death. Sounds like a good idea, so they decide to take it. After filling out and signing a few more forms, they have it. Or would your family be better off […]
Life Insurance Tax Rules Changing
Starting in January 2017, the allowable cash value build up under tax rules in life insurance policies will change. The federal government introduced changes in December 2014 that are designed to modernize life insurance exempt testing rules as they have discovered that people are living longer and that their insurance policies will pay out later. […]
Inheritance: The Solution to Your Financial Struggles?
If you are sitting neck deep in debt, living beyond your means, and still calm and collected about your own financial well-being, then chances are, you are one of the many millions of people expecting an inheritance at some point in the future. Like other inheritance recipients, perhaps you are expecting your personal balance sheet […]
Top Retirement Tips
Convert RRSPs to income – Roger and Sarah, retired for several years, have delayed taking income from their RRSPs so they could enjoy the tax deferred growth as long as possible. They must start an income from their RRSPs before the end of the year they turn age 71. Review investment portfolio – Joanne […]
Why Time Matters
It is not uncommon for an individual or organization, such as a charity or community tennis club, to consult a financial planner or investment advisor regarding investment returns that can be generated on some spare cash that is not needed in the immediate future. As a result, the issue of investment “time horizon” is […]
Financial Plans and Marriage Breakdown
Statistics show that about half of marriages end in divorce. Ed and Liz are ending theirs and are concerned about changes that will have to be made to their financial and estate plans. Some considerations, also in common-law relationships, are: Life Insurance – The first thing that needs to be done is review beneficiary […]
Retirement: The Promised Land or Crushing Boredom?
For years, you have been anticipating that last day at work. When it finally arrives, will it live up to your expectations? Retirement looks different in everyone’s imagination. For some, it means never wearing a tie again – for any reason. For others, it means traveling the world in designer clothes while attending fancy […]
World Reserve Currency Regime
Canadians, like many nationalities, have a home bias when it comes to investing. The majority, if not all of their investments, such as RRSPs, real estate, mutual funds, segregated funds and businesses, are in Canada and are tied to its future economic growth. These Canadian investments could see reduced returns in the future, however, […]
Millennial Money Mistakes
Investors who start saving at a young age automatically have one of the most powerful assets on their side: Time. To get ahead financially, young adults should beware of some of the most common pitfalls discussed below that can all too easily sabotage a financial success strategy. Not Taking Saving Seriously At the dawn […]
Redefining Retirement
Retirement used to mean a gold watch, a pension and spending time on hobbies or new pastimes. For some this may still be true, but times have changed and there are new realities that will affect how retirement will look in the future. The largest segment of the population in Canada today, the “Baby […]
Pay Down Debt or Retire in Comfort?
Increasingly consumers in major Canadian cities such as Calgary, Edmonton, Vancouver or Toronto, are faced with a dilemma of how to best manage their cash flow in the face of record mortgage and consumer debt. A February poll by CIBC asked Canadians whether, if they had extra funds they would contribute to an RRSP […]
But I’m Invincible
Most people have a false sense of security by believing that they will not be victims of a critical illness like cancer, heart attack or stroke; and if they are, that the healthcare system will look after them. Nothing could be further from the truth. The reality is, according to the Heart and Stroke […]
Tax Avoidance Strategy: Pension-Splitting
One out of every three workers is covered by a registered pension plan (RPP). That’s over 6 million people. Like all hard-working Canadians, they are looking forward to a satisfying retirement. Nothing helps create a pleasant experience in your golden years like a steady stream of income every month. What if you found out […]
Evolution of an Investor
Sometimes during social events or other gatherings a person will approach someone in the financial services business with an opening question: “I hear you do investments. What kind of returns can I expect?”. The type of questions asked by individuals are usually a good indication of their investing experience. Newer (younger) investors are often […]
Living Longer & Retiring Faster
Over the last one hundred years, every new generation of Canadians has enjoyed the benefit of a longer life expectancy. With dramatic improvements in health care, the human life span has never been longer. Additionally, some have set their sights on early retirement. The combination of living longer and retiring earlier creates a serious cash […]
Is Probate Right for Your Estate?
Estate planning can be an overwhelming process. Whether it is your own estate or you are the executor for someone else, the checklist can seem never-ending. A financial advisor can help make sure your checklist is complete before you start checking the boxes. One of those items on the checklist is probate, the legal […]
The Either / Or Financial Decision
When it comes to making financial decisions most people focus on eitheror scenarios; that is making a tactical decision that may or may not reflect a larger financial strategy or wealth accumulation context. We often see these types of isolated, one-off decision choices in media articles that pose dilemmas such as: Is it better […]
Naming Beneficiaries for Your RSPs
Most people list tax elimination or minimization as a top priority in their estate plans. For most, Registered Savings Plans (RSPs), which includes RRSPs and RRIFs, are one of their most significant assets. Most RSP accounts hold investment funds or securities that are very liquid, often accessible within a few days. Unlike most other […]
QE Continues
Quantitative Easing, otherwise referred to in the media as ‘QE’, refers to governments printing money out of thin air in order to stimulate economic growth. The US ended their program of QE in late 2014. The impression this left with many people was that the need for economic stimulus ended. This also goes hand […]
Insurance for Young Adults
As they take the big step of moving out of their parents’ home and into their first apartment or other living quarters, the last thing on a young person’s mind is insurance. Yet, this is an area of great importance as they also begin their journey on the road to financial wealth and health. […]
Steps to Complete When Selling Your Home
Gordon and Anne lived in the same house for over 30 years. Now that their children are grown and it was becoming more difficult for them to manage the house, they decided to downsize. Here is what Gordon and Anne did to get the best price they could when they sold their home: De-cluttered […]
The RRSP Conversation
With the RRSP contribution deadline of March 2nd fast approaching many people will reflexively make a deposit to their RRSP. Many will use online banking to throw money into the RRSP at the last minute vowing to figure out how to invest it later. But life gets in the way and later never happens and […]
Getting Serious About Savings & Investing
We are now well into 2015 and your New Year’s Resolution to do a better job of managing your money are already being forgotten. As the late Sir John Templeton famously stated, the best time to invest is when you have money! The challenge for many people, with many middle-class people just struggling to make […]
Your Retirement Income May Be at Risk
Ted and Martha had about $600,000 in their RRIFs generating the minimum monthly income of almost $4,000 before taxes. Then disaster struck. Ted developed a cognitive impairment. Martha was able to look after him at home for a little over a year, but eventually had to place him in an extended care facility. […]
Stretching Your Retirement Income
In this, the final installment of the series, Financial Strategies Simplified, we take a look at how to stretch your retirement income no matter how modest the starting balance. There is a common misconception amongst clients that the day they retire their approach to investing and managing their RRSPs etc. has to change. But […]
Get More From Your RRSP
The so-called RRSP Season is on its way. TV, newspapers and magazines will soon be full of advertising to get you to make your last-minute RRSP deposits. And then RRSPs and retirement planning are often forgotten until the next deadline. But a little advance planning will get you more from your RRSP. Start early. […]
