Court Decision Impacts RRIF Beneficiary Designations
In December 2015, an Alberta court decision raised the need for Advisors and their clients to review their existing Beneficiary designation of RRIF accounts as well as RRSPs and life insurance in order to ensure that the Designations on file properly reflected the wishes of the current account holder. Without getting into too much […]
Money Saving Mortgage Strategies
Mortgages today are not like they were when our parents or grandparents bought their homes. As most of us don’t have the cash to buy a home outright, we need to borrow from a lender. There are a number of strategies you can use to get the best deal, pay it off more quickly and […]
Long Term Care Protection
Many mistakenly believe that if they need Long Term Care, either in their home or in a facility, the cost will be covered by provincial health care or other government agencies. While certain programs are available, a large portion of these costs become the responsibility of the patient or their family. Ted and Martha […]
Federal Budget Impacts Investment Taxation
The recent Federal Budget included measures to close a favorable tax rule for investors in investment accounts or through corporations, trusts and holding companies, who have proposed rules to curb the tax advantages of “corporate class” mutual fund shares. Corporate class funds are organized as “switch funds” that offer different types of asset exposure […]
Financial Future Worries?
If you are concerned about your future finances, you are certainly not alone as noted in a global survey of 19,000 adult in over 19 countries (including Canada). Nearly 68% (or two thirds) of the 1000 Canadians interviewed in the survey conducted by the Financial Planning Standards Council (FPSC) said they still had concerns […]
Asset or a Liability?
Do you have a separate recreational property or a rental property? If so this may apply to you: Some years ago, Roy and Mary bought a cottage at the lake in their home province for about $50,000 and today it is worth about $750,000. Over the years, they have spent about $100,000 on improvements […]
TFSA Designations Matter
The method that you use to name a successor, owner or beneficiary of a TFSA makes a big difference to your estate, not only for a TFSA to maintain its tax-exempt status but also to ensure that the assets are distributed to the intended recipients. You can name your spouse or common-law partner as […]
Insuring Your Mortgage Through Lenders
Marc and Lorna just bought a house and, like most home buyers, they needed a mortgage. During the financing process, they were offered mortgage insurance by the lender. They wanted to know more before taking the coverage. Do we control the policy? Because the coverage is usually a group plan, the agreement is actually […]
Consumer Impact of Low Interest Rates
While the Bank of Canada publicly muses about adopting negative interest rates on Government Bonds as a policy tool to stimulate economic growth, the Bank of Japan recently cut its benchmark interest rate below zero, joining several others including the European Central Bank in the negative interest rate club. According to the February 6th issue […]
Traveling in Retirement
One of the top retirement goals for many is travel. As many as 1.5 million so called “snowbirds” travel to the Southern United States during the winter. With summer just around the corner, thoughts turn to travel within our borders, too. The Canada Safety Council states that a few simple precautions can help ensure a […]
Investing Like the Rich Do
“Everyone has a plan until they get punched in the face.” George Foreman. With RRSP season upon us, it might be useful to see how the wealthy invest their funds for some indication as to how they differ from average Canadians. As Baron Rothschild famously stated, “The time to buy is when there’s blood […]
Strategies to Enhance Your RRSPs
Since their introduction in 1957 as an incentive to save for retirement, Registered Retirement Savings Plans (RRSPs) have evolved into the most popular savings vehicles in Canada. All too often, though, RRSP decisions are made in a panic to meet a deadline, with little or no planning or understanding of the effects of our actions. […]
The Quick Start RRSP
Maureen, age 20, figures she can save $400 each month; or she can keep frittering it away at the mall. She lives with her parents and they think she should save it. Dad says, “Put it into an RRSP and get a tax break as well.” Her friends think RRSPs are for old fogies and […]
Weighing the Cost of Your Retirement Dreams
We all know how easy it is to romanticize our retirement years. Many of us make lengthy lists of things we will do and experience in those golden years. We have little doubt about our ability to enjoy the perfect blend of leisure and excitement, which is what makes the very idea of retirement seem […]
China’s Global Impact
The August correction in the Chinese stock market led to a lot of “how terrible” news coverage and speculation as to whether or not this signaled the end of the China growth story and how it would impact the US and global economies. Calmer voices were more resolute in the midst of the chaos, […]
Group Insurance Will Look After Me, Won’t It?
Sally has been working for the same company for over twenty years. About a year ago, she was given a new group benefits booklet because her employer had switched insurance companies. Like most people, she put it aside and intended to read it when she “had the time.” Sally was just diagnosed with terminal cancer […]
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 […]
