We all know that governments throughout the developed world are taking more and more of our earnings in the form of taxes of various sorts. In Canada we do live a good quality of life, and the taxes we pay help to make our country one of the best to live in. However, we don’t need to give them more than is necessary. There are not a lot of ways to save taxes, but we do still have a few to draw on. Here is a brief summary of some strategies that are available. RRSPs – this is an obvious…
Given recent market volatility, it is worth my comments to our clients to outline what is going on and why. As usual when uncertainty rears its head in the stock & some bond markets, investors hit the exits. The question is why now and when will things calm down so that markets can go back up. Canadian market uncertainty, of course, revolves around the price of oil and other commodities. We have a glut of oil reserves. The Saudi’s continue to pump out at high rates, technology is allowing better access to North American oil, and lower consumption due to…
People change employment for any number of reasons; some are voluntary whilst others are forced. There are a lot of critical decisions that have to be made at times like these. When considering what to do with an employer sponsored pension plan, or Group RRSP there are a number of things you need to determine. Defined Benefit Pension Plan Find out how well funded it is. If it is a large viable company and has a small shortfall it may be fine to leave it in their hands. It is important to have a sense of how well managed the…
In my previous blog post I discussed the oldest form of pension plan—the Defined Benefit Plan (DBP). The vast majority of employers today have moved to a Defined Contribution Pension Plan (DCP). The reason for this is that unlike a DBP, once they have made their contribution, the employer is no longer on the hook for a specific monthly retirement benefit for the employee. There is no liability to the employer to keep funding the pension plan over and above what they have agreed to contribute on your behalf. In a Defined Contribution Plan the employer agrees to contribute to…
As your advisor, it is important that I am aware of all the pieces of your financial life. If you are one of the fortunate people who have a pension or Group RRSP through your employer, we must examine just how much this plan will contribute to your retirement income—and whether you can rely on your work pension plan. First, let’s explore the Defined Benefit Plan. If you have one of the old pension plans that have been in existence for decades, it may well be a Defined Benefit Plan. These are often fully funded by the employer, and they…
Given the headlines of the past few days I thought I would share some comments below from a small collection of experienced money managers; and add a couple of my own. Fidelity Investments: Long-term bull markets never move in a straight line and it is normal to see short-term corrections along the way. Staying fully invested can give investors an opportunity to fully participate in the markets long-term upward trend. Waiting until the backdrop feels “safe” to make an investment in stocks, has historically not been a good method of achieving future returns. Many of the best periods to invest…
I am sharing this article with you (written by one of our favourite investment managers) because it echoes some of my Basic Financial Principles. I have always coached my clients down the emotional road to financial success, and we can’t overstate the emotional part of that statement. Read on to see how successful investing is and is not accomplished. Written by EdgePoint Wealth Apr 14, 2015 Time and again, do-it-yourself investors pile into the wrong stuff. They want to build their wealth yet end up in investments that separate them from their hard-earned savings. Following are some classic bad moves…
Most people have a limited income with unlimited ways to spend that income. There are so many current and possible expenditures that pull at us; it is often hard to know which should be our priorities. Let’s take a look at what your options are and which could and possibly should be the most important. Current living expenses include necessities such as food, shelter, warmth, and transportation. It is really important that you live within your means. I can’t stress this enough. If you have more money going out than coming in, then you need to take a hard look…
As taxpayers we are all well aware that our government and Canada Revenue Agency are always looking for ways to collect more tax dollars from us. This year, 2015, will be the last year that tax sheltering using Universal Life insurance will be possible. For years, wealthy clients have used these policies to combine their needs for life insurance to pay the inevitable estate taxes that will be due at death, and shelter additional investments from ongoing taxation at the same time. These structures are not just for the wealthy however – they may (or may not) be appropriate for…
I recently attended HollisWealth’s 9th annual Year Ahead Investment Conference in Toronto, featuring some of North America’s top investment minds. The focus of the conference was to hear first-hand from experts on the economic and investment outlook for 2015. A number of speakers presented throughout the day including Scotiabank’s Chief Economist, Warren Jestin, Scotiabank’s Commodity Market expert, Ms. Patricia Mohr, Dynamic’s Chief Investment Strategist, Myles Zyblock, three sector analysts from Scotia Capital as well as panel discussions with Portfolio Managers and ETF experts. The speakers discussed a range of topics and some of the common themes that emerged are highlighted…