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The 3 things I have found your should focus on for strong financial health: Don’t borrow money for anything but your principal residence. If you want to buy a car save up and pay cash for it.  If you want to go on a vacation save up and pay cash for it. Unfortunately our culture pushes us towards debt. For example we are told in order to be successful you should drive this car, live in this house, wear these… Read More »The 3 Financial Basics

Here are the major financial risks you could face in retirement: Longevity risk Inflation risk Market volatility Withdrawal rate risk Mental capacity and estate planning risks Health risks Emotional risks in retirement: Loss of identity Boredom No longer feeling of value A developing trend is “gray divorce.” There is now a spike in divorce around retirement.

I find people at times get confused with investment UMBRELLAS and PRODUCT OPTIONS. There are 3 main investment UMBRELLAS: RSPs – Retirement Savings Plans where you can defer taxes to a later date.  The premise is that when you put funds into an RSP you are at a higher tax rate then you withdrawal them.  Over my career I have found that is not always the case.  Also all those gains in your RSP aren’t eligible for the dividend tax credits… Read More »Investment Umbrellas and Product Options

Registered pension plan (RPP) An RPP is set up by an employer to provide retirement income to employees. The plan is registered with the Canada Revenue Agency (CRA) to provide tax advantages. Contributions made to an RPP are tax-deductible within certain limits. Investment income isn’t taxed until it’s paid out of the plan. The employer is required to contribute to an RPP and the employees may or may not be required to contribute. There are two types of RPPs: defined… Read More »Types of group retirement and savings plans

We don’t face this decision very often. This will occur when: 1 You leave a company that has a pension plan 2 You retire from a company that has a pension plan Types of Pensions 1  DEFINED BENEFIT KEY TAKEAWAYS • A defined-benefit plan is an employer-based program that pays benefits based on factors such as length of employment and salary history. • In contrast to defined-contribution plans, the employer, not the employee, is responsible for all of the planning… Read More »Work Pensions – to transfer or not to transfer? That is the question

A registered disability savings plan (RDSP) is a savings plan intended to help parents and others save for the long-term financial security of a person who is eligible for the disability tax credit (DTC).  Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included as income to the beneficiary when paid out of an RDSP. However, the Canada disability… Read More »RDSPs

Education Savings Many parents wonder how much to save for their child’s education. They also wonder how soon they should start. The answer is simple. Save Early, Earn More. Even small savings each year will translate into substantial savings later. Registered Education Savings Plans A Registered Education Savings Plan (RESP) is a special savings account for parents who want to save for their child’s education after high school. Family plan A family plan is ideal if you have more than… Read More »RESPs – Registered Education Savings Plans

To figure out if supplemental health insurance is a cost effective choice you need to calculate the costs of the services you need. You can then either self insure and save up the money throughout the year to cover these costs  or  look at getting a supplemental health insurance plan to cover some of these costs. Be careful when looking at health plans that you consider maximums, restrictions and deductibles.   A couple of supplemental health insurers to check out:… Read More »Supplemental Health Insurance

After being in the Financial Industry 20+ years I have found that the following steps can help you get your financial life on track: The Number one Priority is setting and sticking to a BUDGET.  I know, it’s not much fun – but how much fun is it living with financial stress?  I strongly recommend that you (and your partner) select one day a month for your budget meeting – maybe the 17th of each month?  If you have a… Read More »Grey Cloud

A loved one or executor should contact, if applicable: Utility companies (where the deceased had services) Financial institutions (where the deceased had accounts) Insurance companies (where the deceased had policies) Canada Revenue Agency (income tax and benefits) Service Canada (Canada Pension Plan, Old Age Security, Employment Insurance benefits) Provincial health insurance Ministry of Transportation (driver’s license) Immigration, Refugees and Citizenship Canada (passport, permanent residence card) A deceased CPP contributor is generally entitled to a CPP Death Benefit of up to… Read More »Executor Duties

A “Trusted Contact Person” (TCP) is someone who you have authorized as a point of contact for your advisor if your advisor has concerns you are being financially exploited or are showing signs of diminished mental capacity. Your TCP cannot make financial decisions on your behalf, nor can they make transactions or changes to your account. They also cannot be given access to information about your account. You can appoint more than one TCP, and you can change them at… Read More »Establishing a Trusted Contact Person

The common response to the question, “How does one eat an elephant?” is, “One bite at a time”. Similar advice is routinely offered to anyone setting off on an unfamiliar trek, “A successful journey starts with the first step.” When it comes to developing a funding plan for University, the same daunting question arises, “Where do we start?” Just like developing a plan for vacation, some simple initial steps are required. First, before committing to a particular vacation destination, one… Read More »How to Eat an Elephant