via The Globe and Mail | May 2013

Toronto is home to more than a quarter of Canada’s millionaires, according to statistics compiled by English consulting firm WealthInsight.

Look around Toronto, because there are some seriously rich people walking (but more likely, flying in private jets or being driven in limos) among us.

So says the London-based wealth consultancy firm WealthInsight, which has found that 28 per cent of Canada’s millionaires live in the city of Toronto.

To be specific, Hogtown is home to 118,000 millionaires, 1,184 multimillionaires (defined as those with net assets of $30 million U.S. or more) and a mere five billionaires. All numbers exclude the worth of their primary residences.

via The Globe and Mail | May 2013

Andy and Cora live comfortably in their mortgage-free home in London, Ont., where he teaches at a nearby university. He is 50, she is 47.

Recently, some urgent house repairs wreaked havoc with their budget, forcing them to borrow on their line of credit. Despite Andy’s $130,000 salary, they’ve been struggling to pay it off.

“We seem to spend more each month than we take in,” Andy writes in an e-mail. Still, “life is good,” he adds. Financially at least, their lives are about to get even better thanks to a $260,000 inheritance from Andy’s father. They’re wondering what to do with the money.

“Should we use up our RRSP contribution room?” Andy asks. “How can we put the remainder of it out of reach so we don’t slowly spend it month over month?”

Andy, who enjoys his job, plans to work to the age of 65 and perhaps longer. When he retires, he will get a pension from the university. For the past 15 years, Cora has stayed home to take care of their daughter, so she has little in the way of savings.

We asked Matthew Ardrey and Warren Baldwin of T.E. Wealth, in Toronto, a fee-only financial planning firm, to look at Peter and Cora’s situation. Mr. Baldwin is regional vice-president, Mr. Ardrey manager, financial planning.

Introduction

Finance Minister Charles Sousa delivered Ontario’s 2013 Budget, his first as Finance Minister, on May 2, 2013. The Budget is projecting a deficit of $9.8 billion for 2012-13, $5 billion lower than projected a year ago, and increasing to $11.7 billion for 2013-14. The 2010 Budget put forward a plan to cut the deficit in half within five years and to eliminate it in eight years. The government remains on track to meet the fiscal targets outlined in the 2010 Budget beyond 2013-14. This includes steadily declining deficits and a return to balanced budget by 2017-18.

There are very few tax related measures included in the Budget. Those that were introduced are summarized below.

Personal Taxes

Tax Rates

The Budget proposes no changes to personal income tax rates. Accordingly, the top marginal rates for 2013 are as follows for taxpayers with taxable income of $509,000 or less:

via The Globe and Mail | April 2013

Benjamin is a university professor about to take a year’s sabbatical, during which time his salary will
drop by 60 per cent. He is 47, single, and lives in suburban Vancouver.

While he is off, researching and writing, Benjamin plans to continue paying for his benefits, including
making pension plan contributions, so money will be tight. He is contributing more than necessary to
his defined contribution pension plan so he will have a larger income when he retires at age 65. His
retirement spending goal is $55,000 a year.

He wonders whether he should give up his apartment and put his stuff in storage for the six months to
a year he will be in Asia. He could also sublet it.

Early on, Benjamin decided against home ownership because of the work involved, so he has a fair
amount of capital to invest – most of it sitting in cash – and is seeking some advice on how to go about
building a portfolio. He has no debt and lives fairly modestly, paying $1,250 a month in rent.

via The Globe and Mail | April 2013

As artists, Lucy and Joseph feel they are “on very volatile grounds” financially because their income is so unstable.

It is also modest. They brought in less than $62,000 between them from their artistic endeavors last year. They also had some income from their basement flat and the occasional rental of their cottage.

So when Joseph learned he was about to inherit a substantial sum of money, he knew he needed a plan.

Joseph is 53, Lucy 51. Their goal is to build a more solid financial base over the next 10 to 15 years for their and their children’s security. Their sons, ages 15 and 20, live with their parents in their downtown Vancouver home.

“We grew up where family values were to save and invest in real estate as best we could for our future and our children,” Joseph writes in an e-mail. “I have just received my first $100,000 and immediately paid off our mortgage so we are officially DEBT FREE!!!” he writes. Altogether, Joseph will receive about $900,000 over three years.

“How should our money be invested so that we can live off our investments from retirement age onward, yet leave a comfortable amount for our children and grandchildren when we die?”

We asked Matthew Ardrey, manager of financial planning at T.E. Wealth in Toronto, to look at Lucy and Joseph’s situation.

via The Globe and Mail | April 2013

You’ve been here before. The deadline for RRSP contributions is bearing down and you don’t
know where to invest your money.

Isn’t there something, anything, you can buy for your registered retirement savings plan and
forget about, you wonder? Something that will let you sleep at night?

It depends on how well you sleep. Although some market watchers argue that the traditional
“buy and hold” strategy doesn’t work any more, investment products abound that need little
more than an annual checkup. Forgetting about them entirely is not advisable.

“All investors should take a look at their investments at least annually to see if they still meet
their objectives and to rebalance” among asset classes, says Robert Gorman, chief portfolio
strategist at TD Waterhouse Group Inc. in Toronto.

Here are some long-term investments for people with different means and risk tolerance.

via Money Sense | April 2013

Q: I will retire in five years and wonder if it would be best to put money towards my RRSP or throw it at my mortgage instead. —Kevin Byrne

A: Math and mindset are both big factors in the choice between investing in an RRSP or paying down mortgage debt. In today’s super-low interest rate environment the math tilts towards your RRSP. Here is a simplified example: If you put the money towards your mortgage you’ll earn a guaranteed “return” equal to your mortgage rate, say 3.5%. If you put the money into your RRSP and invest in a balanced portfolio you can reasonably expect long-term returns of about 5% to 6%. Plus, you’ll receive a tax refund that can either go towards debt repayment or right back into your RRSP (an especially powerful strategy if you’re in a high tax bracket).

Matthew Ardrey, a financial planner with T.E. Wealth in Toronto, says the RRSP advantage is even stronger if you’re in a high tax bracket. But he also wants to know what other sources of retirement income or assets there are: “You don’t want to be house rich and cash poor.”

March 21, 2013

Key Highlights

Deficit of $25.9 billion for 2012-13
Projected deficit of $18.7 billion for 2013-14
Tax rate on ineligible dividends increased
Capital gains exemption to increase
Several “tax loopholes” closed

Full Commentary

Holding the line on deficit reduction, and maintaining the integrity of the tax system

Like its predecessor, the 2013 federal budget is entitled “Jobs, Growth, and Long-Term Prosperity”. In his eighth budget, finance minister Jim Flaherty has tabled a document focused on balancing the books, targeted spending, and fine-tuning the tax rules.

As it did with last year’s budget, the Canadian Institute of Chartered Accountants (CICA) gives the budget a B+ rating for remaining steadfast to its goal of deficit reduction, while introducing targeted spending to stimulate economic activity.

via Advisor.ca | March 2013

There’s new wealth being created within aboriginal communities across Canada thanks to specific claim settlements, resource sharing, and gaming revenues.
And Jack Jamieson, vicepresident of aboriginal services at T. E. Wealth, saw this trend emerging 15 years ago, while leading the southwestern Ontario division of Ernst & Young’s investment advisory practice.

Regardless of the source of new monies, funds typically are placed in a trust.

And because many communities have transitioned from extreme poverty to trust fund owners in fairly short order, like any new trustee they often lack the experience to manage this sudden wealth. So advisors willing to learn the culture, and connect with the community, play key roles in educating these clients.

That’s where Jamieson focuses his business. After he launched an aboriginal practice at Ernst & Young, he moved to T.E. Wealth and created its aboriginal services division eight years ago

via The Globe and Mail | March 2013

When they married two years ago, Ms. Wong and Mr. Chan, both policy analysts with the federal government, bought a four-bedroom home in the suburbs – a “checking-off-the-boxes” decision that they soon regretted. The house was too big, the costs too high, and kids aren’t in their five-year plan. Instead of being saddled with a bad choice, however, the couple sold the place for a profit the first weekend it was privately listed, and purchased a smaller home in a coveted neighbourhood closer to downtown. Now, with secure, well-paying jobs, plenty of discretionary room on the budget – even after they cover payments on the $24,000 tuition for Mr. Chan’s part-time master’s degree – they both realize that (unlike many in their age group) they are already doing better than their parents, who started over in Canada as immigrants from Hong Kong.

via Investment Executive | March 2013

Ann, a freelance journalist who just turned 65, will have to make some decisions regarding her residence, the length of time that she plans to continue working and how much she’d like to spend in retirement in order to meet her goals.

“Financial Checkup” is an ongoing series that discusses financial planning options. In this issue,
Investment Executive speaks with Matthew Ardrey, a certified financial planner (CFP), consultant and manager, financial planning, with T.E. Wealth in Toronto; and Christine Butchart, CFP,
registered financial planner, and branch manager with Assante Capital Management Ltd. in
Hillsburgh, Ont.

via The Star | Febraury 2013

“Nobody cares about your money more than you do.”

Which is why, according to certified financial planner Matthew Ardrey, a lesson in the ABCs of RRSPs is a wise investment in your future.

“A little education can be a huge benefit in the long run,” says Ardrey, who works for T.E. Wealth, a Toronto-based, fee-for-service financial planning firm.

More than one-third of Canadians don’t have an RRSP, according to a new study by BMO Financial Group. But even small contributions made regularly over the long term “can lead to significant savings down the road,” says Caroline Dabu, vice-president of retirement and financial planning for BMO.

via Globe and Mail | February 2013

On the cusp of retiring, David and Deborah see the weirdness of worrying about maintaining their lifestyle. But doubts persist.

Three years from retiring fully, Deborah is still working flat out, fearful that she and her husband, David,
“won’t have enough” to maintain their expensive lifestyle despite their considerable wealth.

David is 67 and has just sold his consulting business for $1-million, to be paid out over the next three years.
Deborah, who is 57, brings in $120,000 a year as a consultant. They plan to work half time for another three
years, earning about $175,000 between them before they sell their city home in Ontario and move to their
house in the Maritimes, where they also have an urban pied-à-terre.

via Globe Advisor | February 2013

You’ve been here before. The deadline for RRSP contributions is bearing down and you don’t know where to invest your money.

Isn’t there something you can buy for your registered retirement savings plan and forget about, you wonder? Something that will let you sleep at night?

It depends on how well you sleep. Some market watchers argue that the traditional “buy and hold” strategy doesn’t work any more. But products abound that need little more than an annual checkup. Forgetting about them entirely is not advisable. “All investors should take a look at their investments at least annually to see if they still meet their objectives and to rebalance” among asset classes, says Robert Gorman, chief portfolio strategist at TD Waterhouse Group Inc. in Toronto.

via Business Link | February 2013
By Matthew J. Ardrey, B.A, CFP, FMA, CIM

Limit the future taxation on the eventual sale of your business through the “Estate Freeze” strategy.

Canada Revenue Agency (CRA) has a very clear position on two of life’s certainties–death and taxes. Death is the time CRA collects taxes on the capital gains that have been deferred through one’s lifetime. This can be a very punitive measure for the average taxpayer’s estate, but without proper planning, the damage to the business owner can be severe.

Business owners work extremely hard to grow their businesses. This growth in value translates into growth in the value of their shares. When those shares are sold or deemed disposed on death, the growth generates a capital gain subject to tax.

via Financial Post | February 2013

It’s been a topsy-turvy decade and a half for Canadian mutual fund investors, what with a high-tech bubble bursting in 2000, then the worst recession since the 1930s, followed by historically low (even negative in real terms) interest rates, and a soaring loonie throughout.

The results are reflected in the latest Financial Post 15-year mutual fund performance figures. Over the past 15 years from Jan. 1, 1998, through December 2012, only one fund category — precious metals equities — averaged a double-digit annual compound yield and the runner-up, natural resource funds, managed a mere 7.6%.

Even more tellingly, only 15 mutual funds (out of thousands) topped the double-digit threshold, and nine of these were precious metals or natural resources funds.

via Financial Post | February 2013

The latest Financial Post 15-year fund statistics may present a somewhat discouraging picture for long-term investors, but the good news is that they are largely ancient history. Although it’s been a choppy ride, there have been signs of improvement.

Returns from Canadian equities overall, for example, sank -32.3% in 2008 but rebounded 31.5% in 2009 and another 14.2% in 2010, then sank -8.8% in 2011 but gained 7.0% last year. U.S. equities overall returned 10.0% last year, a far cry from the 15-year average annual compound return of 0.5%. Similarly, international equities returned 14.5% last year, European equities returned 17.7%, and even the long-suffering Japanese equity category managed a positive return (5.6%) in 2012. And of course, hundreds of equity funds managed double-digit returns last year, compared with just 15 over the long term.

via The Globe and Mail | February 2013

How do you spell “meh?” Take a high unemployment rate and tack it onto low GDP growth, rock-bottom interest rates and nary a good investment opportunity in sight. Here’s another way to describe the phenomenon: a stagnant economy, what we’re experiencing right now. “This economy just keeps going sideways and we’ve been here for a while,” says Jason Abbott, a certified financial planner and president of WEALTHdesigns.ca Inc., in Toronto.

It seems economic stagnation will become the norm for some time. The upshot? People will do what they normally do during sluggish times: hunker down and take fewer financial risks.

via The Business Link | January 2013
by Matthew Ardrey, B.A., CFP, FMA, CIM

Most business owners understand the common wisdom of drawing a tax effective income from their companies using dividends instead of a salary. However, when it comes to maximizing their investment income—as opposed to operational income—these same business owners should think of taking a different approach.

The investment asset mix we recommend for an entrepreneur tends to be more conservative to offset the risk they take investing in their business. This does create a tax issue, as the most conservative investment assets generate interest income that is taxed at the highest marginal tax rate of about 46% in Ontario. Thus, almost half of the earnings are lost to taxes.

via The Globe and Mail | January 2013

Gerry is more than ready to reap the rewards of the five years he and Sheila spent teaching in the United Arab Emirates. They returned to Canada a year ago last December, bank accounts bulging with cash.

Since then, Gerry, who is 56, has been living off his severance pay and employment insurance. Sheila, who is 46, got a job with a provincial government agency earning $75,000 a year. She hopes to hang up her hat in four years.

With little in the way of company pensions, they’ll be leaning heavily on the $1-million or so they have invested mainly in the Canadian stock market. They have a house in Nova Scotia valued at about $450,000 and both their children are grown.

via Toronto Star | January 2013

Now that they have found jobs, repaid their student loans, and married, 25-year-old Andrew and Stephanie aim to buy a $500,000 home in Toronto and start a family.

They also want to retire by age 60.

It will help that they have started to plan so early. But two planners warn them to save at least 18 per cent of pay — and maybe more — to achieve a retirement income similar to what Stephanie earns today.

The marketing and sales employee brings home enough from her $52,000 annual salary to support their current lifestyle. Andrew’s $67,500 from working as a consultant is enough to repay a mortgage and fund their retirement savings.

via The Globe and Mail | December 2012

Yvonne and Murray live in a modest home in downtown Toronto that will be paid off in a few years. He is 49, she is 45. Both have managerial jobs, with Yvonne making $96,000 a year and Murray $65,000. Neither has a company pension.

Their investment returns have been poor over the past few years so they worry about whether they will have enough money to retire.

“I fear that we will fall short,” Yvonne writes in an e-mail. They have some money to spare in their budget and wonder whether they should add to their registered investment portfolios or perhaps trade up to a larger home with a rental unit to supplement their retirement expenses.

via Investment Executive | October 2012

Lynne Triffon says the most crucial part of her job as a financial planner is to deepen her clients’ knowledge of finance and investing so that they can make informed decisions.

“That’s what a good financial planner does,” says Triffon, vice president with T. E. Wealth in Vancouver. “In educational seminars, I tell people to run for the door if they come across an advisor who doesn’t take the time to engage them, find out their goals and make sure they have enough understanding to make informed choices. They need to avoid advisors who say, ‘I’ll manage all this for you, trust me.’”

via The Insurance and Investment Journal | September 19, 2012

This is a real danger, given our longer life expectancies and the fact that the huge baby boomer cohort is now moving into retirement. It’s anyone’s guess what costs associated with aging – such as medical care and fees for long-term-care facilities – will be like 20 years from now. Or even 10.

Preparation, years in advance of retirement, is key, according to Mark Probyn, Investors Group’s director of product utilization and planning in Winnipeg. “Set up a robust financial planning process for your clients with reasonable targets for how much needs to be accumulated and a reasonable accumulation rate,” he said. “This should determine the date of retirement. And they should have a savings plan in place.”

via Moneysense | September 11, 2012

If you have extra cash what’s the better option: pay down your mortgage or invest the money? Bruce Sellery does the math.

Question
I have $1,000 per month available to either invest or put towards my mortgage. I currently pay $4,500 a month on my $800,000 mortgage, which is financed at 3.75%. I’m on track to pay it off in 22 years, but if I put the extra $1,000 into the mortgage I can pay it off in 17 years. Alternatively, I could invest the additional money in the hope of getting a guaranteed 3.75% annual return to offset the mortgage rate. Which is the better option?

via Moneysense | September 7, 2012

If you’re just starting school don’t worry about building a nest egg. There’s plenty of time to catch up. Graduating debt free should be your top priority.

It’s unlikely this year’s new crop of university students are thinking much about money. If anything, they’re trying to figure out the best way to spend it. But, what many may not realize, you can have fun and make good financial decisions, too.

via Radio Shalom | August 29, 2012

Kostas Andrikopoulos, President and CEO of T.E. Wealth was interviewed on Radio Shalom 1650 AM, a money and business radio show, on the topic of ‘Protecting your assets; how to avoid Madoff-like risk’.

via Radio Shalom | August 29, 2012

Dave Gillan, a Financial Consultant at our Toronto office was interviewed on the topic of eldercare, and he discussed the issues clients who have aging parents are facing. Some clients are caring for parents requiring eldercare services such as home care and assisted living and Dave discussed some of the pros and cons of the various alternatives and provided guidance from a financial point of view.

via MoneySense | August 17, 2012

Does it make sense to take a lower Canada Pension Plan payment now to get more later? Bruce Sellery weighs into the debate.

Question

Does it make sense to take out CPP at age 60 and invest the amount into TFSA’s or to wait until one needs the money? I have been retired for a couple of years and will be soon approaching 60, but with the new changes in CPP I’m not sure what to do.

Answer

As the saying goes, patience is a virtue. But in your case, patience may mean a profit. By waiting until age 65 to take CPP you could see more money in your bank account, even if you invest the early withdrawals in a TFSA. To walk you through the rationale in detail I turned to Matthew Ardrey, a CFP at fee-based financial firm T.E. Wealth.

via MoneySense | August 1, 2012

If you have to pick between a flexible pension or your RRSP, which is the better option? Bruce Sellery says there is one clear winner.

Question
I’m one of the lucky few with a defined-benefit pension plan. My company also has a flexible pension plan and matches the first 2% contributed. I’m wondering whether it makes sense to contribute to the flex pension plan or to my RRSP. At this point I think I want to retire before age 65, but that is more than 30 years away. Any advice?

via Advisor.ca | July 12, 2012

Advisors using Twitter and other social media platforms should be allowed to speak their minds, says Earl Evans, head of Macquarie Private Wealth.

Everyone’s tweeting, but in most organizations its prefabed and pre-approved as opposed to the spontaneity, he says. We allow people freedom of speech and freedom to market.

It’s a different attitude compared with many counterparts, but its also consistent with the platform agnostic approach the firms taken with the advisor teams it works with they can develop client bases, fee structures and so forth as needed, with minimal interference from the dealership.

via Advisor.ca | June 13, 2012

Single female clients will soon comprise more of your book.

Data from the Vanier Institute for the Family finds more than half of 80-year-old women live alone at some point, compared to less than a quarter of men the same age. What’s more, the same report says only 46% of women and 44% of men are now expected to marry by age 50. While financial-planning basics don’t change for singles, there are issues to keep in mind. First, the Conference Board of Canada finds women earn $0.79 on the dollar compared to men. Second, single women can’t access the same tax-saving options as married couples. Their earnings can be further hit if they need to take time off to care for children or aging parents; or if they’re disrupted by a lengthy illness or disability. Kristi Buchanan, an advisor with Sun Life Financial in Victoria, BC, says advisors sometimes make inaccurate assumptions about singles. For instance: “They’re not married, so they don’t have relationships that could impact their financial decisions.” That’s not true. Siblings, nieces, nephews and even friends could all influence single clients’ estate plans. To suss out these ties, Buchanan asks whom they care about most; whom they consult on financial matters; and who they want to have inherit their money. Kathryn Jankowski, VP and Financial Divorce Specialist at T.E. Wealth in Toronto, takes it a step further. “I invite [influencers] to appointments. The plans I put forward have to have acceptance from them as well.”

via Radio Shalom | May 30, 2012

In this interview, Marcy Ages, Senior Consultant and Certified Professional Consultant on Aging, discusses being prepared financially to cope with the effects of Alzheimer’s on individuals and their families.

via SN Magazine | May 23, 2012

On a rainy afternoon in Philadelphia, a young man walked into a Rolls-Royce dealership, curious because he’d never been close to such a pricey and prestigious car. He wore blue jeans and a matching jean jacket over an old sweater, with cowboy boots. His long brown hair settled on his shoulders, matching his moustache perfectly—a standard look for a 26-year-old professional hockey player from Niagara Falls in 1972. Especially for one nicknamed “The Turk.” The Rolls-Royce dealer, wearing a three-piece suit, sniffed at his presence, folded up the newspaper he was reading and got up from his desk. He grudgingly acceded to The Turk’s request to unlock the front door of a burgundy sedan so he could size up the front seat. “Sir, this is a long-wheelbase Silver Shadow limousine,” the dealer snorted. “Perhaps, if you purchased it, you’d be sitting in the back.”

via Advisor.ca | May 1, 2012

Single female clients will soon comprise more of your book. Data from the Vanier Institute for the Family finds more than half of 80-year-old women live alone at some point, compared to less than a quarter of men the same age. What’s more, the same report says only 46% of women and 44% of men are now expected to marry by age 50.

via Advisor.ca | April 16, 2012

Luxury cars, glittering jewels and cozy cottages build a formidable illusion of wealth. But these hallmarks of conspicuous consumption don’t always add up to high net worth. This harsh reality jolts many possession-rich and cash-poor folks when their advisors tally assets against liabilities, and reach grim conclusions about future cash flows.

“People tend to assign arbitrary numbers to illiquid assets, and believe they’re worth a lot,” says Calgary based Nicholas Miazek, manager of financial planning at T.E. Wealth. When drawing up a net-worth statement, he makes a point of dividing the two and showing people what they can actually spend.

If clients won’t liquidate assets like primary residences or cottages, Miazek takes them off the table when making net-worth determinations, and helps them plan for alternative sources of income.

via Advisor.ca | April 18, 2012

Part 1: Accounting for Tax
Some tax-efficient investments aren’t worth the risk

Tax should never be the primary driver for decision-making on a portfolio, but a properly structured portfolio always takes tax into account.

Regardless of asset class—money market funds, fixed income, or equity—clients can find ways to earn money in a tax-efficient way. Planning to reduce the tax burden must first coincide with the risk objectives and risk tolerance of your client, says Matthew Harvey, owner of Harvey Financial Solutions Inc., in Kincardine, Ont. “Investment strategies that take tax into account can be complicated and risky,” says Harvey. “Many of them are designed for the financially mature individual—affluent, high-income, and high-net-worth. Clients should not sacrifice expected rates of return just for a tax benefit.”

via Radio Shalom | March 23, 2012

Kathryn Jankowski, Vice President and Divorce Specialist discusses the collaborative law process and how it differs from mediation, litigation and arbitration during divorce proceedings. Kathryn explains how the process couples’ choose affects how families will work together while living apart after the separation agreement has been negotiated.

via Moneysense.ca | February 2, 2012

So you’ve been saving up for retirement, now where should you invest your RRSP funds?
Over the years Paul Gardner has helped countless clients invest for retirement. As markets have become more jittery and investment news has become a 24/7 business, the partner and portfolio manager with Avenue Investment Management has noticed a change in the way people treat their RRSPs. Many people especially do-it-yourself investors think their RRSP is a trading account as opposed to a pension plan, he says. But really, they need to replicate large pensions.

via Shalom Radio | February 29, 2012

Personal financial management involves not only the employee but also the employer. Stress caused by financial anxiety affects employee productivity. In this interview Ismo Heikkila, National Director, Employee Education Services and Gilles Couturier outline the key challenges and benefits facing employers and employees in designing and implementing financial education programs.

via cbc.ca | February 23, 2012

Options and tips for winding up your retirement savings plan. More than 15 million Canadians have set up RRSPs – millions of plans that, at some point in the future, will need to make an abrupt transition from accumulating money for retirement to paying out money in retirement. It’s a basic rule of RRSPs, but it can catch soon-to-be retirees by surprise if they don’t plan properly. The surprise can turn nasty, too, with the tax man taking an unexpected bite out of a retirement fund. Canadians face three broad choices when they mature their RRSPs – something that must happen at the latest by the end of the year in which they turn 71.

via Investment Executive | February 22, 2012

Financial planner Eric Church looks forward to his annual canoe trips as a chance to slow things down. He uses the time to reflect on the past year and set goals for the next.
Eric Church’s motto is simple: “Have paddle, will travel.” The associate consultant with T.E. Wealth in Toronto is an avid canoeist who makes one major — and very off-road — paddling trek a year. “It’s about getting out of the city and slowing everything down,” says Church. “It’s become a tradition, a ritual. I reset myself. When I’m out there, it’s like I never left. I reflect back on the past year and set
goals for the year ahead.

via Finacial Post | February 15, 2012

Playing it safe won’t help investors net enough savings to retire.

As Canadians enter the home stretch of the annual RRSP season, a CIBC poll has uncovered a disconnect between the rate of return investors think they need to retire and their actual behaviour. A whopping 45% of 1,000 adults polled by Harris/ Decima did not even know what annual rate of return they need to meet their retirement goals. And 57% of those who did know nevertheless chose low-risk guaranteed investments that CIBC Asset Management president Steve Geist says are unlikely even to keep pace with inflation. Geist worries this ignorance of likely rates of return is being used as an excuse to bail on making substantive investment decisions. “They think that by taking no risks they are playing it safe, when in reality they are falling further behind.”

via Globe and Mail | February 17, 2012

You’ve saved for retirement most of your adult life and now it’s time to begin drawing on your stash.

Where to start?

You might have a pension – a defined-benefit plan indexed to inflation, or a defined-contribution plan tied to financial markets. You might have money coming in from the Canada Pension Plan and Old Age Security. Then there’s your registered retirement savings plan, your tax-free savings account and your investment portfolio. Those whose income is very low will qualify for the Guaranteed Income Supplement. How to draw on this money most efficiently depends largely on your income tax bracket, both now and in the future, financial planners say.

via Globe and Mail | February 10, 2012

After years of running their own company, Cameron and Carol find their priorities are shifting. She is 65, he is 55.

A couple of years ago, Carol had a health scare. While she still does a bit of office work for the company, she and Cameron would like to spend more time together travelling throughout Europe in their camper, which they leave with friends there. Cameron is planning to work part-time consulting, retiring fully in five years. Fortunately, they have quite an array of income sources to draw from. Carol gets Canada Pension Plan and Old Age Security benefits as well as $10,000 a year in salary from their company. Cameron is drawing a salary of $60,000. When he retires, he will get CPP and OAS as well as a U.K. pension (at age 66) for a total of about $15,000 a year. They also have substantial savings. Their question is one many Canadians share: How to spend their savings in the most tax-effective way. Their goal is to travel for six months of the year, returning home to Southwestern Ontario for the rest of the time. We need help to decide how we should draw down our various investments to minimize our taxes, not only now but after we have both retired,Cameron writes in an e-mail. They want to increase their spending substantially “from about $72,000 to $90,000“ to give them the footloose lifestyle they long for.

via Globalnews.ca | February 9, 2012

It’s RRSP season and the banks want your money.

As if you don’t have enough to worry about lately with all those Christmas bills to deal with, not to mention that winter vacation you just have to book. Now you’ve got the banks on your case.

No, not because you’ve fallen behind on your payments. You are, after all, the responsible sort. But it seems like every day, one of them’s coming out with a new poll telling you that if you don’t stash a whole whack of cash into a registered retirement savings plan right now, you’re going to be downloading discount apps and relying on the kindness of government coffers when you reach this mystical age of retirement.

Whatever the government says that age is going to be when you get there.

via Metro | February 6, 2012

Don’t wait until the last minute to contribute to your RRSP fund.

Are you one of those people who scramble every February to make an RRSP contribution before the end of the month?

While that scenario is definitely better than not contributing at all, experts point out that you are not getting the most out of your money.

David Gillan, vice-president, T.E. Wealth, says what a lot of people do is either deposit the lump sum based on what they can contribute or how much they have to put in to break even and not pay any taxes. But they often wait until the end of February.

via Metro | February 6, 2012

Do you hear the clock ticking … time is running out if you intend to contribute to an RRSP.

The deadline for contributing and using it on your 2011 income tax return is Feb. 29, 2012. The deadline, usually March 1, is different because it’s a leap year.

What is also different this year is the slight increase in the amount you can contribute. For 2012, the contribution limit is 18 per cent of your income in 2011 to a maximum of $22,970.

The federal government introduced RRSPs in 1957 to encourage Canadians to save for retirement.

The biggest benefit is the immediate tax savings, says David Gillan, vice-president of T.E. Wealth. You get a tax deduction for the year that you put it in. Your total income is reduced by the amount you invest in your RRSP. That means you pay less tax and are left with more of the money you earned, says Gillan.

via The Wall Street Journal | January 30, 2012

As Canadians wade into their 40s, more are finding themselves hip-deep in debt.

It’s a time when saving for retirement becomes more urgent, and financial planners say the key to turning things around is getting a firm grasp on what kind of debt they have and on how much of their income it is consuming.

They need “a clear understanding where they are–is the debt a problem or not?” said Scott Plaskett, senior financial planner and chief executive of Etobicoke, Ontario-based Ironshield Financial Planning.

via Canadian Business | January 19, 2012

For more than 50 years, Canadians have been pouring money into their registered retirement savings plans (RRSPs). For most of that time, it was hard to go wrong. Stock markets steadily climbed for decades. In the 1990s, most equity categories rose, and the value of investors’ nest eggs soared.

Today, it’s a different story. Many RRSP portfolios were decimated during the recession, and countless baby boomers wonder if their investments will recover before they need to draw on them.

via Globe and Mail | December 15, 2011

Our New Year’s resolutions tend to focus on health and wealth. And while it’s easy to jot them down and share them confidently this holiday season, how many of us will actually arrive at next year’s party svelte with savings in the bank? Apparently, we’ll have a lot more stick-to-itiveness to see our goals to completion if they are in line with the realities our decade is currently facing. As you start to draft your list, and envision how you would like 2012 to look, consider including a few of the suggested goals below.

via Investment Executive | Oct 31, 2011

A couple, both of whom are 50 years old, want to take off the next two years to travel and catch up on their hobbies. Two advisors examine whether this plan is achievable and whether their retirement savings will remain intact.

via Financial Post | September 9, 2011

Before you buy that fancy car, trade in the spouse for a newer model and generally behave badly to assuage your mid-life fears, get a grip on what will happen to your finances, career and life in general.

via Capital Canada | May 31, 2011

Let’s face it: talking to financial types isn’t always easy. Sometimes it can be a little difficult to understand exactly what they do, and how they intend to manage your money.

via Financial Post | July 23, 2011

For older investors holding mostly fixed income, this protracted era of ultra-low interest rates has been a frustrating low-yielding experience. Based on what economists said this week, they may not be getting relief for a few years yet.

via Morningstar | July 12, 2011

When Kathryn Jankowski re-married, it was with eyes wide open. The vice-president and financial divorce specialist at T.E. Wealth in Toronto was going into her second marriage with two children, and with the financial hindsight of three decades.

via A Dow Jones Newswires Column | July 2, 2011

With the ongoing U.S. debt crisis strengthening the Canadian dollar against its U.S. counterpart, investment experts said now is the time to find ways by which investors can take advantage of the stronger loonie–whether through rebalancing a portfolio to purchase more U.S. stocks, or buying a U.S. property for some snow birders.

via Dow Jones Newswire | June 21, 2011

As financial planners comb through their clients’ accounts for a mid-year review, many advisers are making a mental note to check changes in clients’ affairs that could affect their estate plans.
“Sometimes clients aren’t aware of the small changes that can make a big impact,” said Nicholas Miazek, a certified financial planner at T.E. Wealth in Calgary, Alberta.

Tim Faunt of the Calgary office was quoted in the financial planning supplement of The Bottom Line, a Canadian publication for accounting and financial professionals.

via The Globe and Mail | May 11, 2011

If you plan on cross-border shopping this summer, you may want to bank some U.S. dollars now, while the exchange rate is in our favour. If you open a U.S. dollar account through your Canadian bank, you can apply for a U.S. dollar credit card to access your funds while in the United States – and avoid paying the conversion fee on your purchases, which is 2.5 per cent at most financial institutions.

Bankrate.com | April 27, 2011

When it comes to remarrying, many couples are so caught up in the emotional rush of the moment that they don’t properly consider their future. But before you share those vows, you might want to consider Ben Franklin’s wise words: an ounce of prevention is worth a pound of cure.

The Globe and Mail | April 21, 2011

Whether it’s a duplex, a cottage or a Florida getaway, a second property can be a rewarding investment over time. But if you’re not careful, it can prove taxing as well. A little planning goes a long way.

Mim.io | April 15, 2011

The International Foundation of Employee Benefit Plans has designated April 4th as Employee Benefits Day, with a special focus on communicating employee benefits.

I recently talked to Ismo Heikkila about problems employers encounter effectively communicating their benefits program. As National Director, Financial Education & Employer Services for T.E. Wealth, Heikkila leads dozens of employee education seminars every year.

Read the original article here.

The Globe and Mail | April, 2011

Greg is 46, Melissa 50. They have been married for 25 years and have two children, aged 16 and 19. He works in administration, she in sales.

Melissa will collect employment insurance for four months until her long-term disability insurance kicks in, which means a sudden drop in the family’s income. Once her LTD insurance begins, it will pay about 91 per cent of her after-tax earnings.

via Capital Magazine | March 31, 2011

Most baby boomers have spent life accumulating assets, building our careers, raising our families or growing our businesses and letting one day follow another. For many it’s now time to step back from the accumulation phase – it’s time to unlock that capital and put it to use.

The risk of a long life People often worry that if they live long, they won’t have enough money to enjoy it. We asked some experts to suggest ways of minimizing ‘longevity risk.’ For full article at original source here.

Baby Boomers’ RRSP tax bill looms large As RRSP season gets into full swing, it is beginning to dawn on a legion of Canadian savers that the forced withdrawal of funds at the other end of the RRSP process will land them with a hefty tax bill and plenty of headaches on retirement. For over …

The Financial Post | February 4, 2011

Who’s going to take care of your money once you’re gone? It’s a question few want to answer, but on the other side of 50 looms mortality

Read more

The Calgary Herald | February 4, 2011

Growing awareness of the ultimate tax liabilities of RRSPs has many middle class and wealthy Canadians embarking on a desperate search for a way out, possibly even a way out of the country to more sunny tax climes.

Globe Advisor | February 4, 2011

Financial experts excel at looking over our portfolios and giving us advice. But rarely do they allow us to peek at their own financial RRSP smorgasbord and see what we think.

Beyond The Will There is much more to an estate plan than drawing up a will. An effective estate plan will ensure that your client’s will works together with other financial tools to make his or her wishes for passing on his or her assets a reality after death. And as with all other aspects …

The Globe and Mail | January 11, 2011

Together, Grace and Cary bring in more than $290,000 a year before tax. Grace works in the medical field and has a pension, while Cary works in sales with a base salary plus commission and so must provide for his own retirement.

Canada.com | December 6, 2011

The other day, a colleague wanted to know how a family member could get 10% annual returns without taking risk. I had to say there was a time when this was a slam dunk but it’s almost impossible in today’s environment.

Bankrate.com | October 27, 2010

When it comes to deciding between a company pension plan for life versus a locked-in retirement savings plan (RSP), the choice can pose a big dilemma. What is worth more down the line? Age, financial circumstances, health, lifestyle and risk tolerance are just a few things to consider if you are given the choice between the two retirement plans.

A ‘For Sale’ sign best way to safeguard lifestyle Wondering if you should continue renting or take the plunge into home ownership? To help you clarify this debate, we’ve compiled a list of questions from various professionals associated with a real estate transaction. Answering the right questions about the early stages of the home ownership …