PAST ISSUE - FALL 2011

Leveraged to the Limit

Fall 2011

Spurred on by low rates and easy access, Canadians today are carrying more debt than ever before. But is this really such a bad thing? The answer lies in your age and stage of life and the overall health of your financial plan. For some, debt is a four-letter word that spells misery. For others, it’s the key to opportunity and building wealth. One thing is for certain; debt levels in Canada have hit historic proportions. Household debt in Canada reached a record $1.5 trillion in the first quarter of 2011, with the debt-to-income ratio hitting a staggering 146.9%. If that amount was spread equally across all Canadians, a family of four would owe $176,461.* With warnings coming from the Bank of Canada, the federal government and the International Monetary Fund, there is growing concern about the high level of debt and its effect on the long-term financial security of Canadians.

Year-end Financial Planning Tips You Won’t Want to Ignore

Fall 2011

Introduced in 2009, Tax-Free Saving Accounts (TFSAs) give every Canadian resident age 18 and older the opportunity to invest $5,000 per year tax-free. By 2011, a couple could save $30,000 and not pay any tax on the investment earnings! Top up TFSAs now and then make your 2012 contribution of $5,000 on January1st. Students, who are 18 or older, can withdraw $5,000 from their RESP each year and contribute the money to a TFSA. The funds grow tax-free and can be used for any purpose in the future.

Fasten your Seatbelts

Fall 2011

Expect a bumpy ride in equity markets, at least until some semblance of investor rationality returns. Why have stock prices been beaten back to the valuation lows that followed the financial crisis of 2008? Yes, there has been a parade of bad economic news, frustrating political posturing and seemingly ineffective monetary policy. But the economy has grown, albeit at a reduced rate, and companies continue to produce strong earnings. Instead of the irrational exuberance of the past, we may now have irrational despair.

Down but Not Out

Fall 2011

Sluggish growth more likely than an outright economic contraction. Economic growth in both Canada and the U.S. will be much lower than was expected a few months ago, but a return to recession appears unlikely.

The Best Laid Plans

Fall 2011

A couple of years ago, you thought your retirement plan was bulletproof. But with the downturn in the economy and the threat of a downsizing at work, now you’re not so sure. Is there anything you can do to feel more secure?

Viewpoint

Fall 2011

Plan. Invest. Preserve. Just what is so special about these three words? Essentially, they describe the key elements of a sound wealth management strategy. While important individually and more powerful when working together, these three words sum up what we do for our clients at T.E. Wealth. They also show how we are different from others in our industry. Many advisors consider investing to be their core service, with financial planning and wealth preservation added on as “extras.” Not us. At T.E.Wealth, we take a fully integrated approach to your wealth management delivered through our financial consultants and the investment counsellors at T.E. Investment Counsel (T.E.I.C.). Planning is what drives our process; everything starts with you and what you want to accomplish. Investing is there to fuel your overall plan and see you reach your financial goals. Preservation is how we protect all that you’ve accomplished from expenses, taxes and risk.

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