Newsletters

Gordon Pape calls them the “ultimate wealth builder.”   I agree.  The RRSP accomplishes 3 primary goals.  Immediate tax deferral, tax-sheltered growth and control over how that income is received in the future.  They are flexible, largely creditor proof and the last decade has opened up liberal rules on international investment opportunities. Should you take a…

The Canadian dollar vis-a-vis the US dollar has lost some ground of recent.  Well, quite a bit actually. The first sentiment of a high dollar is national pride.   We are better than them.  A falling dollar, signs of weakness.  Not good.  But, how much impact does it have on you? Holidays and shopping trips south…

The Doctor looked at the chart and then glanced at the patient up and down.  “Good news,” he said.  “I want you to continue to eat exactly what you’ve been eating.  Fill your plate exactly the same way.  Then,” he paused, “I want you to eat exactly half the food on the plate.” It’s a…

I’m a traditionalist.  I still say Merry Christmas and send out cards saying the same.  Yes, I know not everyone celebrates December 25 in the same way. Western society has many holidays and Christmas is but one of them.  Still, it would be difficult to disregard the outpouring of support to the least fortunate in…

We put the youngest of our children on a plane week before last.  Destination, Grande Prairie.  Campbell River is the only home he has ever known and he was fully-employed. Still, the allure of bigger money to work in the oil and gas industry was too much to ignore for an 18 year old. On…

In case you hadn’t noticed, Black Friday hit Canadian shores in earnest last Friday.  No, not an infamous stock market correction but rather the retail event of the year.  The one preceding Boxing Day, January’s Clearance, February’s End of Season, March’s Markdowns etc.. It’s been building for a few years in Canada.  Part of an…

Written in 1996 by David K. Foot, the book provides a look at the future through demographics.  It’s been sitting on a shelf collecting dust since first reading it around the same time. Demography is the study of human populations.  The author claims it affects two thirds of everything.  For example, those same active individuals…

Hold onto your hat.  That whirlwind of activity known as the 5 th annual Financial Planning Week (November 17-23) is here.  Well, maybe not here and in checking, not much there either.   Who knows, with a little effort, like-minded professionals might be able to come up with some ideas for creating more awareness HERE in…

Old Age Security (OAS) is the single, largest program of the Government of Canada.  The program provides benefits to most Canadians 65 years of age and over based upon a residency test.  The program consists of the basic pension, Guaranteed Income Supplement (GIS) and monthly allowances for eligible low-income people 60 to 64 years of…

That is the question.  Not if, but rather when.  The exception being incorporated business owners that have chosen not to contribute for a variety of reasons. As it sits, both employees and employers pay 4.95% each towards CPP.  The self-employed are responsible for both portions.  The YMPE (yearly maximum pensionable earnings) for 2013 is $51,100…

One of the by-products of a highly regulated investment industry is the creation and distribution of paper.  Lots of it.  It comes in the form of contracts, disclosures, information booklets, trade confirmations and statements.  Chances are you’ve got more of it than you want and some of it you don’t need. Why can’t the mailings…

Let’s look at some of the more common ones. The 4% Safe Rate of Withdrawl .  I’ve probably read 4 or 5 articles on this in the past couple of years debating whether this still holds true.   Essentially, it assumes that a given diversified portfolio will provide 4% of income through thick and thin without…

I’ve never met anyone successful with money that didn’t own a principal residence. What makes a home a great investment?  To start with, leverage which translates to your down payment. Assume that you purchase a home for $300,000 with $10,000 down.  The market fluctuates up and down but 10 years later the home is worth…

A client recently asked me about when is it the right time to begin teaching kids about money.  It was a great question not so easily answered. The research would suggest that the earlier in life that the lessons begin the better.   It would also suggest that a parent’s own personal habits and philosophies influence…

Inflation is probably not that much appreciated by the public at large where costs go up faster than wages.  The GIC rollover at a couple of percent buys no more next year as it did this year and likely a little less if taxes take a bite.  I’m not qualified to debate all the reasons…

It’s a stimulant and stimulants are bad for you.  It’s a diuretic and as most Canadians don’t drink enough water you should skip.  Too much caffeine can make you jumpy and interferes with getting a good nights’ rest.  It feeds corporate profits and the disposal of millions of wax-coated cups is bad for the environment.…

Behind the scenes regulators and lobby groups are locking horns over the way in which most Canadians currently pay for financial advice and the future of embedded fees. What’s an embedded fee?  It’s a fee you don’t see.  For most, it’s the cost of owning mutual funds but it also extends to other investments. Mutual…

I received a call a couple of weeks back from a reporter from the Wealth Professional.  It’s an online magazine for those in our industry.  I’m not sure where it came from but it started appearing in my inbox awhile back.  Their articles are informative but concise so I tend to peruse. The reporter asked…

I’ve got a laminated poster in my storage room that provides a pretty simple explanation of inflation.  Three gas pumps are labelled 1979, 1999 and 2019.  The 1979 pump shows gasoline at 26.7 cents/litre.  The 1999 pump shows gasoline at 67.5 cents/litre.  The 2019 pump has a question mark.  The tag line is “will you…

Early in the summer of 2013 the Dow touched a record high.  The Dow is one of the benchmarks for measuring the current and future strength of the global economy.   It’s an imperfect barometer.  Part measurement of value, part current market sentiment.  The percentages attributed to both tend to swing pretty wildly. As a society…