With over 350 clients Adam and I are consistently asked a number of key financial questions that we thought all of you would appreciate reading.
Here is the Top 10 list of the most frequently asked questions:
Surprisingly less than 55% of Canadians have a current and valid Will, and even less have a Power of Attorney (to handle financial affairs) or a Representation Agreement. All three of these documents are necessary in British Columbia for complete coverage in the estate planning process.
A major accident or a long-term mental health illness (such as Alzheimer’s or Dementia) may suddenly eliminate an individual’s capacity to make informed decisions on their financial and/or health care needs.
A Power of Attorney gives the chosen individual(s), such as a family member or friend, the legal authority to make financial decisions on your behalf.
It has been estimated that close to two trillion in intergenerational wealth transfers will occur in Canada over the next decade as Baby Boomers glide through their “golden years”. A massive shift of capital will flow through to the “Boomers” and then again to their children or another family member at death.
The key to maximizing any inheritance (either to be received or to be gifted) is to ensure taxes and estate administrative costs are kept to a minimum, specifically by avoiding the process of probate if possible.
We all want to make a difference in our lives and supporting our favourite charity with an annual donation is a wonderful start. The charity gets our cash donation, and we get a Tax Credit reducing our income tax liabilities – everyone wins!
Canadians can support a registered charity, foundation, non-profit, museum, educational institution, or religious group of their choosing. If you wish to make a meaningful contribution here are six ways to do so, regardless of your budget.
The disability tax credit (DTC) is a non-refundable tax credit that those with disabilities, or the people who support them, can claim to reduce the amount of income tax owed. Individuals may claim the disability amount on their annual income tax return once eligible for the DTC.
The purpose of the DTC is to provide for tax equity by allowing some relief for disability costs since these costs are unavoidable expenses.
In December 2021 the federal government announced that the 2022 annual TFSA limit will remain at $6,000. This means the cumulative tax-sheltered lifetime limit is now at $81,500.
As I have explained to many clients, there is no “downside” to owning a TFSA, any TFSA is better than no TFSA. However, many people make mistakes with the accounts which can cost them in the long term.
Over the last decade traditional group insurance premiums have increased an average of 10% per year. Provincial governments downloading once-covered expenses such as chiropractic, physiotherapy, and vision examinations, have had much to do with escalating costs. Drug costs for new medications and annually adjusted dental fee guidelines, have also made a large impact on increased premiums.
Business owners deal with a unique set of challenges. One of these challenges includes succession planning. A succession plan is the process of the transfer of ownership, management and interest of a business. When should a business owner have a succession plan? A succession plan is required through the survival, growth and maturity stage of a business. All business owners, partners and shareholders should have a plan in place during these business stages.
We all want to reduce our income taxes and deducting interest payments on mortgages, loans, Lines of Credit or even credit cards can do that.
Canada Revenue Agency (CRA) has set criteria and rules that allow for the deduction of interest under certain situations. The key factor is the money you borrow must be used to generate income.
Since my 1980 start in the financial industry, I have had many clients retire only to realize a big disconnect between how they envisioned their retirement versus the assets that they have accumulated.
For most people, it is not just one mistake made over the years, but rather a multitude of poor financial decisions, many of which were implemented mid-life (from age 35 to 55).
The 15 most common reasons that financial health was negatively impacted: