Want a subject matter everyone has a strong opinion on other than politics and religion? Look no further than the Reverse Mortgage program available to Canadian seniors, a subject misunderstood by far too many retirees.
As a financial advisor to a large group of seniors I have seen this product successfully create an unexpected source of wealth to allow retires to maintain or even enhance their standard of living.
Over the years I have reviewed a handful of my client’s RRSPs who had their assets with one of my competitors, and several times I have been shocked with how poorly it was communicated to the customer how important the beneficiary selection is.
In the last year a long-time senior client of mine sadly died unexpected and had two RRIFs. One with me showing his spouse as beneficiary (as Successor Annuitant/Owner) and the second with an online self service provider with his “Estate” as beneficiary.
In 2009 the federal government introduced the Tax Free Savings Account concept to Canadians. For anyone 18 years or older the TFSA has been whole-heartedly embraced as a tax-efficient vehicle to save money for short and long-term needs.
However, many people do not fully understand the importance of proper beneficiary designations and subsequently, they miss additional tax planning opportunities.
On February 24th, 2022, Russia invaded the Ukraine, setting off an inflation spiral not seen since the early 1980s. As Russia is the 3rd largest producer of oil and natural gas (behind Saudi Arabia and the USA) the impact of declining reserves was immediate in the prices we paid at the pump this last Spring.
The rise in oil and gas prices in turn escalated the cost of all consumer goods, services, and food items so that the rate of inflation for June 2022 was 9.3%.
What exactly is inflation in economic terms?
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.
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.
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: