Retirement Savings

More than 64% of Gen-Xers - those between the ages of 35 to 50 - say the uncertainty that accompanies retirement planning keeps them from taking any action to help secure their financial future.  According to a Canadian study, more than a quarter of Gen X members have not started saving for retirement.  The cost of living, raising school-aged children, large mortgages, and a lack of employer pensions, all post  challenges and add to financial stress.  The good news is that Canadians who work with a financial advisor are three times more likely to have saved more than $100,000 for their retirement than those without one.  If you are caught mid-life, and find you need to start getting serious about planning financially for your future, talk to us.

Tax on Investments

You work hard to have money to set aside and invest - you want to ensure that your investments are not eaten up by taxes.  Certain investments are given tax preferred treatment.  Find out more about how investments are taxed here.

Tax Free Savings Accounts (TFSA)

The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free. Each calendar year, you can contribute up to the TFSA dollar limit for the year.  The 2018 TFSA contribution limit is $5,500 but if you have not contributed since the program began, unused contribution room up to 2018 wold be $57,500.  All income earned and withdrawals from a TFSA are tax-free, so your federal benefits and tax credits are not impacted by withdrawals.  It's a great way to save if you expect your taxable income to be about the same at the time of deposit and the time of withdrawal.  Find out more about TFSAs here.


Registered Retirement Savings Plan (RRSP)

An RRSP is a retirement savings plan that you establish, that is registered with the Canada Revenue Agency, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.

Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

To learn all the facts, please contact us.

RRIF:  Registered Retirement Income Fund

When you are ready to withdraw regular income from your RRSP, or by December of the year you turn 71, you might transfer the contents of your RRSP to a RRIF.  Once in a RRIF, there is a minimum required withdrawal each year.  RRIF withdrawals are taxed as income, similar to pension or earned income, since RSP deposits generated tax credits.  Due to longer life expectancies, the 2015 Federal Budget proposed a reduction in the minimum required withdrawal per year to allow RIF savings to last longer.  For more information, please contact us.


Why Diversify?

With continued market volatility, a look at past returns from each asset class can give some much-needed perspective.

Diversification helps investors participate in the gains of current winners, while reducing the impact of asset classes that are out of favour for a year.  Take a look at this "Quilt" that shows the annual returns of key asset classes, ranked in order of performance in Canadian dollars up to 2015.  Check out the Quilt image here


The Best Time to Invest

A look at past political and economic events and see how $1 invested in the total U.S. market grew from 1927-2012—as well as what was in the headlines in Time Magazine.  Watch this  3 minute video on the history of the US and its stock market to see the Best Time to Invest.


Intelligent investing

In theory, the value of an investment is based on fundamentals – the strength of the underlying business.

But in reality, human psychology can play an even bigger role in determining prices.  When a market cycle turns and investors seek liquidity, even the strongest businesses tend to be sold off.   Learn more about why your emotions should stay in check even when markets cycle.

Remaining focused in today's market environment

In periods of market volatililty, a look at history may offer insights into the benefits of long-term investing.  Click here to learn more.