Travelling out of Country this Year: Here are the changes to OHIP that you need to be aware of:

Starting January 2020 the Ontario government’s OHIP coverage for some types of out of country medical costs has changed or been eliminated.  While the previous emergency coverage was minimal -  a maximum of $400 per day, this coverage has now been eliminated.  It will now be the travellers sole responsibility to cover any medical costs associated with out of country treatments while travelling.  Keep in mind the past coverage of $400/day would not typically have covered the cost of a trip to the emergency room in the US which averaged at a cost of over 2,000/ visit.

If you will be travelling it is important to research and get private coverage NOW more than ever.

First you should explore any existing coverage that you may already have.  This coverage could be through an employer sponsored extended health care plan, a program offered through your credit card or any private coverage that you may already have or that is available to purchase.

All programs differ in coverage and in cost so it is important to read the fine print to see which one best applies to you and your family.  Don’t forget that some policies will not cover you for what they may determine as “risky behaviors”, such as bungee jumping or scuba diving.

It is also very important to be totally honest when applying for private coverage.  Depending on your age you may be asked health questions which will help determine the cost of your coverage.  Obviously the better health you are in the lower the cost will be.   Please note that in case of a claim, the insuring company WILL check back on your medical records to make sure you did not have a pre-existing condition that was related to your emergency while travelling and they WILL deny your coverage.

Most companies will also state that you need to call their 1-800 number BEFORE you seek any treatment or they may not cover your costs.

To make it easy for our clients to obtain a quote for travel insurance we offer a link on our website to the Manulife travel insurance HERE. 

We encourage you to shop around as this coverage may not be the best plan available for you and your family.  It’s important to read the fine print.  We encourage you to look at all of your options!

Below we have included links to a summary of the changes published by the Globe and Mail and also a link to the OHIP website for further research.

Click Here to see in the link from the Globe and Mail

Click Here to see the link from Ontario Government OHIP

-Jodi

January 26th-National Spouses Day

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National Spouses Day is observed annually on January 26.

Dedicated to recognizing spouses everywhere, National Spouses Day reminds us to take time for our mate. From being thankful for fulfillment and security of a long-term relationship to the boost of morale and well-being provided by spouses, there are many reasons to celebrate.  This day is a time to show your spouse that you care and appreciate all of the things that he or she does for you and the home.

Life gets busy, and we can often take for granted how our spouse improves our life.  Pay a heartfelt thank you or compliment to the love of your life.  National Spouses Day is a non-gift giving day, so spend time together and reconnect. Don’t forget to say, “I love you.”

HOW TO OBSERVE

If it has been a while since you have expressed appreciation to the partner you walk beside, now is your chance. Again, this day is not about giving gifts but spending time together, enjoying each other and appreciating each other.  Use #NationalSpousesDay to post on social media.

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Bonnie

20 Year Trends Retrospective

Looking Back

Sometimes when the world feels like it's going a little crazy, it's good to look back and see how far we've come and what we have walked through.

This is a good example of how historic events have affected markets and how they march on despite it.

-Jodi

Tax Free Savings Accounts - 2020 Contribution Limit and more

What is the 2020 TFSA Contribution Limit?

The TFSA new contribution limit for 2020 is $6,000, this is the same amount set for 2019.

Do you want to start a TFSA?

If you don’t have a TFSA yet then total contribution room available in 2020 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $69,500.

Have you taken withdrawals from your TFSA?

For those clients who have withdrawn from their TFSA and want to know what their limit is now. One thing to keep in mind is the crystallized gains and losses from the withdrawal(s) are factored in to their TFSA room.

Here’s the formula:

Unused TFSA contribution room to date + total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year

( Click here to see CRA rules on making or replacing withdrawals)

What is the age I can start a TFSA?

Anyone 18 or older who has a valid social insurance number is eligible to open a TFSA. Contribution room accumulates beginning in the year in which a person turns 18.

Breakdown of the TFSA Annual Dollar Limits by Year

For 2009, 2010, 2011 and 2012:         $5,000

For 2013 and 2014:                             $5,500

For 2015:                                             $10,000

For 2016, 2017, and 2018:                  $5,500

For 2019 and 2020:                             $6,000

Total: $69,500

For Information on

TAX FREE SAVINGS ACCOUNTS- ARE THEY TAXABLE UPON DEATH? WHO SHOULD I NAME AS A BENEFICIARY? Click here to review our recent Blog

-Michelle

Learn to save a life

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If you’re still cooking up your resolutions for the new year, we have a humble suggestion for you: add CPR training to your list. CPR helps keep blood and oxygen flowing and dramatically increases the chances of survival in those who suffer a cardiac arrest.  

      The Life You Save May Be That of a Loved One.  

Did you know that four out of five cardiac arrests occur at home? Not only that, but many victims of sudden cardiac arrest appear healthy and may not have any known heart diseases or risk factors. Performing CPR promptly may save the life of someone you love.  

      Prevent Brain Death  

Brain death occurs four to six minutes after the heart stops breathing. CPR effectively keeps blood flowing and provides oxygen to the brain and other vital organs, giving the victim a better chance for full recovery. Everyday Health reports that If CPR is given within the first two minutes of cardiac arrest, the chances of survival double.  

      CPR Makes You Smarter  

Let’s face it, by the time you complete CPR training, you’ll know something that you didn’t know before you started!  

      You’ll Feel Confident in the Event of A Cardiac Emergency 

By nature, CPR classes are hands-on and interactive. While there may be some online training involved, course participants will learn how to properly execute chest compressions in a fun and supportive environment.  

      You’ll Test Your Musical Knowledge  

The tempo at which you should give chest compressions lines up nicely with popular musical gems such as the Bee Gees’ “Stayin’ Alive,” “Walk Like an Egyptian” by the Bangles, and “Save a Horse (Ride a Cowboy)” by country duo Big and Rich.  

      Join the 3 Percent  

  “Although evidence indicates that bystander CPR and AED use can significantly improve survival and outcomes from cardiac arrest, each year less than 3% of the.population receives CPR training, leaving many bystanders unprepared to respond to cardiac arrest.” Become a part of the solution and sign up for a CPR training course today.

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Bonnie

Tax Free Savings accounts- Are they taxable upon death? Who should I name as a Beneficiary?

 What’s the best option when it comes to naming a spouse as a beneficiary on your (TFSA) Tax Free Savings Account assets?

Should you leave your (TFSA) to your spouse / common-law partner, Children or someone else?

If you name your spouse as a beneficiary on a (TFSA) you have two options:

1) Name your spouse / common-law partner as a successor annuitant

or

2) Name your spouse / common-law partner as a beneficiary.

I know it sounds the same, but there is a subtle difference. In Ontario you’re allowed to name a regular beneficiary and / or a successor annuitant.

Successor Annuitant Designation

If you name your spouse as the successor annuitant, upon your death they become the new holder and the tax-exempt status of the TFSA is maintained. All of this is done without affecting any of their TFSA contribution room this makes it clean, simple, and seamless. Yes, you read that correctly, they can have maxed out their own TFSA and still transfer your entire TFSA to their plan.

Also by naming your spouse as a successor annuitant means that you avoid probate fees since these assets will pass outside your estate and directly to your spouse / common-law partner. This is usually the best option if you have a spouse.

Beneficiary Designation

When you choose to name your spouse as a regular beneficiary it is a little more complicated. The TFSA assets still passes outside your estate to your spouse on a tax-free basis, but things aren’t quite as straightforward.

Your spouse can transfer the TFSA upon death to their own TFSA, as long as this occurs during the ‘rollover period’. This rollover period ends on December 31st the following year. Transfers during this period are ‘exempt ‘ and again will not affect your spouses TFSA contribution room.

Note: the transfer amount can only be equal to the fair market value of your TFSA at the date of your death. This rule also applies when you’re transferring to a Non-Spouse (such as your child or friend). Any growth on the assets after your death will be taxable. To avoid unwanted taxes we suggest to make this transfer as quickly as possible.

When transferred to a spouse they will be required to complete an extra step .They will need to declare the contribution, so it may be exempt eating up their own contribution room. They will need to send the CRA (Canada Revenue Agency) form RC240, Designation of an Exempt Contribution Tax-free Savings Account (TFSA) within 30 days of the contribution to their own TFSA to ensure that the contribution does not affect their own TFSA contribution room.

Designation of a (non-spouse) Beneficiary - Child or friend

The TFSA assets still pass outside your estate to your selected beneficiary on a tax-exempt basis except the same rules apply as above. The growth is taxable, the transfer is not as easy but is simple.

The beneficiary would receive your TFSA in cash. They can then add the money to their existing TFSA, as long as they have the contribution room ( see below for a chart of the limits over the years), or they can open one if they do not already have an existing plan. As mentioned above the rules still states that any growth on the assets after the date of death will be taxable. To avoid unwanted taxes it is always best to make this transaction as quickly as possible to limit as much growth as possible.

So in Summary—What is the best strategy when it comes to selecting your spouse to inherit your TFSA assets?

We suggest you consider designating your spouse as successor annuitant.

If you’re like most people, you may not remember whether you designated a beneficiary or successor annuitant or both when you set up your TFSA originally. If you opened your account back when they started in 2009, you really may not recall.

There’s no harm in double checking with your financial advisor. It’s easy to make any necessary changes if they are needed. If your just getting started, now you know which beneficiary to choose.

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Here is a breakdown of the two designation types in a chart:

Here is a list of Contribution amounts since 2009 (last updated, January 2019)

What’s the easiest way to save for a down payment on a home?

Part Two- How do I save for a down payment on a home?

Here’s my suggestion – What’s your mortgage payment going to be?

Lets’ say it’s 1,7500/month for a 350,000 house.  Start saving that amount every month NOW.  You’ll be able to see if you can really afford the mortgage payment.  You see the bank would love to lend you more money to buy that bigger house because they make more money by doing that. To them it’s just a formula on a paper.   But can you afford it and live in your current comfy way??  Everyone has a different lifestyle however we all know someone who is house poor and that is NO fun at all.  I’ve seen good marriages fail because there was no fun being had due to a huge mortgage payment.  What’s worse it’s over many years – hard to see that light at the end of the tunnel.  What use is that big house if there’s no one to share it with??

If you start saving that monthly mortgage payment now and keep doing it each and every month, with no exceptions (because the bank won’t let you away with not paying it each month). Then in less then 2 years you’ll have a 10% down payment.  Save for just over 3 years and you’ll have a 20% down payment.

 If your income won’t support the whole mortgage payment because you’re currently paying rent then save the difference between what your new mortgage payment would be and what your current rent is.

Using the above example and say your rent is 800/ month..1,750 – 800 = 950.  Pay your rent each month but also save $950 each and every month for your down payment.  You will have close to 5% down in 18 months and in 3 years you’ll have over 10% down. 

Remember you can’t take a month off if you’re going to Cancun because the bank wouldn’t let you away with that.  You can’t let yourself away with that either.

 Smart money means being disciplined even though it’s hard sometimes.

More importantly you’ll know how it feels to be tied into your mortgage payment so you’ll know if your dream home can comfortably fit into your lifestyle plan.

-Jodi

Bonnie-Part of our Team

Famous 5 Foundation

Recently we attended one of Famous 5 Foundations speaker series events sponsored by Enbridge here in Sarnia. We learned all about the foundation and found it quite interesting.

THE FAMOUS 5 FOUNDATION MANIFESTO

We know today’s privileges are the results of yesterday’s efforts, and we want the whole story—
We are curiou5.
We are the new leaders and future leaders, and we’re here to shape our nation—
We are ambitiou5.
We have the spirit of discovery, and the desire to explore our great country and beyond—
We are adventurou5.
We are leaders in science, art, politics, education, healthcare; masters of our crafts—
We are ingeniou5.
We are prepared for acts of high and splendid bravery for progress and equality—
We are courageou5.

We are famou5.

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The Famous 5 Foundation was founded by 5 amazing women.

Emily Murphy- 1868, Cookstown, ON – 1933, Edmonton, AB

A prominent suffragist, reformer and writer, Emily Murphy (born Emily Gowan Ferguson) became the first female magistrate in the British Empire in 1916

Nellie McClung -1868, Frankville, ON – 1931, Claresholm, AB

Louise McKinney (born Louise Crummy) was a lifelong organizer and staunch supporter of the Women's Christian Temperance Union (WCTU).

Henrietta Muir Edwards-1873, Chatsworth, ON – 1951, Victoria, BC

Nellie McClung (born Nellie Letitia Mooney) was a novelist, reformer, journalist, and suffragist. Feisty and charismatic, Nellie had a way of winning over opponents with her wit and humour.

Louise McKinney- 1849, Montreal, QC – 1931, Fort MacLeod, AB

The eldest of the Famous Five, Henrietta Muir Edwards (born Henrietta Louise Muir), was an artist as well as a legal expert.

Irene Parlby-1868, London, England – 1965, Red Deer, AB

An aristocratic English woman who became a Western Canadian farmer’s wife, Irene Parlby (born Mary Irene Marryat) was a firm advocate for rural farm women of Alberta. She organized and became the first President of the United Farm Women’s Association in 1916. 

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There are lots of ways this foundation offers knowledge and encouragement.

1) The Speaker Series

The Famous 5 Foundation chooses speakers to talk about their careers, and the passion, vision and determination that drives them toward their goals.

In relating their lives, women and men will hear about the different challenges as well as triumphs; humorous incidents and stories of loss; humbling moments of reflection and inspiring calls to action.

Watch for this speaker series to start up again next year.

2) Legacy

Through educational curriculum’s and projects, the Legacy Programs work to ensure the story of the Famous Five is told and celebrated. 

3) Future 5

Through skill-building workshops and events, the Future 5 Program helps young girls grow into Canada’s next generation of leaders. 

The speaker we were privileged to watch that day was Jennifer Buchanan. She is just one of the extraordinarily successful women whom they have had present on their stage. Jennifer is a health speaker, health entrepreneur and a certified music therapist. She shared her story along with the struggles she went through as a female entrepreneur starting her own business. She told us about her vision, and the passion she had for it, as well as the fear that sometimes prevents us from moving forward with our dreams. We also learned about the importance music can have on our lives, she shared a short video where we watched how music therapy can be used to help patients with Dementia, as well as its affects for differently abled persons. It was very touching and a great reminder.

Do I Really Need an Emergency Fund?

Part One- FOR ANYONE WITH CREDIT CARD DEBIT

YES, YES, Yes you do!   However, your personal situation will determine how big your emergency fund should be.

The first question you need to ask is do I have debt?  Not mortgage debt or a huge line of credit but the other debt.  The bad debt…you know credit cards, store credit cards, those things with an absurdly high interest rate.  If you have that kind of debt, then you NEED to start an emergency fund right away.

Don’t worry about paying off those credit cards first.  Instead get started right away and save or sell some things to get $1,000 quick. If you can’t save with your current income then you need a side hustle or you need to pick up some extra shifts, maybe work some overtime, is there a bonus coming – use that (you didn’t really need that new furniture or the trip to Mexico).   You see you need to pay off that bad debt soon, but first you need some safety in your life.  You need to get together $1,000 for emergencies and put it either in a cash account (not attached to your debit card) or literally in cash somewhere in your house.  Somewhere where you can’t easily spend it, because needing a pizza on Friday night, is not an emergency.  I’m tired and don’t feel like cooking, is not an emergency! Christmas and birthdays are not emergencies!

Things like a car accident, unexpected home repairs, true sickness, these are emergencies!  You need this emergency account so that when these things pop up – and they will- you are prepared, and you won’t have to go into more credit card debt to get out of them.

Once you have saved up $1,000 (see how easy that was😉) now you can start paying off your credit card debt.  Make a promise to yourself to not put anything else on those cards and pay them off – cut them up if you have no will power.  If you’re using credit cards to supplement your income, just stop.  What you need to do is to rethink your spending and your income- here’s where the B word comes in – BUDGET, because all you’re doing is making your creditors rich.

If you’ve had a true emergency and must dip into your $1,000, stop working on paying off your credit cards until you build this fund back up to $1,000.  Be super disciplined about it because this will give you that peaceful easy feeling that you deserve to feel about your finances.  Once you’ve filled that account back up, start back at knocking off your credit card debt. 

Remember that financial success is hard work and sometimes it’s not fun, however that feeling you’ll get when everything has been taken care of – you can’t beat that!

-Jodi

Great read for anyone!

Michelle- Part of our Team

Discussion in the media of a possible recession

We’ve all heard the recent discussion in the media of a possible recession.  Here’s Dave Ramsey’s take on how that could affect you:

Four Always, Four to Avoid

These are the four best foods to always have on hand and the four worst foods to avoid

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Based on our research with Blue Zones Centenarians, the healthiest, longest-lived people in the world, we created these simple food guidelines to help people live better. Although the blue zones longevity hotspots were in very different parts of the world, they had similar eating patterns and lifestyles.

These are the four best foods to always have on hand and the four worst foods to avoid. The Always Foods are readily available, affordable, taste good, and are versatile to include in most meals. The Avoid Foods are those highly correlated with obesity, heart disease, or cancer, as well as constant temptations in the standard American diet.

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Bonnie

Learning a new skill can help you to relieve your own stress

Wealth means nothing if you’re too stressed to enjoy the lifestyle you’ve dreamt of. Here are some tips for keeping both your mind and body healthy. 

Recently I have learned 2 new tips to help me keep myself more relaxed, less stressed and more focused. The amazing part is I treat myself as needed.

1)  Breathing- I know that we breathe an average of 15 times per minute, and it is something that we don’t even think about. However  in the past year I’ve read about using a breathing technique to help relax your mind to help you fall asleep. I have used it for this purpose and it truly  does work. The technique is known as the 4-7-8 Breathing Exercise. More recently I read the same technique which is explained in detail here is used to diminish stress, help focus and calm your mind. I have currently only tried it a few times to help with focus, but feel better afterwards and will definitely keep this tip front of mind.

2) Tapping- I was skeptical of this method. I know it sounds interesting, and very different. However, during a conference a few weeks ago, Alex, one of the founders of the technique was there to have 7,400 women try this out. Just prior to the start of his talk I had gotten up to go for a walk as my I-T band in my left leg had tightened up and I was feeling discomfort while sitting.

As Alex talked us through the process, explained in detail here. I relaxed, and by the time we were finished, the 7 rounds which took about 7 mins, I felt my I- T band pain was much less. Alex finished his talk and when I got up to go for lunch I no longer felt the pain, it was gone. There is a Free App called “Tapping Solutions”. I downloaded it for free, you can pay a monthly fee for some items listed, I only viewed / used the free samples available.

Once you read the explanation you will see that this is something that you could do anywhere without the App. One suggestion, you may wish to do it in a room alone. If done publicly you could have some questions as to what you are doing. For me, if I really needed to do it and was on a plane, stuck in a window seat, I would, simply because it works and I would rather be asked about it than sit uncomfortably for an entire flight.

Personally, I plan to keep these two techniques as tools to help relax and relieve subtle pain when I can. There is nothing worse then being uncomfortable. Besides you can’t enjoy your dreams if you’re stressed, can’t sleep and aren’t able to focus on the amazing things life has to offer.

I have already shared the breathing technique with my kids 10, and 15. It also has helped them to fall asleep. I will be sharing these as well so they too can keep these handy tips in mind when feel they need them.

-Michelle Currie

IT'S JUST A BOX

Hey There

We love what we do and we love to make the complicated easy to understand.

 I get A LOT of questions regarding types of investment plans.  People will come in to see us for the first time, we will be chatting about things like their investment experience and investments they currently own and inevitable this is how it goes:

They’ll say “I have a RRSP” and I’ll say so what is it invested in and 95% of the time they will say “I don’t know… it’s a RRSP”.

 Here’s the thing… a RRSP is just an investment vehicle/a type of account.  Here’s how I like to describe it:

 I like to say it’s just a box.  Picture types of plans as boxes.  You can have a RRSP (Registered Retirement Savings Plan) box, a RESP (Registered Education Savings Plan) box, a TFSA (Tax Free Savings Account) box etc.

 Any type of investment can go into any of these boxes. 

Let’s take a RRSP as our example:

IT”S JUST A BOX! 😊

As always let us know if you have any questions or I you want to learn more.

Jodi