RETIREMENT - No We

Leaving the workforce at the same time – especially when you’re the same age or younger than your partner – could mean leaving a big chunk of money on the table.

According to the Canadian website Retire Happy, “While everyone wants to retire early, the fact is the average retirement age is about 62 for men and 58 for women. The average retirement age has been hovering around 60 for quite a few years.”

On average, women are paid less and are more likely to have their careers interrupted to have children or care for family members. This can add up to a smaller pension payout, which is calculated based on the 35 highest-earning years.

Studies have shown married women are often still in their peak earning years in their 50s and early 60s, while married men’s earnings begin to decline. Those final few years of a woman’s career can significantly boost her pension payout potential, which is important considering that, on average, women live longer than men, requiring their retirement funds to stretch further.

Of course, the decision of when to retire is not always solely motivated by maxing out retirement income. Many couples choose to retire in unison to pursue shared interests, such as traveling or sports activities. For some, the decision of when to retire comes earlier than expected, due to a downsizing at work or a health concern.

if you have the option to stagger your retirement dates from those of your partner, it can alleviate some of the challenges a dual retirement can initially pose.

Start out with one retirement, and then you won’t be tripping over each other being home together 24/7 together all at once.

if you want to discuss what options work best for you, reach out to your financial advisor.

Summer

Summer’s Here!!!

The kids are almost out of school, the weather is beautiful, life just feels a little lighter and warmer.
It also means that we have summer hours so we can all enjoy some time with our families in the sun.
Summer Hours for the Months of July and August.
Monday - Thursday 9:00 am to 4:00 pm Friday's 9:00 am to 2:00 pm

Things to remember:
1) Susan our receptionist is here daily from 9-5pm, if you need to simply drop off or pick up something.
2) If you call on a Friday Afternoon after 1:00pm we will return your call on Monday.
Enjoy the summer and be safe!

SERIES: Recently divorced or widowed. Five step series to protecting your finances.

 Part 5

Losing a spouse through death or divorce can be an emotionally devastating experience. And yet it’s typically a time when many financial matters require your immediate attention.

To help avoid making emotionally driven – and potentially harmful – financial decisions, it’s important to be prepared should you find yourself suddenly single. Here are five important action steps that can help protect your personal finances.

5. Review your credit.

When you’re suddenly single, your credit can be among your most valuable assets, so protect it wisely. After divorce or the death of a spouse, you may want to request a copy of your credit report to take inventory of all the accounts that are open in your name and/or jointly with your former spouse.

If you’re divorced, you’ll want to close joint credit accounts and shift to single accounts, so that an ex-spouse’s credit score won’t affect your credit rating. If you’re widowed, contact both Canadian credit bureaus (Equifax Canada and TransUnion Canada) to let them know that your spouse has passed away, in order to keep others from falsely establishing credit in his or her name.

SERIES: Recently divorced or widowed. Five step series to protecting your finances.

Part 4

Losing a spouse through death or divorce can be an emotionally devastating experience. And yet it’s typically a time when many financial matters require your immediate attention.

To help avoid making emotionally driven – and potentially harmful – financial decisions, it’s important to be prepared should you find yourself suddenly single. Here are five important action steps that can help protect your personal finances.

4. Evaluate your insurance needs.

What you’ll have and what you’ll need for insurance can change dramatically when you lose a spouse through death or divorce. It’s important to take a careful look at all the different types of insurance that are available, to see where you may need to adjust your coverage. Be sure to review the following:

Life
If you are the surviving spouse and the beneficiary on your deceased spouse’s life insurance policy, you will typically receive the proceeds, tax-free. But if you are still caring for children, you may want to either purchase or increase your own life insurance coverage to make sure they will be protected in the event of your death.
If you divorce, you have to consider (1) changing the beneficiary on your life insurance, if it is currently your ex-spouse, and (2) purchasing or modifying your coverage to adequately protect your children if either you or your ex-spouse dies.

Health
Even if your spouse carried your family’s health insurance coverage, you should be able to continue it for a period of time, whether you are divorced or become widowed. Talk to an insurance expert to ensure you have adequate coverage to meet your unique needs.

Disability
What if you were injured or sick and couldn’t go to work? Disability insurance is designed to protect you and your loved ones against loss of income.

Long-term care
If you’re in your 50s or older, you may want to consider buying long-term care insurance to help keep potential costs of nursing home stays and home health care from depleting your income resources if you become seriously ill or injured.

SERIES: Recently divorced or widowed. Five step series to protecting your finances.

Part 3

Losing a spouse through death or divorce can be an emotionally devastating experience. And yet it’s typically a time when many financial matters require your immediate attention.

To help avoid making emotionally driven – and potentially harmful – financial decisions, it’s important to be prepared should you find yourself suddenly single. Here are five important action steps that can help protect your personal finances.

3. Adjust your income and budget.

In many cases, being suddenly single could mean reduced household income. You may need to adjust your budget accordingly. Start by listing your essential expenses (housing, food, insurance, transportation, etc.) and your discretionary expenses (dinners out, vacations, clothing, etc.). Try to match reliable sources of income (salary, support payments, pension, etc.) to your essential expenses, and see where you might trim your discretionary spending. Speak with your financial advisor to help you set up a budget that works for you.

SERIES: Recently divorced or widowed. Five step series to protecting your finances.

Part 2

Losing a spouse through death or divorce can be an emotionally devastating experience. And yet it’s typically a time when many financial matters require your immediate attention.

To help avoid making emotionally driven – and potentially harmful – financial decisions, it’s important to be prepared should you find yourself suddenly single. Here are five important action steps that can help protect your personal finances.

2. Divide or roll over retirement assets.

Pension and retirement account assets have their own set of rules when it comes to shifting ownership from one spouse to the other or splitting the assets.

Generally, upon the death of the account owner, retirement account assets pass directly to the beneficiary (often the spouse, for those who were married) designated on the account, while in cases of divorce, retirement assets are often split up as part of the divorce settlement.

SERIES: Recently divorced or widowed. Five step series to protecting your finances.

Part 1

Losing a spouse through death or divorce can be an emotionally devastating experience. And yet it’s typically a time when many financial matters require your immediate attention.

To help avoid making emotionally driven – and potentially harmful – financial decisions, it’s important to be prepared should you find yourself suddenly single. Here are five important action steps that can help protect your personal finances.

1. Update your financial accounts.

When you lose a spouse, whether through death or divorce, you’ll likely need to change the registrations on any financial accounts that are owned jointly. Such ownership changes typically require certain documentation. It’s best to initiate this process early on, as registration changes can take weeks to implement.

A word of caution: Pay attention to the conditions under which you divide assets and/or shift ownership. You could face significant tax burdens when splitting up highly appreciated assets, or risk losses by selling in volatile markets. You should consult your tax advisor.

Based on an article from our U.S. partners.

Emergency Fund

Savings vs Investing

💰 SAVING VS INVESTING 🏦

Lots of people have savings but many don't have investments, what's the difference?

Savings are something you use for a short term purchase - anywhere between 1 - 3 years, or for an emergency fund, typically this would be placed in a high interest savings account. Low interest but no volatility.

An investment is for longer term money, used for education, retirement or things that are 5-30 years away. Because you have more time you can use your money to work harder for you in an investment rather then a savings account.

Your investment may fluctuate with market volatility, however historically your rate of return will be higher than a savings account, helping your money to grow faster and therefore work harder for you.

Speak to an advisor about your risk tolerance and what type of long-term investments are best suited for you and your goals.
- Jodi

Education Matters

RETIREMENT RULE OF THUMB

Savings accounts for different purposes.

🏦 Regular Savings Account
This is where I keep any money that I plan to spend in the near future, such as a new laptop or Christmas gifts.

🚨Emergency Fund Savings Account
I keep 3 months of living expenses tucked away in case of emergencies like an expensive car repair.

💰 Tax-Free Investing Account
This is where I keep all of the money that I won't need to use for at least the next 2-4 years to grow tax free.

🧓🏻👵🏻Retirement Savings Account
Here I keep money I won't use until I retire.

-Bonnie

DOLLAR COST AVERAGING

This is one of the best ways to invest over time. You simply invest the same amount of money through an automatic withdrawal from your bank account each month or each pay period. The reason it works so well is that you are buying an investment at all different price points depending on what the market is doing and over time this can give you the best return possible, and it's way less stressful than trying to time the market. -Jodi

Frequently asked questions #6 - What type of clients do you work with?

We have a very busy practice
however we do take referrals from existing clients.

Around our office we believe in
investing for success. The most
important thing to us is that you are completely comfortable with your investments. Part of that means understanding what you are invested in and what risks, if any, you are comfortable with.

We do have a process when
first meeting or taking on a new
client to ensure it is a good fit for everyone!

We love to see our clients succeed!

SERIES: FREQUENTLY ASKED QUESTIONS#5 - WHEN DO I HAVE A CAPITAL GAINAND WHAT IS AN ACB?(THIS IS FOR NON-REGISTERED ACCOUNTS ONLY)

When you sell an investment that has increased
in value you may realize a capital gain. As an investor you realize this gain when you sell all or part of your investment.

The gain is calculated when you subtract the selling price of the investment from your ACB
(Adjusted Cost Base). The ACB isn't always the
purchase price but is the amount of the investment that has already been taxed.

If you've received a distribution from your
investment at any point when you have owned it
you will have been taxed on this in the year you
received it. This will then increase your ACB. This prevents you from being taxed twice on a gain.

You may also incur a capital gain if a fund manager sells an investment that has gone up in value. In this case the fund realizes a capital gain (which is calculated the same way as above), this gain flows through to the investors holding the fund.

As a result, you may receive a tax slip for these
gains even though you did not sell any of your
investment. This will increase your ACB so once again you will not be taxed twice on these gains.

Your ACB can change if you:
• Buy units of the same fund at different times.
Your cost will then be averaged out which will affect your ACB.
• You receive a distribution. It won't matter if
you receive this distribution or reinvest it,
you will still be taxed in the year you receive
it.
• You receive return of capital. This occurs if
your investment pays you a return of capital,
this portion is not taxable to you because
you're taking your own money out, therefore
when you sell your investment any return of
capital is subtracted from your AC which
will increase your capital gain.

Any questions please give us a call.

- Jodi

SERIES: FREQUENTLY ASKED QUESTIONS #4