Cyber Security -Part 1

Each year, we must complete security safety courses.
When it comes to security, change is constant. The threat landscape continues to evolve, and the tools available to threat actors become more sophisticated.

We review these cybersecurity incidents not to shame or to frighten, but to empower you to know how to defend yourself. You are the first line of defence against cyberattacks, and the small choices you make every day can keep you secure.

In this series, we will review some of the details we feel are important.

Part # 1 Keep Your Devices Up To Date

Keeping your devices up to date ensures that you always have the most recent security updates. Updates often include fixes to repair vulnerabilities, which threat actors can take advantage of to comprise your accounts. We recommend turning on automatic updates on all devices whenever possible.

Supporting Retirees

One of our retired clients approached us earlier this year asking about leaving a legacy.

They were reflecting on their estate plan and how to create a lasting impact for causes they were passionate about. We created a strategy using a Donor Advised Fund to help them align their charitable giving with their goals, maximize tax benefits and engage in purposeful philanthropy.

Donor Advised Funds (DAFs) are an excellent choice for retirees seeking to create a meaningful legacy Contact us for more info.

NEW INFORMATION ON TFSA INCREASES IN 2024

Higher inflation is set to push the TFSA dollar limit to $7,000 in 2024, up from $6,500 this year.
That means the total contribution room available in 2024 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is set to be $95,000, up from $88,000 this year.

Let us show you how to earn a tax-free stream of income in retirement.

Want to know when the best time is to withdrawal your CPP?

Want to know when the best time is to withdrawal your CPP?

People should be very careful about taking CPP early because it can have a huge impact on how much you get.

Did you know, for example, that the average payout from CPP is less than the maximum Old Age Security payout? Did you know that in 2012 less than 10% of people on CPP got the maximum of $986.67 a month? Do you know why?

One reason is because they haven’t contributed enough to draw the maximum. To get the max from CPP, you have to
have contributed the max for 39.5 years between the ages of 18 and 67. The CPP formula allows you to drop about seven of your lowest-paid years. But if you plan to go back to school, stay home with children, or earn less than the year’s maximum pensionable earnings (YMPE), which is $51,100 for 2013, you may fall short of the maximum and so will your CPP cheques.

Another reason people get less than the maximum is because they take their benefits before the age of 65.

Did you know that when you take your CPP early, the amount you receive is reduced based on your age? New rules have come into effect that reduce your payout by 31.2% if you take it at age 60, and that will keep going up each year until it hits 36%.

Wait to take your benefits and you’ll avoid the reduction. Wait longer and you could see your benefits go up by 42%. So, the difference between taking it at age 60 or at age 70 would mean up to 78% more in income.

Did you know that your CPP maximum is capped at the maximum you’re entitled to when you first draw your pension, plus inflation adjustments? If you took your benefit at 60 in 2003, you’d be working with a maximum cap of $801.25. If you waited until 2013 when you turned 70, your maximum cap would have risen to $1,012.50. Having a higher cap can be particularly important if you try to claim survivor benefits from CPP.

There is no easy answer when it comes to CPP. You must do the math to see what’s going to be best for you based on your contributions, how much you’re counting on that money for your needs, and how long you’ll live.

You can access the information online or by calling to find out more about what your payments would look like.

Tips to Grow Series- #5

Life Events

Buying/selling a home, having a baby, leaving your job, getting a divorce, family member passing away, retiring, getting married.

These are all important moments to tell your advisor about.

We help you prepare for the expected, and the unexpected.

Tips to Grow Series- #4

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Forward thinking can help you plan.

Estate planning is essential to ensure your wishes are carried out as intended.

Most of us know you should do it, but it’s a tough reality to face. Estate planning is a process that many people put off, and you’re certainly not alone if you have yet to begin.

Over half of Canadians, approximately 51%, do not have a will. And for the 15 % of those that do have a will, it’s not up to date.

When someone dies without a will, they get no say in who receives their assets. Guardians for minor children are chosen by the courts. And, in the worst instances, families can be torn apart over inheritance disagreements.

These are not pleasant situations; however, they do happen. The good news is, creating a plan now can ensure your assets are passed on as you wish.

This leaves you to think about the future and know that your family is cared for, and the stress over handling your affairs is reduced during an already difficult time.

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Tips to Grow Series -#3

The Dollar Cost Averaging (DCA) advantage
Financial markets are unpredictable with ups and downs. This can trigger a range of emotions, from joy and excitement when prices are up, to anxiety and panic when values head downward.

There are some investors who get caught up in the fear of missing out. They try and buy when a fund is doing well. And then there’s the nervous investor who, fearing the worst, sells a fund when the price drops.

In both market scenarios, investors are making quick decisions that could seriously affect an investment portfolio. But a DCA approach can help take emotions out of the equation.

Here’s some info to think about:
Start a systematic payment. By adding the same amount of money and investing on a regular schedule, regardless of market fluctuations, to buy funds. ( i.e. Starting a PAC to add $100 / month on the 15th)
When prices are high, this regular, recurring amount buys fewer units.
When prices are low, that same amount buys more units.

Depending on the average purchase price per unit over a given period, you may actually end up paying less per unit over the long run – therefore acquiring more units than if you had made a lump-sum purchase.

Most importantly, you’re investing regularly without being affected by the emotional highs and lows of market volatility.

Starting a systematic investment strategy has benefits. Now, instead of trying to time the market and hoping to buy when prices are low, let the law of averages and the DCA approach work in your favor.

Schedule a meeting with your advisor to review your investment goals and discuss whether DCA makes sense for you.

Tips to Grow Series- #2

When do I have a capital gain and 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), and 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.
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.
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 ACB which will increase your capital gain.

Any questions please give us a call.

Tips to Grow Series -#1

Tips to grow 📈

Pick a debt payment method 💵

Do some research and find the method that works for you. Here are two types of debt payment methods, the Snowball and the Avalanche methods. Both methods were created to help you pay off your debts in an easy organized way!

Snowball Method
This method is used by Dave Ramsey. Focuses on paying the smallest balance first. This helps you build momentum quickly! Once one debt has been paid, then move on to the next and so on.

Avalanche Method
This method focuses on targeting the highest interest balances first. This option saves you more money in the long run.

You can always mix the two methods to create a system that works for you! No matter what method you choose, you still must pay the minimum monthly payments.

Sandwich Generation: Are you taking care of yourself?

It’s a significant life change when your roles have reversed and you’re the one helping a parent with daily living. Meanwhile, you also care for your children at home. Welcome to the sandwich generation.
The term was coined almost 40 years ago by social worker Dorothy Miller to refer to women performing this double duty. And today, according to the most recent research, women still form the majority of family caregivers in Canada.
When you’re a caregiver to two generations, you’ve got to be at your best to meet everyone’s needs.
The middle of the sandwich can begin in a healthy place, only to have feelings of satisfaction eventually turn to frustration. It’s not unusual to find yourself harried and stressed when you’re being pulled in two different directions.
You can deal with caregiver stress by adopting these four self-care and caregiving best practices and ultimately improve your well-being.

Reach out to us today and we will send you the info.

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.