Monthly Archives: August 2012

Odette Morin

Very costly mistake made with bad Estate Planning

People should never transfer title without consulting with a financial planner or a tax accountant. The lawyers will often just follow the client’s request without pointing out the tax implications.

This article tells the story of a couple who switched title of the family home to their children. This transaction had the result of forfeiting the principal residence tax free capital gain status. 

 The estate saved $26,700 in probate fees but paid $700,000 in capital gains!! Sad…

It pays to consult first. Read the full story here.

Odette Morin

Hello women, once again the proof is out! You have more success with investing than men

A recent RBC poll showed that 61 per cent of men said that they were good investors, but only 47 per cent of women thought similarly of themselves. However, academic researchers in a recent study found a general underperformance of more than 1% a year on investment accounts of men versus women. In this article, Preet Barnerjee explains that “one theory to explain the gender-based differences is that overconfidence leads to increased trading, which can lead to underperformance.” 

In my experience, women are in general better investors because they tend to invest with a goal in mind which helps them be more focused & patient with their investments and react less with the market fluctuations.  Many people seem like they know a lot about investing but in fact, overconfidence too often lead to making costly mistakes.

To put that into context, a 1-per-cent annualized difference in returns for investors contributing $250 a month for 40 years can translate into more than $100,000.

 Way to go women! Men, hedge your bets and team up with a woman!!

Odette Morin

Wealthier Canadians are also Healthier

Could wealthier mean healthier too?  A new poll from the Canadian Medical Association show the correlation.  Those with more income and assets also have healthier eating and lifestyle habits and therefore, are in better health.  That is another good reason to aspire to be financially responsible and accumulate reasonable wealth.  Don’t forget to share your wealth with those who are not as fortunate, so we can all be as healthy as can be!
Odette Morin

Saving for the rainy days

 45% of Canadians have no emergency savings. Saving for rainy days is essential because you know, they will come. Open a high interest savings account and set up a $100 or more systematic plan to accumulate funds you know too well, you will need. Manulife Bank has the best rates right now at 1.75% and they offer internet banking linking your chequing account to your savings account. When you need the saved funds, you can simply get them by transferring them back to your chequing account. It is free and we can set one up for you. Just contact us!The only time I would not recommend a savings account is when you have debts to repay which charge a higher rate of interests or if your mortgage is a line of credit where you can put down money and borrow it back in case of emergency. Otherwise, start a savings plan now and live stress free!

Odette Morin

ING Bank may soon be leaving Canada

 It appears that ING Bank will sell its Canadian Banking operations altogether.  Reports are saying that a deal could be made by fall with one of the big banks. 

 ING Bank of Canada stopped their advisor services program last year, which is when we recommended a switch to Manulife Bank so we could continue to provide administrative support on your accounts.  ING’s current savings rates are  no longer competitive and will likely remain low while it tries to sell its business.  

  • ING currently offer s  1.35% on normal high interest savings accounts and RRSP savings, and 1.40% for TFSA.  
  • Manulife Bank offers a 1.75% rate on all accounts. 

Manulife offers the same online and telephone banking features that you are used to with ING.  If you would like to switch from ING to Manulife, we can prepare and forward the necessary paperwork. 

If you have any questions, please feel free to contact  email hidden; JavaScript is required  

Terry Broaders

Weekly Update August 10 2012

“Olympics – A Lifetime of Training For Just 10 Seconds” -Jesse Owens


Markets Rise On The Day And On The Week

The Toronto stock market shifted higher Friday as traders focused on concerning data about the Chinese economy, and whether it could lead to broader measures to help boost the global economy. The S&P/TSX composite index closed up 32.76 points at 11,890.89, ending the week with a gain of about two per cent as a more bullish sentiment began to emerge.  On Wall Street, the Dow Jones industrial average moved up 42.76 points to 13,207.95 and the broader S&P slid 3.07 points to 1,405.87. The Nasdaq lost 2.22 points to 3,020.86.

The markets rose despite some worries about the direction of the global economy after a series of economic data out of China showed that the world’s second-largest economy is facing a slowdown.  The trade surplus with the 27-nation European Union, China’s biggest trading partner, narrowed by 37.9% to US$10.8-billion, reflecting sluggish demand in Europe, which is wrestling with a debt crisis and recession. The figures, which came a day after China reported a slowdown in auto sales and factory output, are likely to heap the pressure on Beijing to take more measures to boost economic growth.


Market Update As Of August 10 2012

The TSX closed at 11891, up 229 points or 1.96% over the past week. YTD the TSX is down -0.54%.

The DOW closed at 13208, up 112 points or 0.86% over the past week.YTD the DOW is up 8.10%.

The S&P closed at 1406, up 15 points or 1.08% over the past week.YTD the S&P is up 11.76%.

The Nasdaq closed at 3021, up 53 points or 1.79% over the past week.YTD the Nasdaq is up 15.97%.

Gold closed at 1622, up 19.00 points or 1.19% over the past week.YTD gold is up 3.64%.

Oil closed at 94.69, up 1.79 points or 1.93% over the past week.YTD oil is down -4.26%.

The USD/CAD closed at 0.9912, down -0.0104 points or -1.04% over the past week.YTD the CAD/USD is up 1.16%.


Sources: Bloomberg, advisor ca, Investment Executive