Monthly Archives: October 2012

Odette Morin

Financial Planning Wisdom from The Wealthy Barber – David Chilton

Choose your friends wisely

“In a consumer-driven society, we act like slaves, prisoner of envy”~ Ivan Illich Austria Philosopher. It’s ok if they fall within our earning category not when they make 3 times what we do. Stay away from competitive consumption.

Gain perspective

I in 6 in the world goes to bed hungry. Our pets live more comfortably than half the earths population. Focus on what you have instead of obsessing about you don’t. We are spoiled. Look at the food we now have in supermarkets, cars we drive, phones we all carry, TV channels.

The best antidote to envy is a dose of perspective.  “Envy is the art of counting the other fellows blessing instead of our own” Harold Coffin, late AP columnist. Be grateful “Gratitude is richness, complaint is poverty” ~ Doris Day
Say I can’t afford it. Try it, it’s liberating. We can’t afford everything we want. Accept it.

Pay yourself first

Put 10% away for later in life. Do it monthly in a systematic savings plan. It is much wiser to start young. Putting large chunk of money away later in life is harder.


Odette Morin

You wish you had a car but can’t afford one? Now you can with Car2Go.

This is an amazing service where you can pick up a car anywhere, return it anywhere within your area and only pay 35cents a minute! The membership fee is only $2 a year and they now have a promotion for you to get 30 minutes free just to try it.

If you take cabs regularly or only need a car occasionally, you may be able to save by using this service. If you try it, let me know how you like it!
Promo Code: ROAD, waives the annual fee + you get 30 free minutes.

Odette Morin
Odette Morin

Wanting to rent your condo for a few months or years?

Better check your condo bylaws. You may not be able to rent out your suite. A client of mine is facing legal fees and having to deal with a tenant that she is not allowed to have. This is an expensive lesson to learn. Do your homework first.

Here is a quick list of what you need to do before renting your condo out:

  • check the bylaws and advise strata council
  • advise your insurer, this is very important as you may not be covered for a problem if the insurer does not know the condo is being rented
  • contact BC MSP. You must let them know that you are leaving the province for more than 6 months. . Here is the relevant information.
  • contact the city to change the status from principal residence to rental unit. If you live in BC , you will lose the homeowner grant and have to pay higher property taxes.
  • if you are only going away for a few years and may come back, you can make an election with CRA to keep your principal residence status and therefore protect your tax free capital gain. Here is how it works.

When you start renting a home, there is a change in use from personal residence to rental property and capital gains from that point on would generally be taxable unless you file a special election to continue to designate the property as principal residence for up to 4 years even if you do not live in it. It is very important to file the election in the year of change in use otherwise there will be taxes on the capital gains when the property is sold. The special election is called “Section 45(2) election.”

Please make sure to talk to us when you move or make a change in use of a property. We can help!

Terry Broaders


“If You Even Dream of Beating Me You’d Better Wake Up and Apologize” -Muhammed Ali


A Down Day to an Up Week

Missed earnings, falling commodities and a setback for telecom giant BCE Inc. combined to send the Toronto stock market into the red Friday after four straight days of gains. The S&P/TSX composite index fell 50.14 points to 12,415.98, while the TSX Venture Exchange added 3.28 points to 1,315.62. The Canadian dollar dropped 0.85 of a cent to 100.68 cents US amid falling prices for oil and metals, particularly copper. A major TSX decliner was radio, TV and billboard company Astral Media. Its shares tumbled almost 16% after the federal broadcast regulator unexpectedly blocked a planned sale to telecom BCE Inc. in a deal worth about $3.4 billion.

The Dow Jones industrial average dropped 205.43 points at 13,343.51. The Nasdaq composite index lost 67.25 points to 3,005.62 and the S&P 500 index dropped 24.15 points to 1,433.19. Traders also took in data showing that Canadian inflation came in at an annualized rate of 1.2% in September, which was in line with expectations.

Investors were also unimpressed with an agreement early Friday by the leaders of the 17 eurozone countries to push ahead with a single banking supervisory body. The leaders remained vague on key details, such as when the supervisor will be up and running. Some investors and analysts worry that Europe’s politicians may have lost the incentive to fix things quickly now that market turmoil has subsided. The borrowing costs of countries like Spain have eased since the European Central Bank unveiled in September a new bond-buying program.



Market Update October 19 2012

The TSX closed at 12416, up 214 points or 1.75% over the past week. YTD the TSX is up 3.86%.

The DOW closed at 13344, up 15 points or 0.11% over the past week.YTD the DOW is up 9.22%.

The S&P closed at 1433, up 4 points or 0.28% over the past week.YTD the S&P is up 13.91%.

The Nasdaq closed at 3006, down -38 points or -1.25% over the past week.YTD the Nasdaq is up 15.39%.

Gold closed at 1722, down -34.00 points or -1.94% over the past week.YTD gold is up 10.03%.

Oil closed at 91.41, down -2.10 points or -2.25% over the past week.YTD oil is down -7.57%.

The USD/CAD closed at 0.9926, up 0.0132 points or 1.35% over the past week.YTD the USD/CAD is up 1.31%.


Sources: Bloomberg;

Terry Broaders

Weekly Update October 15 2012

“I’ve Committed To Surfing The Rest of My Life” -Lance Armstrong


Strong Bank Earnings, But Lower Market Close

The Toronto stock market closed lower Friday with buyers inclined to do little at the end of a negative week despite a strong earnings report from American banking giant JP Morgan. The S&P/TSX composite index eased 31.91 points to 12,202.04 while the TSX Venture Exchange was 7.13 points lower at 1,292.81. The Canadian dollar closed down 0.07 of a cent at 102.11 cents US.  New York markets were also listless after JPMorgan handed in a record quarterly profit of US$5.7 billion; up 34% from a year ago as the bank set aside less money for bad loans. Earnings were $1.40 per share, far exceeding the $1.21 predicted by analysts. Revenue rose 6% to $25.1 billion, beating expectations of $24.4 billion. Traders also took in better-than-expected earnings from U.S. bank Wells Fargo. It posted third-quarter earnings per share of 88 cents, beating estimates by a penny.

Indexes also failed to find support from a strong consumer confidence reading.  The Dow Jones industrials added 2.46 points to 13,328.85 as the University of Michigan’s index for October came in at 83.1, up from 78.3 in September.  The TSX ended the week down 217 points or 1.74% in the wake of a gloomy assessment of the global economy by the International Monetary Fund, which reduced its growth forecast for the world economy to 3.3% this year from its previous estimate of 3.5%. Still, the TSX is up about 7.5% from the market lows of early June, largely because of a commitment from European Central Bank president Mario Draghi to do whatever it takes to preserve the monetary union and another round of quantitative easing by the U.S. Federal Reserve.

“There had to be a letdown and we are getting it,” said Pat McHugh, senior managing director and Canadian equities strategist at Manulife Asset Management.


Market Update as of October 12 2012

The TSX closed at 12202, down -217 points or -1.75% over the past week. YTD the TSX is up 2.07%.

The DOW closed at 13329, down -281 points or -2.06% over the past week.YTD the DOW is up 9.09%.

The S&P closed at 1429, down -32 points or -2.19% over the past week.YTD the S&P is up 13.59%.

The Nasdaq closed at 3044, down -92 points or -2.93% over the past week.YTD the Nasdaq is up 16.85%.

Gold closed at 1756, down -27.00 points or -1.51% over the past week.YTD gold is up 12.20%.

Oil closed at 93.51, up 2.01 points or 2.20% over the past week.YTD oil is down -5.45%.

The USD/CAD closed at 0.9794, up 0.0006 points or 0.06% over the past week.YTD the USD/CAD is down -0.04%.   


Sources: Bloomberg;; Manulife