Monthly Archives: February 2014

Terry Broaders

Weekly Update February 24 2014

“She Shoots! She Scores! “


TSX Down For The Day Up For The Week

The Toronto stock market gave up a modest gain to close little changed Friday while investors looked to the release of a disappointing read on U.S. home sales last month.The S&P/TSX composite index slipped 4.65 points to 14,205.72 at the end of a positive week for the Toronto market. The Canadian dollar continued to pile up losses for a third day, down 0.28 of a cent to 89.82 cents US as Statistics Canada said that December retail sales tumbled 1.8% from November. Economists had expected a drop of just 0.4%. The agency also reported that the Canadian consumer price index was up 1.5% in January compared with a year earlier. U.S. indexes were lacklustre as the National Association of Realtors said existing house sales dropped 5.1% in January following a 0.8% rise in December.

The Dow Jones industrials fell 29.93 points to 16,103.3, while the Nasdaq lost 4.13 points to 4,263.41 and the S&P 500 index dropped 3.53 points to 1,836.25. Techs were the biggest TSX drag as BlackBerry shed 24 cents or 2.3% to $10.17. The TSX ended the week with a solid gain of 1.07%, reflecting general satisfaction with fourth-quarter earnings reports and positive U.S. manufacturing data on Thursday. The Dow faltered somewhat this week, down 0.3% but strong earnings reports have left the index up 2.57% for the month while the TSX has jumped 3.73% so far in February.


Canadians Don’t Understand CPP, OAS

Canadians appear optimistic about their retirement lifestyle, but few have a firm handle on what their cost of living will be and what their pensions will offer, shows a February 2014 survey by Investors Group. More than two-thirds (69%) of people near retirement are unaware of what the maximum monthly payout is for Canada Pension Plan ($1,038 at age 65) and Old Age Security ($551), yet more than 80% of them say they plan to use these programs as a source of retirement income, and more than 33% anticipate this will be their primary source. Employer pension will be a source of income for 60% of those surveyed, and 37% say it will be their primary income source. However, of those who say they have workplace pensions and plan to rely on it as their primary source of income, 55% didn’t know the monthly benefit they could expect.  Nearly three-quarters (72%) of pre-retirement individuals are confident they’ll be able to maintain their current lifestyle in retirement. This number jumps to 91% among those working with a financial advisor. In addition, 66% of Canadians are less confident in governments’ ability to continue to provide an acceptable level of pension and retirement benefits.


Blog Links

How Much Do Olympic Winners Earn

Are You An Online Shopping Addict

RRSP Last Call Get Paid To Work


Market Update as of February 21 2014

The TSX closed at 14206, up 151 points or 1.07% over the past week. YTD the TSX is up 4.29%.

The DOW closed at 16103, down -51 points or -0.32% over the past week.YTD the DOW is down -2.86%.

The S&P closed at 1836, down -3 points or -0.16% over the past week.YTD the S&P is down -0.65%.

The Nasdaq closed at 4263, up 19 points or 0.45% over the past week.YTD the Nasdaq is up 2.06%.

Gold closed at 1323, up 4.00 points or 0.30% over the past week.YTD gold is up 9.88%.

Oil closed at 102.27, up 9.34 points or 10.05% over the past week.YTD oil is up 3.71%.

The USD/CAD closed at 1.1124, up 0.0136 points or 1.24% over the past week.YTD the USD/CAD is up 4.63%


Sources:  Bloomberg; Investors;; Investment Executive

Odette Morin

How much do Olympic winners earn?

The Sochi Olympics confirm that Canada rocks!!  For Olympic champions, winning a Gold medal means winning big indeed.

Find out here how much Olympic winners earn with product endorsements and speaking engagements. I just hope that they have a good financial planner to ensure they invest and plan properly!!

According to, corporations spend an estimated $1.1 billion on athletic endorsements every year. Here’s a look at the current highest-earning athletes holding an Olympic medal and their estimated yearly earnings:

  • Roger Federer, Olympic gold and silver medalist – $65 million yearly
  • LeBron James, Olympic gold medalist – $42 million yearly
  • Usain Bolt, six-time Olympic gold medalist – $24 million yearly
  • Rafael Nadal, Olympic gold medalist –  $21 million yearly
  • Serena Williams, Olympic gold medalist – $12 million yearly
  • Carmelo Anthony, Olympic record-setter whose team won gold – $9 million yearly
  • Shaun White, two-time Olympic gold medalist – $7 million yearly

Read the full article here

Bobsleigh - Winter Olympics Day 12

Odette Morin

Are you an online shopping addict?

I love online shopping.  It is quick, easy and painless. BUT for some, it may be a little too easy.  Before buying that pair of sandals I so needed, scratch that, wanted!  for my trip south in a couple of weeks, I asked myself, did I maximize my RRSP this year?  Am I on track with my mortgage reduction target? Do I have enough emergency funds?  YES!  I answered to my conscience…and then was happy to click on the buy button. Make smart shopping decision and you will enjoy it more.  If you seem to have a problem, you may need to take drastic action.  Review this article and its easy tips.

Can’t wait to see my new Michael Kors sandals arrive this week!!

online shopping

Odette Morin
Terry Broaders

Protect Your Future With RRSP Creditor Proofing

Back In 2008 the Canadian Government made changes to the Federal Bankruptcy and Insolvency Act to make RRSPs are creditor proof, but with a few provisions.  It is important to note that the protection from creditors is available only if you are entering formal bankruptcy proceedings.  The law does not protect RRSPs outside of a bankruptcy context.  If a person is suffering financial difficulties and they do not wish to declare bankruptcy they do not benefit from this law and may have their RRSP assets seized by creditors.

As well, creditors may still seize any funds contributed to the RRSP in the past 12 months preceding the date of bankruptcy.  A bankruptcy trustee can also seize an RRSP plan in bankruptcy within 5 years of a transfer to the plan, if the client was insolvent at the time of the transfer.   So in other words if you are already behind in your debts, if your liabilities already exceed your assets and if the creditors have already been knocking on your door then you cannot protect your money by simply “shoveling” your assets over into an RRSP plan.  This law does truly protect the regular, solvent person who has contributed to an RRSP over the years and now due to unforeseen circumstances suddenly faces bankruptcy. At the end of the day they will have their RRSP accounts intact.

In addition to the federal protection some of the provinces have also enacted legislation in various forms to offer bankruptcy protection for RRSPs.

Finally though, there is one creditor against which there is no protection even if bankruptcy is declared. Canada Revenue Agency is still entitled to seize assets if there are taxes owing.

Terry Broaders

Weekly Update February 18 2014

“They Can Because They Think They Can” -Virgil


Markets Sweet on Valentine’s Day

Rising gold stocks helped push the Toronto stock market higher Friday as traders digested a mixed bag of economic indicators. The S&P/TSX composite index was up 58.15 points to 14,059.8. The Canadian dollar was down 0.01 of a cent at 91.09 cents US as manufacturing shipments declined 0.9% during December. It was the first decline since last August. New York indexes turned mainly higher after the latest reading on U.S. consumer confidence, the University of Michigan’s index, was unchanged at 81.2. A slight drop had been expected. Another report showed that harsh winter weather led to U.S. factory output falling by 0.8% during January. The Dow Jones industrials moved up 63.35 points to 16,090.94, the Nasdaq was 9.56 points lower to 4,231.12 while the S&P 500 index was ahead 3.38 points to 1,833.21. Elsewhere, China’s consumer prices rose 2.5% over a year earlier in January, unchanged from December. Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world’s second-biggest economy. Other data showed that economic growth across the eurozone was stronger than expected as gross domestic product grew by 0.3% in the fourth quarter from the previous quarter. That adds up to an annualized rate of about 1.2%. Analysts had been looking for fourth-quarter growth of 0.2%.


RCMP Arrest 7 in Alleged CRA Fraud

The RCMP has arrested seven people as part of alleged fraud that involved Quebec Canada Revenue Agency employees. Charges laid include bribery of public officers, conspiracy, fraud, breach of trust by a public officer and fraud against the government. Five of the accused allegedly received commissions on tax credits that were obtained through fraudulent means. The Mounties say that three of those five were active CRA officials at the time the alleged offences took place. The five are scheduled to appear in court in Montreal on April 7. One of the five, plus two other people have also been charged in a separate component of the investigation and will appear in court on March 19. The investigation, known as Project Coche, began in 2008 and resulted in the arrest of 15 people, including eight former CRA officials. National Revenue Minister Kerry-Lynne Findlay says any misconduct by agency officials is “completely unacceptable.” She adds, “CRA will continue to investigate any allegations of misconduct and continue to cooperate with the RCMP to ensure that the individuals responsible face the full force of the law.”



Federal Budget’s Manin Measures Affecting  Your Financial Financial Plannning

Federal Budget 2014 Highlights


Market Update for February 14 2014

The TSX closed at 14055, up 267 points or 1.94% over the past week. YTD the TSX is up 3.18%.

The DOW closed at 16154, up 360 points or 2.28% over the past week.YTD the DOW is down -2.55%.

The S&P closed at 1839, up 42 points or 2.34% over the past week.YTD the S&P is down -0.49%.

The Nasdaq closed at 4244, up 118 points or 2.86% over the past week.YTD the Nasdaq is up 1.60%.

Gold closed at 1319, up 52.00 points or 4.10% over the past week.YTD gold is up 9.55%.

Oil closed at 92.93, down -7.03 points or -7.03% over the past week.YTD oil is down -5.76%.

The USD/CAD closed at 1.0988, down -0.0052 points or -0.47% over the past week.YTD the USD/CAD is up 3.35%.


Sources: Bloomberg; Investment Executive;