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Odette Morin

Odette Morin

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Summer’s the time to bare all.

bare summer

 

June is an exciting month. The Jazz Festival comes alive. Bard on the Beach resonates with our hearts. And, summer officially kicks off.

More exciting still are the new disclosure regulations being launched by the Canadian Securities Administrators (CSA). Alright, perhaps “exciting” is a stretch (though this is to me).

Beginning June 13th, clients will receive a 2-page summary when a new investment fund has been added to their account – instead of an unwieldy 50+-page prospectus.

As a result, returns – as well as costs – will be laid out clearly and openly for you.

New year. New reasons to celebrate.

Better yet, starting next year, advisor compensation and management fees will be listed on statements.

At present, statements display net returns after fees paid.

Typically, advisors are paid an ongoing 1% service fee; investment companies gets 1.5% for a total fee of about 2.5%.  Given how standard the fees are, it may not seem like a relevant change. Yet, the real difference between advisors is not in their prices. It’s in the value they provide through their breadth (or lack of) services.

We provide full financial planning, annual reviews and a host of other services. We also go the extra mile to answer questions on an ongoing basis. So, as someone who’s part of a team of true service providers, I’m delighted with this transparency. It allows clients to comparison-shop and make informed choices about who to trust with so critical a responsibility.

On the subject of full disclosure, I’ll admit that I’ve voiced my displeasure about all advisors being painted with the same brush (when I rant, my voice never raises but my hands fly everywhere!).

Now, thanks to the new regulations, clients will finally be able to see for themselves.

When New Year’s comes around, guess who’ll be celebrating?

 

The easy way to live on less so you can live on more.

retirement paycheque

Previous blogs addressed the fact that pension plans are underfunded and our Old Age Security is in jeopardy. Worse still, chances of winning a lottery are 1 in 13.9 million. So much for that back-up plan!

But there’s good news.

Most Canadians already make annual contributions to RRSPs. Plus, we earn a sufficient enough income to make those contributions while still maintaining a good lifestyle.

We’re accustomed to putting away money for food and shelter. So my suggestion is to add a bit more to that routine. It isn’t a dramatic shift. Yet, ultimately, you can end up with an impressive retirement paycheque.

Generally, you need about 70% to 85% of your current income to enjoy a comfortable future (conditional on life expectancy and whether your mortgage and debts are paid off). So, depending how far you are from retirement, saving just 10% – 15% of your income could help you reach your goals in time.

According to Stats Canada, the average Canadian household spends nearly $4,000 on recreation, not to mention about $1,500 on tobacco and alcohol. Let’s be honest, cutting back here and there is very doable.

Besides, imagine all the recreation you can enjoy when you have free time and big, fat retirement paycheque. Come in for a consultation and we’ll help you get there.

See Stats Canada details here

How are you feeling about your finances?

dreams and hopes
Do you feel in control?
Are you prepared for an emergency?
Will you be able to retire in the lifestyle you want?
Will you be able to send your children to post-secondary education?
Will you be mortgage free by retirement?
Do you have financial peace of mind?
If you answered yes to all the above, BRAVO! If you are not sure where you stand financially, seek our help. We will figure things out for you and put you back in control.

Financial Planning works!!  If you want a sound sleep, get a sound financial plan.  81% of Canadians with a comprehensive financial plan feel on track with their financial affairs, compared to 44% with no plans.

Results are from The Value of Financial Planning, a 3 year study conducted by FPSC and the Financial Planning Foundation to measure the impact of financial planning on Canadians’ emotional and financial well-being.

Monday is tax return drop off deadline for April 30th filing

taxtime

How busy we are at tax season depend a lot on how late Easter Monday falls on the calendar.  Clients often wait until after this long weekend to start their tax returns. 

Unfortunately, this year Easter Monday falls on April 21, 2014, giving clients only 9 days to meet the April 30, 2014 tax filing deadline. 

Given this circumstance, we strongly encourage all clients to bring their records to us by this Monday morning April 14.

As much as we’d like to accommodate everyone, we can’t guarantee completion – provided you have given us all required information – of any tax returns brought in after April 14, 2014. 

Filing your return even one day late will result in an automatic penalty of 5% of the unpaid tax balance.  The penalty rate will also increase the later you file your return or if this is not the first time you have filed late.

Here are the tax checklist you must complete as well.

http://www.you-first.com/client-centre/tax-return-checklist/

Thank you for dropping off your Tax documents by this coming Monday!

The ABC of tracking of your Investment Gains & Losses

There was a great article today in the Globe & Mail about tacking your Adjusted Cost Base.  This is essentially needed when you dispose of equity investments in a non-registered account.  Gains and Losses must be reported.  You do not get a Tslip for that investment income.  You only pay tax on 50% of the gain you make.  This article explains it very well.  Of course if you are our client, we will do this for you!!