Click here for the National Post article

If you have not yet filed your 2009 tax returns please note that September 30, 2010 is the efiling deadline.  After that date efiling is no longer available.  After that date you would have to file a paper return.  Filing a paper return means that you have to physically mail in all your tax receipts such as T4s, T3s, T5s, RRSP receipts, medical bills, etc, etc.  It is much more convenient for you (and for us) to simply efile. That way you only have to keep your receipts on hand and have them available just in case Canada Revenue should ever ask to see them as part of its routine verification / audit program.

Also it takes longer to have a paper return processed and you can expect to wait longer for any refund to which you may be entitled. With efiling your refund is usually processed within 10 business days.

If you are planning to have us prepare your 2009 tax return for efiling please come see us as soon as possible.  September 30th will be here before we know it !

This is an unbelievable story of the son of a retiree who finds out his dad is not getting CPP. The poor man will only be able to get back 11 months worth of CPP payments instead of the $65,000 he should have received. 

Click here for the Vancovuer Sun story

If you are planning to use the equity in your home to access the money you need to produce income at retirement, now may be the time to downsize or at least secure a home equity line of credit.

The following article shows historical data for all major cities as well as three potential scenarios of what may be coming. On top of the article, you will find tabs to click on to view more information.

Click here for Globe&Mail article

Retirement can sneak up on you and come faster than you had time to prepare for.  You worked hard all your life and found it challenging to save.  Life is expensive, the mortgage took a long time to pay down and the cost of providing for children and putting them through post-secondary education was high.  Age 60 or 65 comes around fast and now what?  You find out that the savings you have may not provide enough for the lifestyle you desire or are accustomed to. 

What are your alternatives?  Will you be required to continue working for several more years or will you take part-time employment throughout retirement? Will you need to downsize your home or relocate? You may have heard about reverse mortgages but you are not sure if this is a good idea.

I see a lot of these cases in my practice.  This financial uncertainty will be the reality for many Canadians without a proper pension plan or who were not disciplined enough to save early and enough. Evaluating your options will be a challenging task requiring the help of a professional.

If your savings are really too low you may have to do a combination of some of the above-mentioned options. Fortunately, if you have a home in one of the major Canadian cities, you will likely have built up significant home equity.  Downsizing is often the ideal quick fix.  It will not only provide the capital needed to generate income but will also reduce your costs.  A reverse mortgage is rarely a good idea especially in the early years of retirement. It is inflexible and costly.  The future capital appreciation is partially lost for your estate.

If used responsibly, a Home Equity Line of Credit may be a better idea especially if the income short fall is low.  If your needs are for a few thousand dollars a year for travelling for example and the interest rates are low, it will likely be ok for you to draw from your home equity.  There are lines of credit nowadays which combine your chequing accounts with your home equity, allowing you to borrow only what you need when you need it and immediately see the outstanding balance decreased with each income flow.  The interest costs are calculated daily saving you interest charges. 

There is no “one size fits all”. Each case is different and requires careful calculations, conservative assumptions and periodic monitoring. Careful planning is essential for you to enjoy a comfortable and stress free retirement.  Consider your options and let us help you in making the best decisions for the best chapter of your life!

Here is an article on the subject of Reverse Mortgages versus A Home Equity Line of Credit

Click for the article here

What is it with 20s something?

They move back in with their parents. They delay beginning careers. Why are so many young people taking so long to grow up? How long should the parents be responsible? Shouldn’t teaching kids to be responsible and independent really loving them?

Click here for the New York Times article

Mark Mobius is a well-known emerging market portfolio manager at Franklin Templeton Investments.  In a recent Time Magazine article, he offers his outlook on Asia, Russia, Eastern Europe and Africa.

Click here to read the article

If it walks like an employee and it quacks like an employee then it is probably an employee.  That is what the judge ruled in this case.

Full article here

My feeling is that we are soon going to hear that Canada Revenue is cracking down on employees who are masquerading as independant contractors.  One of the factors that the judge considered in this case was the “potential for profit”; an independant contractor has an unlimited potential for profit (in theory, anyway) whereas an employee is limited to his/her hourly wage.

There will be great wailing and gnashing of teeth when Canada Revenue starts to crack down on this.