November Newsletter

It’s still too early to see what is going to come out of the Federal election results in financial terms so let’s take a look at what is happening in the rest of the world:

EU transitioning from a Greece crisis to a Migrant crisis:

migrant-crisis

The financial and logistic repercussions of what is now termed the “migrant crisis” in Europe is adding to the strains on already frayed EU relations. The Slovenian Prime Minister is predicting the end of the EU if they cannot agree to a common plan to handle this unprecedented human migration.

Many economists are warning that this situation could create financial ramifications on a global scale envisioning a broader movement of populations desperate to move out of “have not” regions into areas where they hope to find a better life.

Your fund managers are pro-actively monitoring this situation and building it into the variety of factors that determine their portfolio weightings.

US Interest rate Hike – Yes, No, Maybe?

hike

Based on comments made at the October meeting held by Federal Reserve Board the odd’s makers are betting on a U.S. interest rate hike in December.

This long anticipated event has been taken off the table so many times it is literally on the “I’ll believe it when I see it” list. Markets appear to be about as bored as everyone else by this latest prediction as the hike in rates is anticipated to be no more than ¼%.

Fund Review

Despite a very choppy 3rd quarter of 2015 your fund returns continue to be positive – in excess of just over 4% year to date.

Fund Manager Weekly Reviews

For those of you interested in listening to a 5 minute weekly Economic review by Sebastien McMahon, the lead manager for the IA Diversified fund, please click the following link (and/or save it in your browser) – you will find it time well spent.

insurance retirement strategies vancouver

Direct Settlement

I would like to share with you an illustration from a slide that is an integral part of my Estate Planning seminars.

This slide illustrates how Smart Estate Strategies enhance your Legacy and provide Direct Settlement to your Beneficiaries.

I hope you enjoy this illustration which can be accessed through the link below:

Smart Estate Strategy »

(603 kb .PDF file)

Contact Us

To set up a no nonsense confidential review to determine if our Smart Estate or other proven financial strategies will work for you, contact us at 1-800-665-7707 or Email info@tlsfinancial.com.

smart state strategies vancouver

Protecting Your Retirement

I would like to offer you the opportunity to participate in an exercise that may help you identify and protect your current or future retirement lifestyle from a significant financial risk.

The Exercise

This question is part of my Estate Planning Seminar, and will help you identify how extended family can pose a financial risk to your retirement lifestyle.

I have two questions I am going to ask you – take 30 seconds on each question. You may find it helpful to put a mark down each time you think of an individual or family.

Click on the link below to access this thought provoking exercise, you are not required to submit your answers or provide any personal information.

Protect Your Retirement »
(410 kb .PDF file)

Contact Us

To set up a no nonsense confidential review to determine if our Smart Estate or other proven financial strategies will work for you, contact us at 1-800-665-7707 or Email info@tlsfinancial.com

retirement strategies vancouver

Leave a Legacy and Enhance Your Wealth

Estate Planning and Wealth Enhancement should not be mutually exclusive.

Through our Transgenerational Programme you would purchase and own a Life Insurance Policy that insures the lives of your children or Grandchildren to:

  • Provide an immediate enhancement of your Legacy.
  • Create a growing Tax Sheltered Savings Account that you can access at any time.
  • Provide financial support to the families of your adult Children should they die prematurely.
  • Establish a structure that will permit a tax free transition of Funds to your Estate.

The link below will take you to a case study based on an actual situation illustrating how Transgenerational Insurance enhanced and protected three generations of one family.

Transgenerational Case Study »
(374 kb .PDF file)


 

CONTACT US.

To set up a no nonsense confidential review to determine if our Smart Estate or other proven financial strategies will work for you, contact us at 1-800-665-7707 or Email info@tlsfinancial.com

10 Ways to Ensure You Don’t Outlive Your Money

Don’t know if your savings will last?

Traditional financial plans say you can withdraw 4% of your initial portfolio value every year (with inflation adjustments). But low interest rates or a long bear market may force you to adapt. If you’re concerned about outliving your savings, plan to be flexible with withdrawals. “People get anchored to a specific amount, but you need to review it and make corrections occasionally,” says Steve Lowrie of Lowrie Financial in Toronto.

Being flexible about your retirement date helps too. Do the math and you’ll be amazed at the difference if you work a year or two longer: you get an extra year of income and an extra year with no withdrawals from the portfolio. Working part-time in retirement will also help your savings last.

You should never take more investment risk that you can stomach, but your portfolio will likely last longer if you allocate more to stocks. A mix of 50% stocks and 50% bonds might be suitable for disciplined retirees.

See more and read the whole article here: canadianbusiness.com

From Dan Bortolotti

Call our office at 1-800-665-7707.
Our Advisors are available for a complimentary review of your situation to help you determine if our Cost Recovery Programme, or any of our other proven financial strategies, are right for you.
Contact Us For A Review

Retirement Income: Can your RRIF survive the stress test?

Investing your registered retirement income fund in stocks and bonds will produce some troubling losses every so often, but you have little choice these days if you want to achieve a decent long-term return on your investments.

The question is, just how unstable will returns be in a portfolio that includes stocks? We can get a good idea of how a RRIF portfolio might behave by looking at historical returns achieved by Canadian pension funds. Over the 54-year period 1960-2013, the average equity weighting in pension funds would have hovered in the 50% to 60% range with the rest being invested primarily in bonds. As for investment results, here is what happened to the median Canadian pension fund since 1960:

  1. Only once were fund returns negative two years in a row (1973-74).
  2. The worst cumulative loss over any two-year period was 14.6% (in 2007-2008).
  3. The worst cumulative loss over any three-year period was just 4.1% (2006-2008).
  4. In any given decade, we can expect one or two calendar years of net losses.
  5. Every decade has included at least two, and as many as seven, years with returns over 10%.
  6. The average annual return was about 8%, after fees.

See more and read the whole article here: financialpost.com

From Fred Vettese

Call our office at 1-800-665-7707.
Our Advisors are available for a complimentary review of your situation to help you determine if our Cost Recovery Programme, or any of our other proven financial strategies, are right for you.
Contact Us For A Review

 

Is an Individual Pension Plan right for you?

Based on a C.D. Howe Institute report that suggested one possible solution to the alleged retirement crisis was simply to go back to the half-century-plus RRSP and raise contribution limits for the (relatively) few affluent people who are forced to save in taxable accounts because they’ve maxed out on RRSP room.

If you’re at top executive or own your own business and are 40 years of age or older, there may be another way to get the benefits of RRSPs. The Individual Pension Plan or IPP is an employer-provided program that replaces RRSP savings by an employee, says Stephen Cheng, managing director of Vancouver-based Westcoast Actuaries Inc. To be eligible for an IPP, you need to receive pension-eligible T-4 employment income. Self-employment income, partnership income and dividend income are not pension-eligible, Cheng says. So if you own your own business, you’d have to pay yourself a regular salary that generates T-4 employment income.

See advantages and the whole article here: moneysense

From Jonathan Chevreau

Call our office at 1-800-665-7707.
Our Advisors are available for a complimentary review of your situation to help you determine if our Cost Recovery Programme, or any of our other proven financial strategies, are right for you.
Contact Us For A Review

 

The 7 new retirement financial strategies

Canadians can no longer rely on pensions, government benefits and bull markets.

There was a time when many Canadians retired right at age 65—whether they wanted to or not. It was a full-stop kind of retirement: you worked for the same company for most of your career, they threw you a party on your last day, and the next morning you woke up to a life of hobbies and doting on grandkids. Government benefits and traditional employer pensions kicked in immediately and they were often sufficient to take care of you, even if you had no other savings.

That traditional notion of retirement is pretty much dead. Today most Canadians are able to say goodbye to a full-time career sometime during their early 60s, but the new retirement comes in many forms. It might include golf, travel and volunteering, but it’s also likely to involve contract or part-time work, too. More and more, the goal of retirement is really about achieving financial independence—or to use the word coined by MoneySense editor Jonathan Chevreau, “findependence.” That’s the point in life where your career and lifestyle choices are no longer driven by financial necessity, and it may occur decades before traditional retirement.

The challenge, however, is that the responsibility is more on your shoulders than it was in the paternalistic past. Defined benefit pension plans are dying out, except in the public sector. And the government is starting to scale back seniors’ benefits such as Old Age Security, which will eventually start at age 67 instead of 65. Increasingly, your retirement income depends on how much you save and how you manage your own money. Unfortunately, just while this is happening, your nest egg has no doubt been afflicted by low interest rates and uncertain stock markets. All this makes the new retirement more precarious.

In what follows, we describe seven strategies that will speed you towards financial independence, preferably while you’re still young enough to enjoy it. You’ll also meet seven Canadians who are living out their lifelong dreams and reinventing the traditional notion of what it means to be retired.

  1. Reinvent your job
  2. Protect your savings
  3. Boost your income with dividends
  4. Cash in on your home
  5. Think differently about debt
  6. Wait before you buy an annuity
  7. Reduce your tax bill

Read the full article here: MoneySense

From David Aston

Call our office at 1-800-665-7707.
Our Advisors are available for a complimentary review of your situation to help you determine if our Cost Recovery Programme, or any of our other proven financial strategies, are right for you.
Contact Us For A Review

The Best Strategies for Your RRSP and TFSA When Money’s Tight

Whether you have limited funds to invest or need to withdraw some hard cash, explore a tax-friendly solution.

If you have limited funds this RRSP season, and you can’t maximize both your RRSP and TFSA contributions, you likely will have to choose which plan is best for you this year. Both an RRSP and TFSA allow you to invest in variety of things, including GICs, mutual funds, bonds and equities, and both may allow you to effectively enjoy tax-free investment income while the funds remain in the plans. But there are two main distinguishing factors.

The first is the tax rate differential for RRSP contributions and withdrawals.

But the second, often neglected, differentiating factor between an RRSP and a TFSA is the additional flexibility that comes from a TFSA.

Read the full article here: Financial Post

From Jamie Golombek