Congratulations Peter on achieving your FEA designation!

Having the FEA designation leads to deeper relationships with family enterprise clients and a broadened perspective of the issues business families face – including generational transitions.

After completing the year-long Family Enterprise Advisor Program, followed by a rigorous exam process, Peter Andreana was granted the Family Enterprise Advisor (FEA) designation. He joins the ranks of approximately 350 highly skilled, experienced, and educated FEAs across Canada who have demonstrated outstanding competence and practice advising business families.

Business families like yours have complex and unique multi-generational challenges. Enterprising families need guidance and support to structure the unique processes required to succeed, thrive, and build a legacy. The FEA designation means we are better equipped to deliver thoughtful integrated and collaborative decision-making within the family, the business, and the ownership circles.

The FEA designation is a valuable addition to our technical expertise and provides Continuum II Inc. and our clients with a diverse lens that is necessary in supporting a family’s complex continuity needs. And in case you didn’t know, Continuum II Inc. is also a family business founded by Peter’s mother Lise, now retired, and in the office Anita (sister) and Cathy (sister-in-law) work side-by-side every day along with the rest of the team.

Welcome to the 1st ever FEA workshop!

SAVE THE DATE:  Thursday, May 30th - 8am to 3pm
Check-in starts at 7:30am - Breakfast, lunch, and a wealth of great information including meeting materials all for only $50 per person. Feel free to pass this along to your family members, business partners, clients or friends. All are welcome. Get tickets now!

Savings Advice

​Nearly one-quarter of retirement income for current retirees comes from, or will come from, company pensions. This is not the case for gen-Xers and subsequent generations. If we can learn anything from current retirees, it is that times have changed.

With reduced employee pension coverage, or none at all, it has put more personal responsibility onto today’s workers to save proactively for their own retirement.

This reinforces the importance of working with a financial planner. A skilled advisor will work with you to build a retirement plan that is unique to you — with whatever you can afford, when you can afford it — to help ensure you are better prepared for the future.

Don't put your retirement on the back burner, talk to us today, and together we can help you build your happy retirement.

Maximize your TFSA

Maximize your TFSA

Studies show that only one in five Canadians have maximized their TFSA contributions.

Do you know how much contribution room you have in your TFSA?

• To see a detailed breakdown of your specific contributions and withdrawals, go to www.canada.ca and log into your registered MyCRA account, or you can call them at 1-800-959-1956
• You are eligible to open a TFSA the year you turn 18

A TFSA allows you to grow your savings tax-free throughout your lifetime.  A TFSA is also an excellent choice if you have contribution room available and you have any non-registered savings where you currently receive a T5 tax slip.  In this case, we suggest you consider moving any non-registered funds into a TFSA each year, up to your contribution limit (if possible), to avoid paying tax on the money in your open account(s).

We are ready to help guide you towards making the best possible financial choices for your lifestyle. Book an appointment today, and together we can plan how to use your TFSA to your benefit.

Don't have a TFSA account? We can open one for you. Contact us at 905.332.6633 or  info@c2inc.com

Tax Time

It is officially tax time, and with the April 30th deadline looming, here are a few tax tips to help you file pain free.

Avoid getting too creative with your 'other deductions'
-  Line 232 otherwise labeled as 'other deductions' is not an invitation from the CRA to list whatever big expenses you've had over the year
- There is a specific list of claims that qualify. Read that list here
- You need receipts for all of the expenses you claim (i.e: medical expenses or donations)
- While you no longer need to mail in your receipts, you do need to hold onto them should the CRA question any of your expense claims

Don't play hide and seek with the CRA
- Make sure the CRA knows where to find you
- If the CRA asks you for more information after you’ve submitted and are unable to reach you, it will deny or modify claims based on the information it has (which could result in a bigger tax bill)

Know what's new for 2017
- Under new legislation, there are old tax breaks that you can no longer claim, as well as, new tax breaks that you may quality to claim

      New tax breaks:

• Canada caregiver credit – If you care for an infirm family member, things just got a little easier. The Liberals streamlined three previously existing tax breaks into the Canada caregiver credit.
• Disability tax credit – The government has added nurse practitioners to the list of health professionals who can certify Canadians living with a disability for this tax break.
• Medical expense tax credit – Fertility treatments can cost thousands of dollars and aren’t often covered under provincial health plans. You may be able to claim some of those costs in your tax return this year. Also, the Liberals have made the change retroactive, so if you’ve paid for things like in vitro fertilization during any of the past 10 years, you can refile your taxes and add that in.

Make sure you have all of your tax slips
-Depending on your employment status there are specific slips that you will need to file your taxes.

• If you’re an employee, a T4, Statement of Remuneration Paid form, which shows how much your employer paid you. 
• If you’re retired, a T4A, Statement of Pension, Retirement, Annuity and Other Income, which shows you much you earned in retirement payments. 
• If you made money from investing or earned interest in a savings account, you’ll need a T5, Statement of Investment Income, which shows items such as dividends, interest from bonds or money you loaned, and much more. 
• If you received Employment Insurance (EI), a T4E, Statement of Employment Insurance and Other Benefits. 
• If you received worker’s compensation or social assistance, a T5007, Statement of Benefits.

Know your limit
- The CRA will penalize you for over contributing to your RRSP and TFSA
- Be sure to review your notice of assessment, or check your MyCRA account, for your contribution limits

Be sure to claim any foreign income

- If you have any type of foreign income-even though you're a Canadian tax payer you will need to claim it
- You will get a credit from the government, and you will not be taxed twice, but none-the-less it needs to be claimed, or they will come after you

FEA (Family Enterprise Advisor) Program + Designation

FEA (Family Enterprise Advisor) Program + Designation 

Always focused on providing more to our clients, now and in the future, Peter Andreana is working towards adding to his list of designations by completing the FEA program. 

Achieving this designation represents the pinnacle of professional expertise in the field of family enterprise advising. With Peter’s new technical skills, he will be able to provide a more sophisticated level of understanding to business families and their unique challenges, while taking into consideration a broader spectrum of family enterprise-specific issues.

How will it further benefit you and your business? Peter has the ability to help you with… 

• Business Family Dynamics and leadership transitions (How to help ensure the “kids” are ready to take over and the family still gets along) 
•  Family Enterprise Strategy including transgenerational wealth (Do the “kids” know how to manage the wealth they will inherit) 
• Business Boards and Family Councils (facilitating successful decision making and educate the next generation on wise decision making) 
• Multi-disciplinary Advising (Bridging the gap between the lawyers, accountants and tax advisors) 
• Continuity Planning (Exploring both the technical and human side of the succession process) 

Skills needed to achieve the FEA designation: 

• In-depth experience across multiple disciplines 
• High emotional intelligence – able to handle the complexity of inter-family relationships 
• Offer resourceful insights that can significantly improve the growth of your business while bringing harmony to your family 

An advisor with the FEA designation exemplifies the trust, understanding and skills required by business families. Once attained, you can be sure that Peter has grown his skill set in family business advising to deliver better solutions to you and your business.

Grow your knowledge and grow your business. Contact Peter Andreana today for more on how he can help advise you.

Peter Andreana CFP, EPC, FMA, CSWP ™, B.A., Econ
Business Owner Specialist
905-332-6633

“Families are complicated. Successful businesses have complex technical requirements. Multi-jurisdictional, multi-generational, enterprising families need help structuring their unique process for continuity. The FEA Program focus helps inter-disciplinary professionals to combine their expertise and deliver successful integrated decision making within the family, the business, and the ownership circles. The FEA Program is an excellent educational segment to round out technical expertise and provide a diverse lens that is necessary in solving our clients’ complex continuity plans.”
Susan St. Amand, CFP, CLU, CH.F.C., TEP, FEA, ICD.D

15 Ways The 2018 Budget Will Affect Your Wallet

by Julie Cazzin for Money Sense

Here are 15 ways the budget will affect your wallet.

1. The government is turning the Working Income Tax Benefit into a new Canada Workers Benefit (CWB). The changes mean that if you are single and earn $15,000 or less in 2019 you may earn an extra $500 per year. In the past you had to check a box on your return to apply, but this is no longer the case. You will now be automatically enrolled.

Individuals who are eligible for the Disability Tax Credit may also receive Canada Workers Benefit Disability Supplement. The budget also proposes that the maximum amount of this supplement will be increased to $700 in 2019. It will be phased in at $24,111 for singles without dependents and will disappear at $36,483 for families.

2. The Canadian Child Benefit will be indexed to inflation starting July 2018.

3. In the previous budget you were able to take additional time off for parental and caregiver care and get the EI Caregivers Benefit. This has now been extended to include maternity and sickness benefits.

4. You will be able to open an RESP and claim the $500 Canada Learning Bond grant at the same time that you apply for a birth certificate for your child. This will automatically enroll children born into low-income families for the grant.

5. As of June of 2019, the government will offer five additional weeks of “use-it-or-lose-it” EI Parental Sharing Benefits when both parents commit to sharing parental leave. It’s available to all two-parent families, including adoptive and same-sex couples. If you’re going for the standard parental leave option of 55% of EI benefits over 12 months, you’ll have a total of 40 weeks of leave instead of just 35. As well, where families have opted for extended parental leave at 33% of earnings for 18 months, the second parent would be able to take up to 8 weeks of additional parental leave.

6. Canada Student Grants and Loans has expanded eligibility for part time students, as well as full and part time students with children, and introduced a three-year pilot project that will provide adults returning to school on a full-time basis after several years in the workforce with an additional $1,600 in grant money starting Aug 1, 2018.

7. A new Apprenticeship Incentive Grant for Women would give women in male-dominated trades fields $3,000 per year of training (or up to $6,000 over two years). Almost all Red Seal trades are eligible.

8. The government will invest $90.6 million over the next five years to combat tax avoidance.

9. The government is going to lower taxes on small businesses from 10.5% to 9% in 2019, while making sure the small business tax rate is not being used for personal advantage. Going forward, there is a $50,000 threshold on passive income held in corporations. When passive income reaches $150,000, a business owner will lose the Small Business Tax Rate. They’ll be taxed as a large corporation at that time. The government numbers show that it’s only the top one per cent of income tax filers whose corporations will be affected by the changes but this change will still reap a windfall for federal coffers. With recently announced changes to income sprinkling, the government expects to raise $925 million per year by 2022.

Who should worry about the passive income thresh holds? Anyone who has over $1 million in passive investments in their corporation because they will no longer receive the full benefit of the small business tax rate. (Note, this $1 million in passive investments is the accumulated value in your corporation.)

10. The CPP death benefit is now $2,500 for all eligible contributors (whereas before it was pro-rated.)

11. The Medical Expense Tax Credit is extended to psychiatric service dogs in order to help Canadians cope with conditions like post-traumatic stress disorder (PTSD). This is directly aimed at benefitting veterans and others in the disability community who rely on psychiatric service dogs.

12. The government will introduce legislation for the Pension for Life plan, which will include benefits to support Canada’s veterans. The benefit would recognize pain and suffering caused by a service-related disability up to a maximum amount of $2,650. Another option is income replacement for veterans who are facing barriers returning to work after military service at 90% of their pre-release salary. Pension For Life means that a 25-year-old retired Corporal who is 100% disabled would receive more than $5,800 in monthly support, a 50-year-old retired major who is 100% disabled, monthly support would be almost $9,000.

13. Cigarette taxes are going up again—from 54 cents to 60 cents per five cigarettes

14. As expected, there will be a tax on cannabis as well, which depends on whether the plant product is a seed, flower, trim or seedbag. In the meantime cannabis growers and manufacturers will be required to obtain a cannabis license from the CRA and remit the excise duty where applicable. Details to come at the time when non-medical marijuana becomes available for legal retail sale.

15. If you have a Health and Welfare Trust you need to convert it to an Employee Life and Health Trust by the end of 2020.

For more information on the 2018 budget, visit mcleans.ca

Golombek's thoughts on new passive income rules

The Liberal government’s third federal budget promises more help for the middle class, workplace equality, a boost for tomorrow’s economy and a fair tax system.

But, for all those promises, “there’s not a lot there for the average individual, and not a lot of changes from a personal tax perspective,” says Jamie Golombek, managing director for tax and estate planning at CIBC Financial Planning and Advice. He notes there are also “very few changes in credits.” (There’s the Canada Workers Benefit for low-income workers, previously the Working Income Tax Benefit, and the expansion of the tax credit for those who rely on psychiatric service dogs.)

As a result, the big ticket item of Budget 2018 is “how the government will deal with passive investment income inside a private corporation,” says Golombek. The news on this front “will be welcomed by private business owners in terms of the proposed change.”

In short, “the government has decided to approach the entire issue of private corporation taxation of investment income in a new light,” he explains. “Instead of taxing the investment income above the $50,000 threshold at a highly punitive effective rate of as high as 73%—as previously announced back in October 2017—the government has taken a different approach.”

Instead, “once you have passive income [of more than] $50,000 annually in your corporation, then [the government is] going to restrict access to the small business deduction in the current year. This starts in 2019.”

Under current rules, says Golombek, “we have a small business rate on the first $500,000 of active business income; that’s a very low tax rate. So, what the government is saying is once you’ve accumulated [more than] $50,000 of passive income, [they’re] going to reduce the small business deduction by 5% for every dollar over that threshold, until you get to $150,000 of passive income.”

The new math is very simple: “you take that $150,000, less the $50,000 of passive income. You then get $100,000 of extra passive at 5%; there’s your full $500,000 of small business deduction eliminated,” he adds.

WHAT THAT MEANS FOR CLIENTS

The effect of this change is “business owners will no longer be able to retain income inside the corporation taxed at low rates, once they’ve got a certain amount of retained earnings that [are] earning an annual passive investment income,” says Golombek.

On the upside, “you do have full grandfathering of all retained earnings that are already in there; you could [have been] saving that for investing, retirement or other purposes,” he adds.

Business owners won’t love this development, says Golombek, but it will be welcomed nonetheless, given it’s “much simpler” than what was previously proposed.

Going forward, as of 2019, Golombek predicts the number of businesses that claim the small business deduction will drop—but not significantly. “The government estimates that less than 3% of business owners would have [the] type of retained earnings that are subject to potential clawback,” he says.

TAX STRATEGIES TO EXPLORE

There may be viable strategies that you can use to get around the $50,000 annual limit, suggests Golombek.

1.       This could include “investing in buy-and-hold strategies that report no income. [In that scenario], you’d only face a clawback in the year that you sold a particular investment and realized a capital gain; of course, capital gains are only 50% taxable, and that’s also beneficial toward the $50,000 limit,” he notes.

2.      Also, business owners of private corporations could consider the use of permanent corporate-owned life insurance. “For example, exempt policies that effectively accumulate inside the policy and [do not] generate any annual investment income.”

3.      Peter's Thoughts: left out of this article for a 3rd tax strategy to explore is the Individual Pension Plan (IPP).  An IPP can allow a business owner take significant wealth out of a company today and defer all the tax until it is time to withdraw the funds. (When withdrawals occur, they are taxable at your income and tax rate at that time, and under current rules income splitting is allowed) 

RRSP Tips

An RRSP should be individualized and must fit well within your own personal financial goals. With the upcoming March 1st contribution deadline, here are 10 RRSP tips to remember.

1. Contribute early: Make your contribution as early in the year as possible. Tax-deferred compounding make those early dollars grow dramatically. Contributing early in life and early in the calendar year, both make a positive difference.

2. Contribute the maximum: Take advantage of compounding and get the maximum tax break by contributing your limit. (In respect of 2018, you can contribute 18% of your 2017 earned income, to a maximum of $26,230-less your pension adjustment or past service pension adjustment for 2017). While you can "carry forward" any unused contribution room to subsequent years (until your 71), you can never replace the lost growth opportunity. 

3. Invest Monthly: You might find it easier  to reach your annual RRSP limit by making monthly contributions. Consider having your RRSP contributions automatically deducted from your bank account each month, or consider a Group RRSP and make your RRSP contribution by payroll deduction through your employer. It's also a good idea to increase your monthly contribution if your income rises, and be sure to keep up with inflation. 

4. Contribute to a spousal RRSP: A spousal RRSP allows the spouse with the higher income to contribute to an RRSP owned by the lower-income spouse. (This is an excellent way to income split in retirement and reduce your combined tax rate). The spouse with the higher income takes the immediate tax deduction, but the money in the RRSP should be taxed in the other spouse's hands, usually at a lower rate when it is withdrawn later into retirement.

5. Diversify: By diversifying your portfolio and holding various types of investments, you protect yourself against the day-to-day fluctuations in any one category. To achieve long-term growth you should diversify. Some investors limit themselves to fixed-income investments. The biggest danger with conservative type investments is inflation which can erode your purchasing power. If this sounds like you , consider a small amount of diversifying into growth oriented securities-such as equities and equity mutual funds-to earn returns that can protect you against inflation and provide long-term growth potential. 

6. Resist the dip: There is nothing to stop you from accessing the money in your RRSP, however, you should consider the consequences before dipping into your RRSPs.  First, withdrawals attract tax at your marginal tax rate. Tax withholding at the time off the RRSP withdrawal may be as low as 10%, or as high as 30%-be sure to determine how much more tax you'll have to pay when your file your return. 

Secondly, you cannot restore lost contribution room. The amount you can contribute to an RRSP in your life is limited and a withdrawal erodes some of this potential. 

There are a few circumstances that allow you to access the money in your RRSP without consequence. The Home Guyers Pan and Life Long Learning Plan allow tax-free withdrawals with the ability to re-contribute. However, even in these [lans there is no ability to replace the tax-deferred growth that was lost when you make the withdrawl.

7.  Consolidate your investments: If you don't want to spend a great deal of time managing several plans, you may want to consider consolidating your investments into one portfolio. Yes, you should have a diversified portfolio of investments working for you, but you can usually combine them under one RRSP umbrella. This strategy also means you will get one consolidated statement, which may make it easier to track your plan.

8. Designate a beneficiary: Consider who will be the designated beneficiary for your investments.  Without a designated beneficiary, the account will go through your estate and be subject to probate and other fees. You should talk to us about the tax and other consequences of designating a beneficiary to your RRSP. Who you appoint as beneficiary is also very important, as there are different rues depending on if it is a spouse or other party. ** This strategy does not  apply in Quebec**

9. Get help from an expert: Our advisors at Continuum II inc. are here to help you make the right investment decisions. Together, we should review your plan at least once a year to make sure that your plan is on track with your long-term goals.

10. Have a plan: Investing of any kind, whether in an RRSP or non-registered, is part of a financial plan-but it is important to note that investing itself is not a plan. Contact your Continuum II Inc. advisor today to work your investment strategy into part of a larger financial plan.

6 Easy Ways To Save Money

6 Easy Ways To Save Money

Who wouldn't like to have more money?

Start the new year out right, and learn how to save more and stress less. Here are 6 easy ways to start saving money today.




1. Beware of the "sale" Sign - 90% off something you'll never use isn't saving money.

• When an item is “on sale,” we act more quickly and with even less thought than if the product costs the same but is marked at a regular price 
• Focus on what things cost, not how big of a discount you're getting

2. Money is money - People are more likely to spend their salary on “responsible” things like paying bills, because it feels like “serious money". Whereas "bonus money" is often spent on frivolous things-but money is money.

• Every dollar is the same. It doesn’t matter where money comes from
• Saving so-called "bonus money" can positively affect your savings

3. Try and use cash - Using cash has a bigger impact on your brain than swiping a card.

• Using credit cards blurs the process of handing over money and makes you more likely to spend
• You're more likely to overspend or loose track of your spending when using credit cards

4. "Fair" is a four letter word - The concept of "fair" messes with our heads and causes us to reject deals that still offer plenty of value.

• It doesn't pay to get hung up on the concept of "fair
• Think about whether you're getting reasonable value for the money you're paying. Otherwise the person who gets punished will probably be you

5. Try A "Ulysses Contract" - A Ulysses contract is any arrangement by which we create barriers against future temptation.

• You probably already use a financial Ulysses Contract and don't even realize it. Ex: RRSP's-You've made the decision in advance to save for retirement

6. Drop Anchor - "Anchoring" is a potentially devastating cognitive bias where the first number mentioned in a given scenario unconsciously influences your future choices.

• Example: You have consistently overpaid for lattes and oil changes in the past so you mindlessly keep doing it
• Look at your regular purchases and ask if they really make sense and whether there are cheaper alternatives

 For more on each of these 6 tips, check out Eric Barker's blog, Barking Up The Wrong Tree.

Estate Protection: Secure Your Legacy

You’ve spent a lifetime planning ahead to be prepared for every stage of your life. Leaving a legacy isn’t any different.

Estate Protection is a segregated fund that has the same benefits of potential growth and exibility for your investment portfolio. There’s also insurance protection for you and your beneficiaries through built-in guarantees.

Is Estate Protection right for you?

• Are you in the later years of your retirement? 
• Do you want to protect the money you have set aside for the important people that matter the most in your life? 
• Are you looking to pass on your legacy? 
• Do you want to participate in the financial markets, to potentially grow your money? 

If you answered yes to these questions, then Estate Protection might be the right choice for you.

What does Estate Protection offer?

• 100% death benefit-When you die 100% of your investment is protected to pass on to those who are most important in your life
• 75% maturity guarantee-When your policy ends (at age 105), even if the markets go down, Estate Protection protects most of the money you put in 
• You can select funds which can allow you to lower the impact of market volatility on your investments

Saving money is an important part of protecting the legacy you’ve built for your loved ones. With Estate Protection you can have an increased sense of certainty. Because the amount that you’ve set aside does not flow through your estate, you can save the legal, taxes, executor and accounting fees, etc. that can be part of passing on your legacy.

Overall, when it comes to fulfilling your wishes you want a sense of security. You want to feel like you have made the right estate planning decisions. You want to know you have adequately prepared for the financial well-being of your loved ones. By partnering with a financial advisor, you can be confident you have secured your legacy.

Contact Continuum II today and let us help you secure your legacy.  

For more information on Estate Protection, read the full overview from Great West Life. 

Financial Literacy Month

Did you know that November is Financial Literacy Month?

Financial literacy is important. As financial advisors we help to provide the knowledge needed to appreciate money management and to make it clear and simple to navigate. Here are just a few things to consider on your way to financial well-being.

It's not magic - it is planning. Everyone needs a good financial plan and a qualified planner.

Start Planning
- Be prepared, financial planning is for everyone, the more aware your are the better. Get help from a CFP professional
- Understand the power of saving could have a huge impact on your life
- Consider using advisor provided tools to help learn how to make budgets and how to manage any debt effectively and efficiently. Our Budget Worksheet and many other tools are available to help
- Create goals and focus on your financial strategy
- Prepare for life's up's and down's
- Canadians are living longer, it is important to have a grasp on your plans for retirement and take steps to make sure your money lasts

Reduce Stress
- Personal finance can be a major stress for many Canadians, having an understanding of financial concepts could help to reduce anxiety and improve your overall well-being
- Know your financial rights and responsibilities
- Pass your financial knowledge onto your children, build their financial confidence
- It is not all about budgeting. It's about finding out what is important to you and your family

Understanding the basics about money is a critical skill, we encourage you to ask questions and get involved. Are you ready to get started, contact us today.

                                         

                                                                                          

For more information on Financial Literacy visit, www.canada.ca and https://www.financialplanningforcanadians.ca/

Beware of 'Robo-advice'

Although most investors continue to work with human advisors, the rise of web-based investment platforms has made it more important than ever to understand the difference between 'robo-advisors' (Automated portfolio management services) and 'human advisors'.

Solutions Magazine has provided the following to help define the difference, and highlight the importance to maintaining 'human advice'.

How does “robo-advice” work?
Because these platforms don’t offer individualized advice, the term “robo-advisor,” although catchy, is a misnomer. It’s actually just software. When a client registers for a service, she or he answers a set of questions that determines a generic investor profile. The software then presents the client with choices of ready-made portfolios based on the profile. Because the profiles are formulaic – quite literally based on a mathematical formula – they can only account for a limited range of goals and risk tolerances. Robo-advisor software is designed to sort clients into broad categories and to serve those categories quickly and at a lower cost. This model relies on the investor answering the questionnaire accurately. It also places the responsibility of choosing the best portfolio on the client instead of the advisor, because there is no advisor.

The role of an advisor
Human advisors are licensed experts who create comprehensive financial plans designed to build wealth, minimize taxes and accomplish a diverse range of other goals. These may include everything from being able to afford next year’s vacation to buying a home to living comfortably in retirement. Because money is more than an account balance – it’s a family’s home, a child’s university tuition, an emergency fund for tough times – creating a plan requires understanding the emotional importance of each financial goal.

An advisor also does much more than portfolio rebalancing. She or he can help rearrange investments for tax efficiency, review budget and saving strategies, and put in place the right financial protection. As a result of understanding the full picture of a client’s life, a financial professional can handle varying degrees of complexity. If a client experiences major changes, plans can be adjusted to respond to the client’s new circumstances.

By the same token, if the economy changes, an advisor has the depth of knowledge to provide a proper analysis and plan of action. When faced with the decision of staying the course or making an adjustment, you can sit down with an expert intimately familiar with your investments. An advisor can evaluate what the decision will mean, not just for your portfolio, but for your long-term financial well-being.

Overall, the primary advantage of working with an advisor is nuanced “big picture” planning. Investing isn’t so much about buying a product; it’s about acquiring the component parts of a far-sighted strategy. Ideally, investments complement each other and click neatly into place within a financial plan. They’re allocated to generate growth or provide an income, to meet short- and long-term goals, to save taxes and to build a legacy. Furthermore, the plan must adapt – and the investments must be rebalanced – as the investor’s circumstances change. An advisor’s unique skill set supports the ability to translate a client’s vision into a concrete, achievable plan, where as a 'Robo-advisor' does not-to them you're just a number.

Health needs in retirement

Retirement is a milestone that many Canadians work towards for most of their lives. When preparing for that long- awaited goal of life after work, aside from ensuring you have enough savings to live comfortably, it’s also important to consider potential health care needs and costs.

Solutions For Financial Planning, lays out how to include health and dental benefits in your overall retirement plan. Longevity and wellness are top of mind for many Canadians, but we may be more prone to health issues as we age. Among Canadians aged 65 and older, almost 90 per cent have one or more chronic conditions, such as arthritis, osteoporosis or cardiovascular disease. These conditions may require everything from accessibility equipment to physiotherapy to nursing care.

Canadian seniors generally spend more on health care than younger Canadians. A 2014 survey found that households headed by a person aged 65 and over spent 6.1 per cent of their goods and services budget on health care, whereas households headed by someone under 30 spent 2.8 per cent. It may not come as a surprise to learn that prescription drugs are one of the largest health care expenses for Canadians over 65, accounting for almost 30 per cent of their out-of- pocket health spending. Those fortunate enough to enjoy group health benefits during their working years may not be fully aware of the true costs of health care.

Plan for expenses. Understanding potential health care needs is only one piece of the puzzle – knowing how you will pay for it all during your retirement years is another.

A beneficial first step is  determining whether your employer offers continued coverage for retirees. Then, if it applies to your situation, consider your spouse’s coverage – will it be enough for your needs, and how long will it be in effect? If your circumstances dictate shopping for a new plan, there are a range of options to consider. Some of the common health services covered are prescription drugs, hospital stays, nursing and home care, vision care, and medical equipment, as well as dental services such as exams, cleanings, llings and root canals. Look for plans that offer a variety of levels, enabling you to choose one that most closely aligns with your needs and budget. Many plans also offer coverage for spouses and children, add-ons such as travel insurance, and supplementary features like special rates for couples and families with multiple children. 

Be Proactive. Securing health and dental insurance ahead of retirement can be beneficial for a few reasons. Not only will this prevent a gap in coverage, but certain plans feature guaranteed acceptance and no medical questionnaire if you apply within a specific time a er your group plan ends. Throughout the process, your advisor is the person with the best expertise to help you understand the different plans available and to assist in deciding what options fit your needs. Having the right health care plan in place can help alleviate concerns about paying for future medical requirements and put more focus where it should be – on enjoying retirement to its fullest. 

Contact our offices today for more information on retirement planning.

Wow, what an exciting day!

I would have never guessed to have said that about life insurance, but I just did.

20 years ago my mother, Lise Andreana, basically forced me to buy a life insurance policy because it would be good for my future.  All I remember is asking myself, how am I going to afford this when I can’t even buy food? Why does someone at my age need life insurance?  Maybe she is just trying to reach a sales goal and using her kids to get her there? (Just kidding about that last one)

In my early twenties, $50 a month was, to me, a whole lot of money that I could have been spending on the necessities of life.  But I was a good girl and did what my mother asked me to do (well, in this case, lol).  As the years went by, the payments became easier and easier to make especially since it was on automatic banking.  Then about 10 years ago, it occurred to me that my premiums would be 0.9% less if I paid annually instead of monthly, so I then made that change to save some money, and again the premiums became easier to afford each year.

Fast forward to today… I received my annual policy statement and guess what it says?

I now have over $71K in death benefit and over $13K in cash values that are just going to keep on growing.  The best part of all? The single line that reads; PREMIUM: Your policy is now paid-up. There are no more premiums payable.  This is the exciting part!  The 20 pay policy my mother sold me when I was in university is now paid off in full, but I have coverage for life that will continue to grow!

So now, I sit here thinking to myself what will I do with my “new found” money?  I can tell you that purchasing another whole life insurance policy has surely crossed my mind.

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Have you been asked to be an executor?

Has someone close to you asked you to be the executor of their will?  

To a friend or loved one, you might seem like the perfect person to be their executor. And while it may appear to be an honour, it is a huge responsibility. Before you agree to the job, here's what you need to know.



Estates big or small-it will be a lot of work.
- Any estate may have multiple properties, numerous possessions, extensive wealth or many beneficiaries.
- There may be numerous steps to get through before you can distribute any assets, including being responsible for taxes.

Be aware of potential conflicts
- If you are being asked to be an executor by a friend, you might want to consider why? In some circumstances, it could be to prevent family conflicts, in which case you could be on the hook to mediate some explosive discussions as to who gets what.

Are you ready for litigation? 
- If the beneficiaries don't like the decisions you've made, you might find yourself the subject of a lawsuit.

Compensation
- There are no rules about how much an executor should be compensated, although the rule of thumb is typically 5%.
- Be sure to note that if the beneficiaries file a lawsuit, and it is found that you haven't used the estate funds the way they were intended, you could be liable to to repay the funds from your own pocket.
- Ultimately, you have to awknowledge that all your hard work could be for pennies.

The bottom line is that being an executor is a lot of work, before you take on the job be sure to consider all of the possibilities.

Talk to your Continuum II advisor today, we can help guide you in the right direction.

Test Your Financial Knowledge

Studies show that Canadians aren't as financially savvy as they think they are. When asked, 70% of Canadians claimed to be financially literate, but when asked to test their knowledge 60% failed. How do you compare?

Test your knowledge by answering the following 15 statements with ‘true’ or ‘false’

1. A mortgage term refers to the length of time you need to pay off your mortgage.

2. You must pay for government insurance on mortgages where you put down less than 20% of a down payment-unless the home is worth $1 million or more.

3. A car that is more expensive always costs more to insure than a cheaper car.

4. You never have to report interest and profits gained in your TFSA when filing taxes.

5. You can have multiple TFSA accounts with different banks at the same time.

6. Your auto insurance automatically goes down when you turn 25.

7. Applying for a credit card can negatively affect your credit score.

8. Home insurance can sometimes protect you if your dog bites someone in your home.

9. Your home insurance will always cover you if a tree falls on your home.

10. Checking your credit score has no impact on the score itself.

11. The colour of your car affects your car insurance rate.

12. All banks charge you money to have a chequing account.

13. Auto insurance premiums can be cancelled mid-way through their term.

14. You need to be licensed to buy stocks in Canada.

15. There's no need to get travel insurance if you're travelling within Canada between provinces.

How did you do?

Check your answers below.

Answers: 1. False  2. True  3. False  4. False 5. True  6. False 7. True 8. True 9. False 10. True

11. False 12. False 13. True 14. False 15. False

See how Pattie Lovett-Reid scored on her financial quiz.

Financial Plans For Your Future

Here at Continuum II we get asked all the time "What's the most beneficial way for me to invest my money?".

Our answer is always the same; everyones financial landscape is unique, and that everyones financial portfolio should reflect that. But overall, the most important thing is that everyone has a plan.

Many people don't realize that there is difference between a financial plan and an investment plan. 

An investment plan focuses solely on your investments, and your return on those investments. While investments are important, they are nothing without a solid financial plan.

What you have to ask yourself is, will your investment plan stand up if something goes wrong in other areas of your life? What if you suffer from one of the four D's (death, divorce, disability or disaster)?. This is where a financial plan will help to ensure you're protected.

Here is what a financial plan can offer, that an investment plan can not.

• A financial plan looks at all of the financial aspects of your life, not just your investments.
• Financial plans look at insurance and estate needs, educational planning.
• Financial plans help you to make big financial decisions, like whether to buy or rent.

In acknowledging you need a plan, the next step is to hire a financial planner. A financial planner typically provides a written financial plan that outlines your goals, challenges and considerations, recommendations and action plan. A comprehensive written financial plan generally includes the following:

• A clarification of your short, medium and long term goals
• A statement of Net Worth
• An analysis of your cash inflows and outflows
• A detailed budget and debt-reduction strategies
• A review of your current investments and investment strategy advice
• Projections regarding your retirement, including pension recommendations
• A review of your insurance needs, group benefits and estate planning, including recommendations
• The action steps needed to implement your plan

Do you have an individualized comprehensive financial plan? Get started now with the quick RediNest questionnaire below. With RediNest you'll discover how your financial readiness compares to other Canadians with similar goals. It’s easy to use, free and a great way to preview the work we do here at Continuum II Inc. - C2Inc.

5 steps for saving for retirement

Save for retirement in five simple steps

Here at Continuum II we get asked all the time "how much do I need to save before I can retire?"

The answer is; retirement is not one-size-fits-all and everyones ability to retire depends on a variety of factors. For example; it depends on how much you make, what age you want to retire, your current standard of living, your pension (or lack thereof), only to name a few.

To help give you a ball park figure of what you need to save for retirement, The Globe and Mail has put together a list of 5 simple steps to arriving at your ideal retirement goal.

1. Figure out how much of your working income you will have to replace in retirement.

• Most people find they will need to replace between 50-70% 

2. Consider how much you will receive from the government by the way of Canada Pension Plan and Old Age Security.

• For a lifelong resident of Canada who has worked steadily for decades the typical annual payout is $15,000 (this is just a rough number, it could be lower or higher depending on your financial history)

3. Do the math.

• If your household income is $120,000 a year (and you need to replace 60%, your target income would be $72,000). From this figure subtract what you would receive from government programs. If you receive roughly $30,000 from government programs, that means you will need to generate $42,000 from other sources.

4. Consider your pension.

• Your workplace pension may be able to cover the remaining portion of your retirement income not covered by government programs.
• If you don't have a pension, you could purchase annuity, which would pay you the remaining portion annually. Find out more here.

5. Plan for the unexpected.

• We can't stress enough how important it is to plan for the unexpected. To be more safe than sorry, you might want to add a little extra to your figures as cushion

While the above can help to give you a rough idea of what you'll need to save for retirement, the best option will always be to contact an advisor who can help you build a plan that fits with your unique financial lifestyle.

Don't have a retirement plan? or do you need a little extra help with your current retirement plan? Contact our offices today and let us help you feel comfortable and confident about retirement.

Holograph Wills In Ontario

Holograph Wills 

A holograph will that is wholly handwritten by a testator is called a holograph will. Holograph wills are exempt from the statutory requirement that a will be witnessed by at least two people, who each subscribe the will in the presence of the testator.

Below, our friends at Pallett Valo LLP, have laid out everything you need to know about validating a holograph will.

A testator may make a valid will wholly by his or her own handwriting and signature, without formality, and without the presence, attestation or signature of a witness.

Wholly in the handwriting of the testator

An essential aspect of a holograph will is that it to be wholly in the testator’s own handwriting. Partially handwritten wills, such as fill-in-the-blank forms, do not meet the requirements of a holograph will. Whether or not such a document will be admitted into probate will depend on the court’s ability to sever the handwritten portions from the written portions so that they themselves form a complete expression of the testator’s wishes.

Likewise, it has been determined by the courts in Ontario that typewritten documents cannot be incorporated by reference into a holograph will. Where a holograph will makes reference to a typewritten document, the type-written portion will not be admitted into probate and the handwritten portion must be able to stand on its own as a testamentary document.

Signed by the testator

The signature of the testator will also play a key role in creating a valid holograph will. The signature must be at the end of the document and this will give effect to any disposition that comes before the signature. Anything that follows the signature will not take effect. As well, any disposition or direction inserted after the signature was made will not take effect.

Full and final expression of intention 

Separate and apart from the above two formal requirements set out in the SLRA, case law has established that the contents of a holograph will must reflect that the testator possessed the necessary intention that it be a fixed and final disposition upon death, and not merely some other expression of their wishes. The onus falls on the party alleging the document to be testamentary to show, by the content or by extrinsic evidence that it reflects this intention. 

Handwritten Alterations
Handwritten alterations to wills are governed by section 18 of the SLRA. Where a handwritten alteration is made to a formal will, the alteration must meet the same formality requirements set out in s. 4(1) of the SLRA, i.e. the alteration must be signed by the testator and witnessed by two witnesses, who each subscribe as witnesses to the alteration.

In the case of alterations to holograph wills, a handwritten alteration will only require the signature of the testator. Where there is no signature (or initials) beside the alteration, the issue becomes one of determining when the alteration was made. If the alteration was made at the time of execution of the holograph will, the change is valid. If the alteration was made after the execution of the holograph will, the alteration would be invalid.

In conclusion, while holograph wills can be a quick and inexpensive option, it is evident that there are numerous issues that may affect their validity. As with any legal document, it is always prudent to obtain legal advice about the manner in which a holograph will must be made, and the potential issues that may arise.

RESP Withdrawals

Think before you withdraw. 

If you have kids heading to university or college in September you are probably starting to think about dipping into those RESPs. Before you do, here are 4 things you should know about withdrawing from your RESPs. For more information, check the full article by the Globe and Mail.

1. Maximize grants without over-contributing

2. Adjust the asset mix as you get close to drawing the funds

3. Get the money out tax-effectively

4. Deplete the RESPs near the end of university

Overall, the key to withdrawing from your child's RESP is knowing how, and when, to do it in order to fully benefit from it's perks. Below is an example of how to do it;

 To figure out roughly how much EAP money you can withdraw each year without federal and provincial income tax, using 2017 figures. Start with the basic personal tax credit that everyone gets ($11,635 for federal taxes). Then add a tax credit for tuition paid (we’ll assume $9,000 for a full-year at school). Then subtract income (we’ll assume $7,000 from a summer job), offset partly by job-related tax credits for EI, CPP, and employment ($1,465 federally in this example).

In this case you should be able to withdraw roughly $15,100 in EAP money in 2017 without your kid having to pay any significant amount of income tax ($11,635+$9,000-$7,000+$1,465). (If your kid’s gross income is relatively low, you can also transfer up to $5,000 of unused federal tuition credit to a parent.) In this example you would pay no federal tax but would pay a small amount of provincial tax in some provinces because of differences in provincial tax practices.

If you want help managing your children's RESPs call our offices today.