News and Current Information
On this page you will find timely posts written by me, on topics directly affecting you.
The last thing you need is annother source of generic information.
Posts have been personally written to help Clients distill the mountains of information (and disinformation) down to the relevant facts and events that matter in your life, right now.
Don't just read, act. The point of these posts is not to get you to agree with a point of view... but prompt you to address financial opportunities or threats as they occur.
Beware new Phishing scam targeting Canadians RE: Launch of the Canadian Dental Care Plan.
"Phishing" is a sophisticated and convincing con using email, text and/or phone calls to defraud people.
Sun Life has been made aware that scammers are leveraging the branding of trusted insurers in phishing attacks.
We are actively investigating, together with Health Canada.
NOTE: Sun Life has NOTstarted to mail welcome packages for the Canadian Dental Care Plan.
Sun Life will NEVER ask for personal or financial information related to this plan. If you have any questions or concerns, Service Canada can be reached at 1-833-537-4342.
Anyone who may have been victim to this fraud should reach out to Service Canada and their bank.
"Phishing" is a sophisticated and convincing con using email, text and/or phone calls to defraud people.
Sun Life has been made aware that scammers are leveraging the branding of trusted insurers in phishing attacks.
We are actively investigating, together with Health Canada.
NOTE: Sun Life has NOTstarted to mail welcome packages for the Canadian Dental Care Plan.
Sun Life will NEVER ask for personal or financial information related to this plan. If you have any questions or concerns, Service Canada can be reached at 1-833-537-4342.
Anyone who may have been victim to this fraud should reach out to Service Canada and their bank.
Annuities: Lock in high rates for life
Annuities never get the recognition they deserve. How to weave them into a plan and use the benefits of an annuity takes an approach dedicated to measuring and valuing the outcomes of planning.
Make no doubt about it, like ANY product annuities have shortcomings that must be planned for and overcome. BUT, every once in a while they are absolutely the PERFECT product to provide the outcomes sought by a client. Despite my own feelings, on dozens of occasions they’ve also been exactly what was needed to help clients sleep soundly during even the most challenging times.
During these volatile times, dozens of clients are enjoying one simple fact about annuities: They provide the HIGHEST GUARANTEED INCOME of traditional investment products.
Other products provide higher income: mutual funds and stocks for example… but as effective as they can be they cannot be guaranteed.
NOTE: "Guaranteed" is a sacred word in finance and means what it is supposed to, no matter WHAT you'll get what we agreed to.
Other products also provide guarantees: Segregated funds, GICs for example… but they provide less actual cash flow than the annuity.
This does not mean you should go buy an annuity to fund your retirement income. It means that, since annuity benefits are directly correlated to interest rates at the time they are implemented, they may be an option to consider as current rates have improved the lifetime yield on annuities..
Over the past 8 weeks, after not positioning annuities for several years due to low interest rates, 4 families have taken advantage of current rates to lock in guaranteed lifetime income using annuities in my practice.
As always, just because you can doesn’t mean you should. Annuities are a great tool, ideal for balancing the need for high income, removing market risk, controlling taxes and removing longevity risk.
However, whether or not one is appropriate (and at what scale and features) depends on your desired outcomes.
If you’ve had enough with volatility AND are looking to create an income stream from your savings, let my team know and we can determine IF taking advantage of current interest rates is in your best “interest”.
Annuities never get the recognition they deserve. How to weave them into a plan and use the benefits of an annuity takes an approach dedicated to measuring and valuing the outcomes of planning.
Make no doubt about it, like ANY product annuities have shortcomings that must be planned for and overcome. BUT, every once in a while they are absolutely the PERFECT product to provide the outcomes sought by a client. Despite my own feelings, on dozens of occasions they’ve also been exactly what was needed to help clients sleep soundly during even the most challenging times.
During these volatile times, dozens of clients are enjoying one simple fact about annuities: They provide the HIGHEST GUARANTEED INCOME of traditional investment products.
Other products provide higher income: mutual funds and stocks for example… but as effective as they can be they cannot be guaranteed.
NOTE: "Guaranteed" is a sacred word in finance and means what it is supposed to, no matter WHAT you'll get what we agreed to.
Other products also provide guarantees: Segregated funds, GICs for example… but they provide less actual cash flow than the annuity.
This does not mean you should go buy an annuity to fund your retirement income. It means that, since annuity benefits are directly correlated to interest rates at the time they are implemented, they may be an option to consider as current rates have improved the lifetime yield on annuities..
Over the past 8 weeks, after not positioning annuities for several years due to low interest rates, 4 families have taken advantage of current rates to lock in guaranteed lifetime income using annuities in my practice.
As always, just because you can doesn’t mean you should. Annuities are a great tool, ideal for balancing the need for high income, removing market risk, controlling taxes and removing longevity risk.
However, whether or not one is appropriate (and at what scale and features) depends on your desired outcomes.
If you’ve had enough with volatility AND are looking to create an income stream from your savings, let my team know and we can determine IF taking advantage of current interest rates is in your best “interest”.
Should you contribute to an RRSP?
Remember that RRSPs are a means to control tax, they are not always the default savings method often advertised.
Whether or not to use an RRSP account depends heavily on your unique circumstances.
This is why I insist on personalized advice before making contributions. For some clients, making RRSP contributions before Feb 29 will be crucial… but for MOST of my clients you’ve already made the ideal contributions for 2023.
RRSPs are a powerful tool in a cohesive plan, saving or deferring thousands in tax if used properly. But, don't assume they're the "best" option for your unique needs!
There may be options other than the RRSP that provide a better return in your plan.
Please reach out to melissa.lidstone@sunlife.com to arrange a meeting to discuss whether RRSP contributions ought to be included in your financial plan.
A key consideration about RRSPs: while they generate a tax refund when you put money in, they also create a tax bill when the money is pulled out. This is why I insist on developing a plan, as redeeming RRSPs in retirement requires careful planning to ensure your tax bill doesn’t devalue your savings.
Remember that RRSPs are a means to control tax, they are not always the default savings method often advertised.
Whether or not to use an RRSP account depends heavily on your unique circumstances.
This is why I insist on personalized advice before making contributions. For some clients, making RRSP contributions before Feb 29 will be crucial… but for MOST of my clients you’ve already made the ideal contributions for 2023.
RRSPs are a powerful tool in a cohesive plan, saving or deferring thousands in tax if used properly. But, don't assume they're the "best" option for your unique needs!
There may be options other than the RRSP that provide a better return in your plan.
Please reach out to melissa.lidstone@sunlife.com to arrange a meeting to discuss whether RRSP contributions ought to be included in your financial plan.
A key consideration about RRSPs: while they generate a tax refund when you put money in, they also create a tax bill when the money is pulled out. This is why I insist on developing a plan, as redeeming RRSPs in retirement requires careful planning to ensure your tax bill doesn’t devalue your savings.
FHSA is here to help, and it’s a big deal
The First Home Savings Account (FHSA) is FINALLY able to be set up at Sun Life.
If you’re a first-time home buyer, the FHSA is a REALLY big deal and can help you in a very real and concrete way.
The link below covers the details of the FHSA,
https://www.sunlife.ca/en/investments/fhsa/
Rationale for the FHSA
1. Boost the down payment. Put simplistically, free money. Put the money you’re already saving for a down payment into a FHSA, and get a tax refund. Like an RRSP, when you file your annual taxes your FHSA contribution will either reduce the tax you owe, or if you don’t owe result in a larger tax refund that helps you get to your goal.
2. Stretch existing money. For the past year I’ve been advising clients saving for first home to do so in their TFSA. Why? That money can be withdrawn tax-free, recontributed to the FHSA to create a tax credit (resulting in a lower tax bill or larger refund), and withdrawn again tax free for your down payment. Boost the TFSA you’ve been using just by moving existing money around!
3. Tax FREE, not tax deferred. An improvement on previous RRSP HBP program. When you contribute to the FHSA you can pull it out for your first home and you NEVER have to repay it. You keep both the withdrawn contributions and growth TAX FREE.
The FHSA is a big deal because puts cold hard cash right in the hands of anybody actively saving for their home. For a contributor making $70,000 per year, the $8,000 contribution would typically create a tax credit of $2372.
That is a boost of nearly 30% without adding any risk… just by using the right account!
However, just because you can… doesn’t mean you should.
Like any product or account, the FHSA has its detractors and considerations that must be discussed in the context of your unique circumstances. Contact me or my team if you’d like help determining if the FHSA has a role in your plan, and how to make the most of this new program.
The First Home Savings Account (FHSA) is FINALLY able to be set up at Sun Life.
If you’re a first-time home buyer, the FHSA is a REALLY big deal and can help you in a very real and concrete way.
The link below covers the details of the FHSA,
https://www.sunlife.ca/en/investments/fhsa/
Rationale for the FHSA
1. Boost the down payment. Put simplistically, free money. Put the money you’re already saving for a down payment into a FHSA, and get a tax refund. Like an RRSP, when you file your annual taxes your FHSA contribution will either reduce the tax you owe, or if you don’t owe result in a larger tax refund that helps you get to your goal.
2. Stretch existing money. For the past year I’ve been advising clients saving for first home to do so in their TFSA. Why? That money can be withdrawn tax-free, recontributed to the FHSA to create a tax credit (resulting in a lower tax bill or larger refund), and withdrawn again tax free for your down payment. Boost the TFSA you’ve been using just by moving existing money around!
3. Tax FREE, not tax deferred. An improvement on previous RRSP HBP program. When you contribute to the FHSA you can pull it out for your first home and you NEVER have to repay it. You keep both the withdrawn contributions and growth TAX FREE.
The FHSA is a big deal because puts cold hard cash right in the hands of anybody actively saving for their home. For a contributor making $70,000 per year, the $8,000 contribution would typically create a tax credit of $2372.
That is a boost of nearly 30% without adding any risk… just by using the right account!
However, just because you can… doesn’t mean you should.
Like any product or account, the FHSA has its detractors and considerations that must be discussed in the context of your unique circumstances. Contact me or my team if you’d like help determining if the FHSA has a role in your plan, and how to make the most of this new program.
Opportunity to “buy low” is closing
In my last update (Q1 2023), I reported that there was a prolonged period of volatility and thus opportunity ahead of us.
This has certainly turned out to be true. 2023 was exactly the “rocky” and volatile year that was predicted.
For those that held their investments through the past year: Thank you for your trust and patience, as you’ve seen it was a rough year but things have recovered nicely, and aggressive holdings have recovered particularly well.
For those that made contributions in 2023: You’re the real winners. Other than a brief spike in the later summer, prices for investments have remained low and purchases resulted in a lot of value over 2023.
We have not had the full market recovery yet, and the fact is that it may still be a while. However, that means we still have a window of opportunity to snap up good value… but that window is definitely closing.
By the time you hear that the markets are doing great and returns are back… you’re already late to the party. This is why professional management is so important: To net the biggest gains you have to be in the markets already when they happen.
We are still in a period of extended volatility. War, interest rates, political upheaval and inflation have created havoc. However, markets have also adjusted… professional investors are taking advantage of events RIGHT NOW to provide returns for investors over time.
If you are in a position to invest, we still have “buy” time as we know we’re somewhere in the trough (low point) of this market cycle. Oldest advice in the book, buy low sell high. Optimal buying time is now.
But just because you can doesn’t mean you should. Whether or not you buy any investment is unique to your needs, what is effective and what is sustainable.
Investing comes with detractors and consequences that must be discussed in the context of your unique circumstances.
Given how expensive life is getting, take the time to contact me or my team if you’d like help determining if getting off the sidelines and adding to your growth portfolio is right. Even if not making new contributions, existing savings can be used to take advantage of market volatility.
In my last update (Q1 2023), I reported that there was a prolonged period of volatility and thus opportunity ahead of us.
This has certainly turned out to be true. 2023 was exactly the “rocky” and volatile year that was predicted.
For those that held their investments through the past year: Thank you for your trust and patience, as you’ve seen it was a rough year but things have recovered nicely, and aggressive holdings have recovered particularly well.
For those that made contributions in 2023: You’re the real winners. Other than a brief spike in the later summer, prices for investments have remained low and purchases resulted in a lot of value over 2023.
We have not had the full market recovery yet, and the fact is that it may still be a while. However, that means we still have a window of opportunity to snap up good value… but that window is definitely closing.
By the time you hear that the markets are doing great and returns are back… you’re already late to the party. This is why professional management is so important: To net the biggest gains you have to be in the markets already when they happen.
We are still in a period of extended volatility. War, interest rates, political upheaval and inflation have created havoc. However, markets have also adjusted… professional investors are taking advantage of events RIGHT NOW to provide returns for investors over time.
If you are in a position to invest, we still have “buy” time as we know we’re somewhere in the trough (low point) of this market cycle. Oldest advice in the book, buy low sell high. Optimal buying time is now.
But just because you can doesn’t mean you should. Whether or not you buy any investment is unique to your needs, what is effective and what is sustainable.
Investing comes with detractors and consequences that must be discussed in the context of your unique circumstances.
Given how expensive life is getting, take the time to contact me or my team if you’d like help determining if getting off the sidelines and adding to your growth portfolio is right. Even if not making new contributions, existing savings can be used to take advantage of market volatility.
Have questions?
Here to help answer your questions, provide clarity about products and get you started on the road to achieving your goals.