Oh Behave! Halloween Fun

We  recently participated in a BNI bowling event for Halloween and we won for best costume:  Austin Powers and Felicity Shagwell!

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Alumni Night

Doug and I were privileged to attend an Alumni Event at the Asper School of Business, Drake Centre University of Manitoba on September 30, 2015. We joined in the celebration of achievements of Faculty in the in the Commemorative Room.  We were treated to a tour of our old stomping grounds and had an opportunity to mix and mingle with fellow Alumni, current students and on-campus student groups.

There were brief remarks from the Dean, Michael Benarroch. As well, Paul Soubry, B.Comm.(Hons.)/1984, Asper Alumni;  Front and Centre Campaign Chair and CEO of New Flyer delivered a message about the vision and philanthropic campaign for the University of Manitoba. Doug graduated from UM in 1987 with a Commerce degree in Finance and Loreen graduated in 1994 with a Commerce Finance degree as well.

For over 75 years, the I.H. Asper School of Business has been providing a world-class education to leaders and innovators who contribute ethically to the social and economic wellbeing of Manitoba and the world.

Raised Funds for BNI Givers Gain Golf Classic

YourStyle Financial was proud to be a dinner sponsor for the BNI Givers Gain Golf Classic on June 18, 2015. We were able to help raise almost $25,000 towards Camp Quality Manitoba. See more about the BNI Givers Gain Golf Classic Click here to view all Community Events

Are You Travelling This Winter?

“Am I covered for emergency health care outside of Canada?” It’s one of the most frequently asked questions of travelers — and an important one to answer. With U.S. medical care costs skyhigh (and rising), even a simple doctor visit can put a serious dent in your bank account. If you’re unfortunate enough to require an extended hospital stay, your finances can suffer permanent damage. Do you need additional health insurance? Simply put: YES. Technically, all Canadians are covered under their provincial plans for any time they’re overseas, but coverage is extremely limited. For example, Manitoba Health will only pay for emergency doctors’ services outside of Canada at a rate equal to what a Manitoba doctor would receive for similar service.  In other countries, services can cost much more than they do here in Manitoba. As a result, you could find yourself responsible for a large medical bill. Emergency hospital care is paid on an average daily rate established by Manitoba Health. The difference above the covered amount could be substantial and is YOUR responsibility to supplement your coverage with some travel health insurance. Travel insurance gives you peace of mind to cover emergencies such as physician’s fees, diagnostic services, ambulance and paramedic costs, and hospital accommodations. So, what’s the best way to obtain additional coverage? Head over to our Resources page for direct links to travel insurance providers. Also, while there, be sure to check out other helpful information as well such as The Glossary of Common Investment Terms.

How healthy will you be in your golden years? Long Term Care Insurance may be the solution.

Do you and your loved ones have enough funds to last through the golden years? Will you be financially secure if you outlive your savings? How will you cover the costs in the event that you require care? Issues such as these should be taken into consideration so that you are financially prepared for the future. Careful planning helps with peace of mind without having to place a burden on family and friends down the road. According to the chart below, the average cost of Long Term Care (LTC) in Canada is $61,500. These ranges cover the cost of care for couples at different income levels. The starting income level is $22,394 (very low) and the highest income level is $184,500 (three times average).  Average is $61,500. Source: N. Fernandes and B. Spencer, “The Private Cost of Long-Term Care in Canada: Where You Live Matters,” Canadian Journal on Aging 29 (3), 2010.

When planning for your retirement, you have to keep in mind that you may need to cover the cost of care. These costs can be due to an illness, accident or diminished physical or mental capacity. Your investments and retirement savings may not be enough to cover these expenses. Activities of Daily Living (ADLs) is a term used to refer to people’s daily activities. Think of the activities you do to get your day started:

1. Climb out of bed
2. Use the bathroom
3. Take a shower
4. Get dressed
5. Brush your hair
6. Have breakfast

If you are unable to perform two out of the six activities and own Long-Term Care insurance, you could qualify to receive benefits. Long Term Care benefits provide an additional source of income that can help when you need it the most.  Long Term Care is a tax-free monthly benefit to help supplement your savings, provincial and private health insurance coverage. Eligibility for Long Term Care does not depend on admission to a care facility nor do you have to obtain any receipts for the care received. You have the freedom to use your benefit the way you see fit. Contact YourStyle Financial if you would like assistance with planning your retirement for you or a loved one and to discuss if Long Term Care coverage is right for you.

What you should know about TFSAs

Tax Free Savings Accounts (TFSAs) are registered savings plans with the ability to earn investment income that is tax free. These funds can provide security for the future and financially prepare you for retirement. Other registered savings plans include Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP). Anyone who is 18 years of age or older, is a Canadian resident and has a Social Insurance Number can open a TFSA.

Contributions

Did you know that as of January 1, 2015, the annual contribution was increased from $5,500 to $10,000? Only 14% of Canadians are aware of this fact. Contributions of up to $5,000 per year for 2009-2012; $5,500 for 2013-2014; and $10,000 for 2015 can be deposited. Unused contribution room (the maximum amount you can contribute to your TFSA) can be carried forward to following years. More than half of Canadians who have a TFSA only contribute once a year; however, there is no limit to the number of contributions made in a year as long as you do not exceed your contribution room. Penalties will be assessed for over-contributions.

Withdrawals

When a withdrawal is made, you are able to replace the amount within the same year if you have available TFSA contribution room. You can determine your TFSA contribution room through the Canada Revenue Agency. Any income earned in the account whether it be interest income, dividends or capital gains is sheltered from tax as long as it stays in the TFSA. Government benefits and credits such as Old Age Security (OAS), Guaranteed Income Supplement (GIS), Employment Insurance (EI) and Age Exemption Tax Credit are not affected or reduced as a result of income earned in a TFSA. The income earned also does not affect your eligibility for federal credits such as the Canada Child Tax Benefit (CCTB), Working Income Tax Benefit (WITB) and Goods and Services Tax/Harmonized Sales Tax Credit (GST/HST). If you are interesting in learning more about Tax Free Savings Accounts, contact YourStyle Financial.

So you’re getting married?

You’ve found “the one” and have decided you will spend the rest of your lives together. You may have talked about growing your family, a new house and other plans for the future but have you thought about how you will achieve those goals? Marriage is a partnership and you need to know how you can achieve those goals together. Discussing your finances may not be a conversation that you want to have but it is necessary to avoid issues that may arise later. Debt, for example is one of the most important things a couple should discuss. Do you or your partner have any outstanding debt? If yes, does your partner know about it? Are you aware of each other’s income? Whatever the case may be, you need to communicate with each other and be open about your finances. A recent BMO survey shows that most married Canadians wish they had discussed their financial matters with each other before walking down the aisle. While 98% of Canadians agree they should be on the same page as their spouses, when it comes to finances, most of them aren’t! A whopping 40% of these couples say they have different investing styles from their partners. It’s not surprising then, that more than half of Canadian married couples have financial regrets, with 62% saying they wish they had discussed their financial plans and pasts before getting married. Use our Marriage Preparation Checklist to discuss with your partner to ensure your plans for wedded bliss include financial matters. For help with your financial planning, give us a call.

2015 BNI Givers Gain Golf Classic

YourStyle Financial is proud to be a dinner sponsor for the BNI Givers Gain Golf Classic on June 18, 2015 and we will be having a draw to win a Kids BMW X5 Ride-On.
This event is attended by BNI members and their guests to raise funds for the non-profit, charitable organization Camp Quality Manitoba. The first camp was held in 2005 and aims to improve the quality of life for children living with cancer. The camp offers the children and their siblings a week to have fun, be themselves and to enjoy the summer.
For more information visit:
http://www.bnigiversgaingolf.com/

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Do you have a plan for debt elimination?

When most people think about retirement planning, they think of building a retirement nest-egg through RRSPs and pension plans. While these are key pieces of the puzzle, it’s important not to forget about another important element of retirement planning – debt elimination. After all, the less you spend on interest payments, the more you can allocate to your retirement savings. A debt-elimination plan doesn’t have to be complicated. But you should have one or you’ll likely be in debt longer than you have to. There are a few simple strategies for getting out of debt sooner, such as:

• Building extra debt payments into your budget.
• Consolidating all of your debts at the lowest rate possible.
• Using your income and savings to automatically reduce your debt (without giving up access to that money).

When you’re planning for retirement, don’t forget about the impact that your debt has on those plans. With a strategy for becoming debt-free sooner, you may even be able to retire earlier than expected. I’d be happy to help you develop a debt-elimination strategy that complements your overall retirement savings strategy. Give me a call if you’d like to discuss how you can be debt-free sooner.

Help out the kids without hurting your retirement

As parents, we want nothing more than for our kids to succeed. Often, we wish to give our children a “leg up” in their transition to adulthood by helping them out with larger expenses, such as tuition for post-secondary education, a down payment on a home or even a reliable vehicle. If you find yourself in this situation, be sure to carefully consider where you take that money from so that helping your kids doesn’t hurt your retirement. For people who don’t already have savings set aside for their kids, such as an RESP or a savings account, there are generally two options: 1. Retirement savings. Tapping into your retirement savings may be the quickest way to access cash but it could have some undesirable consequences. For example, you’ll be charged taxes on a withdrawal from your RRSP and you’ll lose that contribution room forever. You’ll also forego any future growth on the amount you’ve withdrawn, which will most likely mean you’ll have less money available at retirement. 2. Home equity. Some people are reluctant to take on more debt in the years leading up to retirement. However, using a home equity line of credit to help out your kids may be the wiser choice in some instances. Here’s why: you won’t be charged any tax when you access your home equity and your existing retirement savings can remain intact and continue to grow. Some accounts will even allow you to track different portions of your debt separately. This can be particularly useful if you’re providing money to more than one child and/or if you wish to track the interest charged for different portions of the debt. We all want to help our kids succeed. By carefully considering how you help, you can help to ensure you don’t compromise your own future financial security. If you’d like to help your kids with a large expense, give me a call and I can help you determine which option makes the most sense in your specific situation.

A painless way to cut back on expenses

With the current economic uncertainty, many people are looking for ways to reduce expenses. A relatively painless way to reduce your monthly expenses is to have a second look at the way you’re managing your debt. Over time, most of us take out a variety of loans for different purposes. These can include things like credit card debt, car loans, home renovation loans and, of course, the mortgage. And if you have more than one loan, you’re most likely paying a different interest rate on each loan. One of the easiest ways to reduce your monthly interest costs is to consolidate your debt at the lowest rate. Typically, your lowest-rate debt will be a loan that is secured by an asset, such as your home. If you have sufficient equity built up in your home, consider switching to a product that allows you to access your equity, such as a home-equity line-of-credit. Then, use this line of credit to repay your higher-interest loans. In this way, you’ll be bringing all of your debts together into a single account, at a single rate. Some line-of-credit products even allow you to track debts separately within the account so you can continue to keep track of interest costs and repayment separately. Not only will debt-consolidation save you interest but it will make it easier for you to keep track of what you owe and how you’re progressing in paying it down. Reducing your monthly expenses is one way to deal with economic uncertainty – and it doesn’t have to be painful. By borrowing smarter you can reduce your interest costs and increase your cash flow each month. If you’d like to learn how to reduce your monthly interest costs, give me a call and I can discuss some options with you.

Tax Rules for Home Buyers

If you’re one of the many Canadians who dream of home ownership, and you’re working hard to make this goal a reality, you should know that the Canada Revenue Agency has two programs that can help you get there faster.
There is the First Time Home Buyers’ Plan. Because the required down payment on a house purchase can be a stumbling block, the government will actually let you borrow the money to put down on your dream home – from yourself.

Under the rules of this program, you are allowed to take money out of your RRSP to help buy your home – up to $25,000. This money will remain sheltered from tax, so long as you pay it back within 15 years. This is a great way to put your retirement savings to work for you today, without the considerable tax consequences of withdrawing it outright. The only downside is that you won’t be earning interest on your investment, but that might be outweighed by the interest cost saved by using your own money instead of a loan.

Another helping hand for new homeowners from the CRA is the First-Time Home Buyers’ Tax Credit on your tax return. It’s a non-refundable tax credit that can put money in your pocket by reducing the amount of tax you owe for the year in which you buy your house.

Both of these programs are for first-time buyers only, and are designed to help you get yourself into the real estate market. If you have questions about these programs (or any other areas of estate planning or financial management), contact YourStyle Financial Inc. We take the financial stability or our clients very seriously, and can help you get your financial house in order, so you can get into the house you want.

We’re more than an investment company – we tailor financial plans individually, to fit each one of our clients. If you’re thinking about jumping into the real estate market, we can help make sure you do it with both eyes open.

Manulife’s Are you ready? – The Call

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Manulife’s Are you ready? – The Meeting

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Get away – but get covered

recent post to this blog, we discussed the health benefits of a vacation. Since we call Winnipeg home, we’re very aware of the temptation to fly south in search of warmer weather and some quality time poolside or on the beach. Your vacation is an investment, and it will pay real dividends in terms of enhancing the quality of your life.  By all means, go – but make sure you’re covered first. Your Manitoba Health Insurance covers you in Canada, but if you’re travelling to the US or another foreign destination, you’ll probably want to supplement your coverage with some travel health insurance.  Manitoba Health will only cover the costs of emergency health care to about the same level as they do in Canada.  In other countries, services can cost significantly more than they do here at home.  As a result, you could find yourself responsible for a large medical bill. YourStyle Financial Inc. can help you with your insurance needs – temporary travel coverage by itself, or as part of an Extended Health Plan.  When you’re out of the country, we can help you make sure that your emergency needs, like physician’s fees, diagnostic services, ambulance and paramedic costs, and hospital accommodations are taken care of. No matter what your insurance needs are, YourStyle Financial Inc. can help you select coverage that meets your goals, today and tomorrow.  We provide consultative services that take your individual situation and needs into account, and advise you on the solutions available to you.  We’re one of Winnipeg’s premiere financial services firms, because we don’t just sell products, we build relationships with our clients.  Your healthy financial future is our primary concern. Travel insurance provides peace of mind, so that your vacation can bring peace to your body.   Request a quote online today.

Vacations – Investing in Yourself

There are many good reasons to take a vacation – taking some time away from the stresses of work and daily life to focus on spending time engaging in stimulating (or relaxing) activities with family members and friends in a new setting can recharge your batteries.  It will give you added perspective on your life and work, and you’ll return to your regular routine invigorated and more productive. And your health can be greatly improved. Prolonged periods of work without a vacation have been shown to have numerous medical consequences – people who are “all work and no play” become irritable and inattentive, and are more likely to have accidents on the job.  They are at higher risk of cardiovascular problems, depression, anxiety, and other illnesses, both physical and mental. Your financial plan should be flexible enough that you don’t need to save every last dollar you make for retirement.  Life is about balance, just like vacations are about balance.  By helping you make wise budgetary decisions, YourStyle Financial can help you achieve a balance by making judicious investments – in both your financial future and your happiness today. We will do what many financial planner fail to do – we will find out, in detail, about your wants and needs, before helping you develop a financial plan that fits your personality, individual needs and wants (including vacations), and investment goals.  Then we’ll help you implement it.  When you deal with YourStyle, you aren’t getting a quick one-off session with an investment product salesperson – you’re developing a long-term relationship with a financial planner who has your best interest at heart.

Women need to take an active role in financial planning

When it comes to money, women’s main concern is working on a budget to lower debt and save more money. The second concern is to develop better skills in investing, and third is to create a financial plan and investment strategy. It’s imperative for women to take an active role in financial planning.  There is a very high probability of women being solely responsible for their finances at some point in their lifetime due to divorce or outliving a spouse. Nearly one-quarter of women say they don’t partake in financial decision making. “Women can make changes to their finances such as lower debt, save money and become good investors.  Making changes to your financial plan doesn’t have to be as difficult as it is perceived to be,” says Doug Buss, President, YourStyle Financial.

FAQ: How Can I Deduct Interest?

your business). or 2. Rearranging existing debts – for example, pay off an existing mortgage and convert to a non-deductable borrow with the intent of investing proceeds. There are, of course, other factors that come into play, so we do advise setting up a meeting with one of our advisors to talk about your deductable income (either interest or other).

Tim Hortons and the Jump to Invest

financial planning dollar? In all honesty it depends on your personality and financial freedom. Within any stock broker’s client base there are two investors 1. Risk Takers – This group would have taken the murmurs that emerged over the weekend about the Tim’s sale and called, emailed, texted or any used any other form of communication to get on the line to buy or sell their stocks (or do it themselves). 2. Safe Players – These are the long-term investors who will go into more of the ‘sure-thing’ stocks, not watch the market as frequently and potentially invest less to begin with. Going into the stock market, in general, is a consideration to be made carefully. Just because you have the money to invest doesn’t mean you should go in. The payoffs can definitely be big, but it comes down to risk/reward, and ultimately your comfort. If you would like to talk further about stock market opportunities or have any questions on investments, please contact us today to set up an appointment to talk about your financial plans.

Is there Such a Thing as “Good Debt”?

financial sense. Let’s go back to the car payment for example. As we see from time to time, dealers and manufacturers will offer as much as 0% interest over a given period. You don’t outright own your car at this point, but you’re also not “losing” money by paying out the additional fee associated with an interest rate. Thus, the final cost for your car will be $30,000, whether you pay a lump sum now or spread it out over the payment cycle, say of 60 months (or 5 years). While you pay this down, meanwhile, your set-aside $30,000 for the car can be making money for you. Putting the money into a monthly or annual payout situation means that at the end of those five years you’ll have made some extra cash on your investment. Ultimately, debt in some circumstances can work for you rather than against you, but it’s knowing all the parameters in advance and being prepared. If, as in the scenario above, you aren’t a big car person and aren’t loyal to a particular make or model and a 0% offer comes up, you may want to look a little deeper at taking advantage of this situation. For more tips from Doug Buss and the experts at YourStyle Financial, check out our newsletter archive.