The Greenard Index

Kevin Greenard: Meeting frequency with clients

When we first meet with potential clients, we will typically have four meetings in the first month. These meetings are done to gather information, share information, open accounts, and complete any. . .

Kevin GreenardOctober 22, 2021

Kevin Greenard: Pushing proprietary products

Brokerage firms, banks, and insurance companies often create their own in-house product, referred to as proprietary products. They are proprietary because they can only be sold by the firm that . . .

Kevin GreenardOctober 15, 2021

Kevin Greenard: Avoid these common mistakes to build up equity

One of the lessons that everyone should learn is the concept of building up net equity. Some people refer to this as a net worth statement which lists the assets you own and your liabilities (if . . .

Kevin GreenardOctober 8, 2021

Kevin Greenard: Inflation impacts purchasing power

This year inflation has reached nearly a 20-year high. The most recent inflation figure for August 2021, was 4.1 per cent. For reference, the last time inflation was at these levels was in 2003 . . .

Kevin GreenardOctober 1, 2021

Kevin Greendard: Tax time for corporations

Do you dread preparing the accounting records for your corporate tax year end? We make the analysis of the investment component as painless as possible. Getting ready for your corporation’s . . .

Kevin GreenardSeptember 24, 2021

Kevin Greenard: Shareholders agreement useful in planning

Over half of the corporations we work with have a shareholder situation that is relatively straightforward — either a sole shareholder or jointly owned with their significant other. For those . . .

Kevin GreenardSeptember 17, 2021

Kevin Greenard: Making charitable donations from a corporation

As a portfolio manager, our No. 1 objective is to help our clients achieve their goals — both financial, such as a desired level of income in retirement, and non-financial, such as making a . . .

Kevin GreenardSeptember 10, 2021

Kevin Greenard: Estate planning for corporations

In my introductory accounting textbooks, it talks about how a corporation can not die. It also mentions that all corporations have one or more voting shareholders. The voting shareholder(s) appoint. . .

Kevin GreenardSeptember 3, 2021

Kevin Greenard: Refund of corporate taxes previously paid

Corporations have a notional account that is referred to as the Refundable Dividend Tax On Hand (RDTOH) — in fact, as of 2019 corporations have two of these notional accounts. The purpose of this . . .

Kevin GreenardAugust 27, 2021

Kevin Greenard: Clarifying the confusion between eligible and non-eligible dividends

In Canada there are two types of dividends: “non-eligible dividends” and “eligible dividends.” Eligible dividends are subject to a larger “gross-up” than non-eligible dividends, but as a result, . . .

Kevin GreenardAugust 20, 2021

Kevin Greenard: The Greenard Group's 10 items to consider — salary or dividends?

Our professional clients and business owners who are incorporated (combined we will refer to both as “business owners”) must juggle a few different balls when it comes to determining corporate . . .

Kevin GreenardAugust 13, 2021

Kevin Greenard: Investing under a corporate umbrella

When a corporation is set up for an active business, it is typically referred to as an operating company. Once our clients have retired from the active business, the operating company is often sold. . .

Kevin GreenardAugust 6, 2021

Kevin Greenard: Corporations help high-income professionals

Dentists, doctors, lawyers, accountants and other professionals have the option to incorporate. These corporations are often referred to as professional corporations (PC). Whether a professional . . .

Kevin GreenardJuly 30, 2021

Kevin Greenard: Understanding tax-free capital dividends

Taxation for corporations is different from taxation for individuals. Our corporate clients can take advantage of many things: tax deferral, income splitting possibilities, tax-efficient dividend . . .

Kevin GreenardJuly 23, 2021

Kevin Greenard: Breaking down the stages of retirement

The levels of retirement that we see correspond directly to the performance of the stock market. When returns exceed projections in a financial plan, many people speed up their plans for retirement. . .

Kevin GreenardJuly 2, 2021

Kevin Greenard: Are you a net saver or a net spender?

Everyone falls into two broad categories: net saver or net spender. If you’re a net saver, your cash inflows are greater than your cash outflows. If you’re a net spender, your cash outflows are . . .

Kevin GreenardJune 25, 2021

Kevin Greenard: Deferring your property taxes is a no-brainer

Municipalities mail out their property tax notices by the end of May. Below are the common ways to address your property tax liability. The first way is by paying your property taxes directly to . . .

Kevin GreenardJune 18, 2021

Kevin Greenard: Concentration causes excess volatility

Concentration within a portfolio refers to an individual equity, sector, currency, geographical area, etc. being overweight in the portfolio. Avoiding concentration is important to reduce overall . . .

Kevin GreenardJune 11, 2021

Kevin Greenard: Take advantage of market conditions when rebalancing

When you hear “rebalancing” in an investment context, one may immediately think of trimming back stocks that have outperformed and taking the opportunity to reallocate these funds to stocks that . . .

Kevin GreenardJune 4, 2021

Kevin Greenard: How a Portfolio Manager helps families

It is becoming more and more commonplace for Portfolio Managers to work with multiple generations within the same family – even when they live in different households. Going back 10 or even 20 . . .

Kevin GreenardMay 28, 2021

Kevin Greenard: The top 10 ways managed accounts benefit investors

A managed account is a broad term that has been used in the financial services industry to describe a certain type of investment account where a Portfolio Manager has the discretion to make changes. . .

Kevin GreenardMay 21, 2021

Kevin Greenard: The many benefits of fee-based accounts

A fee-based account is where a fee is charged based on the market value of the assets being managed. This is distinctly different than a transactional account where commissions are charged for . . .

Kevin GreenardMay 14, 2021

Kevin Greenard: Digital world adds extra risk for identity theft

There are a variety of ways that fraudsters can try to gather your personal information. They can simply try phoning you, pretending to be a legitimate organization, and request information from . . .

Kevin GreenardMay 7, 2021

Kevin Greenard: Protecting loved ones from financial fraud

When clients begin working with The Greenard Group, we will ask them to provide a comprehensive list of information. This is much like when you go to a new doctor’s office – they will ask new . . .

Kevin GreenardApril 30, 2021

Kevin Greenard: Creating your baseline for financial fraud protection

It goes without saying that we are all at risk in this electronic age of being exposed to financial fraud. Some people more so than others. In some situations, financial fraud starts by unknowingly. . .

Kevin GreenardApril 23, 2021

Kevin Greenard: Never open or click links in unsolicited emails

The Canadian Radio-television and Telecommunications Commission or CRTC has the authority to administer the Telecommunications Act, including the National Do Not Call List (DNCL) and Canada’s . . .

Kevin GreenardApril 16, 2021

Kevin Greenard: Be skeptical of unknown callers

In my mid- to late-20s and early 30s, I travelled throughout 63 countries. I had no real incidents and I attribute that to some good advice I received from a couple of well-seasoned travellers. . . .

Kevin GreenardApril 9, 2021

Kevin Greenard: Lines of credit provide peace of mind

A line of credit (LOC) is a debt facility that provides flexibility to access funds quickly, up to an established, approved limit. Having a line of credit can be a great planning tool for future . . .

Kevin GreenardApril 2, 2021

Kevin Greenard: Multiple debt facilities affect your purchasing power

Financial freedom is either having the capital available or access to it when needed. Keeping a solid understanding of all the forms of debt you have is key to knowing your purchasing power. With . . .

Kevin GreenardMarch 26, 2021

Kevin Greenard: Structuring debt so a greater portion is tax deductible

Proper total wealth planning advice involves managing debt, as well as investments. For this column, we’re addressing two common types of debt – mortgages and lines of credit – and we will . . .

Kevin GreenardMarch 19, 2021

Kevin Greenard: Borrowing money has changed over the years

When I first started in financial services, most Canadian banks had a domestic bias to their operations. The four traditional pillars of financial institutions were: banking, trust services, . . .

Kevin GreenardMarch 12, 2021

Kevin Greenard: Top 10 tips to maximize your after-tax dollars in retirement

When people think of providing for their retirement, they think of the various types of income they will receive (Canada Pension Plan (CPP), Old Age Security (OAS), pensions, investment income, etc. . .

Kevin GreenardMarch 5, 2021

Kevin Greenard: Unused RRSP contributions — mistake or strategy?

In the majority of cases, when individuals make a Registered Retirement Savings Plan (RRSP) contribution, they intend to deduct those contributions on their tax return. When we take on new clients,. . .

Kevin GreenardFebruary 26, 2021

Kevin Greenard: Paying RRSP fees from a non-registered account

With managed accounts, there are no annual administrative charges, and no commissions for buying or selling within the accounts. With a managed account, fees are documented with a fee agreement. . . .

Kevin GreenardFebruary 19, 2021

Kevin Greenard: Many factors to consider with RRSP contributions

Last week we took a mathematical approach to looking at Registered Retirement Savings Plan (RRSP) contributions. Although this quantitative analysis provides a useful starting point, we feel that . . .

Kevin GreenardFebruary 12, 2021

Kevin Greenard: Mathematical approach to RRSP contributions

In January and February of every year we have clients that are making a last-minute Registered Retirement Savings Plan (RRSP) contribution to be applied against the previous taxation year. Clients . . .

Kevin GreenardFebruary 5, 2021

Kevin Greenard: Capital gain inclusion rate could change quickly

Going back nearly 50 years, we can trace the initial start of the taxation of capital gains. When capital gains were first introduced, individuals with capital property would have valued their . . .

Kevin GreenardJanuary 29, 2021

Kevin Greenard: Extra deposit into your TFSA

All of our clients have chosen to maintain their assets in a managed account where investment management fees are charged to the account. There is no annual administrative fee, and no commissions . . .

Kevin GreenardJanuary 22, 2021

Kevin Greenard: Why you should contribute to your TFSA early

Last week, we mentioned the TFSA contribution limit for 2021 has been maintained at $6,000. We also highlighted that you should first know your limit before you contribute, if you have not . . .

Kevin GreenardJanuary 15, 2021

Kevin Greenard: TFSA contribution limit for 2021 is again $6,000

The Tax Free Savings Account (TFSA) was introduced in 2009. After 11 years of steady contributions, these accounts have become very meaningful. Many Canadians have fully embraced the benefits that . . .

Kevin GreenardJanuary 8, 2021

Kevin Greenard: Financial and tax due date calendar for 2021

Throughout every calendar year, there are set financial tasks and tax due dates that are important to remember. Below, we have compiled a calendar of the key dates that you need to know as the New . . .

Kevin GreenardDecember 18, 2020

Kevin Greenard: Ensure you have the maximum deposit insurance

Some content in this column has been edited for accuracy. Within Canada there are banks and credit unions. Canadian banks are regulated in three categories, Schedule I, Schedule II and Schedule . . .

Kevin GreenardDecember 11, 2020

Kevin Greenard: Utilizing the capital gains reserve can save tax dollars

When capital property is sold, a capital gain or loss is realized. This capital gain or loss is calculated as the difference between the proceeds on disposition and the adjusted cost base of the . . .

Kevin GreenardDecember 4, 2020

Kevin Greenard: Spousal loans help split retirement income

When we first meet with younger couples, we begin educating them about the benefits of equalizing incomes once they reach retirement. The higher income spouse should pay all the household bills, . . .

Kevin GreenardNovember 27, 2020

Kevin Greenard: Age and pension income amounts can decrease tax bill

Prior to our clients turning 65, we have a discussion with them about both the age amount and the pension income amount which are both federal non-refundable tax credits. For new clients that are . . .

Kevin GreenardNovember 21, 2020

Kevin Greenard: Using your stock portfolio to make donations

With every new client we work with, we will have a discussion regarding making charitable donations. This is especially the case for clients who have a non-registered investment portfolio. For . . .

Kevin GreenardNovember 14, 2020

Kevin Greenard: Managed and fee-based accounts are the fastest-growing advisory platform

Managed and fee-based accounts continue to grow in popularity. In fact, they are the fastest-growing wealth management option amongst most Canadians. During our many conversations with most people,. . .

Kevin GreenardNovember 6, 2020

Kevin Greenard: Why we avoid speculative stocks

The regulators require us to document the investment objectives for each client on an account by account basis. If a client has a Registered Retirement Savings Plan (RRSP), Tax Free Savings . . .

Kevin GreenardOctober 30, 2020

Kevin Greenard: The difference between strategic and tactical asset allocation

Nearly every financial textbook says that the No. 1 decision investors have to make that impacts investment returns is asset allocation. Asset allocation, or asset mix, as it is often referred to, . . .

Kevin GreenardOctober 23, 2020

Kevin Greenard: Changing financial institutions is as easy as 1 2 3

The top 10 reasons for people to change their financial institution are: 1) lack of service 2) existing advisor is retiring 3) wanting to deal with an advisor with the correct licencing (i.e.. . .

Kevin GreenardOctober 17, 2020

Kevin Greenard: When to defer your Old Age Security benefits

Nearly every Canadian relies on both Canada Pension Plan (CPP) and Old Age Security (OAS) benefits in retirement. There are some distinct differences between both the CPP and OAS. With every client. . .

Kevin GreenardOctober 9, 2020

Kevin Greenard: Collect information before making Canada Pension Plan decision

Often one of the most frequently asked financial planning questions relates to when to collect Canada Pension Plan (CPP). The earliest you can collect retirement CPP is age 60, and the latest age . . .

Kevin GreenardOctober 2, 2020

Kevin Greenard: Changes to the Canada Pension Plan

For 64 years, Canadians have been contributing to the Canada Pension Plan. The CPP is a federal program that provides pensions to qualified contributors in retirement. Any benefits paid by the . . .

Kevin GreenardSeptember 25, 2020

Kevin Greenard: What happens if your child doesn't attend post-secondary education?

Registered Education Savings Plans (RESP) are still relatively new. Originally started in 1998, they were slow to gain traction because of some of the unreasonable rules on the account application.. . .

Kevin GreenardSeptember 18, 2020

Kevin Greenard: Utilizing RESP funds for post-secondary education

Parents and grandparents who set up a Registered Education Savings Plan (RESP) are referred to as the “subscriber”. The children or grandchildren are referred to as the “beneficiary” of the . . .

Kevin GreenardSeptember 12, 2020

Kevin Greenard: Disciplined approach with RESP pays off over time

While back to school is looking different this year, the benefits of contributing to a Registered Education Savings Plan (RESP) have not changed. Parents and grandparents, who have set up a RESP . . .

Kevin GreenardSeptember 8, 2020

Kevin Greenard: Tips when opening up a Registered Education Savings Plan

One of the greatest gifts we can give children is education. When it comes to post-secondary education, this gift can come at a significant cost. There are several ways that parents can choose . . .

Kevin GreenardAugust 28, 2020

Kevin Greenard: Active management trumps passive approach

Active management trumps passive approach Last week, we discussed the major equity indices used around the world. We also addressed the terminology used and highlighted some of the pitfalls of . . .

Kevin GreenardAugust 21, 2020

Kevin Greenard: Obtaining clarity on market indices and benchmarks

Anyone following the business news or reading financial literature is aware of market indices. An index is a select number of stocks listed on an exchange. These selected stocks are typically . . .

Kevin GreenardAugust 14, 2020

Kevin Greenard: 10 steps to help achieve financial success

Part of the initial discussions we have with new clients is obtaining an understanding of their goals. Some individuals are very goal oriented and others are not. For those who are not, we spend . . .

Kevin GreenardAugust 7, 2020

Kevin Greenard: Unplanned withdrawals require verbal discussion

When cash flow needs are discussed and communicated in portfolio reviews with your Portfolio Manager, the investment portfolio can be structured accordingly and no further verbal discussion is . . .

Kevin GreenardJuly 31, 2020

Kevin Greenard: Planned financial withdrawals reduce risk

In several of our past articles we have written about the importance of communicating your cash flow needs to your portfolio manager. It is so important that it is often at times the first . . .

Kevin GreenardJuly 24, 2020

Kevin Greenard: Savings strategy modified as complexity increases

Many people are used to paying their household bills on a monthly basis. It is a routine that keeps the lights and power on. When it comes to saving and investing, most individuals have a different. . .

Kevin GreenardJuly 17, 2020

Kevin Greenard: Depositing funds to your investment account

Every day our team fields phone calls and emails from clients asking how they can put money into their investment account. The inquiry is from the mindset of what is the most efficient way to make . . .

Kevin GreenardJuly 10, 2020

Kevin Greenard: Accessing and sharing your tax information

Much of the historical information we need regarding our clients’ tax situation and federal programs is available in electronic form. We encourage our clients to create two online accounts: a “My . . .

Kevin GreenardJuly 3, 2020

Kevin Greenard: Take advantage of the property tax deferment program

The Property Tax Deferment Program in British Columbia was established in 1974, intending to assist seniors and the disabled. The program ensured that the property tax burden each year would not . . .

Kevin GreenardJune 26, 2020

The Greenard Index: Cash is comfort in an uncertain time

The first time I wrote an article specifically about cash was on October 1, 2008, and it was called Cash Can Be a Safe Harbour. It was a timely article as the equity markets took one of the largest. . .

Kevin GreenardJune 19, 2020

Kevin Greenard: Strategically adjusting your asset mix in periods of uncertainty

Many financial articles and commentary pieces in the media are highlighting the disparity between Wall Street and Main Street. This week the U.S. officially entered into a recession at the same . . .

Kevin GreenardJune 12, 2020

Kevin Greenard: Opening accounts remotely is the future

We offer all new clients the option to either open new accounts the traditional way or electronically. Traditionally we would print the documents out and meet with the client to obtain signatures. . .

Kevin GreenardJune 5, 2020

Kevin Greenard: Remote meetings with your portfolio manager

Prior to March 2020, approximately 30 per cent of the meetings we held were done remotely. The remaining 70 per cent were done in person. As a portfolio manager we have always had the ability to do. . .

Kevin GreenardMay 30, 2020

Kevin Greenard: Increase in B.C. taxes results in harsh tax on death

Throughout our working lives we can reduce our annual tax bill by making RRSP contributions. Withdrawals from registered accounts are generally considered taxable income in the year the withdrawals. . .

Kevin GreenardMay 16, 2020

Kevin Greenard: Use caution when reducing RRIF payments

In March 2020 the government announced that the minimum amount that must be withdrawn from RRIFs will be reduced by 25 per cent for 2020 as part of the Covid-19 Economic Response Plan. The . . .

Kevin GreenardMay 8, 2020

Kevin Greenard: Avoid these equity investing mistakes

Asset allocation is the percentage an investor has in cash, fixed income, and equities. Many finance books talk about the percentage that you choose to have in each of these categories as being the. . .

Kevin GreenardApril 24, 2020

Kevin Greenard: Fixed income options becoming more complex as yields drop

As a portfolio manager, we are always monitoring the direction of interest rates. For nearly two decades, the Bank of Canada (BOC) has adopted a system whereby they make eight scheduled interest . . .

Kevin GreenardApril 17, 2020

Kevin Greenard: Cash within a diversified portfolio

Asset allocation refers to the percentage an investor has in cash, fixed income, and equities. This article will focus solely on the cash component. Investors interested in reducing risk, and . . .

Kevin GreenardApril 10, 2020

Kevin Greenard: Don't catch a falling knife

The investment world has some commonly used sayings, including: “Don’t catch a falling knife.” Essentially this is referring to the danger in trying to purchase stocks as they are declining sharply. . .

Kevin GreenardMarch 21, 2020

Kevin Greenard: Managing market volatility

There has never been a market correction that has not recovered. Of course, this time could be different — but something tells me it isn’t. Market corrections are part of the natural cycle of the . . .

Kevin GreenardMarch 6, 2020

Kevin Greenard: Financially, second marriages can be especially tricky

The statistics for second marriages succeeding are even worse than for first marriages. As a portfolio manager, my personal advice is based on many years of helping clients, and nothing I read in a textbook

Kevin GreenardFebruary 28, 2020

Kevin Greenard: Financial considerations when ending a marriage: After the separation agreement

This article assumes that couples whose relationship has already either come to a written agreement on financial matters or, if they could not come to an agreement, have obtained an order from either the Supreme Court or Provincial Court of B.C. Both the Provincial Court and the Supreme Court can make orders about child and spousal support. Only the Supreme Court can make orders about property division and divorce.

Kevin GreenardFebruary 21, 2020

Kevin Greenard: Financial considerations when ending a marriage: Creating a departure plan

Last week, we talked about the importance of hiring a good lawyer when planning to end a marriage. In conjunction with meeting with a lawyer, I recommend mapping out your tentative plans immediately following separation. You should plan for about three to six months living expenses post separation. These funds should be in an individual bank account that you know you will be able to access and pay the necessary bills.

Kevin GreenardFebruary 14, 2020

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