Kevin Greenard, CPA CA FMA CFP CIM, is a portfolio manager and director of wealth management with the Greenard Group at Scotia Wealth Management in Victoria. His column appears every week in the Times Colonist.
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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, . . .
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 . . .
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 . . .
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,. . .
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 . . .
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, . . .
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.. . .
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. . .
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 . . .
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 . . .
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.. . .
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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 . . .
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. . .
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 . . .
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 . . .
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 . . .
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. . .
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 . . .
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. . .
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. . .
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. . .
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 . . .
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. . .
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 . . .
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 . . .
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. . .
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 . . .
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
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.
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.
The average life expectancy for females and males in Canada is 84 and 80, respectively. Many people are living well into their 90’s, resulting in many retirees having to update financial plans . . .
There are various reasons why people change financial institutions, including a financial adviser who retires, investments that have to be consolidated and inadequate service, among others. . . .
In terms of its importance to world markets, the U.S. election is far more important to follow than our own Canadian elections. The United States represents 57 per cent of the world's market . . .
Periodically we get phone calls inquiring about our services. One of the first things we talk about is the importance of matching both the approach to investing and the style of investing. If you . . .
Many of us are fortunate enough to be in a position to give back to society. Many individuals choose to demonstrate their philanthropic support through monetary contributions while others choose to. . .
As we near the end of 2019 it is always a good idea to reflect on the past. We have rounded up some of our past articles to help make sure you have completed all the financial transactions that you. . .
An ETF is a commonly used abbreviation for Exchange Traded Fund. Canada was the first country to launch an ETF in 1990 with one provider. Known as the S&P/TSX 60 Index, it essentially held the . . .
At the end of each year, we ask our clients to provide an estimate of their income. The income sources we want to approximate are those that we may not be aware of, such as part-time work, . . .
We have had many discussions with our clients about whether or not to financially assist their adult children with purchasing a home. Some feel that if they help their children, by giving them . . .
Financial success often involves making good decisions and avoiding big mistakes. Parents who spend the time to teach their children the basics of finances will help start them off on a more . . .
Last week, we encouraged those individuals interested in purchasing either a condo or a single-family dwelling to understand the financial numbers and to set goals. I have heard many people say . . .
One of the most rewarding investments is the purchase of a principal residence. Getting away from paying rent and building equity can be a significant financial step in the right direction. Many . . .
As we enter the last quarter of 2019 it is time to look at whether tax-loss selling makes sense for your portfolio. During a positive year, several rebalancing trades may have occurred resulting in. . .
About 15 years ago, I had a client with a terminal illness. Her biggest concern wasn’t about her own health, but rather who was going to take care of her dog after she died. I hadn’t really . . .
Over the years, we have helped clients overcome many different challenges. This article focuses on the challenges of looking after our parents as they age. This is a complex responsibility as it . . .
Your will is essentially a document that outlines what you want done with your assets after you pass away. The term asset is very broad and can include everything from personal and household . . .
One of the first roles of an executor of a will is to gather and secure their client’s assets. This process includes ensuring the principle residence is locked and all known assets are secured. . . .
At every stage of our client’s lives, we feel they should have an up to date will. Unforeseen events can happen and planning is essential to ensure your assets and estate are distributed . . .
Ever since the stock market was first introduced, investors have been concerned about declining markets. It’s only natural. In fact, there hasn’t been a single year since the Great Depression . . .
We begin every meeting with our clients by reviewing a summary sheet of key macro items we believe are important for the client to either understand or communicate to us. We provide new clients . . .
Fixed income is often used to describe a category of investments that provide investors with income that one purchases to receive income. Some examples of fixed-income investments include Canada . . .
As an investor, you may be receiving information in the mail about companies in which you have invested. You may be quite happy with that arrangement, but if you are not, rest assured there is . . .
Getting the most out of your day involves a significant amount of organization and goal setting. Working on your big-picture goals may take some time. Sometimes you have to stop everything you’. . .
Over the years I’ve had many people ask me for advice for someone wanting to improve their financial position. Below are a few of the concepts of how people generate wealth over time. These may . . .
All income and growth within Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) are tax deferred. Tax will only apply when amounts are withdrawn from these . . .
Over the years I have been asked several times how we pick our stocks. The process for picking stocks really begins with our overall investment philosophy. All decisions are made in the context of . . .
Over the years we have helped new clients and existing clients deal with inheritances. In the majority of cases the inheritances are coming from parents. These can be done upon the parent’s . . .
Wouldn’t you love a strategy of selling high and buying low? Naturally we have the tendency to want to let our winners run without taking profits. On the flip side, a good stock might be going . . .
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. . .
Many people do not feel they have the knowledge to best manage their own money. Some have the knowledge but they do not have the time. Both portfolio managers and Wealth advisers can assist . . .
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 . . .
Taxpayers, naturally, are fixated on trying to minimize tax in the current year. This is a classic scenario of someone not being able to see the forest for the trees. The forest is your ultimate . . .
Not everyone who purchases investments wants or needs the income today. Many clients are trying to grow a nestegg to fund a future goal, such as retirement. Investors who are not requiring income . . .
People are often told not to invest in equity markets unless they have a long-term time horizon. While for some people one to two years might seem like a long time, most investment professionals . . .
Computers, phones and tablets have all become mainstream in today’s modern households. The thirst for current knowledge in a busy mobile world has never been greater. More than ten years ago, . . .
Today there are many different ways for us to communicate financial information with clients: in-person, over the phone, email and so on. With all of these ways to communicate, it is important for . . .
Yield is essentially the income an investment will pay, such as interest or dividend payments, and is normally expressed as a percentage. Yield will fluctuate on equity investments based on the . . .
During the last quarter of 2018, the TSX/S&P Composite declined 10.11 per cent on a total return basis while the first quarter of 2019 the TSX/S&P Composite posted gains of 13.27 per cent . . .
The term asset mix refers to the portion of your investments that are held in cash, fixed income, and equities. Asset mix has historically been touted as the most important decision with respect to. . .
In the last 10 years, there have been a number of changes to investments and regulations. Many of these changes have an impact on your financial plan and tax situation. All firms have been spending. . .
Seeking out the best risk adjusted returns for clients involves allocating investment dollars outside of Canada. For over a decade we have been educating clients on the benefits of investing . . .
Parents and grandparents, who typically set up Registered Education Savings Plans (RESPs), are referred to as the “subscriber.” The children or grandchildren are referred to as the “beneficiary” of. . .
In 1988, I got my first job working at an accounting firm. It was a great year to start in the accounting world as most clients were still doing everything manually. Individual tax packages could . . .
Twice a year, Canada Revenue Agency sends out instalment reminder letters to those taxpayers who are required to make payments. The February letter outlines the required payments on, or before, . . .
Most articles are written about “contributing” to an RRSP. This one highlights that many people should either avoid RRSPs or stop contributing to them. Going a step further, calculations should . . .
For couples that make approximately the same annual income, a spousal RRSP may not be necessary. The greater the disparity between incomes with couples, the more important it is to consider spousal. . .
The key word in Registered Retirement Savings Plan is savings. The government allows Canadians to defer up to 18 per cent of the previous years earned income, up to a maximum of $26,230 for the . . .
An RRSP could be an important vehicle in reducing the amount of tax you pay in your lifetime. However, an RRSP may not be for everyone. Last week, we reviewed marginal tax brackets and took a . . .
The Income Tax Act allows you to contribute up to 60 days after the end of the year to your RRSP. For the 2018 tax year, the last day to contribute is Friday, March 1. This 60-day buffer gives . . .
Within financial services, the term family is referred to as a household. A household used to be defined as those people who resided at the same address, but now extends beyond a single physical . . .
The Tax Free Savings Account (TFSA) is a registered account. One of its features is the ability to name a beneficiary. When we are opening a TFSA for a client, they must advise us who they would . . .
Last week we mentioned the Tax Free Savings Account contribution limit was increased to $6,000 for 2019. Contributing early on, say this month, isn’t always easy. Holiday bill payments, . . .
The Tax Free Savings Account turns 10 this month and many Canadians have fully embraced the benefits that come from tax-efficient investment income and growth within these accounts. The federal . . .