Tag Archives: scott plaskett

Friends don’t let friends quietly suffer financial misfortune

CLIENT SUCCESS STORY #1

Client Profile: Laurence Sunderland (not his real name)

Occupation: Business Owner – Residential and commercial alarm systems

Prior to meeting with IRONSHIELD Financial Planning™, Laurence’s confidence in his advisor was diminishing. He felt that his advisor was presenting mostly “smoke and mirrors” as there seemed to be a “lot of activity without any tangible results”.

“I felt a certain level of anxiety at the thought of having to figure out how to fix the problem but knew that if I didn’t address it, years of hard work and savings would ultimately disappear”, said Laurence. As a husband and father of two university-aged children, this was unacceptable.

One good introduction was all it took to turn things around.

Laurence was talking to a good friend about his concerns. Laurence’s friend then asked “What are you going to do about it?”

Laurence thought about it and said he didn’t know.

His friend said “I know someone I could introduce you to. If I asked Scott to call you, would you take his call?”

And that was all it took to help out a friend.

After a few meetings, Laurence decided to begin working with Scott and his team because, as he put it, “[Scott] gained my confidence through his process of ‘educating me first’”.

“Never before had anyone gathered so much information… and then been able to turn around and present their findings in such a straight-forward plan” Laurence said. “Scott covered much more than I had initially been hoping for… the comprehensive approach found in The KAIZEN Financial Planning Process™ provided me with a clear and practical strategy well beyond my investments. I now have confidence in my plan.”

When Laurence was asked how he feels now, he said “I feel that Scott has earned my trust and that… leaves me feeling secure and optimistic about my choice of advisors”.

– Friends don’t let friends quietly suffer financial misfortune –

Canadian Charities – Good Giving…

Canadian charities had a rough year according to Statistics Canada. Donations were down 5.3% as recession-wary Canadians cut back on support for their favourite causes. There is still a window of time left to help a charity that means something to you. If you do decide to give, make sure you take a smart approach to making your gift. A bit of planning and discussion with your financial planner can help you make the most of your giving, not just for the organization you’ve decided to support, but in your financial plan as well. Here are a few quick tips to get you started:

Plan ahead

Set aside money annually for your charitable donations. Whether it’s a fixed dollar amount or a percentage of your gross income (say, 2.5%), you should have a good idea of how much you plan to give to the cause or causes you’d like to support during the year.

Spread it out

Think about making your donation through monthly deductions from your account. This will spread out the impact on your cash flow over the year.

Consider insurance

You can designate a charitable organization as the beneficiary on your insurance policy. Doing so allows you to leave a larger gift to a cause you’re passionate about, after you die.

Don’t Forget the Write-off

Save all your receipts, no matter how small your donation is. You can combine them and claim a tax credit for up to five years of donations, to get the biggest bang for your donation buck. Here’s how it works: the first $200 of donations earns a federal tax credit of 15%. Above that, the federal tax credit jumps to 29%. Magnify that by the provincial tax savings and you’ve got a win-win!

Pool your receipts

If you and your spouse give to different causes, pool your receipts. It doesn’t matter whose name is on the receipt – combining them will help push you over the $200 threshold to maximize your tax credits.

Think about starting a foundation

You don’t need to be a fat cat to have your own foundation. Even a $20,000 lump sum could become the basis of you or your family’s gift plan for many years.

Not Your Dad’s Pension Plan

PensionPensions have changed a lot since the early days when employees could rely on a generous defined benefit (DB) plan to take them through their retirement years. DB plans, which guarantee a set payout on retirement, are being replaced by defined contribution (DC) plans or Group RRSPs.

With these plans, there is no guaranteed benefit at retirement. Employees are often required to opt in and, in some cases, make investment decisions themselves. It’s still an important way to save for retirement, but it takes more effort from plan members – it’s your responsibility to stay on top of it.

No matter what type of retirement benefit plan you have at work, you should make sure it fits into your entire financial plan. Are you making the right choices? Are you contributing enough? Here are a few things you need to do to make sure you’re making the most of your savings at work:

1.     Jump in — if you haven’t joined the plan, don’t delay. In particular, if your employer matches your contributions, you’re turning your back on free money!

2.     Choose to choose – don’t get stuck in the default fund. If your plan lets you decide where to direct your contributions, then you need to choose the investment options designed to grow your savings. Staying in the default fund could mean your money is in a low risk and low return fund that won’t meet your needs when you want to retire.

3.     Make it part of the plan – Talk to us about it. We can help you make the choices you need to ensure that your plan at work is a complementary part of your overall financial plan.

Make Retirement the Time of Your Life: Ask Yourself Three Questions

You’ve spent years in anticipation of retirement – now that it’s around the corner, it’s time to realize there’s more to retirement planning than just financial security. If you’re only saving for basic living expenses once you retire, then you may want to revisit your plan. Retirement should allow you to pursue your interests and dreams. Take the time to sit down and decide whether or not you are saving enough to fully embrace life after work.

Consider this: the average Canadian now lives to about 80 according to Statistics Canada. That means you’ll have between 15 and 20 years outside of full-time employment. That’s a lot of time and you want to make sure you’re prepared financially to enjoy yourself, not just live day by day.

Ask yourself a few key questions to help you decide whether you’re on the right track to make the most of the rest of your life after retirement:

How will you spend your time?

Looking at retirement as an extended holiday might work for a while – but don’t leave yourself open to boredom. Are there any new skills you want to learn? Or passions you have not had time to pursue because of your work schedule? Taking a course or signing up for lessons to learn a new skill can not only add some structure to life post-retirement, it can help you find inspiration in something new.

Where do you want to live?

This is something you want to consider before you retire. If you plan to divide your time between cottage and city or, say, Florida and Canada then some up-front financial planning can help you determine what’s realistic and how to make it happen. While you might not have enough money to buy that beachfront condo in Sarasota, you could set aside money to rent your dream place for a few months every winter.

Am I ready to stop working?

If you’re nervous about taking a giant leap into retirement, try baby steps instead. Talk to your employer about shifting to part-time in order to make the transition easier. Or, there may be opportunities for contract or freelance work, either with your employer or someone else – keep an open mind. You may still have your best work years ahead of you.

TAX TIP – 100% Write Off for Computer Equipment – Limited Offer!

The 2009 Federal budget announced a temporary 100% Capital Cost Allowance (CCA) rate for computer equipment and systems software.

Computer equipment or systems software purchased after January 27, 2009 and before February 1, 2011 will be eligible for the 100% CCA rate, provided that the equipment and software would otherwise be included in Class 50 (55% write-off).

In addition, the equipment will not be subject to the half-year rule in the year of acquisition allowing for the full write-off in the year of acquisition.

So, if you’re contemplating upgrading some of your computer equipment, make sure you do it before the end of February 1, 2011.

Saving for Your Kids’ Education

If you believe the numbers, then plan on spending over $66,000 for a four-year degree at a Canadian university by the time your toddler is ready to go. And that doesn’t even include food and board – these are projected to bring the total to more than $135,000 by 2022. Before you find yourself hoping your son or daughter doesn’t make it into Yale, take some time out to plan.

There are ways to manage the cost of a post-secondary education and help your child learn to save in the process. Here are a few ways to get started:

Start early

It might seem a bit premature to think about that cap and gown when your child is still in a diaper. But as with any savings plan, the earlier you start, the more time you’re giving your money to grow.

Open an RESP

This one is a win-win. If you haven’t yet opened up a Registered Education Savings Plan for your child, then you could be throwing money out the window. RESPs give you access to free government $$$ to help you save for your child’s post- secondary education. You can put away a lifetime maximum amount of $50,000 per child. And, by applying for the Canada Education Savings Grant (CESG) you’ll be eligible for a top-up of 20% on your annual contributions to a lifetime maximum of $7,200. An RESP combined with the CESG is your first step towards saving for your child’s education.

Involve your kids

You don’t have to shoulder the full cost of a university education on your own – in fact, giving your child the opportunity to help pay his or her own way can be a huge part of the learning experience that goes along with college or university. Talk to your child about how much school costs and how much you’ll be able to contribute. The rest can come from part-time employment or scholarships. Engaging your child in helping to pay for his or her education is an important step towards teaching them the link between money and responsibility.

Also, when talking to your child about how much school is going to cost, encourage him or her to think “big picture” – will post-graduate studies be needed to make their dream job come true? Medical school, law school, teacher’s college – additional qualifications may mean your child needs to plan beyond the next four years.

Scholarships and grants

The earlier you talk to your child about post-secondary education costs the better – in addition to giving him or her a jump start on saving, it will also help him or her plan for scholarship and grant applications. Excellent grades, participation in sports, volunteer work – these are some things your child might need to have on his or her resume in order to be eligible for financial support. Here are a few links to look to for available scholarships and grants:

www.studentawards.com

www.scholarshipscanada.com