Budget Highlights as it Relates to Tax and Investments, I have decided to provide a short summary of the Federal Budget and how it may relate to you and your investments.
First thing I want to address is the anticipated increase in the TFSA. The limit has increased to $10,000 effective for 2015. This is great news. The maximum you can now contribute to your TFSA is $41,000. In the future all other increases to the TFSA will have to be legislated. The plan can no longer increase with inflation automatically.
If you have children, the Children's Fitness Tax Credit has doubled to $1,000. For those of you retired or nearing retirement and were not happy about the having to withdraw so much of your RRIF annually, you are now going to get a break. Your RRIF limits have been lowered. Where at 71 you were required to redeem 7.38%, now the minimum is 5.28%. You can always take more so that hasn't changed.
For seniors and others who qualify for the Disability Tax Credit there is a new Home Accessibility Tax Credit. This is a 15% non-refundable tax credit that applies to renovations done to your home such as putting in wheelchair ramps, walk-in bathtubs, etc. The maximum you can claim is $10,000 in renovations to give you $1,500 in tax savings. Unfortunately this is not retroactive so it would only be for new renovations.
The budget proposes to reduce the small business tax to 9% over the next four years. This applies to the first $500,000 of business income.
And lastly there will be a change in reporting specified foreign income. If you have foreign assets between $100,000 and $250,000, form T1135 will streamline the process for reporting these assets. No changes for foreign assets over $250,000.
I realize there is so much more to the budget than what I outlined, but these are just some of the things that may have a direct impact to you or someone in the family that is immediate.
Please book an appointment if you wish to discuss further or how the budget will affect you personally with your investment plans.
Linda J. Levesque, CFP®, FMA, FCSI
Sr. Investment Advisor Director, Private Client Group
HollisWealth
Insurance Advisor
HollisWealth Insurance Agency Ltd.
Levesque Wealth Planning
Thursday, 30 April 2015
Thursday, 9 April 2015
Who the Heck is Linda Levesque?
I know you all know who I am but as I celebrate 25 years in this business next month, I wonder how I can get more people to know what you know. And that is, Who the Heck IS Linda Levesque?
Like a good gospel you want to spread the word. At least I would like you to spread the word. I am growing my business. I am especially letting those of you that may wonder when I will choose to leave the business and retire, that as far as I am concerned, I retired when I left the federal government and entered this business back in 1990. I have grown a business, I am a published author, given many public presentations and recently was a guest on the Maggie Linton Sirius Satellite Radio Show all in 25 years and I am just beginning to gain steam.
Since 1990 I have helped many loyal clients retire when and how they have chosen. I have been there to support and guide clients to make the right financial decisions to send their children to post-secondary school. I have been around to help wind up estates when a loved one has passed on or when marriages have broken down. I have helped clients purchase their first home or help when it was time to downsize. I have been there for my clients for most of the important events of their lives. Now as I have put an impressive team together to look after almost all your financial needs, I am asking you for the ultimate favour, refer me when you know our services will fit your friend or family member’s needs.
This is a time of celebration so I would also like suggestions on how I can mark this milestone mark in my career. So far I have started a Twitter account so I can spread the good word. There is also a Facebook for Levesque Wealth Planning. Everything will be linked to our webpage as well. www.levesquewealthplanning.com
Be sure to book appointments during this year since there will be some extra surprises when we meet. I also want to take this time to thank all of you that have been with me for the last 25 years through up and down markets and as we head into the unknown future together. Remember I will be there no matter what the markets do to help you navigate towards the life of your financial choosing, because at Levesque Wealth Planning, we help you to realize all your financial goals.
Tuesday, 10 March 2015
Retirement Planning; it’s just not about the numbers.
At this time of the year a lot of people are planning to make contributions to their retirement savings plan. You may be contributing for 2014 or getting a jump start for 2015. In any event you are trying to build a nest egg.
For some retirement may seem a long way off. For others not so far away. But for most it is all about how much money you save. You may be reading different articles on how much you need at retirement. When you can, you are trying desperately to maximize your contribution room. You may believe you need to have a nest egg of one million dollars or more.
Well I am here to ask you one question and I want you to think before you answer. My question simply is this: what do you want to do during your retirement? Remember you may be planning a 30 or 40 year retirement. Have you really thought about what your retirement will look like? The money helps don't get me wrong. But are you sacrificing your life today for something tomorrow? Maybe you already have enough to fund your retirement.
Most people have never really thought about what retirement looks like for them, they just save money. Over the years I have had a lot of clients ask me how much money they need to retire. I always give the same answer, I don't know? What does your retirement consist of? What do you plan on doing during retirement? Where are you going to live? Are you planning to work during retirement? Will you be travelling or staying home and doing volunteer work? All of these questions and more, need to be addressed so you plan how much money you really need. Saving is always good but you need to save in the most effective way for you.
You can read more about retirement planning in my soon to be released book, Financial Freedom, it's as easy as learning Your ABCs. For now you need to know that the RRSP deadline is March 2, 2015 for 2014 contribution. 2014 limit is $24,270 and $24,930 for 2015.
www.levesquewealthplanning.com
Sunday, 8 March 2015
January 2014 New Year's Resolutions
Well another year has come and gone. Holidays are over and for the most we are excited about the
New Year and what is to come. We set New Year’s resolutions and expect we will keep them. We have
high hopes that this year will be different. We believe this when we make our resolutions. What has
changed this year over every other year? Probably nothing.
I believe this year can be your year to succeed. What you need to do when contemplating your New Year’s resolutions is to really think about what is important to you. Make a list of what you would like to accomplish in 2014. Review the list and put in the order of importance. After you have listed and numbered in the order of importance, scratch out everything but the number one thing you hope to accomplish.
The problem with having more than one goal/resolution is we cannot focus our attention on more than one thing. We get frustrated and feel defeated barely into the New Year so we give up on all the things on our list. When you concentrate on one goal and have a plan for how you will accomplish it, you will find that you are more likely to succeed. When we succeed we feel good and we can set a new goal. Always set your goal/resolution high but make sure you have the plan of how you will accomplish it.
If you want to weigh less, state your ideal weight in the present as if you already weigh that amount. Have in your plan that you will go walking five days a week for 30 minutes minimum. You could have on your plan that instead of eating fast food at lunch you will make healthy choices from home or at restaurants. Anyway you get the picture. This works the same if you would like to have a certain amount in your savings plan. What do you need to do to accomplish this? Have your goal of savings stated in the present and start a plan of how you will get there. The same goes for debt reduction, etc.
In any case, the message here is have one resolution or goal and stick to it until you accomplish it. You will feel great knowing that whatever you set your mind to do, you can achieve if you believe. Just think of the possibilities out there. Happy New Year to you and your family for a wonderful and successful 2014.
I believe this year can be your year to succeed. What you need to do when contemplating your New Year’s resolutions is to really think about what is important to you. Make a list of what you would like to accomplish in 2014. Review the list and put in the order of importance. After you have listed and numbered in the order of importance, scratch out everything but the number one thing you hope to accomplish.
The problem with having more than one goal/resolution is we cannot focus our attention on more than one thing. We get frustrated and feel defeated barely into the New Year so we give up on all the things on our list. When you concentrate on one goal and have a plan for how you will accomplish it, you will find that you are more likely to succeed. When we succeed we feel good and we can set a new goal. Always set your goal/resolution high but make sure you have the plan of how you will accomplish it.
If you want to weigh less, state your ideal weight in the present as if you already weigh that amount. Have in your plan that you will go walking five days a week for 30 minutes minimum. You could have on your plan that instead of eating fast food at lunch you will make healthy choices from home or at restaurants. Anyway you get the picture. This works the same if you would like to have a certain amount in your savings plan. What do you need to do to accomplish this? Have your goal of savings stated in the present and start a plan of how you will get there. The same goes for debt reduction, etc.
In any case, the message here is have one resolution or goal and stick to it until you accomplish it. You will feel great knowing that whatever you set your mind to do, you can achieve if you believe. Just think of the possibilities out there. Happy New Year to you and your family for a wonderful and successful 2014.
Allowance or No Allowance
Do you ever wonder whether you should be giving your children or grandchildren an
allowance? This month we will explore whether this is a good idea in your family.
Back when I grew up none of my friends, including myself ever received an allowance. We grew up in a middle class mining family where money was tight. This made learning about money a bigger challenge. I was lucky because my father had a very good understanding of money. Now coming from a family of seven children, living in the same household, we all took different lessons from our environment. I feel very fortunate that a lot of my dad's knowledge rubbed off on me. I should say I realized my dad's wisdom by the time I hit my 20s.
What I have noticed over the last two plus decades of being in this business, is that baby boomers have learned the importance of how to save money at different times in their lives. Most of us just never had any money so we did not get to understand the value. When I finally started to earn money, I was spending it almost before I got it. The result? I had nothing to show for it. That's when I realized something had to change.
So if you want to start teaching your children young about money, then they need to start earning some. When they are old enough to understand picking up their toys, they are old enough to start earning some allowance. The responsibility should increase with age but so would the allowance. This would teach them the valuable lesson of saving up for something they really want and not indulge every whim because you felt deprived as a child. Over the years I have heard it all and seen it all. I can assure you, the children you give valuable money lessons to usually have a better appreciation for what they spend their money on and when. They usually carry less debt as well.
So do you give your children an allowance or not. You ultimately have to make that decision, but consider this money well spent if you do. We have to learn to budget at every age. It is never too early to start.
Back when I grew up none of my friends, including myself ever received an allowance. We grew up in a middle class mining family where money was tight. This made learning about money a bigger challenge. I was lucky because my father had a very good understanding of money. Now coming from a family of seven children, living in the same household, we all took different lessons from our environment. I feel very fortunate that a lot of my dad's knowledge rubbed off on me. I should say I realized my dad's wisdom by the time I hit my 20s.
What I have noticed over the last two plus decades of being in this business, is that baby boomers have learned the importance of how to save money at different times in their lives. Most of us just never had any money so we did not get to understand the value. When I finally started to earn money, I was spending it almost before I got it. The result? I had nothing to show for it. That's when I realized something had to change.
So if you want to start teaching your children young about money, then they need to start earning some. When they are old enough to understand picking up their toys, they are old enough to start earning some allowance. The responsibility should increase with age but so would the allowance. This would teach them the valuable lesson of saving up for something they really want and not indulge every whim because you felt deprived as a child. Over the years I have heard it all and seen it all. I can assure you, the children you give valuable money lessons to usually have a better appreciation for what they spend their money on and when. They usually carry less debt as well.
So do you give your children an allowance or not. You ultimately have to make that decision, but consider this money well spent if you do. We have to learn to budget at every age. It is never too early to start.
Mortgage Shopping
With so many options out there, how do you know which mortgage is right for you. There are many
things you should consider before you lock in to a mortgage. I have listed some of variables to look at
but having a good mortgage agent just may save you thousands of dollars in interest.
Before you start shopping for a mortgage you may want to check your credit score. Having a good credit score could help get you a good rate of interest on your mortgage. This could save you thousands of dollars over the term of your mortgage. If this is a new mortgage you may want to ensure you have the 20% minimum down payment so you can get a mortgage that will not require insurance. The insurance could run approximately $100.00 a month depending on the size of your mortgage. This will add up over the years with money that could go directly on reducing your principal.
You want to comparison shop. There are a lot of institutions with varying rates. You can go online to shop or deal with a good mortgage agent that will do the shopping for you. The rates that are posted are not necessarily the best rates. Even if you go to your bank the loan officer will not always offer the best rate available. If you do not question them and willingly accept what they offer you, you may be paying thousands of dollars more over the life of the mortgage.
When you pick a good mortgage agent they will work with you to sift through the different options and terms to give you the mortgage that will work with your budget and needs. They will ask a lot of questions to see what is important to you. Whether you take a variable rate mortgage for a short term or a fixed rate mortgage for the long term, the mortgage agent could save you thousands of dollars and lots of leg work from doing it yourself. The process of mortgage shopping should be less stressful having someone you trust look after your best interest.
For more information, check our website for an upcoming workshop on Mortgages.
Before you start shopping for a mortgage you may want to check your credit score. Having a good credit score could help get you a good rate of interest on your mortgage. This could save you thousands of dollars over the term of your mortgage. If this is a new mortgage you may want to ensure you have the 20% minimum down payment so you can get a mortgage that will not require insurance. The insurance could run approximately $100.00 a month depending on the size of your mortgage. This will add up over the years with money that could go directly on reducing your principal.
You want to comparison shop. There are a lot of institutions with varying rates. You can go online to shop or deal with a good mortgage agent that will do the shopping for you. The rates that are posted are not necessarily the best rates. Even if you go to your bank the loan officer will not always offer the best rate available. If you do not question them and willingly accept what they offer you, you may be paying thousands of dollars more over the life of the mortgage.
When you pick a good mortgage agent they will work with you to sift through the different options and terms to give you the mortgage that will work with your budget and needs. They will ask a lot of questions to see what is important to you. Whether you take a variable rate mortgage for a short term or a fixed rate mortgage for the long term, the mortgage agent could save you thousands of dollars and lots of leg work from doing it yourself. The process of mortgage shopping should be less stressful having someone you trust look after your best interest.
For more information, check our website for an upcoming workshop on Mortgages.
Tax Refunds
Are you one of the many Canadians receiving a tax refund this year? Noticed how I did not say one of
the lucky ones. What you did was give our government an interest free loan of your money for the year.
Oh well that really isn’t the point of the article this month. This month we want to discuss what should
you do with the money you are getting back.
Now if you are like one of my clients that is only getting $43.00 back, then the choices of what you can do with that money will be limited. So maybe it is dinner out at one of your favourite fast food places.
For a lot of Canadians, the average refund is around $1,500. This may appear to be like a big windfall, even though you are just getting back some of your own hard earned money. The question then becomes, what to do with this sudden bit of wealth. It is easy to think of going on a mini vacation; shopping spree; an extravagant night on the town; or spending it gambling, either lottery tickets or casinos to try and increase your wealth. Ok maybe these are not the wisest things you could do with your money. What would be a good way to try and get the biggest bang for your refund?
I would like to give you some suggestions that will hopefully help you to make a financial difference even if on the surface you believe that you could have more fun doing some of the above. Here goes, not necessarily in order of importance: Pay down credit card debt; make an extra payment on your mortgage; pay down line of credit; add to your RRSP or TFSA if you have room; add to a RESP if you have one set up; renovate or do some household project which will add value to your home; donate to a worthwhile charity; or start or add to an emergency fund.
When you think about it there are lots of worthwhile things you can do with the money. You really just need to take the time to decide where the best use of this refund is, for you and your family. The suggestions I have made should stretch the refund in the long term for bigger benefits. Your decision in the end so make it a great one for you.
Now if you are like one of my clients that is only getting $43.00 back, then the choices of what you can do with that money will be limited. So maybe it is dinner out at one of your favourite fast food places.
For a lot of Canadians, the average refund is around $1,500. This may appear to be like a big windfall, even though you are just getting back some of your own hard earned money. The question then becomes, what to do with this sudden bit of wealth. It is easy to think of going on a mini vacation; shopping spree; an extravagant night on the town; or spending it gambling, either lottery tickets or casinos to try and increase your wealth. Ok maybe these are not the wisest things you could do with your money. What would be a good way to try and get the biggest bang for your refund?
I would like to give you some suggestions that will hopefully help you to make a financial difference even if on the surface you believe that you could have more fun doing some of the above. Here goes, not necessarily in order of importance: Pay down credit card debt; make an extra payment on your mortgage; pay down line of credit; add to your RRSP or TFSA if you have room; add to a RESP if you have one set up; renovate or do some household project which will add value to your home; donate to a worthwhile charity; or start or add to an emergency fund.
When you think about it there are lots of worthwhile things you can do with the money. You really just need to take the time to decide where the best use of this refund is, for you and your family. The suggestions I have made should stretch the refund in the long term for bigger benefits. Your decision in the end so make it a great one for you.
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