June Weddings or Playing House; Do you know the difference? - What's On Your Mind - June 2016

This is the time of year that a lot of people get married.  Congratulations to all that are making this big commitment.  For those of you that have shied away from the legal part of your commitment but have decided to set up house together, beware.

I hear many people say ‘what’s in a piece of paper’?  After two years of living together we are legally married in the eyes of the law.  Well if you are one of those people that are playing house and believing you have the same rights as a couple that have legally tied the knot, then you would be wrong if you live in Ontario.

Now I know you don’t get into a relationship and think that it may come apart.  In actual fact, 50% of relationships end after a period of time.  In a common law relationship you may have believed you have the same entitlements as your married friends that split up only to find out very quickly how much you have to lose because the rules are different.  While there are some similarities, you need to know the rules that don’t apply in a common law relationship.

The basic rule in Ontario is when a common law couple separate, each person keeps what belongs to them.  For instance a house that is in your name, car, bank account, or furniture that you purchased, you get to keep.  Also each person is responsible for their own debt.  It is best to keep receipts for anything you purchase, just in case.  You don’t want to pay a lawyer to get something back when there is no proof of who purchased what.

If an asset is in both your names then you are each entitled to half its value.  You will need to decide between you how to deal with the property.  If either one is going to buy the other person out or will the property be sold and the proceeds be divided equally.  If you cannot come to an agreement the courts can decide for you. 

In any case, know your rights and consider getting a cohabitation agreement drawn up by your lawyer.  Don’t assume you know the law. There is no simple formula to describe how property is divided upon common law separation in Canada. The law in this area is complex and unsettled.  If you find out after the fact it could cost you big time.  Just some legal food for thought.

Gardens and Investments: What Springs to Mind? - What's On Your Mind - May 2016

Every spring it is the same thing, we start working on our plan for a great and appealing yard.  If we own a home, the job begins with cleaning up our yards after a long winter’s sleep.  We may start trimming back some hedges, preparing flower beds and spreading grass seed to thicken up our lawns.  We will weed and feed and hope that our grass is better than last year. We know that adding the proper fertilizer will make a big difference in how our grass looks.

Near the end of May we start planting our flowers and hope for a pretty yard when we are in full bloom assuming the weather is good to us. 

Over the summer we keep busy with ongoing yard maintenance; such as weeding, cutting the grass and constant watering of our flowers and grass.  Ongoing maintenance is the key to our garden’s success.

Our plan for the yard is still dependent on what nature does but for the most part we do the best we can to make sure we are successful.

Wow.  Have you ever thought about how similar having a nice yard is compared to what we need to do to be successful with our investments? Both require a lot of work. You need to review your plan annually to see if any changes have to be made.  Sometimes you have to weed out the bad stuff and continue to properly invest (fertilize) so that every year your investments are more likely to be headed in the right direction to fulfill your financial goals.  You need to continue ongoing maintenance but also, sometimes the markets (weather) will do what it does and we have to make the changes where necessary to accommodate this. 

Some things are in our control and some things are not.  What is in our control is the time, thought and action for trying our best to be successful.  Yards or our financial goals; both take a lot of work.  When you fertilize your grass, or invest in your future, the effort you put in today will give you the good foundation you need for tomorrow.  Happy growing.

Recent Budget; Gifts from the government or more penalties? - What’s On Your Mind? April 2016

It is that time of the year again when the government determines our future.  Will we be able to retire on target or do we have to push back the date again?  I am highlighting the affects the new budget will have on your lifestyle as I interpret it.

Pension splitting for seniors has been left alone so I consider this as the first gift the government is giving.  Guaranteed Income Supplement (GIS) may also be going up for some seniors to an increased maximum amount of $947 per year.

UCCB (Universal Child Care Benefit) will be replaced by new monthly tax-free payments under the Canada Child Benefit (CCB) commencing July 1^st, 2016.  Annual benefits for children under 6 will increase to $6,400 and $5,400 for children 6 to 18.  The amounts start to get clawed back with a household income over $30,000 and is eliminated entirely for incomes over $190,000.  Another gift.

Tax credits for children’s arts and fitness will be phased out the end of 2017.  I consider this a penalty.

Budget 2016 has also eliminated the education and textbook tax credits effective January 1^st, 2017. 

OAS and GIS benefits will revert back to seniors at age 65.

For investors that have taken advantage of the corporate class mutual funds you will no longer have the benefit of delaying the deemed disposition.  This means if you are moving from one fund to another fund that is not just a fee or expense change, you will trigger a capital gain or loss.  This will take place effective October 1^st.

October 1^st, 2016 is also the date for Principal Protected Notes and how they will be taxed. 

There are also changes coming for private corporations that will close some loopholes regarding the use of life insurance policies to distribute amounts tax-free that would otherwise be taxable.

You can decide if this budget is giving you some gifts while others will feel the penalties.  Remember though, it is what it is so you must plan around the new rules.  Please feel free to call me or your accountant should you wish to discuss further the impact on you personally.

Are You Achieving or Deceiving?

We are still in the beginning of a New Year.  Two months we are never going to get back in 2016, gone.  In December I talked about goal setting.  Did you set your goals for the New Year?  Is this going to be the year that you make a quantum leap in your life?  I am not talking about New Year's resolutions that everyone gets motivated to make and by now most are broken.  We all know that most people don't keep those resolutions.  What I'm talking about are real changes.   Even minor tweaking can make a difference if you want a more secure future.  Can you list some of your achievements so far?

I believe most people's biggest challenge is that they're unsure of what they really want or they think it's too big and they could never have it anyway. If you think about it, there's probably a way you could chunk down a big goal into something smaller and more manageable. Take baby steps.  Don't deceive yourself into thinking there is lots of time.  You will get around to taking some action, tomorrow.  Well today is tomorrow so now is the time to start.   

 

Still need help? Then maybe you better consider coming to my personal growth workshops that are being held throughout the year. Check our website for dates and locations, including the topics. 

Remember don't let another year fly by.  What are you going to do to make the most of this year?  This is no dress rehearsal.  We get one kick at the can so make it a good one.  Here’s to a fantastic, unbelievable 2016. It is not too late to make it the best yet.  No more deceiving yourself, you are an achiever. 

    

Happy New Year and an Attitude of Gratitude

This month I thought I would talk about how grateful I am for having you all in my life. All the people I have in my life are people that I want to be around.  Having gratitude for you, my health, my career, and my life, is putting out to the universe that in life, it is important to be grateful for all the little things we have each and every day.

When you reflect back either on last year or in a lot of the years previously, I'm sure you can find many things to be grateful for. What I'm talking about is the more grateful you are for the little things the more good things seem to happen to you. This is what's called the law of attraction. There has been a lot of talk in recent years about the law of attraction. Many people believe the more grateful and positive you are, the more the universe will bring back to you.  You attract a lot more in your life that's good when you are positive and grateful. With the law of attraction you do have to take some action.  Action is the last part of the word in attrACTION.

Have you ever noticed how some people seem to be very lucky?  We all know people who we envy a little bit. And it's not that we are jealous, but it always seems like good things keep happening to other people.  You may ask yourself why not me?  Have you ever stopped to analyze why those people seem to be so lucky?  It may be the law of attraction at work.  If that's the case why not try making some small changes in your life to have the law of attraction attracting things that you really want.

Remember you have to change your attitude, be grateful everyday, and take some action in the right direction and maybe 2016 will be your year.  

The Squeaky Wheel Gets the Oil

A few years ago when I was on a training course I learned a very valuable lesson.  That lesson was to ASK.  You may be wondering what you ask for.  You ask for anything you want.  If the answer is no, then it is no.  You have lost nothing because you did not have that thing you asked for in the first place.  If the answer is yes then you have now received something you wanted but were afraid to ask for.  So now you are better off because someone said yes.

So why am giving you this lesson in life?  I am giving you this lesson because it is time to start asking for discounts and other areas to save money.  One of my biggest pet peeve is to pay fees on things that I determine have no real value to me.  Whoever heard of paying a fee to find out how much money you owe a company?  I am referring in this example to cell phone bills.  You sign up for a service and you used to get a paper bill showing how much you owed.  Next thing you know the company tells you if you want to continue getting a paper bill you must pay for this privilege.  Well since I hate paying fees more than going on-line, I went on line. I like my paper cell bill because I actually look at it.

Thank goodness there were people who fought this injustice.  Apparently you can now ask to have your paper bill back with no fee.  Talk to your provider about waiving the fee on your paper bill, I did.  Not only am I getting my paper bill back without a fee but CRTC has banned three year contracts.   Now may be a great opportunity to renegotiate your monthly bill.  Remember no one is going to volunteer to save you money as I recently found out when I called.  My new cell phone plan offers a $10 a month savings with more data.

Remember it is up to you to ask.  Saving money has to be your decision.  No one will automatically do it for you.  Until next month, what is on your mind?

One Step Back, Two Steps Forward

Do you ever watch a child trying to walk?  In the beginning they fall on their butts more than once.  The thing with a child is they don't realize they are failing at something so they keep on trying until they succeed.  The child will eventually succeed at walking no matter how many times he or she falls down. 

Why is it as adults we are afraid to take a step back so we can move forward?  Most people are afraid to fail at something so most of us won't even try.  In life failure should be an option.  If you don't fail, you really don't get the valuable lesson that failure teaches us.  The most successful people are the ones that had the most failures.  The more you fail at something the more successful you should be in life.  I know that you have to understand the differences with failure.  You cannot go through school without trying, then failing, and think you will succeed at your chosen career. 

I am talking about taking a chance in trying something new.  Whether it is a sport or applying for a new job.  You won't know if you can do something until you try, fail and then learn from your mistake.

I met someone recently in my travels who had very successfully built an amazing business.  What he failed at was in planning his finances.  He overspent and over leveraged to a point where he found himself broke.  He went from rags to riches to rags again.  When this man looked at the failures he had had he took away some valuable lessons and today he is back financially sound and making better choices.  In this case this man needed to go broke to become a better person.  This was an extremely valuable lesson for him.  We all will take away a different lesson from a failure.  The point is learning and growing from all the steps back so we can move forward in life.