February 2020
Reminder: RRSP Deadline for 2019  
Monday March 2nd
Maximum contribution for 2019:
$26,500 (or 18% of your earned income in the prior year, less any pension adjustment)  

Maximum contribution for 2020:
$27,230 (or 18% of your earned income in the prior year, less any pension adjustment) 


Contact us to learn more about RRSP Loans and Retirement Plans available to you. 

RRSP's:  Are they still a great investment vehicle?
RRSP's still make great sense.  But with different investment options available, they are not always the best option.  Here's a list of tips to consider when choosing the best way contribute to an RRSP, and the best ways to cash out! 
When to contribute to an RRSP:
*When you need a tax break
*When you expect to pay a lower tax bracket later when starting to withdraw
*When you are saving to your retirement, and want tax-deferred growth
*When you are saving for a down payment on a home, you may be eligible to benefit from using the Home Buyer's plan.  This allows you to benefit from the tax breaks when making RRSP contributions, and then withdraw up to $35,000 towards your down payment (tax free).  You do have to pay yourself back!
*When you have the benefit of a matching contribution from your employer.  This is a great benefit that many don't take advantage of!  This great savings vehicle is a must-do in my books!
*One twist is that Spousal RRSP contributions can still apply to help with income splitting in retirement.  This means the higher income earner contributes to an RRSP for the spouse.  We use the high-income earners tax rate, and RRSP contribution room, but the withdrawals will be in the spouses name and at that tax rate (ideally lower).
When to Pass and consider other options:
*If you have cashflow, but virtually no taxable income, you must ensure that RRSP actually makes sense.  If you will pay more tax when withdrawing the funds, is the tax deferral beneficial enough, or will it cost you.  In this case, I would usually prefer to contribute to the TFSA.  The tax-free benefit will often outweigh the initial tax-break of the RRSP.
* If you may need the funds in the shorter-term.  Once contributed to the RRSP, you can withdraw them and pay tax.  However, you are not able to use that RRSP room again.  So, technically, you have lost the long-term tax deferral benefit once it's withdrawn.  (Only a few exceptions apply, such as the Home Buyer's Plan and the Lifelong Learning Program)
* If you do have years where you have no income, then the RRSP can be used, or withdrawn and re-invested.  In fact, in some cases, this makes sense.  Once you start collecting CPP (Canada Pension Plan), OAS, (Old Age Security) and company pensions, then the RRSP (or RRIF withdrawals) are an extra that simply increase your tax rate.
Be wary of large loans for RRSP contributions.  It used to be common for people to be encouraged to catch up.  However, the interest is not tax deductible, and then you have an extra payment after the contribution is made.  It often might weigh on your cashflow planning. 
There are many more strategies to use the RRSP's and the RRIF's effectively.  Need more information, then book your next appointment or send a quick email.  
In the meantime ensure you make your contribution by March 2, 2020, to benefit from a tax reduction for 2019.  
Contact us to learn more about RRSP Loans and Retirement Plans available to you. 
If this all sounds familiar it is!  This same feature appeared in 2019.  I've added a few comments, but it's worth repeating.  
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Creating Your Legacy - And Saving Tax!

Do you want to ensure their retirement years are "fulfilled" not just filled?
Do you want to make a difference in the legacy you leave?
Want your life to have more impact?

A legacy can be as simple as ensuring the cottage stays in the family, 
or creating a Charitable Foundation!
What will give your life more meaning?
What are your values,  your ideas, and how can you make it happen.

Join us  April 8th,  for a workshop that will have you sharing ideas and dreams that have helped people to ensure their legacy has the most impact, both now and when they are gone. 
Exercises to help better understand what's important, and ideas of how you can impact others, and do that for the good of your family.

Join me on February 18th at my office where I will be hosting the Business After 5 networking event. Meet new Contacts and reconnect with companions.
Travelling this winter?  Dont count on OHIP!

OHIP travel changes;  Get adequate coverage

As of Jan 1, 2020 OHIP no longer covers most out-of-country medical emergencies. While travel insurance has always been recommended, these changes make it even more critical.  This expense will increase the cost of travel for many.
Travel Insurance may be a good fit and can provide comprehensive coverage when compared to OHIP.

Term Insurance can be simple and cost effective tool to protect your assets. Many insurers offer 'accelerated underwriting' which means you may be able to get coverage without a blood or paramedical testing and by only completing the application form. You may be eligible.

For a limited time, RBC Insurance is offering 10% discount RBC  Your Term™ Life Insurance premiums, for all ages and face amounts. Applicable until Feb 29

We can compare with different insurers to see which coverage meets your needs and budget. 

Changes to Investment Options

With the constant influx of new ETF's and product in the market, we are now seeing increased availability of more unique products for the average investor.  

The number of products is now overwhelming, making selection a difficult process.  However, the benefit is that you can construct a diversified portfolio in many ways.

Of late, we are also seeing additional items that used to be available only for the wealth
y and the institutions.  Portfolio compliments such as Alternative portfolios and Liquid Alternatives offer complements that go beyond the traditional balanced portfolio.  

There are also a number of portfolio structures that feature strategies that provide more benefit in volatile markets, and sometimes even down markets.

Last, there are also items that can provide some guarantees.  

No product is perfect, but the benefit is that with the variety and options no
w available, getting a completely customized portfolio is more available than ever before.  Interested in learning more about these newer retail strategies, just let us know.  We can provide some information to help educate you on the options available.  

World stock markets have posted strong returns in 2019 as central banks adopted further easing measures, geopolitical risks lessened and the global manufacturing slowdown appeared to level off.
Is your portfolio still in a risk level that makes sense for you?

It's always a special occasion when we can blend our passions for giving with our work.  I'm excited to  be an Assante "Circle of Giving" advisor, and will be supporting the leading-edge Princess Margaret Hospital in the One Life Gala

Janine Purves - ONE LIFE Gala - Assante Circle of Giving Advisors
Janine Purves - ONE LIFE Gala - Assante Circle of Giving Advisors
"Never be afraid to try something new. Remember that a lone amateur built the Ark. A large group of professionals built the Titanic."
Dave Barry

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We will be featuring more tips and ideas to help you in 2020

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Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd.
Insurance products and services are provided through Assante Estate and Insurance Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
Assante is an indirect, wholly-owned subsidiary of CI Financial Corp. ("CI"). The principal business of CI is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors through its wholly-owned subsidiary CI Investments Inc. If you invest in CI products, CI will, through its ownership of subsidiaries, earn ongoing asset management fees in accordance with applicable prospectus or other offering documents.

Services and products may be provided by an Assante Advisor or through affiliated or non-affiliated third parties.
Janine Purves,
Senior Financial Advisor
Assante Capital Management Ltd.
Ph (905) 707-5220
Fax (905) 707-1035
9130 Leslie St.,
Suite 302
Richmond Hill,
ON L4B 0B9
Visit our website at www.janinepurves.com