Should we take Advantage of our unused RRSP contribution limits?

Should we take Advantage of our unused RRSP contribution limits?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® A common question that we receive every year prior to the RRSP deadline is should we take advantage of our unused RRSP contribution limits? Your RRSP deduction limit is how much you can contribute to your RRSP based on your prior years income, and includes any unused contribution limits from prior years. The following excerpt describes this. Uncle Wayne started off by saying this wouldn’t take any more than forty-five minutes, because he really had to get back to Aunt Jen. Then he told us to pull out our binders or go online to our secure cloud service and look at a tax-related form called a Notice of Assessment. Everyone who files a tax return gets one of these from the Canada Revenue Agency (CRA) every year, but sur­prise, surprise … Sally couldn’t find hers! Anyway, the point of checking out this form was to determine our limits for RRSP contributions...
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Rebalancing Your Portfolio

Rebalancing Your Portfolio

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® Today we are going to be reviewing portfolio rebalancing, and how it can be used to your advantage. Sometimes it is hard to know when to make adjustments and when to leave your portfolio alone. By creating a systematic plan, you are able take advantage of global market fluctuations. The following excerpt reviews this. “Exactly,” Uncle Wayne agreed. “But people will bail out of their investments when they see a decline in value, and then they’ll buy when prices start going back up. They’re doing exactly the opposite of what they should. It’s obvious that these people don’t have a long-term plan, or a wise old uncle!” “How do we buy low and sell high?” I asked. “Isn’t that what the experts call market-timing?” “I’ve got an answer for you that will be easier in the long run. We’ve already reviewed the various asset allocations based on risk level and goals....
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The Four Essential Family Conversations

The Four Essential Family Conversations

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® Based on my experience of helping many families over the years, I have found that there are four essential conversations that families should be having concerning their financial and estate plans.  They are: The Estate Documents Conversation.The Eldercare Conversation.The Legacy Conversation, andThe Next Gen Financial Education Conversation. The Estate Documents Conversation The estate documents conversation is a conversation you should have with your parents, children, executors, and powers of attorney to review and discuss the following key issues: With your parents: Find out who their powers of attorney and executors are.Obtain copies of their wills and powers of attorney (or the location of the documents).Meet your parents’ financial advisor(s).Obtain the listing of the location of their financial assets and contacts for their bank, accountant, and lawyer (see Appendix C). Have a frank discussion on what they would want to happen if they were unable to make financial decisions for themselves. Have a frank discussion...
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You better have a Plan for a Retirement Home

You better have a Plan for a Retirement Home

“You better have a Plan for a Retirement Home, as I am not funding that bill.” Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® While having dinner with our daughter Paige the other night, the topic of money came up.  Paige told us, “you better have a plan for a retirement home, as I am not funding that bill.” I responded, “well Paige, if you had read my book, we’ve got this covered.” When all of us get older, we will have to review the Eldercare conversion in more detail with her and her brother Connor. Eldercare Conversation – Excerpt from the Book – Preserving Wealth  “The next conversation this led to was an ‘eldercare’ conversation based on the advice Uncle Wayne had given me. In this conversation, we discussed and made plans with our parents about what they wanted us to do if a potential medical or physical set-back occurred as they aged. For example, what would the plan...
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The Estate Documents Conversation

The Estate Documents Conversation

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The current COVID -19 Pandemic has made more people review their estate plans and make sure they have what is required. A critical part of this review is to include an Estate Documents Conversation with their family.  The point is, why create a plan if no one knows about it? What is an Estate Documents Conversation? The estate documents conversation is a conversation you should have with your parents, children, executors, and powers of attorney to review and discuss the following key issues: With your parents: Find out who their powers of attorney and executors are.Obtain copies of their wills and powers of attorney (or the location of the documents).Meet your parents’ financial advisor(s).Obtain the listing of the location of their financial assets and the contacts for their bank, accountant, and lawyer.Have a frank discussion on what they would want to happen if they were unable to make financial decisions for themselves.Have...
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What is the  Eldercare Conversation?

What is the Eldercare Conversation?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The current COVID -19 Pandemic has highlighted the key issue of Eldercare in Canada and why everyone should include an Eldercare strategy in their financial plan. In my experience, this is an important conversation that clients are having with their parents when they reach their mid-70s in age, and clients who are in their mid-70s have with their children. What is the Eldercare Conversation ? With your parents and/or children, have a conversation about the potential strategies if a physical or medical setback were to occur. Issues you may want to discuss could include: What would the strategy be if they/you needed some extra help to continue to live at home?How is this to be financed? Is it in the financial plan?Would is the strategy if they/you decided they needed to or simply wanted to move into a retirement home?Do they/you want or need to downsize their home?What is the strategy if...
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