Smart Tax Strategies for Retirees: Take Advantage of Key Tax Credits

Smart Tax Strategies for Retirees: Take Advantage of Key Tax Credits

As a retiree, there are a few tax credits you should be aware of which may reduce your tax bill.  Some will require action and should be reviewed annually.  Every dollar you save in tax means either more spending and/or preserving your wealth for you. KEY TAKEAWAYS: We will review which credits may take some planning or action on your part.We will review the credits your accountant will automatically apply.  WHAT IS A TAX CREDIT? A tax credit is applied directly against the amount of taxes you owe and will result in a lower amount of tax payable.  It is based on the lowest tax bracket, which is 15%.  For example, if you are eligible for a tax credit of  $4,000, you would pay $600 less in taxes. (15% of $4,000)  CREDITS THAT MAY REQUIRE SOME ACTION ON YOUR PART PENSION CREDIT You will receive a pension credit for the first $2,000 of eligible income.  If you are under the age of 65, this is income from a...
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Kicking up life lessons and fun with football

Kicking up life lessons and fun with football

Assante advisors are part of the fabric of their communities across Canada and they contribute to their local quality of life in a variety of ways. For Jack Lumsden, Senior Wealth Advisor at Assante Financial Management Ltd. in Burlington, Ontario, football is his passion and a central part of his connection with the city. He has been a volunteer football coach at Burlington’s Frank J. Hayden Secondary School since it opened in 2013 and coached with the Burlington Minor Football Association for 15 years. “While we are coaching football players, we are actually raising young adults,” Jack said of his work. “The greatest satisfaction from coaching is seeing the kids go on to be successful after high school, whether it be post-secondary education, in their careers or family life.” During his tenure at the school, he has helped coach the junior team to win the Halton Junior Football Championship in 2013 and the senior team to Tier 1 in the local Halton Region. When asked...
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Who should you name as Executor?

Who should you name as Executor?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® A common question I received as an advisor is whom should we name as executor in our Wills? The true answer is that it depends on your situation. It usually ends up based on how complicated your estate may be, the projected value and who in your immediate family may be able to do the job. The following excerpt from the Book - Preserving Wealth, provides a starting point for this discussion. “Wow, maybe I’ve been too tough on the government. But who would you suggest I name as executor? I don’t have a wife anymore, and my kids are just in their early twenties and not particularly knowledgeable about finances. I guess Mom knows a lot about money, but she’s getting older, and she probably wouldn’t want the job.” Uncle Wayne replied that there are several ways to go, but that the most common choices for executor include: spousechildren, if capablefriend...
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Questions to Ask When Interviewing a Financial Planner

Questions to Ask When Interviewing a Financial Planner

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® Deciding on which financial planner to hire is a particularly important decision for families to make. The following are key questions that FP Canada has designed to help in the selection process. How to Interview a Financial Planner Financial planners can help you plan for retirement, find the best way to finance a new home, save for your child's education or simply help put your finances in order. Whatever your needs, working with a professional financial planner is a crucial step in helping you meet short-term and long- term goals that will help ensure your financial well-being. Finding the right planner is extremely important because your choice will almost certainly affect the security of your financial future. The following questions will help you interview and evaluate financial planners to find a competent, qualified professional with whom you feel comfortable and whose business style suits your needs. Don't be afraid to ask these...
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What are the top 26 Estate Planning tips to consider?

What are the top 26 Estate Planning tips to consider?

Estate planning helps ensure a stress-free transition of your assets to the next generation or intended beneficiaries. Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The following are the top 26 estate planning tips from Preserving Wealth: The Next Generation. Have up-to-date wills. Have up-to-date powers of attorney for both property and personal care. Review your powers of attorney and will every few years. Review your executor(s) every few years. Determine if trusts may be of benefit to your family. Consider a staged inheritance if you have young children. Review your life insurance beneficiary designations on all your policies. Review your beneficiary designations on all registered plans, such as group savings plans, RRSPs, TFSA and RRIFs, etc. For RESPs, make them joint with your spouse, and name a successor subscriber in your will. Consolidate your investments with one financial advisor. Make sure you have enough life insurance to: protect your family, and if desired, create a family legacy, fund your favourite charity, and/or pay for estate costs. Use term insurance...
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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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