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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Smart Tax Strategies for Retirees: Tax Efficient Income Withdrawals

Smart Tax Strategies for Retirees: Tax Efficient Income Withdrawals

One of the most important decisions a retiree must make is how to create an income and cash-flow strategy from the financial assets they have accumulated over their lifetime. By Jack Lumdsen, MBA, CFP® This can be challenging as you may have numerous sources of potential cash flow such as: Old Age Security and Canada Pension Plan Company pension plans RRSPs, RRIFs, Locked in RRSPs Tax free savings accounts (TFSAs) Annuities and guaranteed income products Non-registered investment accounts HOLDCOs  Each of the above cash-flow sources can have different start dates and a retired couple could easily have to decide on how and when to start the income or cash flow from 6 to 12 sources or more. Why is this important?  Your income and cashflow strategy will affect your: income and cashflow spending today  the tax you pay today, and in the future availability of government income credits and benefits over time how long your investment assets will last success rate of your plan  our estimated estate value for the next generation Income vs Cashflow In retirement, there is a...
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Why the Legacy Conversation is Important

Why the Legacy Conversation is Important

  Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The Legacy conversation is an important talk to have with your children and beneficiaries in order to reduce stress and potential conflict in the future.  It will put your children at ease and provide for peace of mind as they know there is a plan in place.  The Legacy Conversation The legacy conversation is a conversation you may want to have with your children and/or beneficiaries to discuss how your estate will be passed on. This will help you to: share your most important values with your children; let them know what you wish to happen as you age; potentially reduce confusion, discord, and family conflict; talk about any concerns you or they may have; and feel in control and let your children know that you have a plan. Some of the potential topics to review could be: what’s important to you in the legacy and wealth transfer process; the values you wish to pass on; the people...
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The Real Affect of Taxes and Inflation on Investment Returns

The Real Affect of Taxes and Inflation on Investment Returns

  Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® Over the long term, taxation and inflation reduces your real purchasing power. The result can be quite dramatic and must be taken into consideration when investing. How do Taxes and Inflation affect investment returns? “You haven’t considered the other risk factors related to investment planning, namely inflation, taxes, and the very real worry that you might outlive your supply of money.” Again, Uncle Wayne shuffled through his papers to fish out another chart for us. “Let’s say that in 2019, you invested $100,000 for a twenty-year period in a GIC with an average return of 3.5% before taxes: 2019 $100,000 (investment) 2038 $198,979 (3.5% return, no taxes) “But you do have to pay taxes, so let’s assume your tax rate is 40%. That would mean your after­ tax growth is 2.1%, so let’s add that factor to the list. 2019 $100,000 (investment) 2038 $198,797 (3.5% return, no taxes) 2038 $151,536 (2.1% return, after tax) “Your investment doesn’t look...
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What are the key items to consider when reviewing your insurance needs?

What are the key items to consider when reviewing your insurance needs?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® As we clattered around in the kitchen, we sum­marized the major points from our discussion about insurance: 1. Many people underestimate the amount of insurance they need and/or buy the wrong kind.  For short-term needs (less than twenty years), buy term insurance. For needs that last a lifetime, consider permanent life insurance. 2.   Families with young children should insure both spouses. 3. You are not really insuring a life but rather the income that the life could produce. In the case of spouses who stay at home to care for children, you are insuring the cost of replacing that care. 4. The insurance policy should provide enough money to:  pay all debts;cover the cost of university for the children; pay final taxes, including those on capital gains; replace a person’s income and/or provide for daycare or a nanny in the case of spouses who provide childcare in the home; andprovide for a legacy if desired. 5....
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What are the Two Main Types of Risks when Investing?

What are the Two Main Types of Risks when Investing?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® “There are basically two main types of risk: capital preservation risk and inflation risk. “Capital preservation risk is the risk that your capital is not there when you need it. Let’s say you were going to buy a new boat in a year, and the cost was $25,000. To make sure you had the $25,000 in a year, you would have to invest in conservative investments, such as a high-interest savings account, so you’d have the $25,000. If you invested in equities/stocks, in a year you could have more than $25,000 or a lot less. “Inflation risk is basically making sure that your money grows over time as items get more expensive each year. Even inflation of 2% over twenty years, as in the prior example, can lead to costs increasing dramatically. “Even if you’re close to retirement, you still need some growth in your portfolio, because peo­ple today are...
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How much income do you need in Retirement?

How much income do you need in Retirement?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The following is an excerpt that describes how much income you need in retirement -   “You’ve been retired for a while. How much income do we actually need in retirement, Uncle Wayne?”  How Much Income Do You Need in Retirement? Uncle Wayne got up, walked to the counter, and poured another glass of orange juice. “I like to break it down into day-to-day expenses, which are your normal daily living expenses and what I call ‘do what you want when you want’ spending, which is really your fun money. This could be travel, bird watching, writing a novel, and perhaps your bucket list items. For this spending, I’d suggest you plan to do that in your first ten to fifteen years of retirement when you’re healthy. “Other costs to consider would be replacement costs for things such as a new roof, furnace, or car. Also, you have contingencies that may occur,...
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How do you Develop a Diversified Portfolio?

How do you Develop a Diversified Portfolio?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® How do you Develop a Diversified Portfolio? “So how do you actually develop a diversified portfolio?” asked Sally. “I understand the basics between bonds and equities, and clearly I haven’t been doing as much research and reading as Alice. How do we put it all together?” “From my experience,” Uncle Wayne continued, “there are six key factors to developing a globally diversified portfolio, and they are:  strategic asset allocation tactical asset allocation specific Investments and/or money managers risk management  fees  taxes “Whole books have been written about this subject; however, I will attempt to simplify this. Strategic asset allocation is basically what we have reviewed, and it’s your long-term allocation between bonds and equities. This also includes how much you would invest in Canada, the US, and internationally for both bonds and stocks.” Alice commented. “Is one of the reasons that we should invest outside of Canada because different country’s economies and companies do well...
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What are the Retirement Income Planning Options?

What are the Retirement Income Planning Options?

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® Retirement Income Planning Options “There are five main options to achieve the cash flow you desire from your own assets: income only investingincome focused investing.guaranteed income: life income annuity/guaranteed income productstotal return investing: diversified portfoliocombination of the above “Let’s start with income only investing first,” Uncle Wayne continued. “With this option, you would only invest in bonds or GICs, and the income they provide is what you use for spending. This is often the starting point in creating a retirement income and cash-flow plan. The challenge with this approach is that with the current low yield environment, the income earned may not be enough to fund your cash flow needs annually. Over time, the asset growth may not allow you to keep up with inflation, as your cash flow needs increase.” “So,” Alice asked, “low yield means low interest rates, and with the current interest rates so low, it could be...
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