tax savings retirement riches
6B – The Carillon, Thursday, January 29, 2015
&
Steinbach, Man.
www.thecarillon.com
TAX SAVINGS RETIREMENT RICHES
Find the right type of ETF for your portfolio (NC) No matter what’s in our financial portfolio - stocks, bonds, or mutual funds - the goal for most Canadians remains the same: to have enough money saved to enjoy a comfortable retirement. But, how do we get there? Increasingly, financial experts are advising all of us to diversify our portfolios by adding Exchange Traded Funds (ETFs), which are now one of the more cost-effective ways to save for the golden years. “ETFs are similar to mutual funds in that they hold a collection of investments (such as stocks and bonds) but they trade like a stock on the exchange,” says Tim Trian, an investment advisor at HollisWealth. “This type of fund gives investors exposure to a variety of different publicly traded securities, sectors and strategies and are as simple and inexpensive as buying and selling a stock.” Trian adds that investors who are new to ETFs should consider a more holistic approach, combining ETFs with stocks, bonds, mutual funds and other investments to provide a higher level of diversification and protection against downside risk. “ETFs are great because with a single purchase, investors have access to entire markets or strategies in a very cost-effective way,” he continued. “You can achieve well diversified portfolios while only holding very few ETFs.” Companies such as First Asset Exchange Traded Funds (www. firstasset.com) provide ETF solutions that can complement a broader portfolio, mitigate risk and help protect against volatility. This particular ETF product-shelf is made up of those that focus on delivering superior risk-adjusted returns relative to the broad market. “It’s vital to construct a portfolio that provides an appropriate level of balance between risk and return, and meets your objectives,” adds First Asset CEO, Barry Gordon. “For a good portfolio, you want to have exposure that will rise while other areas of the portfolio may be experiencing some weakness, which will smooth the volatility of the overall portfolio, helping you meet either your short or long-term investment objectives.” When selecting ETFs, Gordon points out the factors to consider include the objective of the ETF, risk-adjusted performance, and how it helps to achieve your investment goals. From there, it’s a matter of buying and selling the ETF as you would any other stock. www.newscanada.com
Do you have a game plan… to get out of the game?
St Pierre Jolys 204-433-7964 Rosenort 204-746-2578
Steinbach Credit Union can help you plan a strategy that will get you ready for when the time comes to slow down and relax. WE OFFER A WIDE RANGE OF INVESTMENT VEHICLES INCLUDING: • An unrestricted range of RRSPs, GICs, TFSA and investment options • Savings accounts that pay interest right from dollar one • Ding free® banking for our members at a huge network of credit union ATMs • 100% deposit protection guarantee* And best of all, you get the same great level of *All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba. SCU service and willing attitude we’re famous for in all the financial services we provide. Talk to us today to find out what we can do for you. 1575 Lagimodiere 204.661.1575 2100 McGillivray 204.222.2100 305 Main, Steinbach 204.326.3495
scu.mb.ca
Claiming all deductions, credits and benefits you are eligible for? Filing your income tax return is now faster, easier and more secure to prepare and file online using Netfile. However, though the income tax return may look simple, it is a series of very complex inter related schedules. Canada Revenue Agency will assess your Netfiled income tax return as you have prepared and filed it; however, you will have no assurance that you have claimed all of the deductions you are eligible for. Do you have all the information on upcoming tax events? Are you informed on all the changes that occurred in recent years? Do these changes affect your taxes payable, or your refund? This is the information that a team of tax preparation professionals and accountants can provide.
Some restrictions apply. Call SCU for details.
The services of a tax preparation professional should ensure that you have claimed all tax credits, deductions and benefits that are available to you. A tax preparation professional should also provide support and peace of mind in event of any follow up inquiries from Canada Revenue Agency. They will also help you plan future tax years and retirement.
TAKING CARE OF THE WORLD’S MOST IMPORTANT RRSP… YOURS.®
As accountants. we will provide proactive advice and innovative solutions. We have an in depth knowledge of accounting principles, can design bookkeeping systems, and establish controls to ensure systems are working well. We can also analyze and test your recorded information to ensure it is reasonably accurate. For personalized, quality service that is beyond comparison: Denis G Fillion CMA Ltd. Visit our website at www.dgfillion.com to contact us, and for other information.
The Carillon, Thursday, January 29, 2015 Steinbach, Man. –
www.thecarillon.com
7B
TAX SEASON IS HERE
• Income tax filing for personal, business corporations, farmers and truckers • Free pick-up and delivery within City of Steinbach (44 years experience)
FRIESEN INCOME TAX
TFSA Tips for young families (NC) Still wondering how to use a Tax-Free Savings Account to your best advantage? “When you’re starting a family, setting financial priorities can be a challenge,” said Tannis Dawson, a tax and financial planning expert with Investors Group. “A TFSA is a flexible way to save and minimize your taxes at the same time.” Dawson offers these TFSA tips for young families: Save for emergencies and large short term expenses like a vehicle, vacation or home down payment without having to liquidate investments and paying taxes on the income.
Save for a home in addition to or instead of the RRSP Home Buyers Plan. Save for education in addition to or instead of non-registered savings, the RRSP Lifelong Learning Plan or RESPs. Save for your children: as a parent, you retain control of TFSA funds and when to disburse them. Save to start a business: TFSAs are a tax-effective way to save the initial equity you need and can be used as security for bank financing. Save for retirement in addition to your RRSP contributions. www.newscanada.com
"WIR SPRECHEN HOCHDEUTSCH"
& Accounting Service 204-326-2747
100-336 Main St., Steinbach Fax 204-346-0151 Toll Free 1-877-303-6737 Email: [email protected]
5 tips for investing in Exchange Traded Funds (NC) – The ETF has become increasingly popular for Canadians looking to save for retirement – although many of us are unaware of the benefits. The best course of action is to sit down with a financial advisor to learn more. An advisor will first examine your specific investment needs, whether planning for retirement or saving for your child’s education. Once a plan is in place, assessing the level of risk is next. Once your advisor understands the level of risk you are willing to take, he or she may create a portfolio that combines ETFs with stocks, bonds, mutual funds and other investments to provide a higher level of diversification and protection against downside risk. ETFs are known to provide liquidity in your portfolio and create a more holistic investing approach. For investors who want to learn more about ETFs on their own,
Barry Gordon, the CEO of First Asset Exchange Traded Funds, offers these five tips: 1. Look at risk-adjusted returns – Consider ETFs that use alternative strategies to achieve the highest rate of return possible while maintaining lower overall volatility. Investors and advisors can find an appropriate level of balance between risk and return, such as a government bond-focused ETF (which will be much more stable and liquid), versus an emerging markets-focused ETF, which may have more short-term volatility due to the underlying investments. 2. Diversify – ETFs are extremely valuable to investors because with a single purchase you can access entire markets or strategies, giving you a very costeffective way to build a diversified portfolio. Companies such as First Asset Exchange Traded Funds, (www.firstasset.com) provide ETF solutions that can com-
What you should know about the Canada Pension Plan Planning for retirement? Here’s what you need to know before completing your Service Canada pension application. You’re eligible for a pension if you’re 60 years of age or older and you’ve paid at least one contribution to the Canada Pension Plan. If you are under 65 and are disabled when your pension comes into force, it could be converted into a disability benefit. The amount of your pension is based on the amount of your contributions and the number of years you contributed. To offset a decline in revenue, years during which your earnings were low could be excluded from the calculation, especially if you raised your children as the primary caregiver. In March 2014, the average payment for a new beneficiary when applying at 65, the normal retirement age, was $611.85 per month. You can apply at age 60, but your pension will be reduced. Similarly, your pension will be increased if you apply later than at age 65. The best time to apply for your pension depends on your health, your savings, and your retirement plan. You can also split your pension with your spouse to reduce income taxes. Tools are available on the Service Canada website at www.servicecanada.gc.ca to help you make the best choices. You can apply online on the Service Canada website or download the forms to send in by mail. You will receive your first payment ap proximately eight weeks after submitting your application.
Your pension is not paid automatically; you must apply for it.
plement a broader portfolio, mitigate risk and help protect against volatility. 3. Avoid unnecessary trading – Focus on the longer-term potential and do not adopt a “day trader” mentality. Since you will pay a fee each time you buy or sell an ETF, it’s important to limit the frequency of your trades and choose an online broker that offers the most competitively priced commissions. 4. Trading time is everything Because the price deviation of an ETF can be greatest during the start and end of the trading day, investors can alleviate spreads and pricing discrepancies by restricting buy or sell orders to 15 minutes after open or 15 minutes before close. Investors should also avoid trading ETFs on days when the market is up and down, as volatile trading sessions are not an ETF’s friend, and it can be hard to know the true value of a purchase. 5. Understand currency risk – Many investors don’t want currency risk with their international investing. Consider investing with currency-hedged ETFs. These give investors comfort that they are getting exposure to the asset class they are investing in, without having to worry about what the currency does.
In$tant In$tant Cash Cash Back Back In$tant SM
SM
www.newscanada.com
In$tant Cash Back
Instant joy. Walk in with your taxes. Walk out with your money. For more information, speak to an H&R Block Tax Professional today.
Cash Back
Instant joy.
Walk in with your taxes. Walk out with your money. For more information, speak to an H&R Block Tax Professional today.
245B Main Street Steinbach, MB 204-326-3783 hrblocksteinbach.com Instant joy. © H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
Walk in with your taxes. Walk out with your money.
SM
© H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
For more information, speak to an H&R Block Tax Professional today.
© H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
Instant joy.
SM
&
Steinbach, Man.
www.thecarillon.com
TAX SAVINGS RETIREMENT RICHES
Find the right type of ETF for your portfolio (NC) No matter what’s in our financial portfolio - stocks, bonds, or mutual funds - the goal for most Canadians remains the same: to have enough money saved to enjoy a comfortable retirement. But, how do we get there? Increasingly, financial experts are advising all of us to diversify our portfolios by adding Exchange Traded Funds (ETFs), which are now one of the more cost-effective ways to save for the golden years. “ETFs are similar to mutual funds in that they hold a collection of investments (such as stocks and bonds) but they trade like a stock on the exchange,” says Tim Trian, an investment advisor at HollisWealth. “This type of fund gives investors exposure to a variety of different publicly traded securities, sectors and strategies and are as simple and inexpensive as buying and selling a stock.” Trian adds that investors who are new to ETFs should consider a more holistic approach, combining ETFs with stocks, bonds, mutual funds and other investments to provide a higher level of diversification and protection against downside risk. “ETFs are great because with a single purchase, investors have access to entire markets or strategies in a very cost-effective way,” he continued. “You can achieve well diversified portfolios while only holding very few ETFs.” Companies such as First Asset Exchange Traded Funds (www. firstasset.com) provide ETF solutions that can complement a broader portfolio, mitigate risk and help protect against volatility. This particular ETF product-shelf is made up of those that focus on delivering superior risk-adjusted returns relative to the broad market. “It’s vital to construct a portfolio that provides an appropriate level of balance between risk and return, and meets your objectives,” adds First Asset CEO, Barry Gordon. “For a good portfolio, you want to have exposure that will rise while other areas of the portfolio may be experiencing some weakness, which will smooth the volatility of the overall portfolio, helping you meet either your short or long-term investment objectives.” When selecting ETFs, Gordon points out the factors to consider include the objective of the ETF, risk-adjusted performance, and how it helps to achieve your investment goals. From there, it’s a matter of buying and selling the ETF as you would any other stock. www.newscanada.com
Do you have a game plan… to get out of the game?
St Pierre Jolys 204-433-7964 Rosenort 204-746-2578
Steinbach Credit Union can help you plan a strategy that will get you ready for when the time comes to slow down and relax. WE OFFER A WIDE RANGE OF INVESTMENT VEHICLES INCLUDING: • An unrestricted range of RRSPs, GICs, TFSA and investment options • Savings accounts that pay interest right from dollar one • Ding free® banking for our members at a huge network of credit union ATMs • 100% deposit protection guarantee* And best of all, you get the same great level of *All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba. SCU service and willing attitude we’re famous for in all the financial services we provide. Talk to us today to find out what we can do for you. 1575 Lagimodiere 204.661.1575 2100 McGillivray 204.222.2100 305 Main, Steinbach 204.326.3495
scu.mb.ca
Claiming all deductions, credits and benefits you are eligible for? Filing your income tax return is now faster, easier and more secure to prepare and file online using Netfile. However, though the income tax return may look simple, it is a series of very complex inter related schedules. Canada Revenue Agency will assess your Netfiled income tax return as you have prepared and filed it; however, you will have no assurance that you have claimed all of the deductions you are eligible for. Do you have all the information on upcoming tax events? Are you informed on all the changes that occurred in recent years? Do these changes affect your taxes payable, or your refund? This is the information that a team of tax preparation professionals and accountants can provide.
Some restrictions apply. Call SCU for details.
The services of a tax preparation professional should ensure that you have claimed all tax credits, deductions and benefits that are available to you. A tax preparation professional should also provide support and peace of mind in event of any follow up inquiries from Canada Revenue Agency. They will also help you plan future tax years and retirement.
TAKING CARE OF THE WORLD’S MOST IMPORTANT RRSP… YOURS.®
As accountants. we will provide proactive advice and innovative solutions. We have an in depth knowledge of accounting principles, can design bookkeeping systems, and establish controls to ensure systems are working well. We can also analyze and test your recorded information to ensure it is reasonably accurate. For personalized, quality service that is beyond comparison: Denis G Fillion CMA Ltd. Visit our website at www.dgfillion.com to contact us, and for other information.
The Carillon, Thursday, January 29, 2015 Steinbach, Man. –
www.thecarillon.com
7B
TAX SEASON IS HERE
• Income tax filing for personal, business corporations, farmers and truckers • Free pick-up and delivery within City of Steinbach (44 years experience)
FRIESEN INCOME TAX
TFSA Tips for young families (NC) Still wondering how to use a Tax-Free Savings Account to your best advantage? “When you’re starting a family, setting financial priorities can be a challenge,” said Tannis Dawson, a tax and financial planning expert with Investors Group. “A TFSA is a flexible way to save and minimize your taxes at the same time.” Dawson offers these TFSA tips for young families: Save for emergencies and large short term expenses like a vehicle, vacation or home down payment without having to liquidate investments and paying taxes on the income.
Save for a home in addition to or instead of the RRSP Home Buyers Plan. Save for education in addition to or instead of non-registered savings, the RRSP Lifelong Learning Plan or RESPs. Save for your children: as a parent, you retain control of TFSA funds and when to disburse them. Save to start a business: TFSAs are a tax-effective way to save the initial equity you need and can be used as security for bank financing. Save for retirement in addition to your RRSP contributions. www.newscanada.com
"WIR SPRECHEN HOCHDEUTSCH"
& Accounting Service 204-326-2747
100-336 Main St., Steinbach Fax 204-346-0151 Toll Free 1-877-303-6737 Email: [email protected]
5 tips for investing in Exchange Traded Funds (NC) – The ETF has become increasingly popular for Canadians looking to save for retirement – although many of us are unaware of the benefits. The best course of action is to sit down with a financial advisor to learn more. An advisor will first examine your specific investment needs, whether planning for retirement or saving for your child’s education. Once a plan is in place, assessing the level of risk is next. Once your advisor understands the level of risk you are willing to take, he or she may create a portfolio that combines ETFs with stocks, bonds, mutual funds and other investments to provide a higher level of diversification and protection against downside risk. ETFs are known to provide liquidity in your portfolio and create a more holistic investing approach. For investors who want to learn more about ETFs on their own,
Barry Gordon, the CEO of First Asset Exchange Traded Funds, offers these five tips: 1. Look at risk-adjusted returns – Consider ETFs that use alternative strategies to achieve the highest rate of return possible while maintaining lower overall volatility. Investors and advisors can find an appropriate level of balance between risk and return, such as a government bond-focused ETF (which will be much more stable and liquid), versus an emerging markets-focused ETF, which may have more short-term volatility due to the underlying investments. 2. Diversify – ETFs are extremely valuable to investors because with a single purchase you can access entire markets or strategies, giving you a very costeffective way to build a diversified portfolio. Companies such as First Asset Exchange Traded Funds, (www.firstasset.com) provide ETF solutions that can com-
What you should know about the Canada Pension Plan Planning for retirement? Here’s what you need to know before completing your Service Canada pension application. You’re eligible for a pension if you’re 60 years of age or older and you’ve paid at least one contribution to the Canada Pension Plan. If you are under 65 and are disabled when your pension comes into force, it could be converted into a disability benefit. The amount of your pension is based on the amount of your contributions and the number of years you contributed. To offset a decline in revenue, years during which your earnings were low could be excluded from the calculation, especially if you raised your children as the primary caregiver. In March 2014, the average payment for a new beneficiary when applying at 65, the normal retirement age, was $611.85 per month. You can apply at age 60, but your pension will be reduced. Similarly, your pension will be increased if you apply later than at age 65. The best time to apply for your pension depends on your health, your savings, and your retirement plan. You can also split your pension with your spouse to reduce income taxes. Tools are available on the Service Canada website at www.servicecanada.gc.ca to help you make the best choices. You can apply online on the Service Canada website or download the forms to send in by mail. You will receive your first payment ap proximately eight weeks after submitting your application.
Your pension is not paid automatically; you must apply for it.
plement a broader portfolio, mitigate risk and help protect against volatility. 3. Avoid unnecessary trading – Focus on the longer-term potential and do not adopt a “day trader” mentality. Since you will pay a fee each time you buy or sell an ETF, it’s important to limit the frequency of your trades and choose an online broker that offers the most competitively priced commissions. 4. Trading time is everything Because the price deviation of an ETF can be greatest during the start and end of the trading day, investors can alleviate spreads and pricing discrepancies by restricting buy or sell orders to 15 minutes after open or 15 minutes before close. Investors should also avoid trading ETFs on days when the market is up and down, as volatile trading sessions are not an ETF’s friend, and it can be hard to know the true value of a purchase. 5. Understand currency risk – Many investors don’t want currency risk with their international investing. Consider investing with currency-hedged ETFs. These give investors comfort that they are getting exposure to the asset class they are investing in, without having to worry about what the currency does.
In$tant In$tant Cash Cash Back Back In$tant SM
SM
www.newscanada.com
In$tant Cash Back
Instant joy. Walk in with your taxes. Walk out with your money. For more information, speak to an H&R Block Tax Professional today.
Cash Back
Instant joy.
Walk in with your taxes. Walk out with your money. For more information, speak to an H&R Block Tax Professional today.
245B Main Street Steinbach, MB 204-326-3783 hrblocksteinbach.com Instant joy. © H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
Walk in with your taxes. Walk out with your money.
SM
© H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
For more information, speak to an H&R Block Tax Professional today.
© H&R Block Canada, Inc. SM At participating offices. Instant Cash Back valid only on the federal portion of tax returns filed in Quebec. Some restrictions may apply.
Instant joy.
SM
