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Applicable dealer information
Is provided by Investors Group Financial Services Inc. (In Quebec, a financial services firm).
Is presented as a general source of information only, and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact me, Turenne Joseph, consultant at Investors Group.
Although we have tried to ensure the accuracy of this information, tax laws change frequently so the provisions and exemptions mentioned in this presentation may change.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual Funds are not guaranteed, their values change frequently and past performance may not be repeated.
The Canada Education Savings Grant and Canada Learning Bond are sponsored by Human Resources and Social Development Canada. Eligibility for the Canada Learning Bond is dependent upon family income levels and province of residence.
Insurance products and services distributed through I.G. Insurance Services Inc. (in Quebec, a Financial Services Firm). Insurance license sponsored by The Great-West Life Assurance Company (outside of Quebec).
™ Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations.
Turenne Joseph Financial Security Advisor, Mutual Funds Representative Licensed in Québec, Ontario and British Columbia Investors Group Financial Services Inc. (in Québec, a financial services firm.)[email protected]
1. Financial issues unique to women
2. Building wealth
3. Protecting you, your wealth and the people you care about
4. Living off of your wealth
5. Your legacy
6. The plan for your success
1.1.
2006 Canada Census:
◦ Women’s life expectancy currently 4.8 years longer than men.
◦ 75% of men over 80 have a spouse or partner
◦ 66% of those men live with their spouse or partner.
◦ Only 45% of women over 80 have a spouse or partner and only 22% of those women live with their spouse.
Maternity leave (short term)
Stay-at-home parenting (long term)
Caring for aging parents and/or disabled spouse
Potential impacts Reduced income and investments
Shorter time frame for investment growth
Lower employer and/or CPP contributions and RSP contribution limits
Slower career advancement and salary progression
The absence of a second income or someone else to depend on creates additional considerations:
Establishing a financial safety-net or emergency fund
Protecting your income and assets with appropriate insurance
Prepare a notarized Power of Attorney and/or Health Care Directive
Keep a personal credit card
Maintain your credit rating
Create your independent retirement plan
Consider reviewing legal matters with your own lawyer
Talk about finances : disclosing all assets and liabilities creates a clear picture of where you’re headed.
Record value of major assets
Consult a lawyer
Consider signing a domestic contract
Make sure to protect children from previous relationships
Speak to a family lawyer
Call me
Recognize common-law rules
Act quickly to satisfy time limits
Update your personal insurance plan
2.2.
Pay yourself first
The power of compound growth
Dollar cost averaging
Asset allocation as a critical ingredient
Tax saving opportunities
Long term view
Envision your goal
Determine how much you need to achieve it
Treat required savings as a fixed, non discretionary expense
$0
$50 000
$100 000
$150 000
$200 000
$250 000
$300 000
30 35 40 45 50 55 60
Your Age
Port
folio V
alue
Start todayStart in 10 YearsStart in 20 years
Value at age 60: $285,000
Value at age 60: $115,000
Value at age 60: $36,250
$200 per month invested at 8% rate of return$200 per month invested at 8% rate of return
Long-term portfolio performance is most
influenced byasset allocation
and less influenced by
market timing and stock selection
Source: Brinson, Singer, Beebower Study;Financial Analysts Journal, Feb. 91
More than 90% of a portfolio’s variability
depends on asset mix
Market Timing
2.1%
Other Factors
1.8%
Stock Selection
4.6% Asset Allocation
91.5%
Interest vs. Dividends vs. Capital Gains
Maximize tax deductions
Take full advantage of tax credits
Capitalize on tax deferred growth
Understand tax advantaged investing options and where they fit in your plan
19
8 000
1 000 000
10 000
20 000
30 000
40 00050 00060 000
80 000100 000
200 000
300 000
400 000500 000600 000
800 000
1956 20041960 1965 1970 1975 1980 1985 1990 1995 2000
Markets Are Unpredictable
Black Black MondayMonday
Asian Asian Currency Currency
CrisisCrisisTech Bubble Tech Bubble
BurstsBursts
Arab Oil Arab Oil EmbargoEmbargo
Gulf Gulf WarWar
VietnamVietnamWarWar
Interest Interest rates peak rates peak
at 21%at 21%
Gold $875 Gold $875 US / ozUS / oz
Ind
ex V
alu
es (
CA
D)
Ind
ex V
alu
es (
CA
D)
1. What is your goal?
2. How much will you need?
3. How much time do you have?
4. How much risk are you willing to take?
YourYourAsset AllocationAsset Allocation
YourYourAsset AllocationAsset Allocation
“Your Personal”Your Personal”Required Rate of ReturnRequired Rate of Return
“Your Personal”Your Personal”Required Rate of ReturnRequired Rate of Return
Your InvestmentYour InvestmentPlanPlan
Your InvestmentYour InvestmentPlanPlan
++++
It’s about It’s about youyou
3.3.
Lotto 6/49 draw 1 in 14 million
Disability of 90 days before age 65 1 in 3
Heart disease 1 in 3 women
Cancer ASXZ 1 in 2.6 women
Breast cancer 1 in 9 women
Critical Illness 1 in 5 women
Source: Heart and Stroke Foundation, 2004
Multiple Sclerosis Society of Canada, 2004
National Cancer Institute of Canada: Canadian Cancer Statistics 2004
Current & Ongoing Expenses
Mortgage/rent
Food, clothing
Transportation
Childcare/education
Recreation
Retirement Planning
Emergencies
New Additional Expenses
Medical bills
Child care
Rehabilitation
Counseling
Home remodeling
Career retraining
DisabilityDisability
Life Insurance Life Insurance
Critical IllnessCritical Illness
Long Term CareLong Term Care
4.4.
Multiple income sources require planning
Personal savings: RRSP/RRIF TFSA Non-registered
investments Etc…
Other: Part-time
employment Home equity Etc…
Government: CPP QPP OAS Etc…
Understanding your sources of income:
Employer sponsored: Employer pension
plan Group RSP Deferred profit
sharing
Registered Retirement Savings Plan (RRSP)
◦ Must convert by end of year of 71st birthday
◦ Two options:
Registered Retirement Income Fund (RRIF)
Annuity
TFSA
◦ Contributions of $5,000 (indexed) per year allowed
◦ Tax-free withdrawals
◦ Great for sheltering income from tax
Non-Registered Investment
◦ Option once contribution room has been maxed-out
◦ Used as an emergency fund
Canada Pension Plan & Québec Pension Plan ◦ Provides monthly income
◦ Entitlement based on past contributions and length of contribution period
◦ Must apply in order to begin receiving payments
Old Age Security (OAS)◦ Provides monthly income
◦ Income tested benefit – beware of the clawback!
◦ Must apply in order to begin receiving payments
Pension Plans: ◦ Defined Benefit pension plan ◦ Defined Contribution pension plan
Group RRSP
Deferred Profit Sharing Plans
Post retirement employment◦ Postpone or reduce withdrawals from your
retirement funds◦ 23% of Canadians do paid work during
retirement*
Home Equity◦ Downsizing to a smaller house◦ No taxes on capital gains if house is designated
as principal residence◦ Equity take-out to pay for expenses
Source: Investors Group News Release, January 3, 2007
Inform Services Canada that you are eligible for the Child-Rearing Dropout Provision when applying for Canada Pension Plan benefits.
May increase your CPP benefit by excluding periods when your income either stopped or was lower – from the final calculation.
RRIF Annuity Employer
sponsored programs
CPP/QPP OAS TFSA Non-reg
Retirement PaychequeTM
5.5.
Contact your lawyer to determine rights to the estate
Work with the executor to help settle the affairs
Apply for survivor benefits from pension
Call me
Is your estate plan in order?
◦ Do the right people know where to find important documents? (wills, insurance contracts)
◦ Will they know who to contact in case of emergency?
◦ Do they have the phone number for your estate planning lawyer? Financial planner?
Have you appointed an executor?
Have you discussed funeral plans or recorded them?
Your wishes may not be met
Someone, not of your choosing, may be appointed to administer your estate
Taxes payable by your estate or heirs may be higher
Your assets may be ‘frozen’ for a much longer period of time
Naming of an executor
Guardian for minor children
Care for dependants
Wishes for division and distribution of assets
Wishes in the event a beneficiary predeceases you
Someone named to administer your estate
May choose a family member or trusted friend
Could choose a professional executor
Consider someone who:◦ has adequate level of maturity, hopefully will outlive you
◦ is trustworthy and willing to accept the responsibility
◦ has a clear understanding of your wishes
◦ has knowledge/expertise to administer your affairs if they are complex
Large inheritance?
Provide for a dependant who is disabled?
Transfer a business?
Minimize tax?
Charitable gifts?
Multiple option to preserve and protect your estate◦ Beneficiary designations◦ Joint ownership◦ Charitable Giving ◦ Insurance
◦ Trusts
Strategies need to be implemented within the context of your plan
Assess the big picture before implementing strategies
6.6.
57.2% of women are employed versus 68% of men*
Women are less likely than men to be insured**
Many do not feel confident with their investment, retirement or estate plans
Most do not meet regularly with a financial planner?
* Statistics Canada, Labour Force Survey
** LIMRA International’s report on Canadian Women and Life Insurance – 2006 Ownership Study
We ask the right questions:
Are your investments suitable for your goals?
Can you pay less tax?
Will you have the income you need to retire and do the things you want to do?
Can you retire when you want to?
Do you have the right amount and types of insurance?
Will your estate transfer efficiently and tax-effectively?
Do you have control over your income?
We create your realistic planWe manage your investments with a long-term
perspective designed to complement your comfort for risk, goals for growth and objectives of your plan
We are there to help you implement your plan on a systematic basis :
Responding to changes in your personal and financial situation
Reviewing your overall financial picture regularly
Adjusting the allocation of your assets if needed
Turenne JosephTel. Office : (514) 350-8750 ext. 8815Toll Free : 1 (866) 688-8750Fax : (514) 350-8752Email : [email protected]
Financial Security Advisor
Mutual Funds RepresentativeLicensed in Québec, Ontario and British Columbia
Investors Group Financial Services, a Financial Services Firm
2001 Universty, Suite 1620 Montreal QC H3A 2A6
…Maximize your possibilities and financial freedom……Maximize your possibilities and financial freedom…