Author: kiara

Preparing for a Great 2019 with RRSPs and TFSAs

Written by kiara on February 7, 2019. Posted in Blog.

Important Dates in 2019

March 1: Deadline for 2018 RRSP contributions
April 30: Individual Filing Income Tax Returns & Instalments
June 17: Self-employed individual Filing Income Tax Returns & Instalments
November 30: Year-End Planning
December 27: Last day for 2019 tax loss selling
December 31: Year-End Planning

Deceased—Final Tax Return:
Death Between January 1 and October 31: April 30 of following year
Death Between November 1 and December 31: Six months after date of death
Quarterly Tax Instalments: March 15, June 15, September 15, December 15

RRSP or TFSA?
An important question is whether a TFSA or an RRSP is better for you to put your money in. TFSAs were created with the intention to supplement RRSPs. Once an RRSP is maxed out, the TFSA becomes another way to protect earnings from income taxes. The value of reducing your annual income tax burden with an RRSP is difficult to beat. While both offer no tax payable on investment growth on funds within the account, these are key differences.

Whereas in an RRSP your contribution limit is based on your income, the TFSA has standardized limits.
In an RRSP, contributions are tax-deductible, in a TFSA they are not.
In an RRSP, withdrawals are subject to income tax but in a TFSA they are not.
In an RRSP, withdrawals may only be re-deposited if you have the necessary contribution room, in a TFSA withdrawals may be re-deposited in the following years.

The type of account that is better for you depends on your particular situation and should be considered with a Wealth Management Advisor.

Here is more information on each to help you with your decision.

RRSP
In 2019, the maximum contribution to a registered retirement savings plan is $26,230. Contributions to an RRSP are tax-deferred, therefore only taxed when withdrawn. Money contributed up to the limit, a percentage of your earned income plus previously unused room, reduces taxable income for that year. You will find your unused RRSP room listed on your CRA notice. Contributions can be made to your RRSP until the end of the year you turn 71, as long as you have employment income.

RRSPs can provide special benefits. For example, a Spousal RRSP allow Canadian couples to split income in retirement. This can help lighten the tax load for couples with big income disparity. There is also the RRSP Home Buyers’ Plan to aid in the purchase of a first home, the Lifelong Learning Plan (LLP) to use RRSP contribution to help fund your education. For all the intricacies of RRSP investing, we recommend speaking to one of our Wealth Management Advisors.

TFSA
In 2019, another $6,000 of contribution room has been allotted in Tax-Free Savings Accounts for a total of $63,500. TFSAs are one of many ways to reduce the burden of taxes on a portfolio. Opening one for the first time, it can be unclear how best to use the contribution room available.

Once money is in a TFSA, that money can be used for all kinds of investments—stocks, mutual funds, ETFs, and more. The way your TFSA can best improve your overall investment portfolio should be determined with an advisor. Our wealth management advisors are regularly updated with the latest to offer you the best advice.

TFSAs are also offer much easier access to funds than other registered plans, which is a plus if that flexibility is important to you. Further, TFSA withdrawals are not involved with most government benefits and will therefore not negatively impact old age security or guaranteed income supplement payments. You may also continue to use and contribute to your TFSA past the age of 71.

Conclusion
An RRSP and a TFSA can bring unique advantages to your portfolio. We invite you to try our retirement savings calculators, and to discuss these questions with one of our Wealth Management Advisors. Call us at 514-934-0568 or click here to make an appointment.

Retirement Planning, RRSP, Savings, TFSA

Caring for Aging Family and Friends

Written by kiara on January 10, 2019. Posted in Blog.

Good News! Since 1950, life expectancy has increased an average of 10.5 years for both men and women in Canada.

But what do we do with that additional time? The risk of dependency increases with age, and half of those people aged 65 or older will some day require some form of long term care.

As we get older it can become hard to complete some routine tasks and we might need assistance with food preparation, bathing, house cleaning, grocery shopping or seeing doctors or other medical professionals.

The Effect of Aging on Families

The number of Canadians aged 65 and older is set to rise from 17% to 22% of the general population over this next decade. Very often the woman in the family is given the responsibility of taking care of an elderly family member. This creates a whole new set of problems for her and her family: what if there is a need for her to leave her job or reduce her hours? Who can possibly take care of someone who might need 24-hour supervision and care?

Planning in advance—both with long-term care insurance and by creating an understanding among all family members about how to balance who will take on which responsibilities—can help ensure that everyone is prepared and that quality of life is maintained as best as possible.

In the event of a loss of independence one has several options:

Move to a private care facility
Move to a government subsidized facility
Remain at home and obtain at-home care from caregivers

As wonderful as these services can be, they come at a price. Most Canadians have no financial plan to pay for long-term care if they should need it. Long-term care is unfortunately not covered by the public health care system, and government health care programs may cover only a portion of nursing home or other residential care facility costs.

Where will this money come from?

5 years of care could reduce your savings by as much as $300,000. Costs at long-term care facilities can range wildly, from $1,000 to over $5,000 a month, depending on the type of location, care facility and the room. Homemaking, personal care, and nursing care costs can range from $12 to $30 per hour.

Long-term care insurance provides financial protection in case you or a loved one become unable to care for yourself. The insurance will commence for a number of medical reasons, including, but not limited to, disability and chronic illness. Long-term care insurance is flexible in the sense that it can cover care for nursing homes, caregivers in your own home, or chronic care facilities.

Long-term care coverage can provide the money you need in order to maintain quality of life and financial security. It will also afford those caring for the disabled person the time and freedom to focus on spending time with that person. The disabled person can avoid placing the financial hardship of a loss of independence on family and friends, and maintain a relative stable standard of living.

How do long-term care plans work?

There are two types of plans. One plan will reimburse for expenses outlined in the particular plan, up to a predetermined maximum. The other offers a pre-determined monthly benefit amount, so the money can be spent as the insured sees best fit. For example, an individual can be insured for $3,000 a month which would be used to pay for in-home care or towards a care facility. Of course, a plan’s premium, as well as duration and value of payments will all vary based on one’s situation as well as what is needed.

Long-term care plans come into effect when an insured person can’t perform at least two of six “activities of daily living,” which include bathing, caring for incontinence, dressing, eating, toileting, and getting in or out of beds and chairs.

Finally, one of the most important benefits of long-term care insurance is that, if you come to need care, you can depend on the insurance to cover those expenses. This way, your savings and assets are safe from having to be spent on care.

For more information on long-term care insurance, call us at 514-934-0586.

Overcoming Barriers to Retirement and Retiring Happy

Written by kiara on January 5, 2019. Posted in Blog.

At all stages leading up to retirement—from decades to years to mere months before—we may worry if we are going to be able to retire comfortably. Some of us may worry we will not be able to support our lifestyle goals. Others may worry about outliving savings and running out of money.

Starting to plan and save earlier is always better for a smooth transition into retirement. It also helps ensure safety and security during retirement.

Wherever we may be in that process, we must identify the primary challenges and barriers that are either preventing us from moving forward, or paralyzing us with self-doubt about our future in order to overcome them. Only then can we embrace the solutions to achieving a fulfilling retirement.

Planning Inertia

The first step is always planning. Having confidence in ourselves that we will achieve our goals is not to be underestimated. That confidence is so crucial to the comfort we seek in retirement. Those of us with formal plans for generating retirement income and savings will feel more confident from the outset.

Obtaining professional services to help put in place, monitor, and adjust such plans also increases confidence. Having an investment advisor can help paint a clearer picture of what to expect and facilitate a finely tuned—at times complex—plan to best suit your personal needs and objectives.

This all sounds great, but there are several reasons planning is not always prioritized.

It can be extremely difficult to balance long-term, retirement-related goals with more pressing financial realities. Furthermore, it can be daunting to research all the products and options available on the market and determine which would best address our specific retirement needs.

Starting early is an overstated idea, but it is by far the best piece of advice. And with a professional investment advisor, we can start planning for retirement to ensure that we will have what we need upon retiring, and that those objectives can be reached in conjunction with our current goals.

It’s Never Too Late

Despite the feeling that it might be too late to start saving for retirement, it never really is. Every little bit helps, regardless of age and income. Now is always the best time to start. Shame, guilt, or frustration will only stall us longer. The best idea is to move forward, with the mentality that planning and saving for retirement is a marathon, rather than a sprint.

Competing Priorities

We already have day-to-day living expenses, and have to save up for a car, a down payment on a house or condo, a vacation, children’s activities, college, and manage credit card debt. So how can we save for retirement too?

It is difficult to justify something so far in the future when all these things are happening at once right now. But the someday of retirement will come soon enough, which is why, once again, an approach that takes into account a larger plan is the way to go to help us through all stages of life. The question is: who can we trust to help get us there?

Rothenberg Capital Management has been helping Canadians plan and manage their retirement savings for over 40 years. Our advisors are salaried and have state of the art systems and administrative help so they can give their clients expert advice that takes into account the present and the future, without sacrificing one for the other. They will guide you to maximize opportunities at every stage of your life, beginning with questions such as:

How much income will I need to live comfortably in retirement?
What should my annual savings be now so that I can reach my retirement goals?
How should I invest my money for retirement?

Get started with a FREE consultation. With no obligation on your part, you can find out why Rothenberg Capital Management is the trusted choice among Canadians and also enjoy a taste of what it’s like to retire worry-free.

To schedule an introductory call, simply call our office (Montreal: 514-934-0586 or Calgary: 403-228-237), or click here.

Retirement Planning

In the Spirit of Giving!

Written by kiara on December 24, 2018. Posted in Community Impact, Philanthropie.

John Giroux, a Rothenberg investment advisor for over 18 years, and his daughter Melanie, embody the spirit of the holidays!

Throughout the year they spend considerable time and money to purchase stuffed toys for children. At Christmas they donate them to various children hospitals and causes. John is well aware of the hardship of sick children and their families: “many children lack a support system around them or cannot express their emotions. With the stuffed animals I try to give them a constant “companion”, a buddy they can confide in without being embarrassed or judged”.

John and Melanie have been organizing this toy drive for children for many years have donated over 12,000 stuffed toys over the last 13 years.The pics below feature John with Natalie Kamel, Director of Donations and Donor Development, Shriners Hospital (Montreal).

Six Strategies for Volatile Markets

Written by kiara on December 19, 2018. Posted in Blog.

Key takeaways

Uncertainty is a constant, and downturns happen frequently. But market setbacks have typically been followed by recoveries.
Stay disciplined: Trying to time the market has proven challenging–and could cost you.
Plan for a variety of markets: An investing approach built with your goals and situation in mind may help you cope with short-term volatility.
Consider help: Work with your advisor to determine a strategy that fits your risk tolerance.

Triggers for market volatility can come in many different shapes and sizes–policy uncertainty in Washington, earnings reports, geopolitical unrest, the list is almost endless. And market swings can rattle even seasoned investors’ nerves. But volatility is part and parcel of investing.

“Dramatic moves in the market may cause you to question your strategy and worry about your money,” says Ann Dowd, CFP®, vice president at Fidelity Investments. “A natural reaction to that fear might be to reduce or eliminate any exposure to stocks, thinking it will stem further losses and calm your fears, but that may not make sense in the long run.”

Instead of being worried by volatility, be prepared. A well-defined investing plan tailored to your goals and financial situation can help you be ready for the normal ups and downs of the market, and to take advantage of opportunities as they arise.

“Market volatility should be a reminder for you to review your investments regularly and make sure you consider an investing strategy with exposure to different areas of the markets–U.S. small and large caps, international stocks, investment-grade bonds–to help match the overall risk in your portfolio to your personality and goals,” says Dowd.

Here’s how.

Source: Fidelity Investments | Six strategies for volatile markets

Investing

Tax-Loss Selling and Year-End Checklist

Written by kiara on November 20, 2018. Posted in Blog.

Just like last year, we are here to provide you with a checklist to ensure you get the most out of tax credits, deductions, and benefits. But first, we want to get more in depth about tax loss selling.

What is Tax-Loss Selling?

Tax-loss selling means selling an investment with accrued losses at year-end, allowing you to offset capital gains realized with other investments. Net capital losses can be carried back three years or carried forward indefinitely. Tax-loss selling therefore enables investors to mitigate the impact of capital gains taxes.

Superficial Loss Rules

When you sell an investment at a loss, if you, your spouse, your company, or a trust in which you have a major interest, purchase and still own an identical investment within 30 days of the sale, then the capital loss is added to the cost base of the purchase. This includes re-purchasing the same company or a fund tracking the same index. Professional advice may be needed to determine whether certain products are considered identical.

Foreign Currency Tax Loss Selling

Foreign currency fluctuations are another important consideration when tax-loss selling. The gain or loss will be different once the foreign exchange is taken into account. It is even possible that when calculating between two currencies, what appeared to be a loss may end up being a capital gain, and vice versa. Before selling to take losses, it is extremely important to calculate foreign currency exchange rates.

The Rest of the Year-End Checklist

While tax-loss selling can be an important tool, it is far from the only thing to consider before year-end. Here is a handy checklist with some other steps to take:

Pension income splitting — Those who receive a pension may be eligible to split up to 50% of eligible pension income with a spouse

Guaranteed income supplement — If you received the guaranteed income supplement or allowance benefits under the old age security program, you can renew the benefit by filing by the deadline.

Registered retirement savings plan (RRSP) — You have until December 31 of the year in which you turn 71 to contribute to your RRSPs.

Goods and services tax/harmonized sales tax (GST/HST) credit — You may be eligible for the GST/HST credit, a tax-free quarterly payment that helps offset all or part of the GST or HST you pay. To receive this credit, you must file an income tax and benefit return every year.

Medical expenses — You may be able to claim eligible medical expenses that you paid, provided the expenses were made over the 12-month period ending in 2018 and were not previously claimed. This can include amounts claimed for attendant care or care in an establishment.

Age amount — If you are 65 years of age or older on December 31, 2018, and if your net income was less than $83,000, you may be able to claim up to $7,125.

Public transit amount — You may be able to claim the cost of monthly or annual public transit passes for travel within Canada on public transit in 2018.

Pension income amount — You can claim up to $2,000 if you report eligible pension, or annuity payments on your tax return.

Registered disability savings plan (RDSP) — This savings plan can help families save for the financial security of a person who is eligible for the disability tax credit. RDSP contributions are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.

Disability amount — If you, your spouse or a dependent have severe and prolonged impairments in physical or mental functions and meet certain conditions, you may be eligible for the disability tax credit (DTC).

Family caregiver amount — Those caring for a dependent with impairment in physical or mental functions may be able to claim up to $2,000 when calculating certain non-refundable tax credits.

From Facebook to Face-to-Face

Written by kiara on October 29, 2018. Posted in News & Updates.

We took advantage of the last sunny days of the season to get together with our Facebook followers and several of our valued clients on the patio. It was a great opportunity to reconnect with existing clients and to put a face to a name with our Facebook fans. The exchange with these wonderful people allows us to better understand their current interests and needs and enables us to do an even better job in the future.

Moving some of our relationships from purely virtual to the “real world” was truly a special experience. We thank everyone who came out and joined us for a fun, casual dinner – we look forward to seeing you again soon!

Our Calgary office celebrates 25 years!

Written by kiara on October 29, 2018. Posted in News & Updates.

In October 1992 we opened our Calgary office. Such excitement! Canada was just beginning to recuperate from a tough recession and Jack Rothenberg thought that Alberta would pull out first and Calgary would lead the country with a fast-growing economy. Robert Rothenberg opened the office and has been running it with a steady hand ever since. Our office grew from zero clients and two on staff to become an important part of the Calgary economic landscape.

To celebrate our 25 years and our success we hosted a client appreciation evening on October 24, 2017. We thank you Calgary for the trust you have placed in us. We pledge to continue to provide the same high level of service and sound, unbiased financial advice.

Summer Fun At Rothenberg

Written by kiara on October 29, 2018. Posted in Inside Rothenberg.

Just last week, The Rothenberg Group hosted a pizza night that turned into a surprise party for their president, Helen Corrigan. Jack and Robert Rothenberg gave speeches about how they met Helen, and about all the hard work and dedication she has given to make The Rothenberg Group what it is today. Helen was also given a cheque for $3,000 as a thank you.

But Helen wasn’t the only one being celebrated at the pizza party. Robert Rothenberg can be seen in the photo blowing out his birthday candles!

It was a fantastic night full of great food and honoring great people.

Author: kiara

Preparing for a Great 2019 with RRSPs and TFSAs

Important Dates in 2019

Caring for Aging Family and Friends

Overcoming Barriers to Retirement and Retiring Happy

Planning Inertia

It’s Never Too Late

Competing Priorities

In the Spirit of Giving!

Six Strategies for Volatile Markets

Key takeaways

Tax-Loss Selling and Year-End Checklist

From Facebook to Face-to-Face

Our Calgary office celebrates 25 years!

Summer Fun At Rothenberg

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