Financial Review for 2011

2011 is over now and your annual statement is soon to arrive. Is your account up or down? Are you closer to retirement? What a great time to review your financial game plan. 


Even after being in the investment industry for more than 15 years nothing can be more depressing than reviewing your investment returns after a decade and only seeing a average return of only 3 or 4 percent.  


If this is you, you are not alone.


So now the question is should you change what you are doing and give up investing altogether? If this question is weighing on your mind here are some questions you should ask yourself and check out the infographic on investor behaviour below.

Tax Refund? 5 Things to do with it

Over the next couple of weeks the Kelowna economy will receive a boost as many receive their tax refunds.

For many the plans are being made right now to, go on vacation, buy new living room furniture or treat the family to nice dinner out.

But before you cash that cheque you may want to consider these 5 financial suggestions that could make your financial life better today and in future.

Stay Informed about Your Investments

With all the volatility in the markets, risk and investment suitability has become more of an issue for investors. It wasn't too long ago, when everything was going up, that few wanted to question how their investment actually worked.

Higher returns seem the most important financial issue when choosing an investment, but pale in comparison to the reality of loss when your investment does not perform as expected. What can be done to minimize the risk loss?

Of course there are some financial strategies you can use such as diversification, dollar cost averaging and buying at a discount using a value manager. One strategy that is commonly overlooked, because it just seems obvious, is knowing what you own.

When was the last time you reviewed what the top 10 holdings in your portfolio? How is your manager buying these holdings? How are you doing in comparison to others? Are you comfortable with the strategy you are using?

Check out this excerpt from Mackenzie Financial Insight Magazine below ...

Using Tax Deferral to help Your Retirement

2009 is over and 2010 is here. As we enter the new year we are all recovering from our Christmas financial misadventures, and making new years resolutions for better financial plans for the coming year. The question this time of year is do you contribute to your RRSP?

It is hard to believe The RRSP was created by government in 1957 to encourage individuals to save for their own retirement. Even after more than 50 years many still are unsure of the tax benefits of investing using an RRSP.

To better answer this quest let me introduce you to guest contributor to mikehassard.blogspot.com Gary Schlenker, Manager with Grant Thornton LLP Kelowna on the tax benefits of an RRSP.

Tax Tip - How to make the most effective use of your RRSP.

1. If you make regular contributions to an RRSP, consider applying to have your income tax withholdings reduced on your paycheque, which will improve your monthly cash flow. To do this, simply submit Form 1213 to the Canada Revenue Agency for authorization. Once authorized, your employer will be able to reduce the amount of taxes withheld from your pay.
2. Even though your RRSP administration fee is not tax deductible, you should consider paying it directly, instead of from inside your RRSP – this helps maintain capital in your plan, allowing it to grow on a tax-deferred basis.
3. You don’t need to deduct your contribution in the year it is made, If you are expecting to be in a higher tax bracket in the future, consider delaying your deduction until that time – you will receive a larger tax saving if the deduction is taken when you’re in a higher tax bracket.
4. Considering filing tax returns for children or other low-income earners to creat contribution room that can be used in the future.

For more tax tips, visit our website at www.GrantThornton.ca or contact Gary Schlenker at our Kelowna office at the addresses below.

Grant Thornton

Telephone: 250-712-6892

E-mail: gschlenker@GrantThornton.ca

Thanks again to Gary from Grant Thornton Kelowna.

Mike Hassard Kelowna

3 Ways to Retire Sooner!

With the economy slowing, real estate prices dropping and retirement savings shrinking many are wondering what to do now? Put off retirement? Work a second job? Or resign your self to a weekly trip to the mall instead of annual trek to Arizona? Under all this pessimism there is hope.

The reality is all these things have happened before (although for many it has been more severe than expected) and if you are properly positioned and prepared here are three things you can do to give your retirement plan a boost.

Carnival Rio de Janerio - a 5 day Celebration!

Of all the financial goals I hear wanting to Travel is always at the top of the list. To help with ideas on travel I have asked a friend of mine Daniel Rae of Vacanza Destinations Kelowna to provide some information on travel ideas.

Daniel has extensive travel experience and is out visiting travel destinations 3-4 times a year. As a travel wholesaler he knows personally the hotels and restaurants he recommends.

According to Daniel if you are looking for something more than Las Vegas, Mexico or Disney Land you might enjoy Rio de Janerio ...

Financial choice is good, right? Wrong!

I know what your thinking ... more choice is better. More choice means lower prices, better services and a made to order life style only dreamed about by our parents. But this doesn't always lead to a better life. Let me prove it you.

You get a call from credit card company offering a better rate than any of your current cards. You do your home work, read the fine print and the offer is genuinely better for you and your family. So you sign up!