Happy New Year! Can you believe it’s 2021 already?
We hope you have enjoyed the warm winter thus far and stayed safe during the Christmas holidays. In such unprecedented times, we understand the holidays may not have felt the same as in years past, however maintaining optimism and social distancing practices will help us all get through these difficult times together and safely.
We are still working physically here in the office and are available by telephone should you need us. Please feel free to call our office as we would love to hear from you.
Around the Office:
As a reminder, every year we prepare an Annual Review for each of our clients. This is an important process to ensure we are current with the times, as well as ensuring your information is accurate and meeting your Financial Lifestyle needs. Preparing your review involves a detailed process that not only has us look back on the past year but also look at the upcoming year for potential needs that might arise and ensuring client files are up to date and accurate. To help ease some of your scheduling stress, we are currently booking Annual Reviews via WebEx meeting, telephone, or in person, if allowed, depending on your preference and comfort level. For those doing their Annual Reviews by WebEx meeting or by telephone, the Reviews will be uploaded to your Client Portal and/or mailed before the scheduled meeting date.
Please note: While we are in lockdown, no in-person meetings will take place. Our office does remain open by telephone and WebEx/ZOOM meetings by appointment. Once we come out of lock down, for those clients who wish to have an in-person meeting, we are asking that you please wear a face covering during your time in the office, sanitize your hands upon arrival and complete a COVID-19 screening questionnaire. For clients that require an evening appointment, Roman has set aside Monday and
Tuesday evenings during the next few months to be available. Please be advised that due to the high demand for evening appointments, we are booking these appointments 1 month in advance.
Reminder: Daily Office Meetings
During the hours between 9:30 am to 10:30 am: Should you call during this period, please leave us a message on our voicemail as we conduct our daily office meeting during this time and phones will not be answered. This time allows us to organize our day’s tasks, review the previous day’s work, discuss and complete client reviews and enquiries, as well as review current rates, markets and updates on the latest news.
Online Deposits/Contributions to your Investment Accounts:
For deposits that you make online throughout the year, please update your Online Banking company name from “HollisWealth Advisory Services Inc.” to “Investia Financial Services Inc” or “Investia Services Financiers”. This will ensure that your deposits/payments are received in a timely manner into your account. Your account numbers for online deposits have not changed. Do not hesitate to contact us for clarification.
2020 Tax Slips & Contribution Receipts:
With the introduction to our New Client Portal at the end of 2019, our Head Office is trying to make the process of receiving documents (statements, etc.) electronic. For those of you who have signed up for “E-Delivery” on your Client Portal, you will not be mailed your Tax Slips and Contribution Receipts. You will be emailed a notification when your slips are available on your Client Portal, and you can download them directly from your portal for you to print. If you are active on your Client Portal but have not signed up for “E-Delivery”, you will still receive your Tax Slips & Contribution Receipts in the mail.
Please note: Any slips that are sent directly from the individual investment companies will still be mailed out as per usual, such as T3 Slips. Should you have any questions or if we can assist in any way, please contact our office!
Client Portal & New E-Signature Tool:
If you have not registered for your New Client Portal which continues to be updated with new features and improvements, we highly advise you to take advantage of this great tool! We can securely upload important documents to you through this portal and you can do the same for us. You will have access to certain tax receipts, statements and more dating back to August 2017. With this comes a new E-Signature (eSign) process for electronically signing order instructions and updating your Client Information. This allows you to electronically sign documents directly on your computer or smart phone from the comfort of your own home (or even on the go!). Please contact our office for more information or assistance in registering.
As an office, we have been joining in on conference calls to listen to what the experts, portfolio managers and others have to say about the current and future states of the economy and markets, so that we can best advise our clients in this uncertain time. Education never stops here at our office; we are constantly doing our best to stay updated on the latest and on top of any new investment opportunities. That said, Roman during his time off during his Christmas break completed the ETF Course which will allow him to offer ETFs as part of the Strategic Asset Allocation process come March 2021 if not sooner. ETFs (Exchange-Traded Funds) are investment vehicles that combine some features of mutual funds with some of individual stocks and/or bonds. They are structured as open-end mutual fund trusts and are regulated like any other mutual fund. In order to be able to provide this service Roman first had to meet the training requirement established by the MFDA, which he did successfully over his Christmas break. Similar to mutual funds, ETFs are professionally managed, either actively or passively. Passive management constructs a portfolio of securities that track specific market indexes such as the S&P/TSX 60 Index. Most ETFs are passively managed, but the number of actively managed ETFs is increasing. Unlike open-end mutual funds, units of an ETF trust are listed and traded on a stock exchange or an alternative trading system, much like individual stocks and/or bonds. Though ETFs can be lower in fees, there are some disadvantages such as not being available for smaller purchases, regular purchases, regular withdrawal plans due to minimum requirements, and may not be overall cheaper for small portfolios. That said Roman will be evaluating over the next few months how these ETFs could possibly assist within client portfolios, thus complimenting Strategic Asset Allocation of our client Portfolios. More to follow...
Strategic Asset Allocation:
As mentioned in our previous newsletters, we are very proud of how our portfolios have weathered through these uncertain times. Our Strategic Asset Allocation has continued to be successful. Strategic Asset Allocation is a portfolio strategy that involves setting target allocations for various asset classes and then periodically rebalancing back to the targets. Our specific asset classes involve the following: Cash (Savings Accounts & GIC’s which will mature within 1 year), Income (longer term GIC’s as well as Fixed Income / Bond Investments), Equity (Stock Market diversified related investments) Aggressive (Not used by this office is Stock Market “specific” sector investments such as Precious Metals or Emerging Markets). The portfolio is rebalanced to the original allocations when they deviate or move away significantly from their original settings. Target allocations depend on several client factors such as “Risk Tolerance” and “Time Horizon” and obviously will change over time as these parameters change. If you have any questions regarding your portfolio and Strategic Asset Allocation, please give us a call!
When should I withdraw/take my CPP and OAS Payments?
This is a question asked of our office quite a bit and yet the answer is not all that simple. The quick answer from a mathematical standpoint is as follows. Let us know when you will die and the calculation is quite simple for the correct response. The problem is no one really knows when their time will come, and the reality is we are all living longer as well. In addition, COVID-19 has really changed the way we want to live. Life has changed and so has our retirement expectations with most of us wanting to live independently within our homes that we worked so hard to pay off the mortgage to live free of any debt. So without truly knowing when our time will come to pass, let us look at the obvious, that being CPP and OAS are annuities for life, unlike RRSP/RRIF, TFSA, etc..
which are not annuities for life. Second item to take into account is TAXES, yes that bad word taxes. The goal is to draw enough income necessary for cash requirements without forcing yourself into the next tax bracket.
This is why we suggest the use of a good Tax Advisor and not a Tax Preparer to help answer this question. Our goal would be to deplete/drain the Registered Plans as quickly and tax efficiently as possible and delay the CPP/OAS payments based on the assistance of a Tax Advisor yet keeping in mind our Cash needs. Remember that CPP/OAS payments are an annuity, payments for life unlike RRSP/RRIFs and TFSA accounts. You are typically eligible for CPP at age 65, with penalty as early as age 60 and by not claiming until age 70 you could get 142% of the income you would receive at age 65. An annuity for life: this payment could be longer than you thought you would live until. There could be a huge value in delaying your CPP/OAS pension. Odds are we will live beyond the age of 70 and thus far government plans remain well funded. See below example of payments assuming a CPP entitlement of $1,000.00 per month and OAS payment of $615. Example of payment expected taking CPP earlier, also taking CPP/OAS later than Age 65. (Monthly amounts)
|CPP taken at ages||60||64.0%||$640|
|Median / Standard||65||$1,000|
|OAS taken at ages||65||$615|
Clarity Creates Purpose with Passion:
In a previous Maturity Matters, we discussed how true leadership presents inspiration, vision, strategy and stewardship. In doing so, leadership really creates clarity.
It all starts with becoming clear about the values we want to demonstrate and impact we want to create. I believe it was Anthony Robbins who first suggested that the quality of our life is revealed through the quality of the questions that we ask. Isn’t that a great observation?
Let’s start with asking what we ultimately want to experience and produce in this life. When we first ask ourselves to define the ultimate higher-end intentions we want to demonstrate and experience, then the strategies, tactics and tools are more easily unveiled.
So what are the higher-end objectives? Responses typically include:
Expressing and Receiving Love
Promoting a sense of Well-Being
Living with Dignity
Think about the professionals and businesses serving you. In what way do their products and services contribute toward your experience of these higher-end aims?
Do the financial, accounting or legal products, plans and advice help to create safety, autonomy and dignity?
In what way does the move organizer and real estate agent support your feelings of connection and engagement?How do your home care or health care providers serve your sense of well-being?
Most importantly, do they even know that their products and services need to align with goals bigger and grander than just a plan or transaction? If not, do you need to find a business that does? Provocative questions.
Vision and Aging:
The normal functions of eye tissue deteriorate as people age. By age 65, 1 in 9 Canadians develop irreversible vision loss and this rises to 1 in 4 Canadians by age 75. The four most common causes of age-related blindness are:
- Age-Related Macular Degeneration
- Diabetic Retinopathy
According to the Canadian Association of Optometrists, vision loss in seniors has a significant impact on their quality of life. Persons with vision loss:
- Have four times as many hip fractures
- Are admitted to nursing homes three years earlier
- Experience three times the incidence of depression
- Experience twice the number of falls
- Have double the mortality rate.
Our aging population positions us for an emerging vision crisis. Eye health and vision care are essential to healthy aging and quality of life within our homes and communities. Education and preventative services are key to helping aging Canadians maintain healthy eyes and vision.
(Source: Better Vision for Seniors: A public health imperative)
Rhonda Latreille, MBA, CPCA
Founder & CEO
“I alone cannot change the world, but I can cast a stone across the waters to create many ripples.”
This newsletter was prepared by Roman A. Groch who is a registered representative of Investia Financial Services Inc. (a member of the Mutual Fund Dealers Association of Canada and the MFDA Investor Protection Corporation). This newsletter is not a publication of Investia Financial Services Inc. and the views and opinions, including any recommendations, expressed in this newsletter are those of Roman A. Groch alone and not those of Investia Financial Services Inc.
Investia Financial Services Inc. does not provide income tax preparation services nor does it supervise or review other persons who may provide such services.