There are two certainties in this world:
Death and Taxes.

Knowing that these things will eventually happen, it only makes sense to plan for them. A common misconception is that financial planners can only help with one, taxes. However, there are many things that can be done to help plan for a “successful” death.

At The McClelland Financial Group, we understand the importance of accumulating family wealth and ensuring it benefits your intended loved ones when you are gone. However, we have experienced enough instances where the distribution of assets does not occur as smoothly as envisioned. Therefore, we have implemented the “Family Meeting”.

The best way to ensure a smooth transition is through communication. One of the key components of good communication is to be alive. This presents the main issue with wills. It is communication after you are dead. Now that we have identified the issue, what is the solution? -- Have the communication occur when everyone is alive and in good mental health! This way, we can discuss the reasons behind any decisions, rather than have everybody jump to their own conclusions. An open discussion is much more desirable than bitterness. In our experience, most decisions in a will come from love trying to protect children, but when they pass, they may be perceived as favouritism or distain for somebody.

Other issues to consider are estate taxes and the equalization of distribution complicated by timing. A Family Meeting can help avoid any or all of these issues at a time when families should be focusing on their loved ones and not their loved one’s assets.

Speak to one of our advisors today for more information or to schedule your Family Meeting.

Michael Connon, B.Sc, CFP® Senior Financial Planner, Co-Branch Manager Certification in Estate Planning and Trust Strategies The McClelland Financial Group of Assante Capital Management Ltd.

Millennial Corner – Best Money Practices

Seeing as many of my clients are Millennials, I thought I would take some time to discuss some best money practices that I have come across in my career. Many of these best practices answer a lot of the questions that I get asked in my client meetings so this might be an article to save to your favourites if you are reading.

There are of course different stages of money practices. At the beginning we will make a good money decision which, at the end, could have been a better money decision. For example, to start off we might begin saving 5% of our after-tax income when we really could have pushed ourselves to save 10 or 15% of our after-tax income. This leads me to my first best money practice.

1. Always pay yourself first and ensure you increase the percentage of savings versus income each year.
2. Track your in-flows and out-flows with a budget. This will help you determine how much you really can save. I personally use the Mint App, give it a try.
3. Automate your savings so that you don’t have to think about it.
4. Ensure you increase your savings each year by inflation, at least.

All this talk about savings, you’re probably wondering where to put it. Should I accumulate it all in cash for a rainy day? Should I take on unnecessary risk and invest in individual stocks? What type of account do I even invest it in? See below for some guidance.

1. Utilize a Tax Free Savings Account (TFSA) to ensure your hard earned money is sheltered from future tax.
2. If your annual income is in a high enough tax bracket, you should consider maximizing a Registered Retirement Savings Plan (RRSP) which is also tax sheltered and provides you with a tax deduction.
3. Invest your savings in a diversified portfolio while meeting the needs of your individual risk tolerance and time horizon.
4. If your employer offers a Group RRSP matching program, take full advantage and maximize.

Once you determine how much to save and where to save it. There are also some general best money practices that are just as important.

1. Always use a professional. For example, a tax professional to file your taxes and a lawyer to prepare your will and powers of attorney.
2. Ensure your insurance coverage is sufficient to protect your outstanding debts, health and income – as it is your most important asset!
3. If you have any debts, pay down the highest interest debt first.
4. Give to charities. It not only is a feel good but is a tax credit as well.
5. Don’t wait. Start now!

I hope this provides some guidance and that you will be able to implement some of these best practices into your life. If you need any clarification or further guidance, please don’t hesitate to reach out to us at The McClelland Financial Group. We are always here to help.

Chelsey Chartren, B. Com Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

Look Away From Volatile Markets

With the market moving up and down like a see-saw, your best defence is to shift your focus away from your portfolio.

Consider focusing on your financial plan. Are you staying in line with your spending? Is there opportunity for additional savings? Can you use surplus funds to pay down debt? These are the types of practices that you have control over and should keep your attention.

If you are wasting time poring over the market news, stop it! Use that time more efficiently. Read your book. Go for a walk. Spend time with your kids.

Do anything that makes you happy because your time is better spent doing that then worrying about something that you cannot control. Nor does it have any bearing on how successful you will be in retirement.

When it comes to investing, there are no certainties. But what we can guarantee is a more enjoyable investment experience by taking this advice.

Carlo Cansino, FMA, FCSI, CFP Senior Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

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Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and is registered with the Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

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