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Our Two Cents
with TMFG
Your Monthly Update on Everything Going On in Your TMFG Financial World All in One Place. Ask TMFG videos, Our Podcast, Fun and Interesting Articles, Updates, Events and More.
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 FINANCE
Light Read – Useful and Relevant
Finance
New Account Coming To Canada In 2023: The First Home Savings Account
The Federal Budget in 2023 proposed to create the Tax-Free First Home Savings Account (FHSA), a newly registered account to help individuals save for their first home. As of January 2023, legislation has passed for this new investment account. However, the account will be available to Canadians on April 1st, 2023. Contributions to an FHSA would be tax deductible, and income earned in an FHSA would not be subject to tax. Qualifying withdrawals from an FHSA made to purchase a first home would be non-taxable.
To open an FHSA, an individual must be a resident of Canada and at least 18 years of age. In addition, the individual must not have lived in a home that they owned either:
· at any time in the year the account is opened, or
· during the preceding four calendar years.
The lifetime limit on contributions would be $40,000, subject to an annual contribution limit of $8,000. The annual contribution limit would be available starting in 2023. An unused contribution room can carry forward to the following year up to a maximum of $8,000.
Amounts are withdrawn to make a qualifying first home purchase and would not be subject to tax. Amounts withdrawn for other purposes would be taxable. Individuals would be limited to making non-taxable withdrawals concerning a single property in their lifetime. Any savings not used to purchase a qualifying home could be transferred to an RRSP or RRIF (Registered Retirement Income Fund) on a non-taxable transfer basis.
If you or your family believe that an FHSA could be right for you, speak with your advisor at The McClelland Financial Group.
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John Iaconetti B.A.S., Spec. Hons. Administrative Studies (Finance)
Financial Advisor
The McClelland Financial Group of Assante Capital Management Ltd.
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FINANCE
Light Read – Useful and Relevant
Finance
Do Your Survivors a Favour and Pass Away With a Will
Earlier this month I met with a client who shared the sad news that his father had passed away. Along with dealing with the emotional loss of a parent, he is now tasked with the distribution of his estate. The biggest issue being, locating his will.
The will is an important document. It allows the deceased person to provide directions after passing. Instructions include, but are not limited to, who will look after the distribution of assets, who gets what, who is responsible for caring for minors, etc.
Without such a document, there can be delays in settling the estate, not to mention misdirected assets.
In my client’s case, he was unaware of any will. However, after going through his father’s computer and other personal documents, there was evidence of the creation of one, or at least thoughts of, estate distribution. Following several days of unsuccessful searches, he initiated a search on the “Canada Will Registry”. This is a database where people can register their completed wills. People who choose to create their own will should register it on the registry. Those completed by a legal professional will already have been done.
My client is in the midst of his search, which is into its 2nd week -- thus, further delaying the process of distributing the estate. If the search reveals that there was no will registered, then the process of applying to the provincial court to be named as the “personal representative” or “estate trustee” must be initiated.
Upon appointment, my client will have to distribute the assets according to the intestacy laws in Ontario. They are as follows:
- if the deceased leaves a spouse, but no children, the spouse receives the entire estate
- if the deceased leaves a spouse and children, the spouse receives the first $200,000 and the spouse and children divide the remainder of the estate equally
- if the deceased leaves children but no spouse, the children divide the estate equally between them
- if the deceased leaves no children or spouse, the deceased’s parents inherit the estate
- if the deceased leaves no children, spouse or parents, the siblings of the deceased divide the estate equally between them (with the children of any sibling who has already died receiving their parent’s share)
- if the deceased leaves no children, spouse, parents or siblings, the nieces and nephews of the deceased divide the estate equally between them
- if the deceased leaves no children, spouse, parents, siblings or niblings, the estate of the deceased is divided equally by all other next of kin
- if the deceased has no next of kin at all, then the estate goes to the Ontario government.
Unless, you would like your estate to be distributed according to the intestacy laws or you don’t need immediate access to funds, then we strongly suggest having a will in place. It will save your loved ones the administrative headache and ensure that the appropriate people are gifted with what you intend.
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Carlo Cansino FMA, FCSI, CFP®
Senior Financial Planner
The McClelland Financial Group of Assante Capital Management Ltd.
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FINANCE
Light Read – Useful and Relevant
Finance
Mapping Your Aging Journey
On January 23, 2023, The McClelland Financial Group of Assante Capital Management Ltd. was pleased to host our monthly “lunch and learn” event with speaker was Sue Lantz, BA, MPA, the Founder and Managing Director of Collaborative Aging. www.collaborativeaging.com Sue is a trusted policy expert on healthy aging in place, educator and advocate, and the author of a guidebook called, Options Open: The Guide for Mapping Your Best Aging Journey © (https://optionsopen.org).
The topic was "Mapping Your Aging Journey" and the key themes of the presentation were based on the user-friendly Options Open handbook that helps older adults and their caregivers think through and arrange their aging journey as though they were planning a vacation - proactively and with curiosity.
Similar to travel planning, when planning is started earlier (e.g. in your 60s or early 70s) this allows time to envision ideas about where you will live, or how you will receive help during your later life. Using lead time wisely – you can be curious and jumpstart your navigation of aging related choices and plans. When you start with a positive attitude, you are not resisting aging. And, with this constructive approach, you can lead the important conversations with others and make decisions in your own way, at the right times.
Sue encouraged participants to envision their own model of aging in place, and to draw upon models they have known in their own lives. Drawing upon the model of her own grandparents, Sue highlighted aspects of their practical and holistic model that all of us can apply to our lives.
Sue also illustrated how to use Options Open five-strategy framework for making plans and taking action - over time - including:
1) Maintaining Your Best Health
2) Making Timely and Wise Housing Choices
3) Building and Maintaining Your Social Network
4) Selecting and Preparing Your Caregiving Team; and
5) Leveraging ALL of Your Resources
Participants were inspired about how they can view their own resources with a wider lens, including a wider array of more appealing options of housing and supportive services and care in the community. The session illustrated how early navigating and preparing in these five inter-related areas of life allows for more room for creativity, including getting the best advice from experts such as financial advisors, realtors, home care providers and more.
The final part of the presentation showcased some innovative ideas, models, and options for organizing inclusive housing and or care in the community on a collaborative basis. Below are a few of the links and enabling resources that Sue shared:
Sue’s organization offers similar community presentations, a workshop series, book club talks, and small group conversations on all of these topics. For more information, contact Sue Lantz at: [email protected]
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THINK SMART
Podcast – Listen to Mike and Rob and their latest thoughts and industry insights
Think Smart
Cash Solutions
Why your cash should be making money for you and not for your bank.
While interest rate hikes can be daunting for those who are carrying large amounts of debt they can be a boon to those who are holding funds in cash. Today on ThinkSmart Financial Advisors Rob McClelland and Mike Connon go in-depth on the topic of cash holdings. They will discuss various products from high-interest savings accounts, and GICs, to money market funds, short-term bonds, and more. What are the advantages and disadvantages of each, and how you might capture that extra interest that belongs to you?
LISTEN TO THE LATEST PODCAST
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Ask TMFG
Changes To Your Income Taxes in 2023
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Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and 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.
Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Please read the Fund Facts and consult your Assante Advisor before investing.
Certain employees of (TMFG Tax Service) maintain a relationship with Assante Capital Management Ltd. ("Assante") through which they sell investment products. The relationship that they have with Assante does not include tax preparation
services which (TMFG Tax Service) is solely responsible. (TMFG Tax Service) is not associated in any way with Assante, and Assante has no responsibility for the tax preparation services offered by (TMFG Tax Service).
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