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					   #405 2963 Glen Drive, Coquitlam, BC V3B 2P7 Phone: (604) 468-0888 Fax: (604) 468-0887
   #405 --2963 Glen Drive, Coquitlam, BC V3B 2P7 Phone: (604) 468-0888 Fax: (604) 468-0887                               Quarterly - July 2004
                                                                                                                       Quarterly- October 2006



                                              Making the Most of your
                                               Charitable Donation

                                        T
                                                  here is a lot of buzz in the financial in 50-50, clients with stock that has increased dra-
                                                  dustry about the new tax strategies for matically in value, can benefit by donating 50%
                                                 charitable donations. The strategies result of the holding they want to liquidate (turn into
                                        from recent changes made in the federal budget cash) to charity, and keep the proceeds of the
Harry Perler, CFP      Anita Perler     which eliminated the Capital Gains Tax (the tax sale of the other 50%. For example, John bought
         Senior Partners
                                        charged on the profit from the sale of an asset stock for $20,000 and over time, it increased in
                                        purchased at a lower price) on donations of value to $100,000. John needs some extra cash,
                                        publicly listed securities (stocks, mutual funds, and decides to sell this highly appreciated hold-
          VISIT US
                                        bonds & stock options) that were gifted to ing. If he were to sell the shares outright, he would
       ON THE WEB                       charity. Previously, only 25% of the capital gain owe about $18,000 in taxes because he is in the
                                        on a gift of stock was treated as taxable income. top tax bracket. Instead, John decides to imple-
                AT
                                        According to Minister of Finance Jim Flaherty, ment this new tax strategy. By donating 50% of
                                        the elimination of the Capital Gains Tax on do- his shares, John receives a charitable tax credit
  www.perlerfinancial.com
                                        nations will help establish a charitable donations which he can then apply to his income tax, all but
                                        pool of approximately 300 million dollars an- eliminating the amount of income tax he owes.
                                        nually; however, some industry experts believe        The second tax strategy for charitable
             EMAIL                      giving in securities will reach upwards of one giving, is Creative Cash Flow. In this strategy, cli-
                                        billion dollars this year.                     ents finance their charitable giving by using their
     info@perlerfinancial.com
                                                For those who plan to give to charity, stocks, which are untaxed assets rather than cash,
                                        there are three strategies to help maximize the which is subject to income tax. Instead of selling
   Mutual funds provided through        effectiveness of your gifts: the 50-50, Creative
                                                                                                                                        Cont’d on page 2
Worldsource Financial Management Inc.   Cash Flow, and Employee Stock Options. In the



         hat ’s
                                        TOPICS                                                                                               PAGE
                                        Making the most of your Charitable Donations ............................................ 1

       W                                Charitable Donations Cont’d ...................................................................... 2


         nside
                                        July Quarterly Draw Winner ........................................................................ 2
                                        Fun in the Sun! ........................................................................................... 3

       I                                Mortgage Renewal ...................................................................................... 4
                                        Mortgage Rates .......................................................................................... 4
     PAGE 2                                                                                                                    JULY 2006

                                                            HARR Y & ANITA PERLER
                                                            HARRY    ANITA
                                   PERLER FINANCIAL GROUP      WORLDSOURCE FINANCIAL MANAGEMENT INC.



shares you believe will have future potential, you can donate them       After repaying the company the $800 it cost to originally purchase
to charity, realize the tax savings, get the tax receipt, and repur-     the shares at $8/share, he is left with a $200 profit. Since the new
chase the identical shares on the open market. Not only does this        budget eliminated the Capital Gains Tax, Bob can now donate
allow you to get the tax credit for the donation, you do not have        the $1000 in shares to charity without being taxed on the $200
to pay Capital Gains Tax on the sold shares.                             profit. Furthermore, Bob receives a $1000 tax receipt for his
          Before explaining the final tax strategy, Employee Stock       donation.
Options, there are a two terms worth defining: employee stock                   If you are planning to make any charitable donations this
option, and cashless exercise. An employee stock option gives an em-     year, why not make the most of them by taking advantage of
ployee the ability to exercise (buy) a certain number of shares of       these new tax strategies? Be sure to consult your financial planner
the employers’ stock at a specified price, for a certain period of       first to ensure you implement these strategies correctly, and to
time. A cashless exercise involves borrowing enough money from           maximize your tax savings.
your broker to exercise your employee stock options, then, selling
enough shares to repay the broker (including taxes and fees). Sim-                             Thank You!
ply put, a cashless exercise allows an employee to buy the com-
                                                                                Thank you for all the referrals. A referral from you
pany shares without using cash. It is similar to a buy now, pay later            and your continued business are the highest compli-
policy.                                                                                      ments I could ever receive!
           The Employee Stock Options strategy makes it pos-
sible to give cash derived from the exercise of options. In this
scenario, employees with cashless exercise stock options can donate
to charity on the same tax preferred basis. Prior to the budget               July 2006
changes, the company’s brokerage bought the shares on behalf
of the employee at the option price, sold the shares back to the             Quarterly Draw
                                                                               Winner!
open market, and gave the employee a cheque for the difference.
The cash was then taxed as a capital gain. Now, the employee is
allowed to donate the cash proceeds from the sale of the shares
to charity. As this process is now a rollover, there is no tax on the
gift portion.
                                                                             Congratulations to the winners of our
          The following is an example of how employee stock                       July 2006 Quarterly Draw,
options and cashless exercise work. Bob is an employee that works               Nancy & Bernie Slothouber!!
for company X. He has stock options which allow him to pur-
chase shares in the company at a price of $8/share. Bob decides            Nancy & Bernie are the lucky recipients
to exercise his stock options (takes the employer up on the offer                  of a lovely basket from
to buy stock at $8/share). Bob wants to buy 100 shares; however,               Presence- Distinctive Gifts & Designs
he does not have the $800 it would cost to purchase the shares.
                                                                            filled with delicious summer treats.
What Bob has to do to purchase the shares without having any
money is engage in a cashless exercise. In this transaction, Bob
buys the stock on paper (a purchase without the exchange of                  Our next draw is October 2006
money) and then sells the shares at market value, which is currently
$10/share. By selling his 100 shares for $10/share, Bob has $1000.                       Good luck!
   JULY 2006                                                                                                            PAGE 3

                                                         HARR Y & ANITA PERLER
                                                         HARRY    ANITA
                                  PERLER FINANCIAL GROUP     WORLDSOURCE FINANCIAL MANAGEMENT INC.




                                            Fun in the Sun!

W      ith the kids out of school, and the good weather
       finally on its way, it is time to figure out what to do
this summer. To help you make these decisions, here are a
                                                                             some of the best gelato and ice cream in town. Stay
                                                                             a little later in the evening and you can catch a spec-
                                                                             tacular sunset. Sunny and scenic White Rock Beach
few of our favorite things to do around the Lower Mainland.                  is a definite summer must!
                                                                         •   Looking for a family vacation, but don’t want to travel
     •   For those hot sunny nights, why not cool down with                  too far? Check out one of the Okanagan’s most popu-
         a Bellini and relax on the patio? With a fun beach                  lar vacation destinations: Penticton. Penticton’s two
         themed patio and nightly drink specials such as                     pristine lakes, Lake Okanagan and Lake Skaha, are
         Margaritas, Bellinis, and Martinis, Earls in Port                   a mecca for watersports, including waterskiing,
         Coquitlam is one of our favorite places to dine.                    windsurfing, sailing, and boating. If you are looking
     •   For the latest and greatest movies, why not check                   for something a little more relaxing, you can spend
         out the Lower Mainland’s only Drive-in Movie the-                   hours floating down the Okanagan River Channel
         atre? This brand new facility is located on the Fraser              on a tube. Penticton plays host to many cultural and
         highway in Aldergrove. The Twilight Drive-in shows                  international events and festivities throughout the
         two movies nightly, and offers a bonus feature on                   summer. With an outdoor mini-golf course, go-karts,
         Friday and Saturday nights. You can watch the mov-                  movie theatre, casino and local winery tours,
         ies from the comfort of your car, or you can bring                  Penticton offers something for everyone.
         your lawn chairs and blankets, and watch the mov-               •   If you like the great outdoors, then Whistler is the
         ies under the stars. For more information, check out                place to be! Although it is renowned for its world-
         their webpage at www.members.shaw.ca/                               class ski hills, Whistler also offers an assortment of
         twilightdrivein                                                     summer activities, including, zip-treking, river raft-
     •   If you like to lie on the beach, build sandcastles, and             ing, ATV tours, hiking, and bike trails. If you like
         go for a dip in the water, then White Rock Beach is                 breathtaking scenery, then take the gondola up to
         just the place for you. Bordering Semiahmoo Bay,                    the top of Whistler mountain. After a hard day of
         White Rock beach offers kilometers of sandy beach,                  play, you can dine in 5 star restaurants, relax in one
         a 1500 foot long pier to walk down, and weather                     of many of Whistler’s spas, or shop in the villages
         conditions ideal for windsurfing. Across from the                   boutiques and stores.
         beach are streets lined with gift shops, specialty stores,
         fish’n’chips stands, and restaurants. You can also get          We hope you all have a fun-filled summer!




                                              New Service!
 I n an effort to continually enhance the level of service
   we provide, Perler Financial Group is pleased to
 announce an addition to our service lineup. Lavinra Joseph,
                                                                      Group’s mortgage representative, will work closely with
                                                                      you to help find the mortgage that meets your needs.
                                                                      We encourage you to give Lavinra a call at anytime to
 who has been part of Perler Financial Group for more                 secure your rates for a mortgage pre-approval on a new
 than six years, is a licensed mortgage broker and is look-           home purchase or mortgage renewal.
 ing forward to providing you with unbiased advice and                      We once again thank you for your continued
 the best available rate for your mortgage.                           patronage and referrals to our firm and look forward to
       We do hope that you take advantage of this new                 continuing to work closely with you in the future.
 service available to you. Lavinra Joseph, Perler Financial           Harry Perler, CFP
      PAGE 4                                                                                                                      JULY 2006


                                                              HARR Y & ANITA PERLER
                                                              HARRY    ANITA
                                     PERLER FINANCIAL GROUP       WORLDSOURCE FINANCIAL MANAGEMENT INC.




                                      Mortgage Renewal
                                           Money Saving Tips to Remember!


F    or most Canadians, when they receive that renewal
    notice in the mail, the easy thing to do is just sign it and send it
back. But think twice before doing so. Lenders count on up to
                                                                           idea to get a head start at looking at your options. While most
                                                                           lenders will send out their renewal agreements approximately 30-
                                                                           days before your mortgage matures, a mortgage broker can lock
70% of renewers just signing the form and sending it in. Before            in interest rates for you up to 120 days before the maturity date.
accepting your current lender’s interest rate and terms, have your         This provides you flexibility in that you are guaranteed today’s in-
situation reviewed. Chances are things have changed and another            terest rates; if rates fall, you will get the lower rate and if they
lender will give you what you want at a rate you want.                     increase you are protected.

Mortgage renewal time is a great opportunity to ensure you have            In many cases, switching your mortgage can be very beneficial;
the right mortgage for your present needs. Since the mortgage is           however, sometimes it pays to stick with your current lender. Have
open at this time, it is also a great opportunity to pay down your         your mortgage broker review your current situation- he/she will
mortgage. Even if this is just a small amount, the additional pay-         let you know if its best to stay with your current lender or switch
ments towards the principle on your mortgage will have a signifi-          to a better deal, all at no cost or obligation to you!
cant impact on the interest you will end up paying over the life of
your mortgage. Another thing to consider changing is the fre-
quency of the mortgage. If your circumstances have changed and
you are now able to handle a bi-weekly or even weekly mortgage,
now is a great time to increase your frequency from the regular
monthly payments. The increase in frequency will trim years off
                                                                           Mor tgage Rate Update
                                                                               tga
                                                                           Mortg     Ra   Update
of your total amortization period and again, save you interest.
                                                                                                  Lavinra Joseph
                                                                                                 Mortgage Broker
Another option is if at renewal, rates are lower than the rate you                             Perler Financial Group
just had, yet you are comfortable making your current payments,                             Commonwealth Mortgage Corp
keep your payments the same at the lower rate. These prepay-
                                                                                                    Direct 604.468.0815
ments will go a long way towards shortening the length of your
                                                                                             E: ljoseph@perlerfinancial.com
mortgage.

In many cases, the renewal rate will be lower than your current
rate; however, this lower rate may be with a different lender. This              Term                   Closed                  Open
is where a switch comes in. A switch is simply the transfer of a
mortgage in the same or lesser amount of the current principal to              6 Months                 5.75%                   8.15%
a different lender. There are several reasons why people switch                1 Year                   5.20%                   8.40%
their mortgages, but a lower interest rate is usually the main one.
                                                                               2 Years                  5.72%
When you switch your mortgage, the new lender transfers over                   3 Years                  5.64%
your current mortgage balance and the remaining amortization                   4 Years                  5.61%
period on that mortgage. Your new mortgage payments are then                   5 Years                  5.62%
based on theses figures, but with the current interest rate offered.           7 Years                  5.78%
Switching also creates an opportunity to refinance at the same time.
Many lenders will permit you to refinance up to the original                   10 Years                 5.99%
mortgage amount, while others have limits between one – four
thousand dollars.
                                                                            Rates as of June 30 2006
                                                                            Rates are subject to change at any time without notice.
Get a head start
                                                                            Please contact my office for current rates.
While you may not wish to renew your mortgage early, it is a good           Lender and/or broker fees may apply

				
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