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Federal fiscal update— budget an

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Federal fiscal update— budget an Powered By Docstoc
					                           This is a free eNewsletter brought to you by Christopher Young.
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                           and ideas to help you get the most out of life!


                           Canadian Market Place Summary
                           Strong Canadian Dollar:

                           The Canadian dollar is the strongest it has been against the US dollar in over 30 years. It traded
                           over $1.03 on Friday October 26, 2007. Some have been saying the Canadian dollar could
                           reach $1.05 and I have even heard as high as $1.12 before 2008 years end.

                           The Canadian dollar has risen around 20% this year against the US dollar. The highest the Ca-
                           nadian dollar has traded against the US greenback was $1.0614 back in 1957. Consider this, it
                           took $1.618 Canadian dollars to purchase one US dollar in 2002. This is great for Canadian
                           buying US goods. Some argue that we are not seeing these savings passed onto the shelves of
                           Canadian retailers.

                           Statistics:

                                         Population: 32,976,026
                                         Unemployment rate: 5.9%
                                         Inflation rate: 2.5%
                                         Prime interest rate: 6.25%
                                         Federal Debt: 481,499,000,000



                           Federal fiscal update— budget announced—Oct. 30, 2007
Other Booklets:            GST and Income tax cuts proposed by Flaherty
                           * GST will be cut an additional 1 per cent as of Jan. 1, leaving the federal consumption
• Will Booklet             tax at 5 per cent. Mr. Flaherty said the GST credit for low-income Canadians will remain
                           at its current level.
• Shopping for Life
  Insurance?               *Basic personal income-tax exemption will increase to $9,600 from the current $8,929.
                           As of January 1, 2009, it will increase again to $10,100 .
• Save Tax—be tax smart!
                           *The lowest personal income-tax rate will be reduced to 15 per cent from 15.5 per cent.
• Critical Illness

                           *The corporate income tax will fall by one percentage point for 2008, and will drop
• Long Term Care

                           * The mini budget will be voted on Wednesday
• Disability Insurance
                           October 31st, 2007.

                           * Nothing was mentioned with respect to the
                           capital gains tax cut on non registered accounts


       Visit us today at www.getcovered.ca or www.wisemoney.ca
Page 2
         Insurance Corner—make sure you reduce your risk



                            Should I Purchase Disability Insurance?
                            What is your most valuable asset?

                            It's not your house or car, but your ability to earn an income. You are an in-
                            come machine and if that machine breaks down how are you going to make
                            money and pay your bills? Protect the one's you love by protecting your in-
                            come.

                            If you were to become sick or injured, how would you pay your mortgage,
                            heat, hydro, cable and phone bills and not to mention the costs associated with
      “You are an income    getting back to health.
      machine and if that
        machine breaks      Please visit us at http://www.getcovered.ca/disability_income_insurance to get your free
       down how are you     personalized quote to protect your income today.
     going to make money
     and pay your bills?”
                            Guaranteed Life Insurance…
                            No Medical Life Insurance! No Doctor or Nurse will Visit!

                            If you are between 25 and 75, you can apply for Guaranteed Life Insurance.
                            Guaranteed Life is for Seniors and the Hard-to-Insure for the same low rates as
                            our other plans.

                            We specialize in getting insurance for Seniors, People who have been de-
                            clined, hard-to-insure, and/or are classified as high risk. We know which com-
                            panies favor certain conditions, which medical advisors to use and how to pre-
                            pare the application so that you can get favorable results.

                            Get Your free Guaranteed Life Insurance Quote Now!

                            Please visit us at http://www.getcovered.ca/guaranteed_life_insurance to get your free
                            personalized quote to protect your income today.




         Visit us today at www.getcovered.ca or www.wisemoney.ca
Page 3
                          Year End Tax Planning Checklist for 2007
    In a country like Canada, where taxes can be almost 50% of your taxable income, saving taxes should al-
    ways be a priority.

    There are last minute strategies that can be implemented each year to save tax. As the end of the year quickly ap-
    proaches, consider the following strategies to reduce taxes for 2007.

    •     Review the makeup of your portfolio. Consider the type of income, if any, you’ve earned on your portfolio
          outside of your RRSP or RRIF this year. If you’ve earned interest income, which is highly taxed, consider re-
          structuring your portfolio so that it is more tax efficient in 2008.

    •     Review your outstanding debt. Is the interest cost on your debt deductible for tax purposes? If not, and if
          you have investments outside an RRSP or RRIF, consider liquidating some of the investments (calculate
          the tax cost first) and use the proceeds to pay down the debt. Then re-borrow to replace the investments.
          This may set you up for an interest deduction for 2008 since your interest cost on the new debt may be de-
          ductible.

    •     Observe investment deadlines for 2007. If you hope to sell an investment at a loss this year to apply the
          loss against capital gains, the settlement date (not the trade date) on the sale will have to fall in 2007. To en-
          sure this happens, you’ll have to initiate the sale on or before Monday, December 24, 2007 (for Canadian
          stock markets). If you wait until December 24, initiate the sale early that day since most stock markets may
          close early that day too.

    •     Time the purchase of certain investments. If you’re planning to invest in an interest-bearing security (like
          a guaranteed investment certificate (GIC)) that has a maturity of one year or longer, consider waiting until
          the new year before making the investment. By waiting, you won’t have to pay tax on any accrued interest
          until 2009 - the year of the first anniversary of the investment. Also, consider waiting until early 2008 to pur-
          chase any mutual funds that are expected to make taxable distributions before the end of 2007. You’d hate
          to pay tax sooner than necessary.

    •     Trigger accrued losses before year end. If you have realized capital gains this year, or in one of the three
          prior year (2004, 2005, or 2006), consider selling any investments that have dropped in value in order to ap-
          ply the capital loss against those capital gains. Capital losses must be used to offset gains in the current
          year first, but excess losses can then be carried back up to three years or forward indefinitely.

    •     Close out option contracts with losses. If you close out option contracts with accrued capital losses be-
          fore year-end, you’ll be able to utilize those losses to offset realized capital gains this year, or in 2004, 2005,
          or 2006.

    •     Donate securities to charity. Making a donation by year-end will provide you with a tax credit for 2007. If
          you’re considering disposing of certain publicly traded securities anyway, think about donating those securi-
          ties to a public or private charity. Any resulting capital gain on securities donated are not subject to tax and
          you’re entitled to a donation receipt for the full donation. A donation of appreciated securities can now make
          far more tax sense than a straight donation of cash.


    •     Contribute to your RRSP. Your have until Friday, February 29, 2008 to make a contribution to your RRSP
          that will entitle you to a deduction on your 2007 tax return. Make that contribution sooner rather than later, in
          order to get your money working for you inside the RRSP as soon as possible. Even if you’re not sure which
          investments to buy, contribute to your RRSP and “park” the cash until you’ve make a decision about what to
          invest in.

    •     Reduce unused RRSP contribution room and consider borrowing to contribute,

    •     For a full list of tax savings strategies email: cyoung@berkshire.ca


         Visit us today at www.getcovered.ca or www.wisemoney.ca
Page 4
          Investment Corner—How Do the Numbers Look?
              Leading Indexes October 25, 2007
                       Jan 01, 07       Oct 25, 07         YTD% Change
TSX                        12,908        14,132.820             9.1%
TSX Venture                2,987          3,045.680             1.1%
DJIA                       12,463        13,671.840             9.7%
NASDAQ                     2,415          2,767.690             14.9%
S&P 500                    1,148          1,516.670             6.9%
                                                                                        Bonds: Offering Subject to change in price or prior serving.
              T-Bills And Short Term Rates                                                           As of September 30, 2007
 Source                             Maturity                  Yield            Source                     %            Maturity           Price           Yield
 Manulife Bank                       Open                     4.10%            Gov’t Can.                2.750         2007/12/01         99.861          3.838
 Altamira Cash                       Open                     4.00%            Provincials               5.000         2007/12/16     100.660             4.395
 T-Bill                             37 Days                   3.78%            Municipals                6.250         2011/11/17     111.423             4.804

 T-Bill                             65 Days                   3.78%            Bell Can.                 6.250         2008/01/18     100.350             4.524

 T-Bill                             93 Days                   3.75%            HBSC                      4.500         2008/07/02         99.778          5.041

 T-Bill                             345 Days                  4.20%            Encana                    3.600         2008/09/15         99.035          4.881

 All rates as of September 30, 2007. rates can be changed on a daily basis.    Scotia Bank               4.260         2008/04/07         99.786          4.724
 (Source: National bank Financial , Altmaria, Maulife Bank.
                                                                               Shoppers Drug             4.970         2008/10/24     100.048             5.031
  GIC Rates: Offering Subject to change in price or prior serving.             CIBC                       LIFE 20008/01/21
                                                                                                         4.750 INSURANCE100.192                           4.419
 AGE                        1 YR        3 YR          5 YR           MIN        AGE           $100K              $200K           $300K             $500K
 B2B Trust                  4.470       4.550         4.750        $1000         25           $8.37              $10.44          $10.17            $11.70
 Montreal Trust             4.300       4.600         4.700        $1000         30            $9.00             $11.34          $11.25            $12.60
 Bank of N.S.               4.300       4.650         4.700        $1000                       $9.81             $12.96          $13.14            $15.75
                                                                                 35
 Citizens Bank              4.000       3.750         4.000        $5000                      $11.70             $15.84          $21.51            $27.45
                                                                                 40
 M.R.S. Trust               4.600       4.600         4.650        $2500
                                                                                 45           $15.03             $19.98          $21.51            $27.45
 Laurentian Bank            4.470       4.700         4.750        $1000
                                                                                 50           $17.73             $25.20          $28.26            $41.40
 Canada Trust               4.300       4.650         4.800        $5000
                                                                                 55           $18.18             $31.86          $45.54            $71.10
 TD Mortgage                4.300       4.650         4.800        $5000
                                                                                 60           $26.37             $48.24          $70.11            $111.15
 MAXIMUM RATE               4.600       4.700         4.800                    Monthly rates from Compulife– based on Pref + non-smoking Female—September 30,
              All Rates Subject to Change Without Notice, E & OE                                          2007 Rates subject to change

                                      Mutual Fund % Performance as of September 30th 2007
                                                                                                                                                    Since Incep-
                                                 Type                SubType           YTD      1 Year        2 Year        3 Year        5 Year
                                                                                                                                                        tion

AGF China Focus Class                       Equity            Geographic         40.9         92.8        52.6            37.0       31.2          9.7
AGF Global Real Estate                      Equity            Real Estate        -13.9        1.7         11.4            13.3       12.3          8.3

AIC Advantage                               Equity            Anch Eq            1.0          11.0        15.3            16.3       13.9          12.0
Fidelity True North Sr B                    Equity            Cdn Eq             12.7         24.5        16.5            20.8       18.3          13.2
iShares Canadian Bond Index                 Fixed Income      Core               0.6          1.2         2.5             4.6        5.3           6.2
Mac Cundill Value Series C                  Equity            Global Eq          0.0          5.7         6.0             9.7        12.3          12.8

Sprott Gold & Precious Minerals             Equity            PrecMetals         -10.9        2.6         25.4            16.7       21.4          31.9
TD Canadian Bond A                          Fixed Income      Core               -0.5         -0.2        1.1             3.6        5.0           5.7
TD Real Return Bond A                       Fixed Income      Inflation          -1.6         -3.2        -1.3            3.2        5.9           6.8

Trimark Fund SC                             Equity            Global Eq          -5.5         9.6         12.3            9.9        7.9           13.9

All returns are historical annual compounded total returns as at {Month day year} including changes in unit value and distributions revisited. Returns
do not take into account sales, redemption, distribution reinvested. Returns do not take into account sales, redemption, distribution or optional charges
or income taxes payable by any security holder that would have reduced returns. Commissions, trailing commissions, management fees and expenses
may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance many not be
repeated. Before investing, read the fund com pany's simplified prospectus. Obtain a copy from your Financial Advisor.



          Visit us today at www.getcovered.ca or www.wisemoney.ca
  Page 5



                                      Should every Canadian own a real estate
                                      fund
                                      Most Canadians remember the real estate market in the late 80s as a period
                                      when there seemed to be no end to the rise in property values. Then the 90s
                                      came and went with relatively flat pricing throughout the real estate market.

                                      Global property stocks on the other hand dramatically outperformed the Canadian
                                      housing market during this time. While certain North American markets may have
                                      peaked, global real estate funds continued to be heavily invested, specifically
                                      those containing commercial properties.

                                          - As foreign economies grew, so did rent and property values

                                          - More countries such as France, UK and Germany are adopting                                        the tax-
                                            efficient REIT structure, allowing greater growth potential.

                                      Investing in a real estate fund allows the investor to take advantage of both an in-
                                      come producing vehicle and the appreciation of property values.

                                      Talk to us about whether a real estate fund would reduce risk in your
                                      portfolio.



                                  Mutual Fund % Performance to September 30, 2007

                                                                                                                                               Since
                                                 Type        SubType           YTD        1 Year      2 Year        3 Year       5 Year      inception

                                                                Real           -13.9        1.7         11.4         13.3          12.3          8.3
AGF Global Real Estate Equity                   Equity
                                                               Estate
                                                                Real            0.2         12.2        15.6         19.0          16.6          9.6
CIBC Canadian Real Estate                       Equity
                                                               Estate
                                                                Real           -0.5         9.9         15.0         17.5          17.4         10.1
Dynamic Focus & Real Estate                     Equity
                                                               Estate
                                                                Real            2.9         9.5         14.8         19.5            -          17.9
iShares CDN REIT Sector Index                   Equity
                                                               Estate
Mac Universal World Real Estate                                 Real           -23.2        -8.4         7.0          9.3          12.2          9.7
                                                Equity
CI                                                             Estate


All returns are historical annual compounded total returns as at {Month day year} including changes in unit value and distributions revisited. Returns
do not take into account sales, redemption, distribution reinvested. Returns do not take into account sales, redemption, distribution or optional charges
or income taxes payable by any security holder that would have reduced returns. Commissions, trailing commissions, management fees and expenses
may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance many not be
repeated. Before investing, read the fund com pany's simplified prospectus. Obtain a copy from your Financial Advisor.


           Visit us today at www.getcovered.ca or www.wisemoney.ca
Page 6
                                                Tax Related Section
          Registered Savings Plan (RSP)                                                            Withholding Tax Rates for
               Contribution Limits                                                                   RSP/RIF Withdrawals
     18% of Earned Income to a Maximum of:
                                                                                    Amount               Provinces                   Quebec                   Non-
          Year                        Maximum RSP Contribution                    Withdrawn                                                                 Residents
                                                                                 in Excess of                                                              Living in U.
          2005                                          $16,500                    Minimum                                                                  K. or U.S.
          2006                                          $18,000                                                                  5% federal +
          2007                                          $19,000                  Up to $5,000                 10%                16% provin-                     25%
                                                                                                                                     cial
          2008                                          $20,000
                                                                                                                                10% federal +
                                                                                   $5,001—
          2009                                          $21,000                                               20%                16% provin-                     25%
                                                                                    15,000
                                                                                                                                    cial
          2010                                          $22,000
                                                                                                                                15% federal +
          2011                      Indexed to increases in the Aver-           $Over 15,000                  30%                16% provin-                     25%
                                          age Industrial Wage                                                                       cial
              Lifelong Learning Plan (LLP)                                                         Home Buyer’s Plan (HPB)
Requirements                                           Details
                                                                                Requirement Quebec withholds tax on all withdrawals               Details
                               The client, client’s spouse or part-
                               ner must be enrolled fulltime (part-                                                             Cannot have lived in a home
                               time for disabled students) before                                                               owned by the client, the cli-
                               March 1 of the year following the                                                                ent’s spouse or partner be-
Eligibility
                               year of first withdrawal, in a qualify-          Eligibility                                     tween January 1 of the fourth
                               ing educational program of at least                                                              year before the year of with-
                               three months duration with 10+                                                                   drawal, and the 31st day be-
                               hours weekly course work.                                                                        fore the withdrawal.
                               $10,000 per year to a maximum of
Limits
                               $20,000 over four years
                                                                                Limits                                          $20,000 per participant
                               1/10th per year, with the first repay-
                               ment due 60 days after the fifth
                               year following the first withdrawal.                                                             1/15th per year beginning the
Repayments                     Repayments may commence in the                                                                   second year following the
                               second year following the with-                  Repayment                                       year of withdrawal, payable
                               drawal, if the course is completed                                                               by 60 days into the following
                               in the year of withdrawal.                                                                       year.
              Any amount that is not repaid will be added to taxable income.                    Any amount that is not repaid will be added to taxable income.


                                                                   Federal Tax Brackets & Rates
          2005 Income                                                Rate                     2006 Income                                           Rate
              $0-35,595                                            15.00%                     $0 - 36,378                                         15.25%
         $35,596 - 71,190                                          22.00%                $36,379 - 72,756                                         22.00%
       $71,191 - 115,739                                           26.00%                $72,757 - 118,285                                        26.00%
      $115,470 and over                                            29.00%                $118,286 and over                                        29.00%

All returns are historical annual compounded total returns as at {Month day year} including changes in unit value and distributions revisited. Returns
do not take into account sales, redemption, distribution reinvested. Returns do not take into account sales, redemption, distribution or optional charges
or income taxes payable by any security holder that would have reduced returns. Commissions, trailing commissions, management fees and expenses
may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance many not be
repeated. Before investing, read the fund com pany's simplified prospectus. Obtain a copy from your Financial Advisor.


           Visit us today at www.getcovered.ca or www.wisemoney.ca
Page 7
                                  Know Your Advisor
Christopher Young, CFP CH.F.C. CIM CLU RHU B.A.A. has a long list of professional designations behind his
name. As a Certified Financial Planning licensee, Mr. Young’s value goes far beyond just recommending stocks, mu-
tual funds and life insurance products. Mr. Young provides professional and unbiased advice to help his clients
achieve financial success. He is 100% committed to superior service and takes pride in helping individuals, families
and businesses achieve their goals.

    · (CFP) - Certified Financial Planner

    · (CH.F.C.) - Chartered Financial Consultant

    · (CLU) - Chartered Life Underwriter

    · (RHU) - Registered Health Underwriter

    · (CIM) - Canadian Investment Adviser

    · Dedicated to the highest level of providing financial advice on matters such as: Investments, Insurance, Tax and
        Estate planning, etc.

    · As a Chartered Financial Consultant, Chris provides advanced knowledge in wealth accumulation and retire-
        ment planning. Comprehensive financial planning taking into consideration life insurance, wealth accumula-
        tion and estate planning objectives.

    · As a Chartered Life Underwriter and Registered Health Underwriter, Chris is an expert in the fields of life, health
        and group insurance and annuities.

    · Specialist in areas of insurance such as: disability, life, critical illness, long term care, etc. There are three risks
        that could cause financial loss - disability, death, and old age.

    · Has written numerous articles on various investment and insurance concepts and strategies.

    · Able to offer a wide range of investment and insurance products.

    · He is a specialist and able to offer technical expertise on many topics which include, but are not limited to; com-
        prehensive financial planning, investment portfolio design and implementation, tax smart investing strategies,
        annual tax planning, estate planning, sale of investments and insurance products, etc.




Christopher Young, CFP                  CH.F.C. CIM CLU RHU B.A.A.
Financial Advisor—Berkshire Securities Inc.
Certified Financial Planner—Berkshire Insurance Services Inc.
1410 – 5001 Yonge St. Toronto, Ontario M2N 6P6
Phone: 416-628-5762
Fax: 416-628-5771
Email: cyoung@berkshire.ca
                                             Web Page: www.getcovered.ca




         Visit us today at www.getcovered.ca or www.wisemoney.ca

				
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