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Families

BC Finance Minister Carole James delivered the province's 2017 budget update on Sept. 11, 2017. The budget anticipates a surplus of $46 million for the current year, $228 million in 2018-2019 and $257 million in 2019-2020. As a result of the provincial election on April 11, 2017, the measures previously announced were not fully enacted.

BC Finance Minister Carole James delivered the province’s 2017 budget update on Sept. 11, 2017. The budget anticipates a surplus of $46 million for the current year, $228 million in 2018-2019 and $257 million in 2019-2020. As a result of the provincial election on April 11, 2017, the measures previously announced were not fully enacted.

Here’s the new budget proposals: 

Corporate Income Tax Measures

  • Effective January 1, 2018, there will be an increase to the general corporate income tax rate from 11% to 12%.

Personal Income Tax Measures

  • Effective for 2017, there is an introduction of a new top personal tax bracket set at $150,000 for 2018. Taxable income exceeding $150,000 will be taxed at 16.8%.

Medical Services Plan Premiums

  • Effective Jan 1, 2018: 50% MSP premium reduction for households with annual net incomes up to $120,000.

Firefighter & Search & Rescue Volunteer Tax Credit

  • Introduce a new- non refundable volunteer firefighter and search and rescue volunteer tax credit.

Electricity- Provincial Sales Tax Act

  • Phase out provincial sales tax on taxable electricity.

Property transfer tax

For first time home buyers to save property transfer tax on the purchase of their property the partial exemption has been increased to $500,000 from $475,000.

To learn how these changes will affect you, please don’t hesitate to contact us. 

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Finance Minister Bill Morneau delivered the government’s 2017 federal budget on March 22, 2017. The budget expects a deficit of $23 billion for fiscal 2016-2017 and forecasts a deficit of $28.5 billion for 2017-2018. Learn what the budget means for families.

Finance Minister Bill Morneau delivered the government’s 2017 federal budget on March 22, 2017. The budget expects a deficit of $23 billion for fiscal 2016-2017 and forecasts a deficit of $28.5 billion for 2017-2018. Find out what this means for families.

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BC Finance Minister, Michael de Jong delivered the province's 2017 budget on Feb. 21, 2017. Learn what the budget means for small business owners and individuals.

BC Finance Minister Michael de Jong delivered the province’s 2017 budget on Feb. 21, 2017. The budget anticipates a surplus of $295 million for the current year, $244 million in 2018-2019 and $223 million in 2019-2020.

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In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance. Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract.

Canadians may need to rethink their risk management

In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance.  Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract.

In another study of middle class Canadians, Manulife reported that 79% had no individual disability insurance and 87% had no individual critical illness coverage.

What both of these studies conclude is that most Canadians rely heavily on their group benefits for their family’s insurance protection. 

What’s the problem with that?

  • Group insurance protection is tied to employment and if the company for any reason changes or cancels the coverage, the employee stands to lose valuable and necessary protection.
  • If you are currently employed in an industry or with a company that you feel is at risk due to economic conditions, it may be time to reevaluate your insurance mix.  You lose your job, you may lose your life insurance protection.
  • For many group plans, the maximum life coverage provided is only two times annual earnings.  
  • For those plans that provide critical illness coverage, the amount provided is very minimal.

What happens when you retire?

Almost all group insurance plans cease upon retirement which for most Canadians is still age 65.  To protect spouses and dependent children, some life coverage should be maintained after age 65.  Converting group life coverage to an individual plan can be expensive as you get older.  Individual coverage purchased earlier in life is the most cost effective way to protect your family in the long term. 

If you feel you may be at risk of being underinsured or in danger of losing your group insurance coverage it may be time to integrate some individual insurance protection into your portfolio.

Give me a call if you would like to discuss this further and as always feel free to share this article with those you think would benefit from this information.

 

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CPP – Should you take it early?

The new rules governing CPP were introduced in 2012 and they take full effect in 2016.  The earliest you can take your CPP Pension is age 60, the latest is 70. The standard question regarding CPP remains the same – should I take it early or wait?

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Caring for Aging Parents

Canadians aged 85 and over represent the fastest-growing segment of the senior population. Start thinking about how you’ll care for your loved ones in this age group.

By Gail Vaz-Oxlade | for www.MoneySense.ca

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There is Nothing so Certain as Death and Taxes

The Clock is Ticking

Don’t Put Off Your Decision to Buy Life Insurance

2016 is an opportune year to buy life insurance. New laws affecting the taxation of life insurance come into effect on January 1, 2017. After this date new policies will not perform as well as they do currently.

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There is Nothing so Certain as Death and Taxes

Or so the saying goes.  This certainly is true in Canada where there is a “deemed disposition” when a taxpayer dies.  What this means is that a taxpayer is deemed to dispose of all his or her assets at fair market value immediately preceding death.

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How Long (Will Interest Rates Stay Low)?

Great video and financial comedy from Merle Hazard  

Bluegrass with Merle Hazard, Alison Brown on banjo, Tammy Rogers King on fiddle, and Trey Hensley on guitar. Visit them at:
http://www.merlehazard.com
http://alisonbrown.com/

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