(604) 575-7900 lylek@konnerfinancial.com

Life Stages

Do You Fly South for the Winter?

What Snowbirds Need to Know About Residency Rules

After another harsh winter, many Canadians dream of joining the large number of Snowbirds who make their way to the dry warmth of California, Arizona and Florida each winter season. If you are contemplating, or already are, becoming a Snowbird and whiling away the winter months in warmer climes south of the border it is important to understand how the new U.S. Tax laws apply under these circumstances. The last thing you would want is to find that the Internal Revenue Service considers you a US resident making you liable for U.S. income tax or subject to U.S. penalties or both.

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Four Things You Need To Know About Inexpensive Term Insurance

The most basic form of insurance and the simplest to understand is Renewable and Convertible Term Insurance. Coverage is provided for a specified term, the policy renews automatically at the end each term period until the policy expires, most commonly at age 85. This plan has the lowest initial cost at entry, but don’t be mesmerized by the low cost because on renewal you will pay a substantial increase. If, however, you become uninsurable before the end of the term period you will have no other option but to renew or convert it to a permanent plan if you want to keep the coverage.

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Credit 101 for Your Undergraduate

By Melissa Cassar, VISA Canada

If you’ve got teenagers heading off to University or College in the Fall, I hope you’ve done a good job educating them about the importance of personal financial responsibility and how to build a strong credit history. If not, better do it now.

First year students and young adults entering the workforce encounter many unfamiliar expenses – and temptations – so it’s important to help them avoid early financial missteps that could damage their credit for years to come.

Probably the most fundamental tool for helping students manage their finances is a chequing account with a debit card. A few tips:

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How Much Risk Can You Tolerate? Part 2 of 3

Last month we discussed how much risk you could tolerate depending on your life situation. This month we will consider other risks to which each of us are exposed:

Market Risk: We all have experienced the effects of a volatile market and the havoc it can cause both financially and emotionally. Since mid 2008 the market has experienced “saw tooth” rates of return and many have fled the equity markets in an attempt to avoid this volatility and the risk that comes with it. For those that were in the process of retiring and were still in equity funds, many had to put retirement on hold.

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How Much Risk Can You Tolerate? Part 1 of 3

Will Rogers, the American humorist, when talking about the investment schemes in North America at the time, said “I am less concerned with the return on my money, than I am with the return of my money”. Will was aware of the truth that the higher the potential rates of return on an investment, the greater chance of loss.

The dictionary defines risk as the exposure of someone or something valued to danger, harm or loss. If that something of value is your financial security the question is “How much risk can you tolerate?” The answer to this question for each of us depends on a number of different factors. A few of these are:

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Coping with a loved one’s critical illness

The future might look bleak, but you need to move forward

We cope with all sorts of stressors every day, but when a loved one is diagnosed with a critical illness, it’s normal to feel overwhelmed. It’s hard to cope with this kind of news, not only because we want our loved one to be healthy, but also because, on a personal level, it reminds us of our own mortality.

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Trends in health benefits for retirees

Since the late ’90s there has been a growing shift away from employers providing group health and dental coverage for retirees. Increasing healthcare costs, provincial de-listing of services, an aging population and changes to accounting rules are the main culprits that are eroding coverage for post-employment.

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Got an RSP and Turning 71?

If you have been accumulating wealth in a Registered Savings Plan and are turning 71 this year or next, you should be aware of the decisions you have to make. The Income Tax Act says that you have to terminate your RSP’s by December 31st in the year you turn age 71. In doing so, you basically have three options:

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