Autumn 2015 Newsletter

Autumn 2015 Update mc-wealth-nov-2015-newsletter-docx     Our Contact Information: Debbie McCulloch – debbie@mcwealthmanagement.ca Anne Marie Mucci – annemarie@mcwealthmanagement.ca        www.mcwealthmanagement.ca  Investia Financial Services...

Summer 2015 Newsletter

Summer Update mc-wealth-june-2015-newsletter-pdf     Our Contact Information: Debbie McCulloch – debbie@mcwealthmanagement.ca Anne Marie Mucci – annemarie@mcwealthmanagement.ca        www.mcwealthmanagement.ca  Investia Financial Services...

Spring 2015 Newsletter

Spring Update mc-wealth-newsletter-may-2015 We are Moving! After over 10 years on Sunray Street and 18 years in Whitby, we are moving. Debbie has sold the Commercial unit and it is time for change.We are very excited to be moving to a great office in Ajax as of the end of May. Our new address and phone numbers are: 50 Commercial Avenue, Suite 200 Ajax, Ontario, L1S 2H5 Phone: 905-427-4406  Fax:  905-427-4407  Toll Free: 1-844-427-4406 Contact Information: Debbie McCulloch – debbie@mcwealthmanagement.ca Anne Marie Mucci – annemarie@mcwealthmanagement.ca         www.mcwealthmanagement.ca        ...

Four critical retirement investing mistakes

Four critical retirement investing mistakes to avoid From failing to plan to ‘extreme’ investing, these financial missteps are standing in the way of Canadians’ retirement goals. By: PAUL BRENT Date: July 30, 2015 It can be a challenging time to guide Canadians to a secure and successful retirement. Defined benefit pensions are becoming a relic of the past, rock-bottom interest rates have crimped fixed income returns and tepid global growth has made equity markets unpredictable and unstable. When you add in record personal indebtedness, a weak Canadian economy and an aging population, it becomes clear that for financial advisors and their clients, the stakes are higher than ever before. To keep retirement goals on track, it is critical to identify and avoid the common investment and retirement planning errors that typically trip up Canadians. 1. Absence of a financial plan Perhaps surprisingly, the weakness that continues to crop up most often is the absence of a well-thought-out financial plan, says Kari Holdsworth, vice-president of individual wealth at Sun Life Financial in Waterloo, Ont. “People don’t plan to fail, but they often fail to plan,” she says. The 2015 Sun Life Canadian Unretirement Index, a poll conducted by Ipsos Reid that tracks Canadians’ attitudes and expectations about retirement, reported that just 33 per cent of people work with a financial advisor and just 22 per cent have a written financial plan. “People without a financial plan potentially don’t have the assets they need to achieve their goals,” says Ms. Holdsworth. “But more importantly, they don’t have a crisp understanding of what their goals are and whether there is a gap...

Mortgage, RRSP or TFSA?

Paying down low-interest debt, such as a mortgage, can negatively impact retirement savings, says CIBC’s Jamie Golombek By Tessie Sanci | February 19, 2015 11:00 Almost three-quarters of Canadians would prefer to pay down debt over adding to their retirement fund, according to a poll conducted for Toronto-based CIBC. “The decision to pay down debt at the expense of retirement savings is often an emotional one that isn’t driven by logic,” says Jamie Golombek, managing director of CIBC Wealth Advisory Services. More than half of Canadians, at 56%, say they want the financial freedom of being debt free while 20% believe they have too much debt and want to pay it off. Only 11% believe the interest rate on their debt is too high and prefer to repay their debt instead of investing into a registered retirement savings plans (RRSP). Canadians who are paying down mortgages while interest rates are low may be depriving themselves of the benefits from investing extra money into an RRSP or tax-free savings accounts (TFSA), says Golombek. This is if the individuals in question do not have a high level of debt, can handle an increase in mortgage interest rates and can tolerate some risk in their investment portfolio, he adds. “Of course, if [someone is] holding high interest debt, paying that down is almost always the best choice,” says Golombek. Golombek explains how paying down low-interest debt, such as a mortgage, can negatively impact retirement savings in his new report, Mortgages or Margaritas: Is paying down debt putting your retirement at risk? The report illustrates the potential benefit of long-term savings in an...

Wealth Protection

Having insurance coverage is an essential part of the financial planning process. Life is never risk-free, but acquiring the right insurance coverage can ease the financial strain of serious misfortune. Your MC Wealth Management representative can help you identify the kind of coverage that you will need to provide security for you and your family. Life Insurance Life insurance should be a cornerstone of any financial plan. This is especially true if you have dependents who rely upon you financially. The proceeds of a life insurance policy can help ensure that your dependents or estate are not burdened with significant debt. If you have adequate life insurance coverage, your dependents won’t have to sell the house or other assets in order to pay outstanding bills or taxes. An important feature of life insurance is that death benefits are not subject to federal income taxes. The amount of life insurance an individual requires can vary greatly. Generally, the more individuals who depend on your income while you are alive, the more life insurance you should own. Disability Insurance Disability insurance is designed to provide you with an income should you find yourself unable to work due to an accident or illness. It can replace approximately two-thirds of your income so you won’t have to worry about finances when you’re ill or injured. While most people appreciate the need for life insurance, many underestimate the importance of disability coverage. Almost 50% of all mortgage foreclosures, for example, result from a disability rather than death. Statistics as outlined in the chart, show that 418 out of 1,000 men, and 490 out of 1,000 women...

Insurance for the Living – Critical Illness

Have you heard of insurance for the living? It’s a recently developed concept that really makes sense. Insurance for the living is just what it sounds like – it’s available to you while you’re alive, and for many people it’s ideal. Typical life insurance, which might really be called death insurance, pays out when you die. Unfortunately, you’re not the one who gets to spend it. So let’s get real. Sure, you want to leave your heirs a little something; of course, you want your funeral expenses looked after; but isn’t there some way that YOU can see some benefits also? Insurance for the living may be the answer. Consider the case where you suffer a critical illness. Things like cancer, heart attack and stroke used to be killers, but now with technological advancements and healthier lifestyles, people are living to tell the tale. The down side, however, is that you may incur large unexpected financial costs as a result of your illness and government health plans may not pay for all of your medications; you may need constant care, or find that you need to remodel your home to accommodate a wheelchair. At the same time, you may still be suffering from on-going symptoms and side effects which limit your ability to work. If you are self-employed this is an important area for you to consider since it is very likely that no-one else can take your place. Critical Illness coverage is insurance designed for just this situation. In addition, with this coverage you can purchase a “return of premium” rider. Purchasing a plan with this option has...