Investing – Randy Reynolds FAB Planning

Why an advisor makes a difference in net returns over DIY investors

import Apr 17, 2017

It’s a common question in recent times, especially in an age when technology and algorithms can make decisions at a fraction of the cost. Is it worth it to hire a financial advisor? Or is it better to save the fees and go for a DIY strategy?

It depends who you ask but there are many – often not so obvious – factors that could make a difference to your net returns when putting your trust in a financial advisor.

Proper financial planning goes beyond how and where you invest. Good financial planning can increase your standard of living throughout your life.

Even for a complete novice it is possible to start investing in products without the help of professionals. The problem with this option is the lack of knowledge. Knowledge is crucial when it comes to investing.

What the Wealthy Know about Life Insurance

import Mar 23, 2017

If you have ever thought that life insurance was something you wouldn’t need after you reached a certain level of financial security, you might be interested in knowing why many wealthy individuals still carry large amounts of insurance. Consider the following:

A life insurance advisor in California recently placed a $201 million dollar life insurance policy on the life of a tech industry billionaire;
Well known music executive David Geffen was life insured for $100 million;
Malcolm Forbes, owner of Forbes Magazine, was insured at the time of his death in 1990 for $70 million.

While life insurance is most often looked upon as a vehicle to protect ones family or business, the question that springs to mind is why would individuals with wealth need life insurance?

Three trends that will drive Canada’s economy in 2017

import Jan 17, 2017

There are three trends that will guide the Canadian economy in 2017. Those are:

the strength, or lack thereof, of oil prices;
domestic housing developments; and
whether the U.S. economy continues to improve.

So says Russell Investments’ 2017 Global Market Outlook, which calls for modest growth in the coming year for Canada.

“Moderate improvement in the price of oil and reasonable growth of the U.S. economy are weighed down by debt-laden households,” says Shailesh Kshatriya, director of Canadian strategies at Russell Investments Canada Limited. “We expect domestic equities to be positive, but without the exuberance of 2016. However, domestic bonds likely will be challenged as lacklustre fundamentals may be partially offset by rising yields in the U.S. […] On balance, we see 2017 economic growth in the range of 1.6% to 2%.”

©iStockphoto.com/SusanneB

The Single Premium Insured Annuity

import Aug 22, 2016

Available until January 1, 2017

A New Approach

A new method of structuring an insured annuity has restored its favourable results. The new approach involves combining the prescribed annuity with a Universal Life policy.

The UL policy is funded with a single deposit to provide lifetime coverage.
The remaining capital is then used to purchase the prescribed life annuity.
On the death of the insured/annuitant, the annuity income ceases
The Universal Life policy now returns the full amount of the capital to the intended beneficiaries.

Are You On The Right Track?

import Feb 15, 2016

In bull markets some investors develop unhealthy expectations as to the long term yields their investments should provide. Ten years ago, some came to accept returns as high as 15% to 20% per annum as the base return their fund and portfolio managers were expected to provide. Of course, these expectations came crashing back to earth in 2008 as the bull was chased away by a very large bear. Today, many fund managers are of the opinion that double digit returns are going to be very difficult to achieve with any consistency over the long term.

Is it time for us to lower our expectations?

If we have to accept lower rates of return, do we still want to be exposed to the same previous level of risk? There can be tremendous volatility in the equity markets and, as a result, many wonder if they are on the right track with their investment strategy.

4 Questions to ask yourself about your investment strategy

What are my goals?

A New Year’s Resolution You Shouldn’t Break – Saving For Retirement!

import Jan 15, 2016

Many of us set New Year’s resolutions for ourselves and often those resolutions have to do with finances. January is the month we say, “Ok, this year I am going to save more and spend less”. This article won’t tell you how to spend less, but it will outline two government sponsored programs available to help you save for retirement or even just a rainy day! Of course these are not the only vehicles you can accumulate money with – those include anything from putting dollars under the mattress to the most sophisticated tax shelter schemes – but these two are the most popular.

Tax Free Savings Accounts (TFSA)

This is the new kid on the block established by the government as of January 1, 2009. Canadian residents age 18 or older could contribute up to $5,000 into a TFSA. The funds would grow tax free and although there is no tax deduction for the contribution, withdrawals can be made at any time without paying tax. Also, there is no earned income requirement for an individual to contribute. For those years where no contribution is made, it can be made in later years. Any withdrawals can be paid back in addition to current contributions. Be careful not to do this in the same year as the money was withdrawn so as to avoid a tax penalty for over payment.

The Estate Bond

import Aug 18, 2015

Growing your estate without undue market risk and taxes

Often we see older investors shift gears near retirement and beyond. Many become risk adverse and move their assets into fixed income type investments. Unfortunately this often results in the assets being exposed to higher rates of income tax and lower rates of return – never a good combination.

Or maybe the older investor cannot fully enjoy their retirement years for fear of spending their children’s inheritance.

The Estate Bond financial planning strategy presents a solution to both of these problems.

Make the Most of Your Registered Retirement Savings Plan

import Feb 10, 2015

The 2014 Registered Retirement Savings Plan (RRSP) contribution deadline is Monday, March 2, 2015. Here are some facts about RRSPs to help you make the most of this great opportunity to grow your retirement savings, better plan your personal taxes, and enjoy a comfortable retirement.

Make your maximum contribution

Your RRSP contributions provide a deduction from your taxable income, which for most, results in a tax refund when you file your personal tax return.

For 2014, you can contribute a maximum of 18% of your earned income in 2013, to a maximum of $24,270. Refer to your 2013 notice of assessment as you may have additional unused carry forward limit.

This number will be adjusted if you are a member of pension plans and/or profit sharing plans, depending on the value of your benefits in the previous year.

Making the maximum contribution at the beginning of each year will add additional compounding power to your RRSP.

Prepare for the peak

import Sep 16, 2014

If you’re like most Canadians, you’ve probably been working for quite some time—in all likelihood, since your early 20s. And, if you were like most people, you probably didn’t earn much in your 20s. That first job (maybe the first few) likely saw you just scraping by.

But, now that you’ve been in the workforce for a while, your finances likely are more stable. You’ve had a few raises, and a promotion or two. And while nothing is ever certain, your career is on the right track, and your financial situation is steadily improving.

Congratulations: you’ve reached your peak earnings years.

Click here to read more

Keys to Becoming a Prudent Investor

import Sep 16, 2014

As the equity markets rebound and more stable returns reappear, it is a good time to review and consider what it means to be a prudent investor. If the past several years have taught us anything it’s that in times of unpredictable financial markets, rational and savvy investment decisions often get lost in the fear and panic of the moment. Following these few key points could help you avoid making bad investment decisions in the future:

Understand Your Investments: It’s safe to say that if you are putting your money into something you don’t understand, you are at risk. This doesn’t mean you have to be an expert in what you are investing in, but you should at least be aware enough to fully recognize the opportunity and the risk. Be skeptical when appropriate but do so rationally and seek out information from those who may be more in the know than you.