Pla N Protec T Prospe R

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Pla N Protec T Prospe R Summer, 2016 Don’t miss our popular list of local summer attractions on pages 6 and 7. Have a safe and happy summer!! How are Financial Advisors Paid? Transparency is an important element in our client-advisor relationships. With current media focus being placed upon the way financial advisors are paid, we thought we should address this issue. We provide financial services to clients who ask us to manage their investment, insurance and mortgage needs. Depending on the specific situation, we will be paid an up-front commission when we first take over an account, or we can receive an on-going fee which is paid to us annually and based on our client’s asset values. Any investor who chooses to use mutual or segregated funds as part of their portfolio(s) (whether with Potvin Financial, a local bank, or other financial institutions) is paying an ongoing annual fee for the management and servicing of these accounts. This is a fee that the investment company charges all investors and a small portion of this fee is paid to the advisors. We have had open discussions about fees with many clients, but perhaps we haven't addressed this issue with you. We want to make sure you understand how much you are paying and why you are being charged. Please ask your financial advisor about how they are paid and they will be more than happy to have a conversation with you to answer all your questions. Visit www.potvinfinancial.com and look in our ‘Tools Section’ for more information on how Financial Advisors are paid. These are options for investors to consider including within their COMING diversified portfolios. THIS FALL!! They are low cost options and are gaining Watch for our much popularity in Canada. At Potvin client survey this fall. Your Financial Services, we have access to a robust feedback is important and lineup of ETF mutual funds and would be happy to valuable to us and we would discuss more with anyone who might be curious or appreciate your participation! interested. Ask your advisor for more details. 1945– If you were born in 1945, you need to make changes to your retirement savings plan(s) before the end of this year PLAN ◄► PROTECT ◄► PROSPER (2016). We can help!! Richard (Rick) Potvin, CPCA, EPC Kim Mercer Senior Advisor Manager [email protected] Mortgage Agent Financial Advisor [email protected] *Mutual Funds Provided through FundEX Investments Inc* Kevin Potvin, CPCA, EPC Niki Boal President Licensed Assistant Financial Advisor Client Request Processing [email protected] [email protected] *Mutual Funds Provided through *Mutual Funds Provided through FundEX Investments Inc* FundEX Investments Inc* Robyn Hardiman, CFP Daniela Di Saverio-Goguen Certified Financial Planner Receptionist Insurance Specialist Client Appointment Scheduling [email protected] [email protected] Larry Griffith Carol Potvin Insurance Advisor Marketing RIBO Licensed Newsletter Designer [email protected] [email protected] Dan Lanthier Robyn Oliverio, AMP Customer Service Mortgage Advisor Tax Advisor in Training [email protected] [email protected] OFFICE HOURS Testimonials Monday—Friday: My mother has been with Potvin Financial Services for 8:00 a.m. to 4:30 p. m. over 30 years, and I made the wise choice to move all 117 Centrepointe Drive my investments over to them a few years ago. Suite 320, Ottawa, ON, K2G 5X3 Tel: 613-224-6561 I’m not a big player in the financial world, but I’ve Fax: 613-224-3608 always been treated like a very special person. It’s www.potvinfinancial.com always a pleasure to stop by and talk to Kevin about “like” us on Facebook my investments, world politics and yes, even plants. Barry J., Ottawa - 2 - Should you contribute to your RRSP or pay down your debt? This is a question that we are often asked by our clients. There are many variables to consider, but here are 5 points to consider when making your decision. 1. Type of debt you are carrying: If you are paying high interest credit card debt, you should pay it down as quickly as possible. But, not all debts are bad. For instance, making mortgage payments (usually at a low interest rate). 2. How much debt do you have? It’s emotionally draining to carry a large amount of debt. If you’re struggling every month to make basic payments, then you might want to eliminate your high interest debt first. 3. How old are you? If you are close to retirement, you should plan on going into your retirement mortgage– and debt-free. You don’t want to have higher interest rates affecting your retirement income and lifestyle. 4. What is your income? If you are in a high-income tax bracket, it may be more beneficial for you to reduce the amount of tax you pay with an RRSP. If you are in a lower tax bracket and have a lot of debt, consider paying if off first. 5. What type of RRSP? You don’t want to lose money by not taking advantage of the tax implications of your RRSP. For example, if you have a group RRSP and you get matching contributions from your employer, or can increase your Spousal RRSP to benefit from the income-splitting option. The bottom line really, is how much you are paying in debt and what is the possible amount you could be earning in your RRSP. To help you with this decision, or to look at debt management, call one of our advisors for an appointment. Did you know that mortgage GIC RATES EFFECTIVE: June 15, 2016 insurance is just life insurance you bought through the bank? Year 1 2.080% In all probability, we can save you money and provide you Year 2 2.270% with better coverage. Ask us how today!!! Year 3 2.300% Year 4 2.350% Give me books, fruit, French Year 5 2.450% wine and fine weather and a little All rates subject to change without notice. Short term rate available upon request. music out of doors, played by Based on a deposit amount of $10,000. someone I do not know. - John Keats - 3- YOUR ESTATE MATTERS — WHAT KIND OF A LEGACY DO YOU WANT TO LEAVE? What does estate “planning” mean? Estate planning is the process of anticipating and arranging for the disbursement of your estate in the event of your death. It can be used to eliminate uncertainties over the administration of probate and to maximize the value of your estate by reducing taxes and other expenses. The ultimate goal of estate planning can be determined by your specific goals, and may be as simple or complex as your needs dictate. Guardians can be designated for minor children and incapacitated beneficiaries. What is an estate “plan”? Depending on the complexity of your situation in life, it may involve one or several of the following items: - Will -Trusts - Life Insurance - Power of Attorney for property (POA) - Power of Attorney for personal care (POA) - Living will - Registered Organ donor - Funeral arrangements - Business succession plan -Tax planning Individually, each of these topics is complex and you should work with your advisor and legal representative to make sure you are planning correctly for this later-stage in life. One of the most discussed items listed, is your will. Three most often quoted ‘estate planning mistakes’ include: 1) not having a will, 2) not keeping your will current, and 3) using a DIY (do-it-yourself) will. Why is an estate plan important? A new CIBC Capital Markets reports: a) Baby boomers in Canada will inherit approximately $750 billion over the next decade (the country’s largest-ever transfer of wealth), and b) More than 2.5 million Canadians are older than 75 years of age (45% of which are widowed). Overall, there is 25% more elderly Canadians than a decade ago. These facts have created a lot of attention around the topic of estate planning. Naming an executor to manage your estate when you are not around is no simple task. The executor role is complex because of the variety of skills required; time consuming because of the sheer volume of tasks to be managed; and challenging because the relationships involved can become strained, due to the combination of emotions and money. Your executor will have many tasks that your advisor can assist with, to ease their burden and help clarify the overall process. On the flip side of that, being appointed as executor will take time, energy and attention to detail. Depending on the estate, it can be a very complex endeavour. Be aware of the risks involved and the recent changes that have occurred in the rules for probating an estate in Ontario. You need to be organized! Don’t leave your executor in a risky position or searching for documents. Document all of your affairs, including your assets, insurance, contact numbers of professionals you deal with, etc If possible, introduce your executor to your financial advisor. - 4 - We have some fantastic tools on our website – www.potvinfinancial.com – tools to help you organize your estate and make it easier for your executors to manage on your passing. There are also some excellent tools for executors to help them make sense of their role and all the responsibilities that go along with it. Here are some of the tools you can access on our website: ▪ A Practical Guide to Inheritance Planning ▪ Estate Risk Profile ▪ Letter of Direction for your Executors ▪ Important Estate Information Record manager/workbook ▪ Framework of Executor’s Tasks & Checklist ▪ Estate Planning for Disabled Beneficiaries ▪ Executor Guide, checklist and compensation guidelines Arranging your investments with your estate in mind: In Ontario, your assets are subject to probate fees on death (death tax).
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