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Tag: Power of Advice

  • Allan Norman financial advisor – MoneySense

    Allan Norman financial advisor – MoneySense

    His career began in 1995 spending two years as a life insurance agent and two years at a bank before forming Atlantis Financial Inc. Over those years he has developed his three-step interactive approach to financial planning: life planning, financial planning, followed by financial advice around tax, investments, and insurance. 

    In his experience an interactive collaborative approach is much more effective than collecting your information, going away and preparing your plan, and then presenting you with the plan. Chances are it is not your plan because you weren’t there when it was created, and you won’t absorb much. 

    When Norman is not working, he plays ping pong, sails, skis, zips off to Miami or travels with his kids. A mild brain injury prevents his wife from travel. 

    If you want to experience financial planning, feel free to reach out to schedule a complimentary zoom meeting where Norman will find out more about you and what you want to achieve. After about an hour you will both know if Norman’s approach is right for you. 

    Services • Financial Planning
    • Investment Planning & Implementation
    • Insurance Planning & Implementation
    Specializations • Estate Planning
    • Comprehensive Financial Planning 
    • Investment Management 
    Payment Model • Fees paid by clients based on assets managed by advisor
    • Fees paid by clients for advice (not based on assets)
    • Commissions
    Languages written and spoken • English

    Why did you become a planner?

    Financial planning is about helping people get what they want, and I get a lot of satisfaction from assisting people when I can. 

    I didn’t come into financial planning right away. My first career was land-use planning. Back in the late ’80s, real estate wasn’t booming, so I made the shift to financial planning. A book I read on penny stock investing back in high school got me started.

    What is your approach to financial planning?

    Behind the scenes, I am data driven and I want to see the evidence supporting my advice. 

    My approach to planning is based on the simple truth no one can deny: You only have so long to enjoy your money. So how can you make the best use of it?

    Special to MoneySense

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  • Yes, a cottage is an investment property—here’s how to minimize capital gains tax – MoneySense

    Yes, a cottage is an investment property—here’s how to minimize capital gains tax – MoneySense

    Should you keep renting a cottage or buy one?

    You don’t need me to explain the personal perks of having a vacation home or a cottage. But to many people, a cottage is also an investment. There are costs and hopefully returns, especially if you decide to rent it out. If you hope to buy, find out what you need to pay beyond the listing price and how you might finance the purchase.

    Read: Is a vacation home a good investment?

    Is there a capital gains tax exemption for a cottage?

    Sorry to be the bearer of bad news, but there isn’t. There was once a lifetime capital gains exemption of $100,000, but that no longer exists. It only applied in Canada from 1984 to 1994. There are other ways to minimize taxes on the sale of a cottage, though. What about selling to a family member: Can you avoid taxes that way? It depends on a few factors, such as the relationship, if the second property can be claimed as a principal residence, and more.

    Read: Can I sell my cottage tax-free?

    Read: Selling a cottage to a family member: What that means for capital gains

    Do you pay tax when inheriting a cottage?

    The short answer: It depends on your relationship to the person who owns it. Are you an extended family member? Their adult child? Or are you their spouse? Find out how inheriting a cottage can affect taxes for a spouse with children and the steps to take to minimize what’s owed. 

    Read: Inheriting cottage and the capital gains implications

    How to reduce taxes on the sale of a cottage

    This next article goes through the multiple factors that can influence how you plan for capital gains on family-owned cottages, including: 

    Lisa Hannam

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  • What should Canadian investors do: Sell or hold with preferred share losses? – MoneySense

    What should Canadian investors do: Sell or hold with preferred share losses? – MoneySense

    1. Rate reset preferred shares

    These became popular following the financial crisis in 2008/2009 to entice investors to buy preferred shares despite low interest rates at that time. They generally “reset” every five years with the dividend rate for the next five years based on a premium over the 5-year Government of Canada bond rate at the time. Rate reset preferred shares currently represent 73% of the Canadian preferred share market.

    2. Perpetual preferred shares

    These represent 25% of the Canadian preferred share market. Perpetuals have no reset date. Their dividend rate is set when they are issued, and they continue in perpetuity.

    3. Floating or variable rate preferred shares

    These are like rate resets in that the rate changes, but those changes are more frequent—typically quarterly. The rate is generally based on a premium to the 3-month Government of Canada treasury bill rate. Together, floating/variable rate and convertible preferred shares represent less than 3% of the Canadian preferred share market.

    4. Convertible preferred shares

    A convertible security can be converted into another class of securities of the issuer. For example, a convertible preferred share may be convertible into common shares of the company that issued the shares.

    Preferred shares Indexes for Canadian investors

    The S&P/TSX Preferred Share Index is currently 57% financials, 20% energy and 12% utilities. Communication services, real estate, and consumer staples makes up the remainder of the market. The financials are tilted slightly more towards banks than insurance companies.

    The current distribution yield of the S&P/TSX Preferred Share Index is about 6.1%. This is the dividend income an investor might anticipate over the coming year. The trailing 12-month yield is about 5.9%. These are attractive rates, Mario, but you can earn comparable rates in guaranteed investment certificates (GICs) with no risk or volatility. So, the high yields need to be put into perspective.

    What to do with preferred shares at a loss

    One consideration, Mario, is if you own your preferred shares in a taxable non-registered account, you could sell them to trigger a loss, if you have other investments that you have sold or intend to sell for a capital gain.

    “Tax loss selling” is when you sell an investment for a loss to harvest the tax benefit of that loss. You can claim capital losses against capital gains in the current year. If you have a net capital loss for all investments sold in your taxable accounts in a given year, you can carry that loss back to offset capital gains income you paid tax on in the previous three years. Or you can carry the loss forward to use in the future against capital gains.

    Jason Heath, CFP

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  • How new pay transparency and AI hiring rules will impact Canadian workers – MoneySense

    How new pay transparency and AI hiring rules will impact Canadian workers – MoneySense

    Job seekers should understand that salary ranges are influenced by compensation trends in their chosen field of work, market rates for specific job titles, and even geographic location. For example, some employers may offer a “cost of living” increase if you live in an expensive city. Generally, you can expect entry-level salaries to be within a narrow range. As you progress into more senior positions, you may see salary ranges widen to account for a broader number of factors, such as responsibilities, performance targets and bonuses. 

    Access to salary information in job postings provides an obvious up-front benefit. You could more easily find roles that match your income expectations—and you can overlook the ones that don’t pay enough. If you believe the position should pay more than what’s posted, know that you will have to defend your thinking in an interview. Employers may be reluctant to offer you what you want if they have many other interested candidates. 

    And while you may be tempted to negotiate for the top end of the stated pay range, make sure you have the education, skills and experience the hiring manager is looking for. Otherwise, you may be eliminated from the candidate pool should there be other qualified candidates who are willing to accept a lower salary. 

    Existing employees

    Knowing the pay scale for your current role at your organization—or even what competitors are paying for the type of work you do—can help you figure out if you’re underpaid. If so, you should feel comfortable going to your boss and asking for a raise (with the statistics to back up your request). If you feel valued in your role, you may have the most negotiating power during your performance review. 

    You may believe the longer your tenure at the company, the more competitive your pay will be. Think again—nowadays, it’s often the new kid on the block who’s paid more. That’s because new employees are hired having negotiated their salaries at the current market rates, whereas existing employees often get smaller annual raises. Going into 2024, one study found Canadians could get an average 3.6% bump in pay. 

    Negotiate for other perks

    Whether you’re a new or existing employee, if you’re at the peak of your pay band, it may be impossible to negotiate a higher salary. 

    However, you can always ask for other perks, such as a bonus, stock options, more vacation days, a flexible work arrangement or more benefits. These can be just as valuable as a raise. Make sure to enter negotiations with the same kind of performance and industry information you would use to ask for a salary bump. 

    Focus on jobs that meet your overall “dream job” criteria

    Ultimately, knowing the pay ranges for a job you’re considering can save you time and energy. But remember salary is just one factor to consider when working for a company. Having a good work culture, flexible work schedule, social gatherings, training opportunities and great leadership are examples of non-financial benefits that can also add value to your career.

    Sandy Yong

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