Download Oct. 2000 - Guardian Financial Planning Ltd

"First you forget names, then you forget faces , then you forget to pull your
zipper up, then you forget to pull your zipper down."
---- Leo Rosenburg
Sad but true. Because life moves very quickly these days. And with summer
coming to an end, it's probably time for all of us to refocus on our plans for the
near future and well beyond. Because unless we take a little time to make sure
we're going in the right direction, we could be very surprised at where life
leads us. But with a little planning, you'll know what potential lies ahead and
you'll make the journey with more anticipation and less apprehension.
So before I get too philosophical, I'll tell you the theme for this quarter's
newsletter. As you probably know by now, I'm always trying to encourage
people to plan ahead, because clear expectations provide desired results. And
the same holds true for after we've left this earth. Because dying without a
plan can be as damaging as living without one. Now for those of you who
have recently reviewed your estate plan and made necessary changes,
congratulations! Skip ahead to the other news we've included in this issue and
then, pass this "Why you need a Will" section along to someone who needs it.
For those who may have been putting off your review or Heaven forbid, don't
have a will yet, please take a minute to have a look. You've worked hard for
what you've acquired. Don't put off protecting it from taxes, probate fees and
uninformed decisions made by loved ones who didn't know what you wanted.
2.
Why do you need a will?
- Because it provides order during a time when there's anything but.
- Because without a will you'll probably pay too much tax.
- Because without a will you'll probably pay higher administration fees.
- Because it protects your children and those you trust to look after them.
- Because it makes sure you control who gets what, instead of someone who
didn't even know you!
What if you and your partner die at the same time?
What if your executor is unaware of your circumstances?
What if you're part of a blended family from previous marriages?
What if you're recently married or just divorced?
What if you're a new parent or have entered a new business arrangement?
What if you're executor for someone else's estate?
What about much-needed Powers of Attorney to protect your financial and
medical future?
If you have any doubts about your will or your overall estate plan, call a
lawyer. You can't live without lawyers and you certainly can't die without
them. It's still your choice whether you call to arrange an appointment now or
your family calls them later. It probably won't cost you much and you'll gain
the peace of mind in knowing your estate will be handled according to your
wishes and without burden to your family. Expect to pay $100 to $300 for a
basic will, much less than the fees your estate will pay to sort out your affairs
without your input. And of all places in life to cut costs, a will should not be
one of them. Because even little mistakes can have very big price tags.
3.
Markets
To other news, the markets have been unsteady through the summer months, under pressure from rising U.S.
interest rates, increasing fuel prices and the pending U.S. Presidential elections in November. Traditionally
the months from November to April see the most active trading of the year and many financial experts are
expecting continued progress once some of the uncertainty of these factors is set to rest. Over the long term,
with continued increases in productivity, few signs of inflation and the global economy building, the future
looks very promising when compared to the global turmoil of the past. Even the recent past in which markets
have performed very well in spite of the volatility we've come to expect as part of the investment process.
And as history has proven, the key to long-term performance is to be invested during these times of volatility.
Bold Predictions for the Dow
"The unprecedented bull market over the last several years will continue for several more, with the Dow
Jones Industrial Average reaching 23,000 six years from now." This bold prediction was made Thursday at
the IFIC Conference by Dr. Robert Goodman, senior economic advisor and managing director of
Boston-based fund giant Putnam Investments. Goodman says this opportunity has been created by the roll
new technology is having, not just on the so-called "new economy companies" but also on old economy
companies. "The technological revolution has made the American system much more efficient, which means
more of a given amount of growth is going to be dropping to the bottom line. Corporate profitability is going
to be growing and the quality of the earnings are going to be incredibly strong. That will get manifested in
rising stock prices over time."
(IFIC Convention: Forecast for Dow 23,000, Global Strategems, Sept.28, 2000)
Falling Rates Ahead?
In its fall analysis of mortgage rates, the Canada Mortgage and Housing Corp. has stated Canadian mortgage
rates are nearing their highest point and could be as much as half a percentage point lower by this time next
year. "Mortgage rates will ease after the emergence of convincing evidence of slower economic growth,
softening in the labor market and consumer spending, and weaker price increases," the report said. Most
analysts believe the U.S. Federal Reserve's cycle of rate increases is nearing an end. The reserve has raised
rates six times in the past year, for a total of 1.75 percentage points.
(CMHC predicts mortgage rates will fall next year, National Post, Sept 27, 2000)
Feature
And for those of you who like to have significant amounts of cash available in a bank account, something
new from Manulife Bank. We've enclosed a brochure introducing Advantage Account -- all the benefits of
your current bank account but paying 25 times as much interest. If you or someone you know could use the
extra income, let us know. We'd be glad to help you set it up or answer any questions.
4.
Education
In our continuing efforts to stay informed so we can provide you with our best service, I'm pleased to tell you
we've been busy studying and it's paid off. Congratulations to Melissa who completed her life insurance
licensing requirements over the summer and I recently completed my Canadian Securities Course in stock
and bond proficiency. And a reminder that our lending library is stocked with some great personal planning
books available to all our clients who have an interest. If there's ever a topic you'd like more information on,
please don't hesitate to let us know.
Reminder
For those of you who are claiming a "Tax Reduction at Source" through your payroll to receive credit for
annual RRSP contributions, child care expenses or interest on investment loans, Revenue Canada wants you
to request a renewal of that privilege before the end of the year. For those of you who are not taking
advantage of the opportunity, give us a call to receive an explanation as well as an application form.
And in closing, just a reminder that I'll be calling to check in with everyone over the next few weeks, but if
you have any questions on your account, your comprehensive plan or just need the phone numbers of some
professionals to help you prepare your will, please give us a call at anytime. It's always a pleasure to be of
service!
Best Regards and Happy Thanksgiving!
Stephen, Melissa and Leslie
ps Speaking of Thanksgiving, a special word to all our clients who have taken the time to suggest our
services to family, friends and associates. Our practice grows because of your confidence in recommending
our services to others and we thank you again for your trust.