The New Universal Child Care Benefit (UCCB) and RESP

Under the proposed enhancements to the UCCB, families would receive almost $2,000 ($1,920) per year for each child under 6 and $720 per year for each child aged 6 through 17. The new benefit amounts would be retroactive to January 1, 2015 and be reflected in monthly payments to families in July 2015.                   

That’s a total of up to $20,160 per child in lifetime benefits.

With a Registered Education Savings Plan, you’re eligible to receive the Canada Education Savings Grant (CESG), which matches 20% of annual contributions up to a maximum of $500 per year and $7,200 lifetime limit per child.

RESP maximum annual contribution is $2500. Average cost for a 4 year degree is $66,000, depending on whether Room & Board is also needed.

In this unpredictable economic climate and rising costs of tuition, starting early is key to ensure the financial stability of your child.  Unfortunately, plans like an RRSP or even a TFSA are unavailable to those under the age of 18, making the Registered Education Savings Plan (RESP) a uniquely attractive choice of investment for your child’s future and post-secondary education.

The primary benefit of an RESP is the government grants.  Until your child turns 18, when they would be eilgible for other forms of savings plans, the federal government may add up to $7200 to your RESP contributions.

Yet, the perks of an RESP go much farther.  Growth,  along with contributions, is tax-sheltered while accumulating in the savings plan.  When the funds are released to your child for their post- secondary education, they are taxed through your child.  As a student, your child would often be required to pay little to no tax.

Choosing an RESP is a low risk, high reward way to supplement you and your child’s long-term financial planning.  If you have any questions about the benefits, feel free to contact me at casey@camlife.ca or 604 565 9607.

Enjoy All the Perks of a Minimum Withdrawal Benefit

GMWB is an investment option that annuitants can purchase to protect their retirement savings against downside market risk. Choosing a GMWB guarantees the annuitants a certain safety net. Without a GMWB we are often left at the mercy of the market, without any real security. “Waiting it out” may not be an option for older investors with shorter time horizons. GMWBs provide protection against market risk, longevity risk (outliving your money) and are an alternative to GICs which may only pay 1 or 2%.

About GMWBs

The best thing about the guaranteed minimum withdrawal model is rather obvious; you receive a guaranteed minimum income from your retirement savings each year, starting as early as age 50 for as long as you live. This means that the annuitants are protected against the biggest downside of any investment, which is of course losing money. In addition to the withdrawal benefit, the owner is guaranteed 5% in growth each year prior to taking income. Additionally, every 3 years, a reset will occur if the market value is higher than the original investment, further increasing income when it is time to withdraw.

Guaranteed Minimum Withdrawal Benefit Vancouver is one of the best and safest options for people who are either approaching or in retirement with a need for income.

Retirement Planning Vancouver – Start Today, To Reach Your Goals Tomorrow

The concept of retirement is not what it used to be. In the past, retirement was simple and viewed as a time to stop working and collect a company pension; for most people this no longer is the case. With decreasing pension benefits, ever increasing life expectancy, historically low interest rates and market volatility, retirement planning Vancouver has become more complex than ever before.

In order to get started on retirement planning in Vancouver, the following needs to be addressed:

1) Establish where you are now:

We must take a detailed look at your current financial situation. Are there any debts that need to paid off? Do you expect to collect a company pension? At the rate you are going, will you be eligible for the maximum CPP & OAS benefits? What are your current assets and liabilities? How much of your income can you save each month to prepare for your retirement? These are the sorts of questions that we will ask you to gauge your current financial picture:

2) Determine how and when you will retire:

Unlike in the past, many people these days do not simply clock out and hang up their boots. Retirement may occur in phases. Also, people are living much longer and enjoying an active lifestyle in retirement – all of which costs money. When considering your retirement planning in Vancouver, we will ask you how you envision living out your golden years and come up with a realistic goal as to what this will cost.

3) Prepare a plan:

Retirement planning in Vancouver dictates that we determine how much money you will need to live the lifestyle you deserve. We will work backwards from your savings by determining how much money you will need to live out your days. We will consider government pensions, private pensions and private savings (RRSPs/TFSAs etc.) in this equation. We will also ensure that your plan is as tax-efficient as possible and take steps to mitigate market volatility and the very real threat of outliving your savings.

4) Conduct periodic reviews:

We are committed to annual reviews of your plan and investment performance. Market changes, new developments and life necessitate it. Retirement planning in Vancouver is not static but rather, has goal posts that are moving.

Estate Planning Vancouver – Let Your Family Feel Protected

You work your whole life to provide for your family. You purchase a home, buy cars, pay for college and try to provide a retirement plan for yourself and your spouse. You work at it every day, and it shows. Then, without warning, it happens. It’s all over. One day your family will have to provide for themselves, because you will be gone. It isn’t a topic that people are eager to discuss. Many prefer to ignore this inevitable truth, until it happens. Unfortunately, by then it is too late. Don’t let your years of hard work be for nothing. Protect your family and your estate today by understanding how estate planning Vancouver can protect the most important people in your life.

A thorough estate plan has many elements to it. Some of the major pieces include the actual will, a power of attorney assignment, a form of living will with instructions for particular medical scenarios, and possibly a trust of some sort. A good attorney or licensed estate planner will be able to provide several standard layouts for a will. They can also advise you as to whether or not a trust of some kind would be appropriate for your needs, based on the regulations governing estate planning in Vancouver. In order to begin the discussion however, we will focus on the major points that make this conversation uncomfortable. These are the living will, and the power of attorney assignment.

1.) The Living Will:

The living will provides instructions to family members, medical providers and legal administrators as to what your wishes are in regard to your medical care and possible end of life preferences. This includes your wishes on a “Do Not Resuscitate” order, should you need to be kept alive artificially. This is an unpleasant topic but keep in mind that the reason it needs to be addressed now, by you, is so your children will not have to make these decisions without your guidance later.

2.) The Power of Attorney Assignment:

Make this decision now. Sit down and talk with your spouse, your children, and any other extended family or close friends that will need to be part of the process when and if the time comes. Understand how they all feel about this, and let them all know your wishes. Be clear about assigning this task to one or two people that you feel can carry out your wishes, and then put it in writing. When the time comes, emotions will be running high. Any issues that you can resolve now will save a lot of heartache for the people you love later.

Once you follow these steps, you have truly begun the process of taking the final steps towards providing for your family after you are gone.

More Than A Plan, Life Itself

Financial Planning

Each and every one of us has dreams. We are dreaming about buying a car, buying a house or building a business from the ground up. We want to achieve a certain standard of living which we equate with happiness. A thorough financial plan is essential to reaching these goals. Without it, we will never feel safe, at least not from a financial standpoint. Even if you have dropped the proverbial ball as it pertains to your finances, it is never too late to change your habits and get on track.

We help you ask the right questions

Many mistakenly think that financial planning is just about investing. Sure, that is part of it, a very important part in fact. But more importantly financial planning is a process. It is about adjusting your goals and dreams to your financial situation and vice versa. When you ask yourself the right questions you will quickly realize this. Where are you today? Are there financial obligations that hold you back? These are the kinds of questions that you need to ask yourself first. Asking yourself the right questions is half the battle.

Often with our finances we take one step forward and two steps back. We will help you ask yourself the right questions to determine exactly where you are, where you want to be and how to get there. When looking at Financial Planning in Vancouver, think about Camlife. The advantage of having professional help cannot be overstated. Initiate your plan today, to have a fruitful tomorrow.