Stages | Simple advice to help you win financially

The cost of living in Canada is growing and one of the most drastic examples of this is property values. People are not only paying outside their price range on their homes, but also their cottages. It may be time to evaluate if your recreational property is worth the investment.

These days, with lifestyle expenses soaring, everyone should be creating multiple revenue streams. One income just doesn't cut it any more. On top of your job, two more ways you can bring in money are developing a side hustle and creating a passive income strategy. Let me tell you about our team of advisors. As a client, you need an advisor to trust when it comes to your future. Your financial plan. We're all in different stages of life; starting a business or a family, saving for your new home, restructuring your debts, optimizing your cash flow, building your investments or transitioning into retirement. We have to start somewhere. Set up a virtual or in-person meeting with your advisor today.

As soon as you're working, it's a good time to launch some long-range money goals. At the beginning of your career, you might not have a lot of cash flow after the bills are paid ̶ but that will change. Your Carte Financial Advisor can show you how to prepare for your rising success.

Make cash flow your personal monarch. It is essential for a prosperous future. Because a key part of any wealth strategy involves using your money to make more money. Cash flow management is central to financial planning. Think about how you lived last month. Calculate your personal cash flow by adding up your income. Then, subtract all your expenses. Did you spend more than you made? This is negative cash flow. It means you are going to waste money on hefty credit card interest or loan charges. You also don't have extra funds available for investing in your future. This month, calculate your cash flow by tracking where your paycheque goes. Create a clear, detailed budget. Learn the difference between fixed expenses and variable expenses.

Do you know about Responsible Investing? Let me tell you about our team of advisors. As a client, you need an advisor to trust when it comes to your future. Your financial plan. We’re all in different stages of life; starting a business or a family, saving for your new home, restructuring your debts, optimizing your cash flow, building your investments or transitioning into retirement. We have to start somewhere.

Good Estate Planning Keeps Your Family Safe You want to fully protect your loved ones when you’re gone. That’s what estate planning does. Learn why you need a Will and how the probate process works. Also, how setting up a Trust can help when family affairs are complicated.

Filing your income taxes can be confusing. Avoid these 10 mistakes and keep yourself on track for success.

Why has the Registered Retirement Savings Plan (RRSP) remained so popular over the years? Because it continues to be a tax-efficient way to save money. No matter what point you are at, professionally, the flexibility of this plan offers benefits. Your Carte Financial Group Advisor can help you leverage the power of an RRSP throughout your career. Here are six ways it can help reduce taxes and grow that important nest egg.

If you are considering the full picture of your financial health, it’s likely you have quite a few insurance policies. In addition to auto and homeowner or tenant insurance, you may have life and disability or critical illness insurance, and possibly creditor insurance and even pet insurance. 

Post-secondary education has never been more important to a secure livelihood. Canadians with a university degree earn significantly more than their counterparts without one. This is particularly true for young women. A female with a bachelor’s degree, for example, earns 60% more than one with a high school diploma. 

The COVID-19 pandemic has accelerated the rate at which everyone — individuals and businesses alike — has adopted technology. Those companies who are able to incorporate new technologies are more likely to survive the pandemic and succeed in the years to come. 

COVID-19 has affected most aspects of our lives, including where we’re choosing to live. Many city dwellers are looking to get out of the high-density downtown core and switch to suburban or rural living. 

It’s tougher than ever for young adults just starting out to establish themselves, with many facing reduced employment or job layoffs due to COVID-19. As a result, some young people are turning to their parents for help covering expenses.

The COVID-19 pandemic has reminded us that anyone could confront a debilitating, potentially life-threatening condition at any time. This makes it more important than ever before to have the right insurance products in place — including both life and critical illness insurance.

If COVID-19 and its aftermath have left you without work — or without enough work — it’s time to hit the reset button on all things money-related. Here’s a cheat sheet for dealing with the new normal when the outlook is less than rosy.

How will COVID-19 affect your retirement?

The deadline for filing your 2019 personal tax return is just around the corner. Typically, the deadline to file is April 30. Due to COVID-19 the filing due date for individuals has been deferred until June 1, 2020. Learn more at Canada.ca and search Economic Response Plan. Here’s a quick primer to help you file your personal tax return.

As we’ve seen in the first quarter of 2020, a crisis can strike at any moment. When this happens, naturally we want to protect what is most important to us. This includes our health, our finances, and our family. In the midst of the COVID-19 pandemic, all three feel endangered. 

Get ready, get set — for tax time Many people feel overwhelmed at tax time. If your clients do their own taxes and are confused or don’t know where to start, here’s a quick primer to help them file their personal tax return. Hand it out at your next meeting, or fire it off in an email — it’s a great way to remind your clients you’re here to support their financial well being. Tax time crib notes • The deadline for filing a tax return is just around the corner: April 30 for personal and June 15 for the self-employed. • Submit your return on time. If you owe taxes, you’ll pay a late-filing penalty of 5% of the tax owing plus 1% for each month you’re overdue, up to 12 months. You’ll also pay interest on the amount owing, plus on the late-filing penalty, starting May 1. Interest is compounded annually. If you miss more than one year, you’ll pay even more. • T4 and T5 slips are supposed to be mailed by February 28. Collect all your slips before you start and keep everything in one place. (This will also prepare you in case the Canada Revenue Agency asks you to provide any slips or receipts.) Follow up with financial institutions and other issuers if you believe something is missing. • If you’re married or living common-law, consult with each other before you file. If you’re working, for example, make sure that the one with the higher income claims certain credits — and make sure you don’t both claim the same thing. If you’re retired and there’s a large difference in income, you could jointly elect to split pension income. • Check last year’s Notice of Assessment for important information such as RRSP contribution limits and repayments to the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP). • Gather charitable receipts. You’ll receive a federal tax credit of 15% on the first $200 of donations, and 29% of the remainder. (There’s also a smaller provincial credit.) Consider pooling receipts with a spouse (letting the higher income-earner claim), or carry forward up to five years, if that gets you a higher tax credit. If you’re a first-time donor you may be able to get an additional 25% on the first $1,000 of donations. • Collect all medical expenses for yourself, your spouse or common-law partner and minor children. You’ll get a tax credit for amounts over 3% of your net income or $2,397, whichever is less. You can make the claim for any 12-month period that ends in the 2019 tax year. (If you’re also claiming for a dependent, you need to use the same 12-month period.) Check which expenses you can claim before you submit. • Claim RRSP contributions. Deposits made in January or February of this year can be claimed now or carried forward to next year. Check last year’s Notice of Assessment to confirm how much you can claim without penalty. • Be sure to claim all that you are eligible for if you are a full-time student or graduate of a recognized post-secondary institution, if you paid union dues or certain professional membership fees, if you bought a home last year, if you care for an elderly parent or a family member with a disability. • Check your return, tax-filing software or the CRA website for complete lists of what is claimable and what is not. • If using tax filing software, be sure to check over all fields before filing, including auto-filled fields, to ensure all information is correct and up to date. If you have any questions or your tax situation is more complex than most, don’t hesitate to reach out. At Carte Financial Group we have a team of tax experts to help with complex situations.

10 common tax mistakes to avoid Every year, thousands of Canadians make errors when they prepare their income tax returns. These may go unnoticed — or they could result in an unexpected payment or penalty. Play it safe and avoid these common errors. Filing late. Be sure to file by April 30. If you owe taxes, you’ll pay a late-filing penalty of 5% of the tax owing plus 1% for each month you’re overdue, up to 12 months. You’ll also pay interest on the amount owing, plus on the late-filing penalty, starting May 1. Ignoring your partner. If you’re in a common-law relationship, you’re required to file as a couple. This can often be to your advantage. Lacking documentation. You may not need to provide certain slips or receipts with your return, but you do need to have them. Make sure they’re complete and ready to provide to the government if requested. Claiming moving expenses. If you’ve relocated your home to take a new job, run a business at a new location, or attend full-time post-secondary school, and are moving 40 km or more, you can claim a wide range of related expenses. However, if your new employer paid for them, you can’t claim those amounts as deductions on your tax return — and you’ll need to claim them as income. Claiming twice. Like moving expenses, there are other expenses you can’t claim if you’ve already been reimbursed. For example, if medical costs have been paid for by your insurer, you can only submit the remaining, unpaid amount as medical expenses. Mistaken medical expenses. Be sure to consult the list of approved medical expenses. Items that people often try to claim but which aren’t eligible include health plan premiums, gym memberships, birth control, blood pressure monitors, supplements or vitamins (even if prescribed by your doctor) and personal response systems. Misusing “other deductions.” This area is intended to capture allowable amounts not deducted elsewhere on your return, such as certain special instances with RRSPs, RRIFs and other types of pension plans. You can’t claim funeral expenses, wedding costs, legal fees or other non-allowable deductions. Claiming interest expenses on the wrong things. In general, you can only claim interest expenses if they were directly linked to an investment to earn an income. You can’t claim mortgage interest on your principal residence (if you’re not self-employed), for example, but you can claim it on your rental property. Claiming ineligible tuition fees. You can only claim tuition at recognized institutions. Not filing at all. In addition to possibly incurring hefty interest charges and penalties, you could be missing out on important tax breaks and the ability to accumulate RRSP contribution room. At Carte Financial Group we have a team of tax experts to assist with complex situations. If you have any questions, don’t hesitate to contact your Carte Financial Advisor.

Are your client conversations doing all they should? Your ability to provide outstanding, personalized service is limited only by the quality of information you elicit from each client. Therefore, ensuring that you have a well-rounded, honest conversation is critical. That means gathering the information that will allow you to recommend the investments, asset allocations, insurance and other financial products that are appropriate for your client. It also means getting a 360º view of the client’s life — not just their financial situation but their family, their lifestyle, their needs and aspirations. To do this you’ll need to cultivate a trusting relationship. Here are some tips to help you get clients to open up. Ease into conversations. No one likes to feel interrogated. Start with easy, straightforward questions that feel “low risk” to the client, such as “how long have you lived in your current home?” Or “tell me a bit about your work.” Ask open-ended questions. A broad question such as “Can you tell me about yourself?” allows the client to steer the conversation. Establish risk tolerance. Many of your recommendations will hinge on this, so be sure to discuss this early in the conversation. Confirm risk tolerance. Some people think they’re comfortable with risk (or vice versa) without thinking through what that could look like. Do a double check by asking scenario-based, “how would you feel if…” questions. Ask how they feel about their investments. This helps you gauge their risk comfort and performance expectations in more concrete terms, as well as finding out whether they are currently meeting their objectives. Talk holistically about money. Few people aim to save money for its own sake. It matters because of what it allows them to do. Before you can draft a financial plan, it’s critical to first explore what the person needs and wants to do with their money. Talk about goals. Your job is to both manage the person’s situation today — and get them where they want to be. Since many people aren’t good at imagining themselves in the future, also present more specific questions. For example: “How long do you think you’ll continue to work?” “Would you like to stay in your current home when you retire?” “How will you fill your time in retirement?” “Have you thought about what you’d like to leave your children?” Talk to the family. Be sure to include your client’s spouse. If you’re working with a husband who takes care of all the finances, be sure to include the wife in discussions to establish trust; 70% of women who are widowed or divorced leave the family advisor. Try to meet with adult children. This also helps ensure transparency, especially when dealing with elderly or aging clients. Be sure to turn to the many Advisor tools provided by Carte Financial Group to aid your early conversations, such as Care Core for CRM and compliance management and Carte Links content management for client communications.

Honesty is the best policy with your financial advisor Money is a very personal topic that many people find difficult to discuss. One person with whom you have to talk about money is your financial advisor. In order for your advisor to help you to their fullest ability, you need to be 100% honest about your situation. Full and accurate disclosure Financial planning is a highly personalized process. Your advisor will ask you a number of questions when you start working together, in order to help you grow your wealth and enjoy financial security. It’s important that you disclose all the facts about your employment, financial holdings, expenditures, debts, risk tolerance, lifestyle and goals, and to keep your advisor updated with any changes. Only with a complete and accurate picture of your financial and personal situation will your advisor be able to: • Recommend appropriate investments. With more investment options available than ever before, it’s important to choose those that are compatible with your investment timeline, your financial goals, your strategic preferences and your comfort with risk. • Ensure you are protected. A good financial plan includes the right types and amount of insurance to protect you and your family from the financial consequences of a misfortune. • Match a financial strategy to your needs. Every person has a different idea of what retirement looks like, and different goals for the journey that takes them there. Your financial advisor needs to look at the resources available to you and what you want from life, retirement and a legacy, to create a strategic plan to help you achieve the most from your financial assets. For example, one of your advisor’s tasks is to develop and maintain a balanced portfolio. If you keep an investment property secret, for example, you could end up with a portfolio that’s over-weighted in one asset class because your advisor didn’t have full and accurate information, and miss out on strategies to help minimize taxation. Feel comfortable with Carte Your financial advisor is a partner who’s on your side. When you work with any professional, it’s important to choose someone you trust and feel comfortable working with, and who specializes in the areas most relevant to your situation. At Carte Financial Group, we pride ourselves on the high calibre of our award-winning team. We were named the #1 firm in the Investment Executive (“IE”) Dealer’s Report Card 2019, where we were praised for the high quality of technology and other resources we provide our advisors. You can also be confident that your Carte Financial Group advisor has access to a range of qualified professionals (such as tax and legal advisors) and will develop a comprehensive plan that puts your needs first.

Help your clients invest their TFSAs After 10 years, more Canadians than ever are tapping into the power of the Tax-Free Savings Account (TFSA). Yet many people use their TFSA to hold cash or basic interest-bearing accounts. Some might be confused by the name and don’t realize their TFSAs can hold investments. For others, it may be a case of the “park it and forget it” syndrome that afflicts too many RRSP accounts. Regardless of the reason, this is a lost opportunity to build tax-free wealth. Here are some suggestions for how to encourage your clients to use all their TFSA to its full potential. 1. Remind them of the amounts This year’s contribution limit is $6,000. Any unused contribution room can be carried forward to future years. Since the TFSA was introduced, the total contribution room available to every adult, regardless of income, is $63,500. Even though the average Canadian holds less than half that amount, it’s an awful lot to be idling in cash. 2. Inform them how they can invest Make sure your clients realize the full spectrum of holdings a TFSA can contain. In addition to high interest savings accounts and GICs, that includes individual stocks, bonds, mutual funds and ETFs. Holding these within a TFSA and avoiding paying tax on the compounding returns can make a huge difference over time. 3. Show them the benefits of compounded returns While most people do understand that their money grows tax-free within a TFSA, they might forget about the incredible power of compounding over the long term — a power that becomes more dramatic as the returns nudge higher. Provide a personalized illustration that will help your client visualize how significant this can be. A chart comparing a savings account and an ETF inside a TFSA, for example, tailored to the client’s level of savings and time horizon, can be very persuasive. 4. Help them structure a TFSA portfolio Some clients deliberately hold cash in their TFSA as a rainy-day fund. While it’s always great when clients plan ahead, there’s no reason they have to take an all or nothing approach. Help them create a TFSA portfolio, where a portion (say, two- or three-months’ living expenses) is held in a money market or a high interest savings account, and the rest is placed in higher-yielding investments. Their ongoing contributions would be added to the invested portion. Start the dialogue Since a large proportion of Canadians with TFSAs are not using them to their full advantage, it’s a good idea to talk to your clients about how you can help them achieve the full wealth-building potential of this powerful saving tool.

What happens to your RRSP when you retire? Many Canadians spend so many years saving into their RRSPs, they forget to plan for how they will withdraw the money. At the end of the year in which you turn 71 your RRSP matures, and you must move from the accumulation phase to the payout phase, if you haven’t already. How do you do this? If you were to simply take the money out of your RRSP, you would have to pay tax at your marginal (highest) tax rate on the full amount. Instead, most people transfer the assets into a Registered Retirement Income Fund (RRIF) or purchase an annuity, which are more tax efficient strategies. Converting to a RRIF Think of a RRIF as an RRSP in reverse. Instead of contributing to the fund, you withdraw from it, but your money remains tax-sheltered while it’s inside the RRIF. You can hold all the same investments as you did in your RRSP, or change the asset mix to match your post-retirement needs. Just as RRSPs have rules about how much you can contribute, RRIFs have rules about how much you must take out. After the year the RRIF is established, a schedule of minimum mandatory withdrawals begins. Minimum withdrawals start out small and increase as you get older. Although withdrawals are considered taxable income, there is no withholding tax deducted at source from these minimum withdrawals. You may take out more money from the RRIF at any point; however, withholding tax is paid at source on these amounts. Purchasing a registered annuity This is a product you purchase to provide a guaranteed income stream. Funds are managed by the company where you hold the annuity, and you receive a reliable monthly income, either for a fixed period of time or for your lifetime. There are many different types of annuities, so it’s important to choose one with features that meet your goals. For example, a couple might choose a joint and last survivor annuity that would provide an income for both spouses for their lifetimes. A person with children might choose an option where a payment is made to their estate. An annuity is a “set it and forget it” product, which many people enjoy. The only decision involved is the initial purchase and then the annuity is locked in. Structuring a payment portfolio Planning RRSP withdrawals isn’t an all or nothing situation. For example, you could withdraw $10,000 in cash to take that dream trip when you retire. The rest you could divide between a RRIF to provide long-term growth and leave assets in your estate, and a life annuity for predictable, guaranteed monthly income for your remaining years. Plan ahead Deciding how you will use your RRSPs is as important as figuring out how to invest them during your working years. Your financial advisor can guide you on the right structure to meet your income and legacy goals in a tax efficient manner.

5 ways to increase life insurance sales If you’re looking to increase your life insurance sales, make sure you’re following these five important tips, including some you may not have considered. Be passionate about the product Know everything there is to know about the product so you can explain it clearly and answer any and all questions. You should also have a sound knowledge about the industry and competitive products. Demonstrate your belief in the product and the overall industry through your demeanour. Be positive and enthusiastic. Some salespeople recommend that you become a customer of the product or company. This is a great way to get a better understanding of your prospects, the product, and how your clients perceive it. Sell the benefits Don’t try to sell the price. Instead, point out the benefits of the product. And remember, features pertain to the product, while benefits pertain to the customer and “what’s in it for me.” For a life insurance policy, for example, a cash surrender value is a feature, while being able to access extra funds in an emergency is a benefit. Tailor your pitch to the specific needs of the person and their family to make it relevant. If you are expanding a relationship with an existing client into life insurance, you’ll already have a good knowledge base to work from. Offer great service at every step That means attention to detail. Like being on time from the very first meeting. Another sign of great service: proactively providing all the info a client requests — even anticipating their needs. It’s always a great sign when a prospect says, “right, I meant to ask you about that.” And be sure to follow through with any information or next steps in a timely fashion. Hone your communication style On the phone, consider how your voice comes across. Do you speak clearly or mumble? Do you sound confident or uncertain? Get voice coaching if necessary. Be clear, simple and direct in all written communication, and adopt a professional tone that is respectful but friendly. Again, if you need it, it’s easy to hire the services of a professional editor. Listen more than you speak and listen actively. Show that you have heard and understood the person by responding and following through. Listening is also important because it gives you information to work with to close the sale. Get referrals through all channels Most sales experts recommend that you ask for referrals. If you feel awkward doing this, there are many ways to make it more comfortable. Instead of asking, try phrasing it as a reminder. For example, “Don’t forget to refer me to your friends if you’re happy with the service I’ve provided.” Use partnerships with other professionals as another way to build your clientele through referrals. And use your social media channels to get your name out there. A great, informative blog post that someone links to, or a tweet that gets retweeted, is an implicit referral that you didn’t have to ask for. Use your resources As a financial advisor, you’re passionate about personal finance and investments. There’s always more to learn about the selling part of your role. Remember that Carte Wealth Management Inc. provides a number of resources to help you cultivate and expand your client relationships.

Avoid these 3 common life insurance mistakes Life insurance is a topic most people know very little about. That makes it far too easy to buy a policy that’s not a good fit for your needs. Here are three of the most common mistakes people make when choosing life insurance, and how you can avoid them. Not seeking discounts Get a break on your premiums by seeking out any discounts you may be eligible for, such as purchasing more than one type of insurance or taking out a policy for both you and your partner with the same insurer. Healthy lifestyle behaviours may also lead to lower premiums on life insurance. When arranging payments, remember that you could also save a little by making one lump-sum annual payment rather than monthly payments. Not knowing policy details and exclusions Be sure you understand all the details of the policy. For example, if you plan to visit a country considered high-risk, or if your job is considered dangerous, some policies may not provide coverage. Many people also fail to disclose crucial information that could compromise their coverage. A pre-existing health condition or an undisclosed driving history with a serious incident, for example, could lead to a claim or application being denied. Not getting right amount or kind This is by far the most serious and most common mistake. Many people don’t buy enough insurance, either because they underestimate how much would be needed to provide for their family if they weren’t there, or because they think it costs more than it does to take out a larger policy. Some people don’t understand the different types of life insurance, and take out the wrong type of policy for their needs, or they don’t consider future needs in their decision. This is important because generally speaking the younger you are when you purchase the policy, the lower the cost. There are many types of variations and coverage options, but the most popular life insurance policies boil down to two main types: • Term insurance covers you for a specified number of years. It’s good for shorter-term needs and is often used as a less expensive alternative to mortgage insurance. But if you need to continue coverage at the end of the term, premiums will be higher. • Whole life is a longer-term product that offers consistent and predictable premiums. Unlike term insurance, it has an investment component and a cash value, which means you can tap into the savings portion if you need to. Work with a knowledgeable financial advisor When you work with a Carte Wealth Management Inc. advisor, you’ll get personalized advice that ensures you purchase the policy that provides the right coverage at the right price for you and your family. Your advisor will look at your entire situation, taking into account future needs, and will explain all the options and details of your policy, so that you can rest easy knowing you have the right protection in place.

Carte Wealth Management Inc. advisor Jackie Porter named Female Trailblazer of the Year Mississauga, Ontario, July 31, 2019 – Carte Wealth Management Inc. (“Carte Wealth”) is pleased to announce that Jackie Porter, CFP was named winner of the Mackenzie Investments Award for ‘Female Trailblazer of the Year’ category in the 2019 Wealth Professionals awards. These awards celebrate the top advisors and wealth management professionals across the country. Each year more than 1,000 professionals vie for a place in one of the 20 award categories. The Female Trailblazer category recognizes advisors who demonstrate the promotion, influence and championing of women within the wealth management and financial planning industry. “I am honoured to have been chosen for this award,” says Porter. “It’s a confirmation that my commitment to delivering top-notch service and the very best value to my clients, as well as my dedication to educating women about financial issues, have been acknowledged by the industry, and I’m very grateful to have that recognition.” In addition to her work with families, professionals and businesses in the Greater Toronto Area, Porter’s financial advice and strategies have been featured in top financial publications, including The Globe and Mail, Wealth Professional, Investment Executive, and the Ontario Bar Association. She is also a speaker and recently co-authored the book, Single by Choice or Chance: The smart woman’s guide to living longer, better. “This award is validation of Carte Wealth’s commitment to hiring top-tier advisors and providing the resources and support that help them achieve professional success,” says Kirk Purai, President of Carte Wealth Management Inc. “I am very happy for Jackie and incredibly proud to have her as a member of our Carte team!” About Carte Financial Group Carte Wealth Management Inc. is a mutual fund and exempt market products dealer in the provinces of Alberta, British Columbia and Ontario and a mutual fund dealer in the provinces of Manitoba, Quebec and Saskatchewan, providing clients with mutual funds, Exchange-Traded Funds (ETFs), principal protected notes (PPNs), guaranteed investment certificates (GICs), and private placement. Carte Risk Management Inc. is an insurance managing general agency licensed in the province of Ontario, providing clients with life insurance products and services as well as segregated fund investment solutions. Carte is ranked as the #1 Full-Service Independent Dealer with Investment Executive’s Dealer Report Card. Are you ready to grow your business? Carte cares - just ask our advisors! www.CartePartners.ca

How’s your cash flow? Easy ways to improve it Cash flow — the movement of money into your account (your income) and out of your account (your expenses) — is an important and often overlooked part of a financial plan. Ultimately, there are two goals. One is to have more money flowing in than flowing out. The other is to time income and expenses so that there is money in the bank when payments are due. If cash flow is out of sync in either of these ways, you could be forced to either tap into your savings or borrow money to cover expenses. Start with a budget Ultimately, the cure for negative cash flow is to live within your means and spend less than you make. Having a budget, an inventory of your income and expenses, helps you see how you’re doing in this regard — and how you could improve. Make budgeting easy by using an online budget calculator, like this one from the Government of Canada. In just a few minutes, it will calculate whether your spending is over or under your income. Print it out, create a report, download to a spreadsheet, or go back and figure out where you could make adjustments and improve cash flow. Create an emergency plan One thing that can really cause cash flow issues is an emergency situation or unplanned expense. People without an emergency fund often end up running up expensive credit card debt, which can take months or years to pay down, taking cash flow issues from bad to worse. That’s why it’s wise to have an emergency fund. A good goal is to save 3-6 months’ living expenses as a cushion. Consider a Manulife One account One simple way to stay on top of cash flow and prepare for the unexpected is with a Manulife One account. This is an “all-in-one” product that combines your mortgage, bank accounts, savings, income and debts within a single home equity account. A Manulife One account makes budgeting easier because you have a single account and one monthly statement. You see at a glance all the money coming in and everything going out — your entire cash flow picture. It’s designed to help you reduce interest costs and become debt-free sooner, and it also offers a solution for unexpected expenses. If you encounter an emergency situation, you have easy access to funds without running up expensive credit card debt and without needing to set up a separate emergency fund. Your advisor can help with every aspect of your financial planning, including generating positive cash flow, saving for emergencies and setting up a Manulife One account to help you get on top of your financial picture and improve cash flow.

“This is the first year that our firm has been included in the survey, and I am thrilled that we have ranked in the number one spot,” says Kirk Purai, President of Carte Wealth Management Inc. “I am incredibly proud of the hard work of our management team and staff to deliver an advisor experience that is literally second to none.” The results were based on surveys of 512 investment dealers, of whom 30 are affiliated with Carte Wealth. Participants were asked to rate their firms from zero to 10 on a series of criteria. Carte Wealth scored particularly well in areas including “support for mobile technology and the mobile advisor,” “receptiveness to advisor feedback” and “effectiveness in keeping advisors informed.” One advisor noted the “amazing communication” from Carte Wealth. Some of the techniques used by the firm include a weekly Sunday recap email, a monthly podcast and educational sessions with guest speakers. Furthermore, advisors at Carte Wealth consider their firm to be technology leaders, thanks to recently implemented cutting-edge software, including a robust CRM platform that provides content for advisors to send clients. Advisors also commended the firm’s ethics, the quality of product offering and the freedom to make objective product choices. One advisor quoted by IE said, “I really like the corporate culture. They’re focused on bringing more women advisors on board. You get all the freedom you need to run your own business with support from the firm.” “The balance of independence and top-notch support for our advisors is important to us,” says Kirk Purai. “We think it’s what makes Carte Wealth Management Inc. best in class and we will continue our commitment to this approach in the future.” About Carte Financial Group Carte Wealth Management Inc. is a mutual fund and exempt market products dealer in the provinces of Alberta, British Columbia and Ontario, a mutual fund dealer in the provinces of Manitoba, Quebec and Saskatchewan, providing clients with mutual funds, Exchange-Traded Funds (ETFs), principal protected notes (PPNs) , guaranteed investment certificates (GICs), and private placement. Carte Risk Management Inc. is an insurance managing general agency licensed in the province of Ontario, providing clients with life insurance products and services as well as segregated fund investment solutions. Carte is ranked as the #1 Full-Service Independent Dealer. Are you ready to grow your business? Carte cares, just ask our advisors! https://cartefinancial.com

How women can plan for a longer retirement Canadian senior women live an average of three years longer than men, while their annual retirement income is significantly lower. That means careful planning is even more important if you’re a woman. Make sure you’re on track for a long — and financially secure — retirement. 1. Know your CPP, OAS, GIS These important acronyms stand for Canada Pension Plan, Old Age Security and Guaranteed Income Supplement. You can learn more about these public pensions, find out which ones you qualify for and estimate how much you could receive at the Government of Canada site. 2. Choose your investments An investment strategy can help you achieve the growth you need to build a nest egg that will support you through 20 or 30-plus years of retirement. It should also consider how your investment mix will change over time, so that the proportion of safer investments increases closer to retirement. Your investment advisor will work with you and recommend investments based on your comfort with risk, your savings goals, and your time until retirement. 3. Use registered funds The Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) were designed to help people maximize long-term savings. It’s important to understand how these tools work and how to best use them for your situation. Depending on your income, your spouse’s income if you are married, and your anticipated income level during retirement, you might choose to hold your savings in RRSPs, spousal RRSPs, TFSAs, or some combination of these. Your financial advisor can help you figure out how to get the greatest benefit from these savings vehicles. 4. Protect yourself with insurance If you have a spouse or common law partner, life insurance is an important tool to help preserve your current lifestyle and protect your financial wellbeing if your loved one passes and you find yourself having to cope on your own. 5. Think like a team If you are married or have a common law partner, it’s important to consider all of your financial planning jointly. Estate planning (including wills and beneficiary designations) insurance, income from personal savings (including annuities, RRIFs, TFSAs and other sources), government pensions — all of these should be considered as part of a larger picture to ensure financial stability and to minimize taxes. 6. Create a financial plan A well-rounded financial plan will provide you with a roadmap to guide you through to retirement and beyond by outlining a strategy for all of the points noted above. It should take into consideration any specific health concerns that may have an impact on your finances or your living arrangements. Your financial advisor is an important part of your retirement planning team. Our advisors are trained to ask the right questions to help you develop a plan that addresses every aspect of preparing for retirement, tailored to your specific needs as a woman.

Break it to me gently: how to have tough talks with your clients There are times in every financial advisor’s career when he or she must have a challenging discussion with a client. Perhaps an investment strategy didn’t perform to expectations. Maybe the client isn’t saving the way you both anticipated when you drew up their financial plan. Or their ex-spouse left them with a financial disaster. Whatever the situation, don’t try to hide from it, hoping that the issue will resolve on its own or that the client won’t notice. Use this step-by-step guide to navigate through difficult discussions with your clients. Set the stage. Try to have the discussion in person, in a quiet, private place without distractions or interruptions such as ringing phones. If you can’t meet in person, be sure to make the call from a quiet location and ensure the client isn’t multi-tasking (including driving) during the conversation. Be truthful and transparent. Present the situation honestly and transparently. Explain the reason for the current situation, without making excuses or judgements, in simple, clear language. If you confuse clients when delivering unpleasant news, they may think you are hiding something. Capture their thoughts. Try to understand the client’s perspective by asking open-ended questions. This helps you understand how they see the situation and it helps turn the meeting into a dialogue. You can use this information to structure next steps. Acknowledge their feelings. Emotions may run high. Your client may feel angry, frustrated, or sad. Acknowledge their feelings, whatever they are, without judgement. Don’t dwell on their emotional state, but don’t try to talk them out of feeling the way they do. Show leadership. Be calm and speak in a controlled manner. Seeing that you aren’t panicking will give the client more confidence. Take charge of the conversation and steer it towards the most important part: your plan. Present a plan. Remember that the bad news is just one part of the story you’re telling. The second part is how you’ll deal with the situation. Explain your recommendations and be sure the client is comfortable with your plan. You may need to make some compromises, but it’s important to that they agree with the course of action. This will help you end the conversation on a positive note. Follow through. Whatever you do, the most important thing is to follow up in a timely fashion with the agreed-upon next steps. With practice and a little planning ahead of time, you’ll find that you are more confident when you need to have a tough talk with one of your clients.

How a financial advisor helps you invest When it comes to investing, many people think they can go it alone, either by figuring it out themselves, or by using a so-called robo-advisor. In a great many cases, working with a credentialed, human financial advisor is the better course of action. Here are some of the benefits that you get when you invest with a financial advisor. A financial advisor knows you — sometimes better than yourself. Your financial advisor will get to know things about you that you may not be able to assess clearly, such as your risk tolerance, your investment horizon and even your spending patterns and your short- and long-term savings goals. The advisor will use all of this information to select investments that are a good choice for you. A financial planner helps you diversify Diversification means investing in different sectors and geographical regions, and holding different classes of investments, such as fixed income products and equities. Diversifying helps because if there’s a decline in one investment, it may be offset by others, which helps to level out dips. A financial advisor regularly re-balances As a trained professional, your advisor takes a more disciplined approach than most investors to rebalancing a portfolio on a regular basis. This ensures that as the value of different holdings within the portfolio change over time, the overall composition — the proportion of equities to fixed income, for example — remains consistent and true to your objectives. A financial advisor can watch out for you Many investors make mistakes, such as getting out of an uncertain market at the wrong time and locking in losses. A financial advisor provides objectivity and experience to help you know when to sell and when to hold investments, to prevent costly mistakes. A financial advisor thinks beyond the investments Whereas robo-advisors and many DIY investors focus on fees and returns when they assess a potential investment, a financial advisor has expertise and access to a network of specialists to weigh many more criteria, including tax implications and estate planning. A well-rounded investment strategy considers the type of accounts different classes of investments are held in to minimize your taxes, for example. An advisor also thinks ahead to what will happen to your investments when you reach retirement, and beyond that to the most favourable way to structure the legacy you plan to leave your family. A financial advisor is a partner Doing anything alone is always more difficult than having help. As your partner, a financial advisor will make recommendations but is also open to your ideas and suggestions. After all, it’s your money, and your financial advisor always respects that. The financial advisors at Carte Wealth Management Inc. will look at your investment plan as one part of your financial whole. They’re carefully trained to ask the right questions to help you develop an investment strategy that’s suitable for your financial situation, taking into account tax considerations and your overall financial plan, including your estate plan. And they will help you adapt your investment plan as your needs change over time.

When the 2019 federal budget was presented March 19, 2019, it revealed changes to the Registered Disability Savings Plan (RDSP). If you have clients who might be affected, here’s what you need to know about how the proposed legislation could help them once the changes take effect. Who is affected: A person with a disability (or parents of a child with a disability) who experiences an improvement that disqualifies them for the disability tax credit (DTC). The current legislation: Currently, if a beneficiary stops being eligible for the DTC, contributions can no longer be made to the RDSP, and no further Canada Disability Savings Grants or Canada Disability Savings Bonds can be paid into it. The plan must be closed and all money paid out by the end of the year following the first full year during which the beneficiary loses DTC eligibility. The proposed legislation: The existing time limit on the period an RDSP can remain open after the beneficiary becomes ineligible for the DTC would be removed beginning in the 2021 tax year. The budget also proposes that written certification from a licensed medical doctor or nurse practitioner stating the beneficiary is likely to become DTC-eligible again in future would no longer be required to keep the plan open. Why it matters: Currently, if a person stops being eligible for the DTC, up to 10 years’ worth of grants and bonds would have to be paid back. Then the RDSP issuer would pay any remaining assets to the beneficiary. The proposed legislation includes new rules governing repayment that would see ever- declining portions of the grants and bonds being repaid each year after the beneficiary turns 50. What happens in the interim: A transitional rule will ensure that an RDSP issuer will not be required to terminate a plan after March 18, 2019 and before 2021 for the sole reason that a beneficiary loses DTC eligibility. While the new rules have been described as being beneficial to disabled people and more generous than the previous rules, do remember that they are still in the proposal stage. Be sure to check on updates to their status before advising any of your clients who have, or are planning to open, an RDSP.

There are, of course, the lifestyle changes that require trading in freedom for the most significant, most permanent commitment of all. And there are the financial costs of raising one, two, or more children. Every now and then, a report comes out reminding us about the price tag that comes with raising a child. The cost of diapers and baby wipes are tallied up ($1,850 for the first year). Day care is probably the largest expense in the early years for working parents, especially in cities where fees come in at $1,000 or more a month. Add in clothes, food, housing and all the other associated costs, and the totals increase steeply. The estimates for raising a child in Canada have put the cost at around $13,000-plus a year, or about a quarter of a million dollars to see a child from birth to their nineteenth birthday. There are also many financial hits not accounted for in these estimates, like taking a reduced salary during parental leave, or upgrading to a larger home with more bedrooms. Then there’s higher education: the cost of putting a child through a Canadian university for four years is estimated at $37,000 if they live at home, $80,000 if they live away. Thankfully, most parents make the decision about whether to have children with their hearts rather than with calculators and spreadsheets. No amount of money can put a price tag on the emotional rewards of being a mom. We can worry about the cost of diapers, but for most mothers, that worry melts away when baby says their first word or takes their first tentative steps. We can itemize how much we’ll pay in child care costs until the school years begin, but we can’t quantify the smile on a child’s face when they reach a major milestone like getting the hang of balancing on a two-wheel bike. We can calculate the cost of higher education, but we can’t put a price on the pride we feel attending our child’s graduation or seeing our first-born land the first full-time job of their career. So, with Mother’s Day coming up, on behalf of all the financial advisors, I’d like to give a shout-out to mothers everywhere. Thank you for your sacrifices, financial and otherwise. And thank you for believing, through it all, that the joys of motherhood are worth it, whatever the price.

A good credit history and a high credit score are valuable assets that can help your clients access financing solutions and even get a better interest rate. Unfortunately, there are a lot of misconceptions around credit reporting, and these sometimes lead to harmful mistakes. Here are five common myths, with simple explanations you can provide to help your clients protect their credit rating.

If you’re like a great many Canadians, making an RRSP contribution by the March 1 deadline feels like a mad dash to the finish line. Take the stress off yourself and avoid the RRSP scramble next year — and the year after, and the year after…. With just a little planning and a few simple steps today, you’ll never have to worry about the RRSP deadline again.

If you’re like an increasing number of Canadians, you enjoy the convenience and time savings of online shopping. But those same features can make it so easy and attractive that online shopping can become a cash siphon — and even an addiction. If you do it often, it’s also easy to lose track of how much you purchase until it’s too late. Here are some tips to help you keep online shopping in check.

As a financial advisor, you know how important it is for your clients to track their spending and stay on budget. Otherwise, it’s easy to overspend and get into debt. Here are five techniques you can suggest that make it easier for clients to track their spending.

Estate planning is an important component of the services you provide for your clients. But an estate plan is not a “set it and forget it” matter. Instead, it requires continued periodic attention to ensure it continues to be an accurate reflection of the client’s wishes.

Having a solid estate plan in place gives you peace of mind that the wealth you build over your lifetime will be passed on to those you care about in accordance with your wishes. A will is a fundamental component of an estate plan, and every adult should have one. But in some cases, a trust might be used to achieve your objectives. Here, we’ll look at wills and the two most common types of trusts: testamentary trusts and living trusts.

Many clients want to invest, but when it gets right down to it they may not be comfortable with the idea of risking their money. The truth is, risk and investing go hand-in-hand. But that doesn’t mean investing has to be excessively risky. Here’s how to explain risk, reward, and risk management strategies to your clients.

Developing a plan can take a lot of time and discipline, which is why too many people don’t do it. A professional advisor takes the stress out of the process. Financial advisors are carefully trained to ask the right questions to help you develop a tailored investment plan that will help you achieve your goals.

It’s quite easy to spot the con artists on a TV show: ominous music and devious facial expressions are definite giveaways. But without those Hollywood cues to help, would you know if someone were trying to gain access to your money under false pretenses? Listen to these four questions to learn more today!

When you’ve finished school and are trying to get your career off the ground, there’s a lot to worry about. Don’t let finances be one of them. Follow these basic rules of money management.

A recent poll by Angus Reid Institute revealed that 51% of Canadians do not have a will. Many people believe they are too young to need one, or they don’t have enough assets. A will is the starting point of a good estate plan. It’s never too soon (or too late) to meet with your financial advisor and create an estate plan that’s done right.

Making the conscious decision to stop working and move into retirement can be difficult. There are many worries that go along with it, chief among them being a concern for your financial health. If you are nearing retirement age, here are some tips on how to approach your financial wellbeing before you make the change.

For many people, the decision to begin working with a financial advisor for the first time is a big step and, unlike a health care professional or even a lawyer, they may not have worked with this type of professional before. So, what can (and can’t) you expect?

Get ready Canada – the day is coming when you can start actually keeping your money. That’s because Tax Freedom Day is almost here! According to the Fraser Institute, a Canadian public policy think-tank based in Vancouver, Tax Freedom Day marks the day when Canadians officially start keeping the money they make, instead of turning it over to federal, provincial, and municipal tax collectors.

You rely on your financial advisor to help guide your portfolio towards your goals. But did you know that there are several things you can do to take control of your financial picture today and into the future? Here are 7 secrets revealed by our advisors that will help you stay on solid footing without having to be a financial expert!

If you or someone you care about has a disability, the Government of Canada offers Canadians the chance to accumulate funds and provide financial security for disabled persons through the Registered Disability Savings Plan (RDSP). RDSPs operate in a similar fashion to RRSPs, but carry their own set of distinct benefits.