Protecting Your Assets

Carolyn Chambers | Associate Lawyer, Gelman & Associates Stacey He | Financial Planner For Busy Career Professionals, Investors Group

“Like a great car, the best advisory relationship has to be reliable, has to suit your style, and has to take you exactly where you want to go.”

Protecting Your AssetsAgenda

7 Wealth Building Strategies

8 Questions To Ask Before Saying “I Do”

How To Have The Money Talk With Your Spouse

Common Law Partnership – Protecting Your Assets Before Marriage

Marriage – Protecting Your Asset During Marriage

After divorce – Understanding Asset Equalization

Re-building Your Finances After A Separation

Protecting Your AssetsAnna and Arthur’s Story

Anna is a Human Resource Manager and Arthur is an engineering manager. They met while studying in University. They tied the knot on June 1, 1999.

Protecting Your AssetsAnna and Arthur’s Story

Today, Anna and Arthur are 45 years old. They have 2 children and they have decided to go their separate ways.

Building Wealth

1. Starting Early

Anna saved $130 / month towards her RRSPs starting age 23.And began contributing $260/month towards her TFSA starting in 2009. Result: Anna accumulated $100,000 in RRSP and $20,000 in TFSA by age 45.

*Assuming you invest $100 / month @ 7% return

1. Starting Early

Understanding Your Investment Choices

Goal - Owning a home with Arthur

Action Plan: saving for the down payment of a home. Down payment required: $80,000. Commitment: $500 / month from age 23 – 35.

No more than 30% of your take home pay should go to rent. 10% to groceries, and 10% on other essentials for a total of 50%

Money market funds, bonds, GIC, produces interest income

Equities - produces Capital gains and dividends

RRSP/TFSA Non-Registered

Inside / Outside Strategy

Anna’s mortgage is for $400,000. She has an extra $500 to put away every month.

RRSP w/ Savings Mortgage w/ Savings RRSP w/ Mortgage

Net Worth $2,239,973 $1,764,741 $2,272,289

Annual Payout $59,560 $18,122 $60,446

Assumptions: mortgage rate: 3.5%, investment return is 7%. Amortization period: 25 years

The Starbucks Generation

Power of compounding

Saving $6 / day from age 30 will give you an extra $440,353 towards your retirement portfolio. That’s $8,000 in spending money from age 65 – 90.

"Compound interest is the eighth wonder of the world. He who understands it, earns it... He who doesn't...pays it.“ - Albert Einstein

Building Wealth

Questions to ask before saying “I Do”

How much debt do you have? Decide on joint or separate accounts What are your credit scores? Are you bringing assets into the marriage? What are your financial priorities? Owning a home? Paying down debt?

Enjoying life?

Building Wealth

Building Wealth

• $1,000,000,000,000 or more will be transferred in the next 20 years!

• Wealth transfer from baby boomers

The CRA Is Excited!!

RRSP

Tax Refund

TFSA Non Registered

Rental Properties

Building WealthUnderstanding Your Inheritance

Son Daughter

House $500,000

RRSP $500,000

Son

House $500,000

Daughter

RRSP $250,000

CRA $250,000

Building Wealth

Son Daughter

House $500,000

RRSP $500,000

Son Daughter

Insurance

Building Wealth

Protecting Your AssetsHow Can We Help?

1. Free consultation – “Discovery Meeting” to understand your financial situation.

2. Tailor-made financial plan

Smart Questions To Ask Your Financial Planner

1. Am I doing the right things to reach my financial goals in the most efficient way?

2. Am I maximizing all the opportunities that exist to make my money work smarter for me?

3. How can I better prepare for the unexpected? (Stress-test your financial plan)

Building Your Wealth & Protecting Your Assets

Carolyn Chambers | Associate Lawyer, Gelman & Associates Stacey He | Financial Planner For Busy Career Professionals, Investors Group

“Like a great car, the best advisory relationship has to be reliable, has to suit your style, and has to take you exactly where you want to go.”

QUESTIONS?