Financium Marketing Template

Adviceon® Wealth Media Memo

Dear Client, Digital Newsletters and Library Tile Menu
  • Your Clients’ Financial Masterclass Consider that you have a Financial Masterclass as a marketing tool! Banks and Life Insurers use monthly Content Marketing e-Newsletters. Many are preferring this cost-effective method which emails directly to your clients. If you have a website with us, this e-Newsletter is read right inside your website. We have affordably priced the e-Newsletter to say thank you for your business. Contact Catherine at 519-745-5595 for more info.
  • Website Face-Lifts We have upgraded your website to our newer contemporary version. I hope you like the new look.
  • New Library Tile-Menu We have moved from the side menu to a contemporary visual tile layout for the article and audio library.

The market bounced back nicely, though we may have a ways to go. It is my hope that you each will prosper, taking courage as we innovate with digital marketing.

Courage and Health,

Glen Jackman, CEO Adviceon® Wealth Media

Financium Marketing Template Canfin

Adviceon® Wealth Media Memo

Dear Client, Digital Newsletters and Library Tile Menu
  • Your Clients’ Financial Masterclass Consider that you have a Financial Masterclass as a marketing tool! Banks and Life Insurers use monthly Content Marketing e-Newsletters. Many are preferring this cost-effective method which emails directly to your clients. If you have a website with us, this e-Newsletter is read right inside your website. We have affordably priced the e-Newsletter to say thank you for your business. Contact Catherine at 519-745-5595 for more info.
  • Website Face-Lifts We have upgraded your website to our newer contemporary version. I hope you like the new look.
  • New Library Tile-Menu We have moved from the side menu to a contemporary visual tile layout for the article and audio library.

The market bounced back nicely, though we may have a ways to go. It is my hope that you each will prosper, taking courage as we innovate with digital marketing.

Courage and Health,

Glen Jackman, CEO Adviceon® Wealth Media

How market volatility can work for the investor

What is market volatility? Volatility is when prices of stocks and equity funds increasingly shift in value up or down. When a low-volatility period is followed by increases in volatility, stock markets may begin to offer lower prices, which can effectually present lower priced fund units, both offering a buying opportunity for the investor.

The stock market can both gain value in a “bull market” and can have periods of slow down referred to as a “correction” or if more prolonged, a “bear market”.

Many investors have seen their investments increase dramatically since the 2008-9 financial crisis that affected all the world’s markets. Many of these investors have also witnessed a remarkable bull market taking many stocks and equity funds much higher than their previous years’ valuation. Conversely, investors who unwisely sold their holdings out of fear lost money.

The ideal strategy exercised by most successful contrarian investors like Warren Buffet is to buy investments when others are fearful, and they are selling their holdings at lowering prices.

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When buying opportunities abound The market can experience increased volatility due to fears such as various wars, debt crises of countries, economy slow-downs, or the potential of rising interest rates.

Nevertheless, during periods of higher volatility, wise investors think positively, relying on the professionals managing their investment portfolios.

Predesigned investment plans are important Though periods of volatility occur, it is important to exercise patience while maintaining a balanced and well-diversified portfolio according to a prescribed investment plan.

Plan with your advisor to establish a buying plan when others may be fearful. Market cycles of volatility are normal and expected.

How do mutual funds minimize exposure to single stocks?

Diversification advantage Mutual funds offer the investor the benefit of maximum diversification, with minimal exposure to any one stock. You pool your investment with the combined capital of other investors, which allows everyone to invest in many companies, not just focus on two or three larger stocks.

Fund managers usually diversify among at least 20 companies, investing no more than 10% of the fund’s total dollars into any one security.

Other advantages of mutual funds

• You can buy additional units of a mutual fund at any time.

• An automatic purchase plan called dollar-cost averaging (DCA) lets you invest equal amounts at regularly scheduled intervals. You buy more fund units when the prices are lower, fewer when prices are higher, thus averaging out the price of the units purchased.

• Mutual funds can be registered in RRSPs or RRIFs.

• Dividends, where applicable, are easily reinvested.

• Some fund companies allow transfers between their funds without charge.

• You can borrow against mutual fund assets (unless the contract is registered).

Business employee retirement planning

Employee Retirement Plans incorporate the following:

• Analysis of available investment vehicles and associated yields
• Investment tracking and reinvestment alternatives
• Individual financial and investment consulting
• Establishment and management of individual registered and non-registered retirement savings plans such as:

• Self-directed RRSPs, group RRSPs, & RESPs with the following investment alternatives: investment funds, segregated funds, and labour-sponsored funds.

Group Retirement Options

When your employees retire or are approaching retirement, they will need help through this period of change. Professionals are available to educate your employees about all available retirement income vehicles.  We offer the expertise and services to ease the transition to retirement for your retirees:

• Retirement consulting
• Retirement income projections
• Establishment of retirement income vehicles such as RRSPs, RRIFs, LIRAs, LIFs, annuities

Individual Group Investment Products

Whether you are making investment contributions to save for future expenses or retirement, the Group Investment Program allows you to take control of your personal portfolio and achieve your financial goals with peace of mind.

• Lower investment management fees
• No front- or back-end sales charges
• No deferred sales charges
• No minimum investment
• Self-directed RRSPs
• No annual administration fees
• Consolidated statements

The Fundamentals of Financial Independence

Here are some important strategies that will help you achieve financial independence. It is important to get solid advice which can design a plan which incorporates Planning Values such as those noted.

Separate your savings from your investments Before you begin to invest for a long-term financial goal, you’ll need to save for an emergency fund – up to six months worth of your salary. Then you are prepared for an unexpected expense such as an engine job on the car, a leaky roof or loss of employment. Otherwise, you may need to tap into your investments that are intended for retirement or some other purpose.

Budget based on your income, not on your desire Plan to spend less than you earn and don’t take on debt that cannot be serviced by your future income. Budgeting is based on your income, not on your past spending habits. Total your monthly expenses such as housing, utilities, food, clothing, child-care, transportation and debt repayment. This sum should not exceed 75% of your after-tax income.

Invest by paying yourself first You will only beat the habit of procrastination if you focus on paying yourself first. A rule of thumb: save 10% to 20% of every paycheck. This can be achieved by purchasing units in a good investment fund on a systematic basis, using an automatic payment program.

Use beneficial debt to build equity Minimize and pay off consumer debts – monies borrowed to purchase cars, clothing, vacations, stereos and other gadgets that decrease in value. Debt to help you achieve an education or mortgage a home, and is acceptable debt. Only if the interest rate is very low, and repayment is affordable, debt for investments such as investment funds, your own business, or blue-chip stocks may make sense. The interest on such investments, if not held in an RRSP, is tax-deductible.

Differentiate your risks Inflation risk will compete with long-term investment risk. Equity investment funds and/or the stocks of many companies are not guaranteed, meaning there is a risk. Yet equities have a much better chance to outpace the negative risk of inflation – – or as some have humorously termed shrinkflation — when compared to a savings account over long periods of time. Inflation is the single greatest long-term risk. At 4% over 20 years, inflation will cut the value of today’s purchasing power by half.

Determine to diversify A properly diversified portfolio will hold several types of funds including a mix of equity funds. Equity funds should differ in terms of what sector of the economy they invest in, such as agriculture, technology, mining, or finance. Though each fund would hold many stocks, make sure they are diversified among the various sectors. One sector may gain while another may lose some value, balancing out over time. Equity funds can also diversify by country (such as holding domestic, US and global funds); investment style (such as growth funds, or value funds); or company size (such as small, mid, or large-cap). Consider adding bond funds to the mix to diversify even more.

Optimize Your Portfolio If you can optimize your portfolio, you may minimize the risks, to help your return on investment. To truly optimize, one needs in-depth knowledge only obtainable from a professional whose job it is to study funds as a speciality. To diversify in a balanced manner, one needs to weigh many factors in relation to economic sectors, managers’ styles, company size, and foreign economic conditions.

The Registered Education Savings Plan (RESP) for Educational Planning

Facts about an RESP

A Registered Education Savings Plan (RESP) is a savings plan registered with the government that can help you save for your child’s post-secondary education.

Money invested in an RESP grows tax-deferred. The government helps contribute to your savings with education grants.

Later in life, as your child enrolls at a qualifying post-secondary institution, you can withdraw the funds for educational purposes. The payments made from these funds are called Educational Assistance Payments (EAPs).

Invested income and government grants received when withdrawn from the RESP are taxable. You do not pay tax on the contributions you made using your own money. Then these amounts are taxed in the tax return of the student – usually with little or no tax payable as students generally will be in the lowest tax bracket.

How do RESPs help my money accumulate?

  • Starting to use an RESP for your child early, while they are young, gives you more time for your contributed funds to grow.
  • The Canada Education Savings Grant (CESG) will match 20% of annual contributions, up to $500 per year
  • These contributions can continue until you reach the lifetime limit of $7,200 per child
  • Investing your Canada Child Benefit can assist you while saving enough to qualify for the maximum CESG amount

Federal Government-funded education grants

The Government of Canada supports saving for a child’s education by offering grants to a child’s RESP – offering you additional funds to accumulate educational savings.

The Canada Education Savings Grant (CESG)

The basic Canada Education Savings Grant (CESG) increases your year by year contribution by 20%, up to $500 per beneficiary each year to a lifetime limit of $7,200 per beneficiary. Additional CESG grants may be available, depending on your income.

Please talk to us for more information about the RESP and the CESG grant as it applies to your province.

Source: CRA

Education’s effect on future income

How parents help shape the financial future of their children

In Canada, the government allows a welcome tax break when you save for your child’s education. As parents, we need to consider the effect that education will have on the future income and lifestyle of our children.

The Internet is bringing many changes quickly: Amazon is replacing many of our once-renowned retailers. Google sweepingly controls business success: who gets to view your website and consequently buy your services is based on paying for Google AdWords. The world has moved into one of the most profound eras of change in human history. Our children, for the most part, are just not prepared for this new reality. The gap to accessing a secure income, or obtaining a job with a substantial retirement pension is widening.

Parents who can see the chaos, the economic uncertainty, the stress and the complexity in the world, know intuitively that the new wave of robotics and artificial intelligence (AI) call for an educational revolution. Our children must be able to get a post-secondary education while aiming for higher accreditation in a career known to provide substantial income that keeps up with inflation. Serious financial planning can provide significant funds to go to university or college. The Financial Comfort Zone Study found the following:

“Canadians who establish registered education savings plans (RESPs) for their children are setting their kids up for financial success later in life because there’s a direct correlation between having post-secondary education and wealth”.1

The study revealed the following:

• Among those holding a postgraduate degree (the highest level of education), 23% have investible assets of $500,000 or more, whereas approximately only 11% if the schooling is at the post-secondary level.

• Of those with only a high-school diploma, only 8% have investible assets of $500,000 or more, while 72% have investible assets of $100,000 or less.

Parents can influence the education of their children by fostering the right attitude toward the need for educational training for a financially sustainable future.

“Among parents who gave education a high rating of importance and who had one or more children living at home, 49% indicated they had established an RESP for their children. Similarly, 45% of parents who gave education a medium rating of importance and who had one or more children living at home indicated that they had established an RESP for their children. In contrast, only 15% of parents who gave education a low rating in terms of importance and who had one or more children living at home had established an RESP for their children.” 2

What ways can we plan for our Child’s education? Consider using both the traditional Registered Educational Savings Plan (RESP) and the Tax-Free Savings Account (TFSA) as an educational savings vehicle. A TFSA offers parents another tax-efficient method to provide for education planning.

1 Credo Consulting Inc. and Investment Executive

2 ibid