naaap toronto: protect your assets
TRANSCRIPT
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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.”
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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
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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.
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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.
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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.
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*Assuming you invest $100 / month @ 7% return
1. Starting Early
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Understanding Your Investment Choices
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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.
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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%
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Money market funds, bonds, GIC, produces interest income
Equities - produces Capital gains and dividends
RRSP/TFSA Non-Registered
Inside / Outside Strategy
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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
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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
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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?
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Building Wealth
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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!!
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RRSP
Tax Refund
TFSA Non Registered
Rental Properties
Building WealthUnderstanding Your Inheritance
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Son Daughter
House $500,000
RRSP $500,000
Son
House $500,000
Daughter
RRSP $250,000
CRA $250,000
Building Wealth
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Son Daughter
House $500,000
RRSP $500,000
Son Daughter
Insurance
Building Wealth
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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)
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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?