March 1, 2010 is the deadline to have a 2009 RRSP contribution on your tax return. This issue will discuss how to get an RRSP, is it right for you, how to boost your RRSP, and other tax credits available to reduce the amount of tax you pay to the government!

• What You Should Know About RRSPs
• Get Your RRSPs Working Harder For You
• Want an extra 35% Tax Credit? – SaskWorks & Golden Opportunities Funds

What You Should Know About RRSPs

Interested in RRSPs but don’t know how to get started? This quick and easy introduction to RRSPs is a great first step.

Do RRSPs have you scratching your head? Don’t worry: You’re not alone. Although 68% of Canadians have a Registered Retirement Saving Plan (RRSP), that leaves nearly one-third of Canadian without. Some non-RRSPers choose to plan for retirement in other ways, primarily through employer-sponsored pensions and others are financially savvy types managing their investments using other vehicles.

But there’s also another group who aren’t buying in because they think they can’t afford it, or they simply have no idea how to get started. If you’re in that group, this article is for you.

Why you need an RRSP

Whether you’re financially savvy or not – but especially if you’re not – RRSPs are a fantastic way to save for retirement. Think of an RRSP account as a lockbox for your savings, only better. Here’s why.

• Contributions are tax deductible, bringing down your gross income for income tax purposes.
• Your RRSP is a tax shelter. You don’t pay tax on your investment income, until it’s withdrawn, meaning the overall value grows much faster.
• You won’t be taxed on your RRSP until you make withdrawals, presumably during retirement. It will be taxed as income – most likely at a lower rate since you’ll be earning less then as compared to now, your peak earning years.

How do I set up an RRSP account?

You can set up your RRSP through a Financial Advisor like myself.

Meet with a Financial Advisor so they can walk you through the process and the different types of RRSPs they offer.

RRSPs are investment portfolios, and returns will vary depending on market conditions. Your RRSP portfolio may contain mutual funds, savings deposits, treasury bills, GICs, equities and/or other options.

Talk with your Financial Advisor to find the mix that works best for you given your tolerance for risk and potential reward, as well as whether an individual or spousal RRSP would be best for you.

How much do I have to contribute?

You can find your individual allowable contribution (i.e., your maximum contribution for the tax year) on the Notice of Assessment you received from Canada Revenue Agency on your previous year’s tax return.

In recent years, according to an RBC-commissioned poll, the average annual Canadian contribution was just under $6,000.

$6,000! How do I find that kind of money?

The easiest ways to maximize your contribution is to:

• Take out a low-interest RRSP loan from the same financial institution where you open your RRSP account;
• Sign up for biweekly or monthly contributions withdrawn directly from your bank account; or
• Both of the above.

Who doesn’t need an RRSP?

If you’re in the lower income brackets under $30,000, and without prospects for retirement savings over $100,000, it may not be worthwhile to scrounge for money to pay into an RRSP. If you contribute while in a low income tax bracket, then withdraw your funds while also in a low income tax bracket, you won’t see any tax savings. Unlike a high or middle earner who gets tax breaks by reducing her taxable income while paying in during her peak earning years, and more tax breaks when withdrawing when retired and in a lower income bracket.

After your RRSP matures and is rolled into a Registered Retirement Income Fund, withdrawals will be fully taxable. And if you qualify for the government’s Guaranteed Income Supplement for low-income seniors, it may be subject to claw-backs. You may see similar claw backs to social housing, transportation and prescription drug benefits. Chances are the income brought in by the RRSP withdrawals may not make up for the benefits lost. In your case, socking savings away in a bank account is a safer bet.

Bottom line

For everyone else, RRSPs remain a smart idea.

If you’re one of the 60% of Canadian workers (and self-employed folks) who don’t have a company-sponsored pension plan, RRSPs are an excellent safety net and the most reliable way to ensure you can live comfortably in your golden years.

Get Your RRSPs Working Harder For You

Borrowing to make an RRSP contribution can be beneficial. The real cost of the loan is offset by your income tax savings and the subsequent investment income accumulates tax free.

Although there’s lots of discussion about the best way to save for retirement, one thing is clear: If you’re going to use an RRSP, making the maximum contribution as early as you can is almost always the way to go. Not that most people do. Instead, they scurry to the bank during the last few days of February.

Unfortunately, when you invest this way, you’re always playing catch up, effectively remaining one year behind in receiving those tax refunds, and subsequently getting a lower overall return on a lower RRSP balance.

That’s why contributing to your RRSP year round makes so much sense. For starters, you aren’t faced with the problem of coming up with a large lump sum right before the deadline. More importantly, regular contributions force you to save, to “pay yourself first” — something that most of us have a hard time doing.

What do you do when the deadline for contributing is near and you just don’t have the money? Well, you can pass and make a bigger contribution next year, of course. Or, you can go into debt — which, while perhaps a bit counterintuitive, often makes financial sense.

As a rule, if you can repay your RRSP loan within one year, borrowing makes even more sense. Your cost will be the interest you paid for one year. Your gain will be one year of tax-deferred growth, which should far outweigh the debt cost over the long haul.

And, if you know you’re getting a tax refund, you can reduce the cost of borrowing still by applying your tax refund directly to your outstanding loan principal. With many mutual fund companies, payments are typically deferred for a couple of months anyway — although interest will still accrue — thereby giving you enough time to get your refund before you have to start paying back any money.

Want an extra 35% Tax Credit?
Think SaskWorks or Golden Opportunities Fund!

Why Should You Invest in a Saskatchewan Labour Sponsored Investment Fund?  

1. Substantial Tax Savings – These funds are RRSP eligible and therefore qualifies for a tax deduction. In addition you will receive a 15% Federal tax credit to a maximum investment of $5,000 as well as a 20% Provincial tax credit to a maximum contribution of $5,000 annually. The 35% in tax credits combined with the RRSP tax deduction provides for substantial tax savings for investors, reducing their net cash outlay and risk in an investment in this fund. 
2. Keeping Your Funds at Work in Saskatchewan – An investment in these funds ensures that your hard earned money is reinvested in Saskatchewan, thereby staying at work for you, your family and friends, and creating growth for Saskatchewan companies and new job opportunities.
3. Diversified Portfolio – Each of the funds investment philosophy is to invest in high growth sectors within a diversified portfolio across numerous industry sectors. A review of the portfolio of companies will show a wide range of investments, from agriculture, oil and gas, biotechnology, renewable energy, value added processing and technology.  
4. Saskatchewan Jobs – Your money is working right here in Saskatchewan by providing capital for companies to implement their business plans. This investment activity is creating quality jobs and providing young people with opportunity, optimism and a bright future. Your investment is making Saskatchewan a great place to live and work.  
5. Saskatchewan’s Best Companies – When you invest you’re actually investing in each of the local companies in the Fund`s portfolio. It gives investors like you an opportunity to invest in private, local companies. Chances are, you or someone you know works for one of these companies to support their family. When these companies prosper, so do you, and so does Saskatchewan. It’s a winning formula!

For more information on investing in SaskWorks or Golden Opportunities Funds, click here.

Janea Bellay, Your Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

   Liquidity accounts – Your spending, savings and retirement accounts

   Family Security – Maintaining life insurance for all life’s unexpected financial needs

   Family Protection – Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

   Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

Contact our office today to have your questions answered!!

Janea Bellay

Performance Financial Services Inc

217-3501 8^th Street East

Saskatoon, SK S7H 0W5

Tel: 306-281-3891

janea@performancefinancial.ca

To remove your name from our mailing list, please click here.

Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Volume II, Issue ix, January 2010

As you experience life’s inevitable transitions, your need for financial advice will change. These articles contain valuable information and insights on a variety of issues you may need to consider during this time in your life. I would be pleased to meet with you to answer any questions and to review your evolving financial needs.

Protecting Your Family With Proper Planning

The birth of your baby is the ideal time to review your insurance policies, your will, and power of attorney, and how your tax situation will change.

It is now even more important to ensure your loved ones are well looked after if anything should happen to you.

Here are a few topics to consider helping you prepare for some of the unexpected events that can happen in life.

Life Insurance

If something happened to you tomorrow, how much financial assistance would your family need to manage everyday living expenses – and for how long? Let’s discuss how much coverage you need and what type of coverage is best, as well as ways to save on your insurance costs. For example, if you and your spouse purchase policies together you can save significantly, and some plans will discount your costs by up to 15% if you pay annually instead of monthly. Remember that your premiums are lower when you’re younger, as statistically you’re generally healthier and will likely live a long time. If you are a non-smoker, you can also ask for ‘preferred’ rates, which may also reduce your premiums.

Disability Insurance

An employer often offers about two-thirds of your pre-tax employment income as part of a basic disability insurance package. In fact, according to Today’s Parent magazine, a 35-year-old woman is seven times more likely to suffer long-term disability than die before she turns 65. Th e last thing you want to worry about if you are sick is your finances. If you do not have disability insurance through your employer, ask me for a recommendation.

Critical Illness Insurance

This is a type of insurance protection that pays you a lump sum if you are diagnosed with a serious disease like cancer, or have a stroke or heart attack. This lump sum can help cover costs of treatment or child care or household costs as you look after your health.

Update Your Wills and Powers of Attorney

It is always important to keep your Will and Power of Attorney up-to-date with changes in your life – especially the birth of a new baby. When you have a legal Will, you control who receives your assets and money. Without a Will, the government decides who gets what. It’s also important to name a guardian for your child in your Will.

When choosing a guardian consider these issues:

• Will they be comfortable with the emotional and financial responsibilities of raising your children?
• What are their attitudes on how to bring up children – and are they very different from yours?
• If you are thinking of a married couple, how old are they? If something happens to them, who will be the backup guardians for your children? What will happen if they divorce? It may be better to appoint one as the primary guardian.

• How do they get along with the rest of your family, who will likely want to remain involved with your children and continue spending time with them?

Use this personal record keeper to gather important information that you can share with your loved ones including your executor or executrix.

Filing Your Tax Return

According to a recent study, having kids in Canada doesn’t save you much money in taxes. In 2004, couples with family incomes of $40,000 and two kids saved 9% in taxes because of tax implications of supporting children. However, if your income was over $80,000, the difference was only 1% and if your family income was over $120,000, there is no tax break for having a child.

However, there are some ways that your tax returns will change. Let’s discuss which tax breaks you can benefit from.

Child Care Expenses

If both partners work outside the home, the lower-income spouse can deduct a certain amount of child care expenses. For every child who is under the age of seven at the end of the year, you can claim up to $7,000 for daycare expenses. For every child over seven but under 17, you can claim up to $4,000 for daycare expenses. I can provide you with the rules and how this deduction can benefit your family.

Universal Child Care Benefit (UCCB)

This provides a $100 benefit per month per child under six years old. The money is taxed in the hands of the lower-income spouse. You will have to apply for this benefit.

Child Fitness Credit

You probably won’t claim this for an infant but as your child ages, you can claim a credit of up to $500 a year for eligible programs that enhance the child’s fitness.

I will be pleased to provide you with additional information on the various tax and insurance issues.

Individual Health & Dental Benefits

Your family is greatest asset. Health related expenses that are not covered by your provincial health plan can result in substantial costs. Now you can take advantage of a range of benefits and services for you and your family.

There is a plan to suit everyone’s health and budget. Dental services, prescription drugs, vision care and registered specialists are a few of the health expenses each of us faces without coverage.

By selecting a health plan and any combination of additional coverage options that bests fits your life, you can provide cost effective benefits for your family. You can also add new coverage options each year you renew your plan.

Individual coverage can be affordable and there is a plan to suit everyone. To obtain a quote or application form, call Janea Bellay at Performance Financial Services Inc. (306)281-3891 in Saskatoon or email janea@performancefinancial.ca.

Your family is important to you. Find out how you can get additional benefits!

Performance Financial Services Inc. 217—3501 8th Street East Saskatoon, SK S7H 0W5 Tel: (306) 281-3891 Fax: (306) 956-3141 janea@performancefinancial.ca www.janeabellay.com

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

   Liquidity accounts – Your spending, savings and retirement accounts

   Family Security - Maintaining life insurance for all life’s unexpected financial needs

   Family Protection - Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

   Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

To remove your name from our mailing list, please click here.
Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Volume II, Issue viii, November 2009

IN THIS ISSUE:

• It’s Never Too Late
• Financial Planning for Women Only – PINK
• Individual Health Benefits now offered

It’s Never Too Late

If you are 40 or 50 years old and, until now, your efforts were focused on financing your children’s education and paying off the mortgage, you need a wake up call! Nothing has been done to prepare for your retirement. Is it too late?

 You may have discovered that government benefits such as Canada Pension Plan and Old Age Security will not provide adequately for your retirement. Don’t worry, you are not alone: a large number of people are approaching retirement without an established retirement financial plan.

 A recent study by Desjardins Financial Security shows that one half of Canadians who were hoping to retire by age 58 now believe that they will have to work longer. Other similar studies also reveal that many Canadians defer their retirement and seek part-time work to cover their shortfall.

 The key is to get going NOW

In case of a late start, it’s important to stop and assess the current situation. A comprehensive and integrated financial plan prepared by a consultant is the best way to get started and clarify things. The plan will consider your current lifestyle, your financial resources and the means of protecting your assets. Such an analysis will generate an action plan, which will focus on how to achieve your retirement objectives.

 Three options for retirement

One obvious solution to improve your retirement planning is to start immediately to save more. But be careful with volatility: a shorter investment outlook means that risk management becomes a key factor. You could be tempted to try and make up for lost time with inappropriate, high-risk investment vehicles. Not a good idea – get rich quick schemes rarely work out.

If you are in a position to invest larger amounts, you need high quality information. Do not hesitate to consult an investment professional.

 Living with less: compromising

The second option for late starters is to reduce their current standard of living in order to generate additional savings for retirement. In fact, several recent studies suggest that many Canadians are prepared to do exactly that. Upon retirement, it will be easier to bridge the gap between disposable income and standard of living. In addition to increasing the funds that you will have upon retirement, it is also important to pay off your mortgage and any other debt. The combination of increased funds at retirement combined with little or no debt can be a winning strategy.

 In addition, the value of your home can become a powerful financial resource. Imagine that your $400,000 house is entirely paid at retirement and your children have left the nest. Assuming that you could find an alternate home for $275,000, this would leave you with a tidy tax-free profit of $125,000 to generate supplemental income.

 Deferring retirement

The last option is probably the most prevalent. You can simply take up part-time work during the early years of their retirement in order to achieve your retirement objectives. This means continuing your professional activities and, in effect, choosing a progressive transition towards retirement.

 It is never too late to initiate retirement planning. The key is to start as soon as possible.

Upcoming Events

Join me this fall for this exclusive women’s only financial planning series.

P.I.N.K. embraces all the key elements of a financial plan

• Protection –  preserve your capital and protect your family from the risks
• Investment – learn how to grow your money and manage your wealth for the long term
• Need –  gain a better understanding of the unique financial challenges facing women
• Knowledge – access to insightful financial insurance and a network of expertise

Did You Know?

1. Less than 50% of all Canadian women own life insurance
2. 1 in 3 women are predicted to develop heart disease in their lifetime
3. 250,000 women were diagnosed with Cancer in 2002 (70% survived)
4. Women live 5-10 years longer, retire earlier, yet contribute 30% less to their RRSPs
5. 48% of women polled did not have a plan or regular meeting with an advisor

Seminar Dates:

• Life and Estate Planning – Tuesday, September 29, 2009, 6:30PM at Willows
• Protecting Family Assets – Tuesday, October 20, 2009, 6:30PM at Willows
• Introduction to Investing – Tuesday, November 3, 2009, 6:30PM at Willows
• Retirement Planning 101 – Tuesday, November 24, 2009, 6:30PM at Willows

RSVP: janea@performancefinancial.ca

Individual Health & Dental Benefits

Your family is greatest asset. Health related expenses that are not covered by your provincial health plan can result in substantial costs. Now you can take advantage of a range of benefits and services for you and your family.

There is a plan to suit everyone’s health and budget. Dental services, prescription drugs, vision care and registered specialists are a few of the health expenses each of us faces without coverage.

By selecting a health plan and any combination of additional coverage options that bests fits your life, you can provide cost effective benefits for your family. You can also add new coverage options each year you renew your plan.

Individual coverage can be affordable and there is a plan to suit everyone. To obtain a quote or application form, call Janea Bellay at Performance Financial Services Inc. (306)281-3891 in Saskatoon or email janea@performancefinancial.ca.

Your family is important to you. Find out how you can get additional benefits!

Performance Financial Services Inc. 217—3501 8th Street East Saskatoon, SK S7H 0W5 Tel: (306) 281-3891 Fax: (306) 956-3141 janea@performancefinancial.ca www.janeabellay.com

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

   Liquidity accounts – Your spending, savings and retirement accounts

   Family Security - Maintaining life insurance for all life’s unexpected financial needs

   Family Protection - Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

   Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

To remove your name from our mailing list, please click here.
Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Volume II, Issue vii, October 2009

IN THIS ISSUE:

•   Invest In Your Life – October is Breast Cancer Awareness Month
•   Financial Planning for Women Only – PINK
•   Individual Health Benefits now offered

Invest in Your Life

October is Breast Cancer Awareness Month.  I thought I would dedicate this newsletter to informing you of the options available to you to protect your retirement income, to protect your income now and protect your family against a financial hardship, should it occur.

 There’s never a good time to get a critical illness. But there is a bad time. Just ask one of the almost 14,000 Canadians diagnosed with cancer last month. With all the turbulence in the markets, you may be wondering about your financial plans.

 However those diagnosed with cancer, instead of worrying about their retirement, they’re wondering how they’re going to pay the costs of getting better. With their savings cut in half, will they only be able to get 50% better? Of course the answer’s no. But getting better does cost money. There’s the mortgage to pay, lost income, time off work, spouse’s time off work, and medical expenses only partially covered by provincial health plans. Things that can set them back thousands of dollars.

 And if they thought using some of their RRSPs would be the answer, well now what? Not only do they have a lot less money than a few months ago, cashing some of their RRSPs in will make it even more difficult getting their retirement back on track financially.

 The solution is Critical Illness Insurance.

 FOR EXAMPLE: Nancy just turned 45 years old and works full-time. Her husband Michael also works full-time and they have two school-aged children. In the June 2008, between the two of them, they had $250,000 in their RRSPs and were well on track to the retirement they wanted. They always felt that if either of them got sick and needed money, they would simply tap into their RRSPs. By the end of November, the value of their RRSPs had decreased by more than $100,000 due to the hits the market took in 2008.

 Nancy had always been healthy, so when she was diagnosed with breast cancer, it was a surprise to everyone. The doctor recommended a program of radiation and chemotherapy.

 The good news – The doctor believes they caught it in time and Nancy will recover.

The bad news – Nancy will be out of work for six months and is faced with lost income and thousands of dollars of additional medical expenses not covered by her provincial or work health care plan. Michael will also take time off work to be with Nancy and care for the children.

 Michael and Nancy’s only option is to take $50,000 from Nancy’s RRSP, which they know will be taxable (they figure they will need about $42,000 after tax).

 The recent market downturn has reduced their projected RRSP value (based on $10,000 annual contributions and a 5% annual rate of return) when Nancy is 65 by almost 25%, but having to withdraw $50,000 has reduced it almost 15% further.

 But, luckily, that’s not Michael’s and Nancy’s only option. They listened to their Licensed Life & Health Insurance Advisor on the importance of critical illness insurance and recommended they buy a $50,000 critical illness insurance. For about the cost of a cup of coffee a day,

Michael and Nancy could have had 15% more in their RRSPs at retirement and they’d have a better chance of enjoying the retirement they had planned.

 There’s never a good time to get a critical illness. But as Michael and Nancy learned, there is a bad time. When you’re planning for your future, plan for the unexpected. Consider a critical illness insurance plan as part of your financial plan. It can provide you with the peace of mind you need to focus on what really matters … getting better. Talk to your financial advisor to incorporate it into your financial plan.

Upcoming Events

Join me this fall for this exclusive women’s only financial planning series.

P.I.N.K. embraces all the key elements of a financial plan

• Protection –  preserve your capital and protect your family from the risks
• Investment – learn how to grow your money and manage your wealth for the long term
• Need –  gain a better understanding of the unique financial challenges facing women
• Knowledge – access to insightful financial insurance and a network of expertise

Did You Know?

1. Less than 50% of all Canadian women own life insurance
2. 1 in 3 women are predicted to develop heart disease in their lifetime
3. 250,000 women were diagnosed with Cancer in 2002 (70% survived)
4. Women live 5-10 years longer, retire earlier, yet contribute 30% less to their RRSPs
5. 48% of women polled did not have a plan or regular meeting with an advisor

Seminar Dates:

• Life and Estate Planning – Tuesday, September 29, 2009, 6:30PM at Willows
• Protecting Family Assets – Tuesday, October 20, 2009, 6:30PM at Willows
• Introduction to Investing – Tuesday, November 3, 2009, 6:30PM at Willows
• Retirement Planning 101 – Tuesday, November 24, 2009, 6:30PM at Willows

RSVP: janea@performancefinancial.ca

Individual Health & Dental Benefits

Your family is greatest asset. Health related expenses that are not covered by your provincial health plan can result in substantial costs. Now you can take advantage of a range of benefits and services for you and your family.

 There is a plan to suit everyone’s health and budget. Dental services, prescription drugs, vision care and registered specialists are a few of the health expenses each of us faces without coverage.

 By selecting a health plan and any combination of additional coverage options that bests fits your life, you can provide cost effective benefits for your family. You can also add new coverage options each year you renew your plan.

 Individual coverage can be affordable and there is a plan to suit everyone. To obtain a quote or application form, call Janea Bellay at Performance Financial Services Inc. (306)281-3891 in Saskatoon or email janea@performancefinancial.ca.

 Your family is important to you. Find out how you can get additional benefits!

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

•     Liquidity accounts – Your spending, savings and retirement accounts
•    Family Security - Maintaining life insurance for all life’s unexpected financial needs
•    Family Protection - Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke
•    Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

Janea Bellay

To remove your name from our mailing list, please click here.
Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Newsletter September 2009

Find us on the web at www.janeabellay.com
Volume II, Issue vi, September 2009

IN THIS ISSUE:

• Back to School Time! What are RESPs?
• Only a few seats left for the P.I.N.K. Workshop for women only series RSVP NOW!
• Individual Health Benefits now offered

BACK TO SCHOOL!! ABC’s of RESPs – Everything you need to know about Registered Education Savings Plan for your child

If I told you the government was handing out money for free, would you be interested? Of course you would. All you need to do is set some money aside for your child’s (or children’s) education – something you may be considering doing anyway.

According to information released by Statistics Canada last year:

• University tuition fees increase 4.3% annually
• Tuition has increased by 209% since the 1990-1991 school year.
• Canadian undergraduate students paid an average of $4,524 a year in tuition fees.
• Some professional programs charge significantly higher amounts than that – first-year tuition for a law student at the University of Toronto ranges from $6,000 to $20,000, depending on the program. Add in books, food and housing costs and you could be looking at a very significant expense.

There are, fortunately, savings vehicles that can help you prepare.

A Registered Education Savings Plan (RESP) is a little bit like a Registered Retirement Savings Plan (RRSP). You can’t deduct the contributions, but your earnings do accumulate tax free, to be taxed in your children’s hands, not yours, when they withdraw funds. Since students tend to have little other income, they’ll probably end up paying very little (if any) taxes on the money they receive.

In 2007, the government made some additional changes. The annual contribution limit of $4,000 was eliminated, and parents can now contribute up to $50,000 – that’s up from $42,000 – in total, to each child’s RESP.

There’s also a lucrative Canada Education Savings Grant (CESG) available to anyone who opens an RESP. The government will top up your plan with a grant equal to 20% of your contribution, up to an annual maximum of $500 and a lifetime maximum of $7,200.

You don’t have to be rich to take advantage of the plan, either. In fact, if the child’s family earns $37,178 or less a year, the plan is eligible for a CESG worth 40% on the first $500 you deposit every year. The Canada Learning Bond also offers children who qualify for the National Child Benefit supplement – a special $500 payment at birth, plus $100 each year they receive the supplement, until the child turns 15.

If you’re interested in learning more about the education savings options available to you, I hope you won’t hesitate to contact me at (306) 281-3891.

Upcoming Events

Join me this fall for this exclusive women’s only financial planning series. Only a few seats remain. Please RSVP!

P.I.N.K. embraces all the key elements of a financial plan

• Protection – preserve your capital and protect your family from the risks
• Investment – learn how to grow your money and manage your wealth for the long term
• Need – gain a better understanding of the unique financial challenges facing women
• Knowledge – access to insightful financial insurance and a network of expertise

Did You Know?

1. Less than 50% of all Canadian women own life insurance
2. 1 in 3 women are predicted to develop heart disease in their lifetime
3. 250,000 women were diagnosed with Cancer in 2002 (70% survived)
4. Women live 5-10 years longer, retire earlier, yet contribute 30% less to their RRSPs
5. 48% of women polled did not have a plan or regular meeting with an advisor

Seminar Dates:

• Life and Estate Planning – Tuesday, September 29, 2009, 6:30PM at Willows
• Protecting Family Assets – Tuesday, October 20, 2009, 6:30PM at Willows
• Introduction to Investing – Tuesday, November 3, 2009, 6:30PM at Willows
• Retirement Planning 101 – Tuesday, November 24, 2009, 6:30PM at Willows

RSVP: janea@performancefinancial.ca

Individual Health & Dental Benefits

Your family is greatest asset. Health related expenses that are not covered by your provincial health plan can result in substantial costs. Now you can take advantage of a range of benefits and services for you and your family.

There is a plan to suit everyone’s health and budget. Dental services, prescription drugs, vision care and registered specialists are a few of the health expenses each of us faces without coverage.

By selecting a health plan and any combination of additional coverage options that bests fits your life, you can provide cost effective benefits for your family. You can also add new coverage options each year you renew your plan.

Individual coverage can be affordable and there is a plan to suit everyone. To obtain a quote or application form, call Janea Bellay at Performance Financial Services Inc. (306)281-3891 in Saskatoon or email janea@performancefinancial.ca.

Your family is important to you. Find out how you can get additional benefits!

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

Liquidity accounts – Your spending, savings and retirement accounts

Family Security – Maintaining life insurance for all life’s unexpected financial needs

Family Protection – Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Volume II, Issue v, August 2009

In this issue:

• Women, Health & Finance
• Upcoming Events – PINK Seminar
• The Basics of Personal Finance
• Travel Insurance
• Our Services

Women, Health & Finance

Canadian women today are taking control of their financial security.

 With every new generation, Canadian women are achieving remarkable success.  Yet as the dynamics of their personal and professional lives evolve, many are faced with unique challenges.

Family Health Coverage

Today more than ever, physical health is directly related to financial well being.  Due to their unique roles as caregiver, dual income earner and family advocate, Canadian women have an urgent need for protection from health risks.  Despite greater awareness and healthier lifestyles, the incidence of heart attack, stroke and cancer among women are at an all-time high.  Critical Illness Insurance (CI) can help protect Canadian women and their families from the personal and economic impact of illness, disability and disease.

Tax and Estate Planning

Historically, Canadian women have not been adequately insured.  Canadian women need solutions to effectively secure their assets, cover their mortgages, shelter more earnings from taxes, or simply leave more to their beneficiaries.  Permanent and Universal Life are central elements of a total financial plan and can be customized to the needs of female professionals, mothers, homeowners and entrepreneurs.

Wealth Management

 Canadian women today have yet to fully capitalize on their potential to accumulate wealth.  Despite earning over 81% more than three decades ago, just 4% is derived through principal investment.  Female investors need to be educated and equipped with effective strategies and solutions customized to their specific investment goals and risk tolerances.

Retirement Planning

Baby Boomer women are the single largest portion of the Canadian population and are on the verge of beginning an active and affluent retirement.  However, longer life expectancies, competing priorities and irregular employment histories compound the complexity of their retirement needs.

Our Vision

I want to educate, empower and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for their retirement and protect their personal, family and business assets for life.

Educational Seminars

I will be hosting an educational series of seminars developed for women by women to support women and their loved ones in making more informed financial choices during critical decision-making stages in their lives.

Our first seminar of the series will be held on Tuesday September 29th at the Willows Golf & Country Club from 6:30 pm – 9:00 pm.   Please watch for invitations and details to follow.

Upcoming Events

This fall we are hosting P.I.N.K, a four workshop series designed exclusively for women by women. P.I.N.K is designed to educate and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for retirement and protect their personal, business and family assets.

 P.I.N.K embraces all the key elements of a financial plan:

• Protection – preserve your capital and protect your family
• Investment – grow your money and manage your wealth f
• Need – understand the unique financial challenges facing women
• Knowledge – access to insightful financial information and a network of expertise

Join us for this exclusive four-seminar event presented For Women By Women!  

To register, or for more information email janea@performancefinancial.ca

You must RSVP to register as this event is by invitation only.
The first seminar is scheduled for Tuesday, September 29, 2009 at the Willows Golf & Country Club

The Basics of Personal Finance

My mother and father taught me many great things growing up – how to be a good person, how to cook, how to sew a button, how to mend my clothes, and how to shop!

But more importantly they taught me about MONEY and PERSONAL FINANCE!  Personal finance can sometimes seem frustrating and complex, but it doesn’t have to be; knowledge of some basic principles will make your life much, much easier.  And these simple rules you should pass along to your children to make them good managers of their personal finance.

Spend Less than You Earn

This may seem common sense, but it really is an issue when it comes to trying to save money.  There are hundreds of folks who are spending more than they earn and putting themselves into more debt, most likely with the help from credit cards. Cutting spending habits or aiming for a large pay increase are the only two options available to help you.

Pay Yourself First

Financial expert David Bach, author of Start Late, Finish Rich  tells everyone to throw out the dreaded “family budget” for this simple reason: It doesn’t work- if it did we’d all be doing it and we’d all be rich.  According to Bach, as long we all save a percentage of our pay each month, what the rest is spent on really doesn’t matter. If you “Pay Yourself First”, meaning that before you sit down to pay your monthly expenses, pay yourself in savings and retirement the equivalent of one hour per work-day (or 10% to 12.5%) before anything else.

Buying a House/Mortgages

Get pre-approved for a mortgage before you start looking. When you put in a bid on a house, the seller looks at more than the amount you are willing to pay. The seller will give more consideration to a lower bid amount that is already pre-approved by your mortgage broker than a higher bid without definite financial backing.

Always Try to Pay More than the Minimum Mortgage Payment

By paying one additional principle and interest payment (mortgage payment minus any escrow payments) onto your mortgage balance each year, you will knock years off the life of your mortgage. It all adds up- to a lot! Talk to your current mortgage broker about it.

Don’t Try to Keep Up with the Joneses

Yes, the Joneses next door might have a colossal house, landscaped backyard with a kidney-shaped, in ground pool and two 9-series BMW’s parked in the driveway, but they also might have $40,000 in credit card debt and owe on their three cars.  Giving into social pressures or compulsions as an excuse to buy elaborate items is nothing short of silly.

Pay Off Credit Cards Before Other Debts

The world of compounded interest is alive and well within the credit card industries.  While these companies love it when you only pay the minimum, paying a more than the minimum, no matter how much, is better than nothing at all.

Always Pay Credit Card Bills on Time

Not only will you have to pay a late fee (as much as $35) for not making your credit card payment on time, but that new fee could put you over your credit limit, which would, in turn, warrant another fee added to your balance.  And don’t forget that your interest rate will most likely increase after all of these tiny instances, which will make it even harder for you to get rid of the balance. (Remember, balance transfer cards are only a temporary solution.)

Shop Off-Season

 When you want a new patio set, buy it towards the end of the summer and you’ll pay roughly half of what you would have at the beginning of the season. The same goes for clothes and shoes, including for the kids. By stocking up during clearance time, you can save yourself a bundle of cash over purchases at peak times.

Buy Life Insurance with the Hopes of Never Using it

Life insurance should be purchased to help care for your dependants in the unfortunate event of your untimely passing- and that’s all.  Mortgage payments, groceries and a college fund should be the goals, not making your family millionaires.

If Your Employer Matches RRSP Investments, Absolutely Get the Entire Match

This is FREE money that your employer is giving to you towards your retirement, but they won’t give a dime out until they see you putting money in it, too. Plus, RRSP paycheque deductions are usually pre-tax, so you’re getting even more free money.

Saving Money is a Positive Habit, not a Negative Burden

Parents who save money have children who save money, as long as the parents make a positive impression when it comes to the savings part. A habit can also be considered an addiction-and an addiction to watching your hard-earned money grow is not a bad one either.

Save 10 Cents From Every Dollar you Make

The 10% rule has been around since my mom’s mom, I think that it was just misplaced along the way. If I would have saved just 10 cents from every dollar that I ever made, well…wow.

Always have an Emergency Fund Available Equal to 3 Months Pay

Just in case of illness, auto accident or you’re the victim of corporate downsizing, the 3 month rule should be enough for you to get through without having to dip into any long-term investments.

One Final Tip – Money is important, but it isn`t everything

Health and happiness are the most important things in life, but that doesn’t mean that you should be foolish with your money.  Fighting and worrying about money aren’t going to solve any problems and could, in fact, destroy your health and happiness.  A bit of planning, a common goal and some serious focus will help lay the building blocks for a strong and sturdy financial future.

Planning a Trip? Talk to me about TRAVEL INSURANCE!

You can now purchase travel insurance online at:

http://www.janeabellay.com/living-benefits/travel-insurance/

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

   Liquidity accounts – Your spending, savings and retirement accounts

   Family Security - Maintaining life insurance for all life’s unexpected financial needs

   Family Protection - Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

   Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

Performance Financial Services Inc.

217—3501 8th Street East

Saskatoon, SK S7H 0W5

Tel: (306) 281-3891

Fax: (306) 956-3141

janea@performancefinancial.ca

www.janeabellay.com

To remove your name from our mailing list, please click here.
Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Newsletter July 2009

Volume II, Issue iv, July 2009

Changing Jobs?

What do you need to know about your pension and other workplace savings plans…

You may have one or several registered savings plans with your employer. As you leave your job, it is important that you understand your rights and options with respect to that money. There will be various options available and you will want to choose the one that makes the best financial sense for you. Different accounts and savings vehicles may be in place:

Registered Pension Plans (RPPs)

RPPs can be very complicated. There are different pension structures such as a Defined Benefit Pension Plan and a Defined Contribution Pension Plan. Pensions are subject to different laws, federal or provincial, as well as the rules under the Income Tax Act. However, there are some general rules that apply to all pension plans, certainly in regards to the treatment of pension benefits when an employee leaves a company. Here is some general information about how to transfer the value in your pension. You should contact your company’s Human Resources department or the pension manager to determine the specific rules and options that apply to your pension.

Although there are jurisdictional differences, generally, the options that may be available to you are:

1. Transfer to the pension plan of a new employer if that plan permits this

2. Transfer value to a Locked-in Retirement Account (LIRA) which is a Registered Retirement Savings Plan (RRSP) with locking-in provisions

3. Transfer value to a Life Income Fund (LIF)

4. Transfer value to a Locked-in Retirement Income Fund (LRIF)

5. Purchase of an Immediate (if allowed) or Deferred Annuity

6. In specific and limited circumstances, receipt of the pension

Other types of workplace savings plans

Deferred Profit Sharing Plans (DPSPs)

If you have been a member of your company’s DPSP, several options will be available to you. DPSP contributions are made by the employer alone and there will usually be vesting requirements, typically two years. If you have been a member of the plan for longer than two years, you will have the right to receive your share of the contributions and income earned. Your options will be:

1. Receive the money in cash. This is ordinarily not the preferred option since you will have to include the amount in your income in the year of withdrawal and this will likely boost your income taxes

2. Transfer to another DPSP

3. Transfer to a pension plan if allowed by the plan

4. Transfer to an RRSP

5. Transfer to a Registered Retirement Income Fund (RRIF)

6. Purchase an annuity

Group Registered Retirement Savings Plans (GRRSPs)

If you have been a member of your company’s Group RRSP you will be entitled to the market value of those investments on your departure from the company. Since GRRSPs are not pensions, the money will not be locked-in and there will be somewhat more flexibility in your transfer options. Generally, your choices will be:

1. Take the money in cash – This is ordinarily not the preferred option since you will have to include the amount in your income in the year of withdrawal and pay extra taxes

2. Transfer to a personal RRSP

3. Transfer to a RRIF

4. Purchase an immediate or deferred annuity

5. Transfer to a new group plan

Glossary of Terms

There are some very confusing terms in the world of pensions. Here are some common ones:

* Vesting: When you leave a company where you were a member of its pension plan, you will always be entitled to your contributions plus income earned. Vesting relates to your entitlement to receive the employer contributions plus income and will be a function of length of service. Although requirements vary across the country, it is often two years.

* Locking-in: Pensions are intended to provide income in retirement. Most jurisdictions require locking-in of pension benefits to ensure that money will be available for you in retirement. Therefore, when you leave your company plan you do have the legal right to pension benefits but may not be able to access the funds immediately.

Contact your financial advisor, or myself, to find out what options are available to you if you have recently left an employer or are thinking of leaving an employer.

What Should I Be Doing Right Now?

From a financial perspective, the past year has been tough. Canadian investors experienced some of the worst conditions in the stock markets since 1973, when a spike in oil prices and high inflation hit the global economy. The proof is in the returns. As of February 27th, 2009, the S&P/TSX Composite Index had fallen in value by 46 per cent, the S&P 500 Index by 49 per cent and the MSCI World Index by 48 per cent from their 52-week highs.1 As a result of the global selloff, many investors are understandably concerned about their financial plans and are wondering what they should do next.

IF YOU ARE WAITING FOR GOOD NEWS TO APPEAR BEFORE YOU DECIDE TO INVEST, CHANCES ARE YOU’LL MISS OUT ON SOME OF THE BEST DAYS THE MARKET OFFERS WHAT SHOULD I BE DOING RIGHT NOW?

The history of boom and bust cycles helps explain why it is important to stay focused on your long-term financial plan. Investors who attempt to time the market when conditions are volatile often do so to their own detriment. It’s important to remove emotions from your decision-making process and rely on the time-tested investment strategies that serve investors well through good times and bad.

Consider speaking with your advisor about the following three investment strategies to help you through these tough times.

1 TAKE ADVANTAGE OF DOLLAR-COST AVERAGING

Dollar-cost averaging is the process of investing equal amounts of money at regular intervals over time, usually monthly or quarterly, no matter what the markets are doing. You buy more units of a fund when the price is lower and fewer units when the price is higher, reducing the average cost of your mutual fund units. When markets turn volatile, dollar-cost averaging is a proven investment strategy that has the potential to produce superior returns while minimizing risk.

With dollar-cost averaging you don’t have to worry about committing an entire lump sum investment at once. You can do small monthly contributions.

2 DIVERSIFY YOUR INVESTMENTS

Diversification – by asset class, sector, geography, manager, style and company – is a good defense against market volatility. It’s important not to be overly concentrated – and even an S&P 500 Index fund, which may sound like a great alternative during volatile times due to its broad composition of leading companies, cannot provide the benefits of a fully diversified portfolio.

3 CONSIDER A PRODUCT ALLOCATION STRATEGY

Having the right mix of investment products is important for investors approaching retirement who will require a steady stream of income. Due to the unique risks that retirees face, such as longevity and inflation, it is important to have a mix of guaranteed and non-guaranteed investment products in your portfolio. This strategy is known as Product Allocation, and it provides retirees with growth potential and income guarantees. To create a sustainable retirement income plan, consider the following:

• The investment vehicles most suitable for you to achieve your retirement income goals

• The amount of your savings you should allocate to these products

• The share of your savings you should commit to securing guaranteed income

If you are nearing or in retirement, we suggest that you discuss a Product Allocation strategy with your advisor.

Upcoming Events

This fall we are hosting P.I.N.K, a four workshop series designed exclusively for women by women. P.I.N.K is designed to educate and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for retirement and protect their personal, business and family assets.

P.I.N.K embraces all the key elements of a financial plan:

Protection – preserve your capital and protect your family

Investment – grow your money and manage your wealth f

Need – understand the unique financial challenges facing women

Knowledge – access to insightful financial information and a network of expertise

Join us for this exclusive four-seminar event

presented For Women By Women!

To register, or for more information email janea@performancefinancial.ca

You must RSVP to register as this event is by invitation only.

The first seminar is scheduled for Tuesday, September 29, 2009 at the Willows Golf & Country Club

Planning a Trip? Talk to me about TRAVEL INSURANCE!

If you have a group health plan at work, check into its travel policy. Most of the time the group plans do not cover travel outside of Canada and the US. Thus if you plan a hot holiday or a European vacation you are going to need some additional travel insurance. And its CHEAP! Your travel insurance can include a combination of things:

- Health benefits in case you or your family members have a health issue and need international medical attention

- Trip cancellation and interruption insurance in case you need to cancel your trip OR in case the carrier you booked with suddenly goes bankrupt

- Baggage Loss in case of loss or damage or theft

For a quote on travel insurance, go to: http://www.janeabellay.com/living-benefits/travel-insurance/

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

Liquidity accounts – Your spending, savings and retirement accounts

Family Security – Maintaining life insurance for all life’s unexpected financial needs

Family Protection – Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke

Retirement Planning - Are you putting enough away and into the right investments to retire successfully?

To remove your name from our mailing list, please click here.

Questions or comments? E-mail us at mailto:janea@janeabellay.comor call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

Newsletter June 2009

Find us on the web at www.janeabellay.com
Volume II, Issue iii, June 2009

Recession? Time to spring clean & refocus

Recessions are usually regarded as nasty times as unemployment soars, home prices fall, stock markets sputter and public confidence decreases.
The US is calling this time “The Great Recession”. And although we aren’t feeling the recession as greatly as the US, we are feeling the repercussions.

But it is a great time to take a clean sweep of your financial plan and ensure you are focused on paying down debt, putting money into your savings account for emergencies, and saving for retirement. Here are a few steps to do just that:

1. Analyze your credit card statement. What is your interest rate? Call your credit card company and find out if they will reduce the interest rate on your card. In some cases, if you have been a good client, they will reduce it for you.

2. Are you paying for Balance Insurance? This is a waste of money. Balance insurance, which you pay dearly for, is an insurance on credit cards that if you cannot pay your balance due to disability or death, the credit card company will pay it off for you. Seems like a good plan, right? Not really – The credit card companies will make it very hard for you to claim this should something happen. Talk to your financial advisor about alternative ways to protect your debt.

3. Do you have a monthly payment plan set up to pay into your savings account for emergencies and special projects? The government this year introduced Tax Free Savings Accounts. A great way to boost your savings without paying tax on the interest earned.
4.
5. Do you have a monthly payment plan set up for retirement? Its never too early or too late. Take advantage of the low markets NOW!!

Talk to your advisor to get your spending under control and your savings started. Economists say we are at the bottom so now is the time to get focused and start a plan!

Retirement = Doing What You Want To Do

Retirement doesn’t always have to mean you quit working completely. Gone are the days when at age 65 you define the line between work and no-work. Retirement means that now you can sit back and do what you love to do. Whatever you plan on doing, it should be worked into your retirement planner.

New changes to CPP legislation this year says that you don’t have to retire-or fake your retirement-to start collecting CPP at age 60. You have a choice to collect it, even if you decide to keep working past age 60.
Some people decide to keep working past retirement because:

• They love working, they find considerable enjoyment and satisfaction in keeping busy doing part-time work. Whether its handyman projects on the side, volunteering for a local charity or working part-time in retail, you can continue to work beyond your retirement age.

• For people who love to interact with others, work life provides a chance to stay connected with people and meet new friends.

• Post retirement part-time work also provides income! By working part-time income into your retirement plan will ensure you can stretch your pension and RRSP’s further!

By giving your retirement some planning and thought, and discussing your dreams with your financial advisor, you can ensure you won’t outlive your savings and you can enjoy a more meaningful retirement!

Upcoming Events

This fall we are hosting P.I.N.K, a four workshop series designed exclusively for women by women. P.I.N.K is designed to educate and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for retirement and protect their personal, business and family assets.

P.I.N.K embraces all the key elements of a financial plan:
Protection – preserve your capital and protect your family
Investment - grow your money and manage your wealth
Need - understand the unique financial challenges facing women
Knowledge - access to insightful financial information and a network of expertise

Join us for this exclusive four-seminar event
presented For Women By Women!
To register, or for more information email janea@performancefinancial.ca

You must RSVP to register as this event is by invitation only.
The first seminar is scheduled for Tuesday, September 29, 2009 at the Willows Golf & Country Club

Tax Free Savings Account – 3% Until June 30

Tax Free Savings Accounts – Earn 3% until June 30
Earn 3.00% on your savings . . . open a Tax-Free Advantage Account today
Open a Manulife Bank Tax-Free Advantage Account and your savings will get 3.00% from June 1 – June 30, 2009.1
Tax-Free Advantage Account is a great new way to shelter your savings without locking them in. Earn this high rate of interest and keep it all for yourself! At a time when growth is vital, Manulife Bank gives your tax-free savings a strong start.
Call me at 306-281-3891 to open a Tax-Free Advantage Account today or visit www.manulife.ca to learn more.
—————————-
1 The minimum interest rate for the Tax-Free Advantage Account is 3.00% for the period June 1 to June 30, 2009. Interest is calculated on the total daily closing balance and paid monthly. After June 30, 2009 this rate is not guaranteed and is subject to change without notice.

Janea Bellay, Insurance & Investment Advisor

Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:

Liquidity accounts - Your spending, savings and retirement accounts
Family Security - Maintaining life insurance for all life’s unexpected financial needs
Family Protection – Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke
Retirement Planning – Are you putting enough away and into the right investments to retire successfully?

Performance Financial Services Inc.
217-3501 8th Street East
Saskatoon, SK S7H 0W5
Tel: (306) 281-3891
Fax: (306) 956-3141
janea@performancefinancial.ca
www.janeabellay.com

SUBSCRIBE/UNSUBSCRIBE

To remove your name from our mailing list, please click here.
Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.

LEGAL DISCLAIMER

Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.

According to the Department of Finance, the following make up the sources of Canadian Retirement Income:

• 28% – CPP/QPP
• 28% – OAS & GIS
• 44% – RRSPs and Pension Plans

What is the Canada Pension Plan (CPP)?

The CPP is a federal program that provides pensions to qualified contributors in retirement. Any benefits paid by the CPP are taxable both federally and provincially. CPP operates throughout Canada. Quebec has its own similar but not identical program, the Quebec Pension Plan (QPP), which is closely associated with the CPP.

Who pays into the CPP?

With the exception of very few, every person in Canada who is over the age of 18 and is working pays into the CPP. Contributions are split equally between employers and employees. If you are self – employed, you are required to pay both the employer and employee amount.

How much do I pay into the CPP?

The amount you pay is based on your salary (self-employed contributions are based on your net business income). You pay contributions on your annual earnings between the minimum and a set maximum level (these are called your “pensionable” earnings). The minimum level is frozen at $3,500 while the maximum level is adjusted each January.

For 2009, the maximum level is $46,300 and contributions are 4.95% for both the employer and employee. As a result, the maximum employee contribution is $2,118.60.

When you file your personal tax return, the federal and provincial governments provide a tax credit for your CPP contributions. The Federal government credit is equal to 15% of your contribution.

When do I become eligible to receive CPP?

If you have made at least one CPP contribution in your lifetime and if you are:

• At least age 65; OR
• Between the ages of 60 and 64 inclusive and
  • Have ceased employment OR
  • Have low earnings

How much CPP can I expect monthly?

In general, your retirement pension replaces about 25% of the earnings on which you paid into the CPP. The exact amount of your CPP pension depends on how much and for how long you contribute. For 2009 – the maximum CPP retirement pension is $ 908.75 per month if taken at age 65. CPP pensions are adjusted for inflation every January.

Should I take CPP early? Age 60? Age 65? Age 70?

In most cases, the earlier you can take your CPP the better.

The age at which you decide to take your pension also affects the amount you receive each month. The normal age to start CPP is 65. However you can start receiving your CPP pension as early as 60 or as late as 70. By opting to take your CPP pension early, the pension will be reduced by 0.5% for each month the start date precedes your 65 the birthday to a maximum reduction of 30% at age 60. If you start receiving your pension before 65, you must have stopped working.

By opting to delay your CPP pension, the pension will be increased by 0.5% for each month the start dates surpasses your 65th birthday to a maximum of 30% at age 70.

Am I able to share my CPP pension with my spouse?

Yes … you are able to share your pension with your spouse or common law partner equally if you are at least 60 years old and have both applied for retirement pensions. This could result in income tax savings if one spouse was in a lower tax bracket than other spouse.

What are other benefits that CPP offers?

Disability Pension – To receive a disability pension from CPP you must be disabled according to the terms of the CPP legislation (physical or mental disability which is both severe and prolonged), under the age of 65 and not in receipt of a CPP retirement pension.
For 2009 – the maximum CPP disability pension is $1,105.99 a month.

Death Benefit – A death benefit up to a maximum of $2,500 may be paid to the estate of a deceased contributor.

Other Benefits -Benefits are available for:

• Children of disabled or deceased parents
• Survivor spouse benefits
• Guaranteed income supplement for low income earners

What is Old Age Security (OAS)?

OAS is a federal government program that provides a basic amount of retirement income to all individuals who meet certain residency requirements. The amount of OAS that you receive is not dependent on your past employment or salary. Any benefits paid by the OAS are taxable both federally and provincially.

Who is eligible to receive OAS?

To receive OAS you must be:

• a Canadian citizen or legal resident of Canada
• at least 65 years of age
• lived in Canada a minimum of 10 years after reaching age 18

How much can I expect from OAS?

From January to March 2009 – The maximum OAS pension is $516.95 per month or $6,203.52 yearly. OAS pensions are adjusted for inflation quarterly. In order to qualify for the maximum OAS pension, you must have lived in Canada (after reaching age 18) for at least 40 years.

If you have lived in Canada for more than 10 years but less than 40 years, you may be eligible for a partial pension.

What is the OAS clawback and when does it apply?

The OAS ‘clawback’ requires the repayment of OAS benefits by high-income earners. For 2009, the threshold at which the OAS ‘clawback’ starts is $66,335. If your net income (including OAS benefits) exceeds the threshold ($66,335), 15% of the amount of income above the threshold is deducted from the basic pension. Your OAS pension will be entirely clawed back if your net income exceeds $107,692. For example, if you had a net income of $90,914, your OAS pension would be reduced by 15% of the amount over the threshold. That means that your annual OAS pension will be reduced to $2,516.67 or $209.72 per month.

For more information, visit the Service Canada website.

If you have questions specific to your retirement and would like a review of your investments and when to take CPP, please contact me at janea@janeabellay.com.

I have to re-post this CBC Marketplace Expose on Bank Mortgage Insurance. I met with a couple about a month ago who were denied their Bank Mortgage Insurance claim. We met to apply for a life insurance policy that can never be cancelled by the insurance company. We applied so this would never happen to them again.

The key to remember is the banks are not licesnsed to sell mortgage insurance or life insurance. You must speak with a licensed life insurance agent like myself to obtain proper insurance. Say no to your bank mortgage insurance. You are not required to purchase it.