Insights SPRING 2015 One focus, many solutions. DID YOU KNOW? Lordy, lordy we’re turning 40. Flashback 1975: Imagine this—you’re an education member looking for your first home, but are declined a mortgage because your summers ‘off’ make you a part-time employee in the eyes of the banks. Educators Financial Group was born out of that time to ensure the education community received access to the financial advice and products they needed. Forty years on, we now have over 16,000 clients across all OTF affiliates. Our story is your story. Our success is your success. We helped Dennis save money to conquer cottage renovations, provided Sandy with financial peace of mind after the passing of her husband, and Joan and Walter to consolidate their debts and cut their interest costs by more than half. How have we helped YOU over the years? Did we help you buy your first home? Set up an emergency fund to tide you over during that salary disruption? Maybe we helped you build enough savings to take a 4 over 5 to go backpacking across Europe? Help us mark this milestone year by sharing YOUR Educators story—because (like we said above), our story is your story. Email your story and be a part of the celebrations: [email protected] INSIDE THIS ISSUE SIGN UP FOR eNEWS Not yet receiving eNews? You’re missing out… Chuck’s Corner: Learning: it’s an ongoing thing. Financial news. Special offers and updates. Financial tips geared exclusively to education members. Educators eNews is chock-full with it all — and it all comes neatly packaged to your email. Plus right now, eNews subscribers automatically get entered into our draw to WIN a $50 Canadian Tire gift card. It’s all part of our 40 Weeks of Giveaways to celebrate 40 years! Investing: RRSPs: know the ‘tax-facts’. Lending: Renters who want to buy give Educators an A+ Sign up for eNews now: educatorsfinancialgroup.ca PLANNING Planning: If your marital status changes, your estate plan should, too. Educators News: GIC Spring BONUS Boost INVESTING LENDING Educators Q&A You’ve got financial questions; we’ve got educator-specific answers! Educators lending specialist Adele Iozzo answers this quarter’s question: CHUCK’S CORNER Learning: it’s an ongoing thing. A s education members, you more than most can appreciate that education doesn’t just end on graduation day. Continual education is key if we’re to keep up with the demands of the ever-changing world we live in. It’s what keeps your curriculum fresh and relevant to your students. It’s what helps you to build the right financial plan for your future goals. And it’s what has helped Educators Financial Group reach its 40-year milestone in 2015. Q: “How will the Bank of Canada’s (BOC) lowering of the interest rate affect the housing market this spring?” From our eNews emails that instantly connect you to the latest financial tips geared exclusively to the education community, to our knowledgeable financial specialists that understand what it means to be an education member (active or retired), Educators prides itself on providing you with the kind of learning that goes beyond the generic advice you might get at your bank. Have a question about increasing cash flow in the summer? Wondering how to fill a potential pension income gap in retirement? Is that 4 over 5 really within your reach? Don’t be afraid to raise your hand and ask us your question. Of course learning goes both ways. Is there a topic you would like to see covered in the next edition of Insights? Reach out to me. My door, and email, is always open. Chuck Hamilton, President and CEO Planning A: We expect that the housing market and lending rates will get very competitive this spring as a result of the BOC’s action. But choosing a mortgage is more than just shopping for the best rate. It’s about deciding on the right type of mortgage based on your needs. That’s where an Educators lending specialist can help. From doing the rate shopping for you, to informing you on your options, give us a call for educator-specific mortgage advice before you lock into anything. Have a financial question? Call us: 1.800.263.9541 or email: info@ educatorsfinancialgroup.ca If your marital status changes, your estate plan should, too. Y ou’ve developed an estate plan that reflects your wishes and protects your loved ones— and then “I do” becomes, “I don’t anymore”. Here are 5 ways divorce will impact your estate plan: 1. 2. Your will: Under Ontario’s Succession Law Reform Act (SLRA), your former spouse will be automatically removed as a beneficiary, executor or trustee from your will (unless your will specifically says otherwise). If you have former in-laws named in your will, it’s up to you to make any changes (including who will be named as the new beneficiary, executor or trustee). Powers of attorney: Divorce does not automatically revoke appointments of former spouses as attorneys for property, or personal care. 3. Insurance policies: Beneficiaries in insurance policies are not impacted by divorce. 4. Jointly-owned property: Property owned jointly with a ‘right of survivorship’ passes to the surviving former spouse, even if the spouses separate or divorce. Joint bank accounts can also pose problems, as one of the former spouses could withdraw funds without the other’s consent. 5. Family Trusts: Examine the terms. You may want to make changes if, for example, both spouses were appointed as trustees. How your estate plan will be affected by divorce will be different from how it is affected by separation. Talk to an Educators financial specialist to ensure your plan is up to date. Have an estate-planning question? Contact an Educators financial specialist today: 1.800.263.9541 Investing RRSPs: know the tax facts. A fter years of financial institutions touting the benefits of a Registered Retirement Savings Plan (RRSP), most of us are familiar with its considerable tax benefits: • Contributions to your RRSP can help reduce your taxable income in working or high income-earning years • Interest earned on investments inside your RRSP can grow tax-free • If you remove funds from your RRSP when your income is less, you could be taxed at a lower rate However, there are other RRSP ‘tax facts’ regarding your estate that you should be aware of. If you are thinking of your RRSP as part of your estate that is to be passed on to your loved ones, you should know this. If your spouse is named as the sole beneficiary of your RRSPs, upon your death they could be passed to him or her, tax-free. That’s why it’s important to make sure your beneficiary on any plans or accounts, as well as your will, is up to date. If, however, your children are the beneficiaries of your RRSP, they can say goodbye to inheriting the complete amount. Its contents are fully taxable. The funds are included on the deceased’s tax return the year they die. That means if there was still $150,000 kicking around in the RRSP, it will likely be taxed at 40 percent. Lending Renters who want to buy give Educators an A+ Y ou studied hard, been working for a couple of years, have an excellent credit rating, and now you’re ready to stop renting and buy your own place. Just one thing: the down payment. Saving for a down payment can be hard (particularly if, like many education members, you’re starting out working part time or have an occasional position). You’re not alone. In 2013, the Canadian Association of Accredited Mortgage Professionals found that more than one in four renters had under $5,000 saved for a down payment. So what now? Rent forever? Or keep saving while home prices continue to rise? Have a specific question about your RRSP? Call and speak to an Educators financial specialist. Still expecting a gratuity upon retirement? You may want to leave contribution room in your RRSP so that you can roll over your gratuity, tax-free! Call us. We can help you with that. A renter’s dream: a cash back down payment mortgage with 100% financing. At Educators Financial Group, we think that if you’ve been in a good job for two years (and yes, that includes occasional and part-time teachers) and have an excellent credit rating, you can handle the responsibility of homeownership. A cash-back mortgage through Educators provides 100% of the purchase price of your home, with 5% of the purchase price back to use as your down payment. And you’ll pay less interest than other options, such as putting the 5% down payment on your credit card. It could be a renter’s dream. Is it for you? Get the full scoop on our cash-back mortgage online under ‘News and Updates’. Or better yet, call and speak to one of our lending specialists. See how a lower interest rate can = big savings with our online Debt Calculator: educatorsfinancialgroup.ca EDUCATORS NEWS We’re working hard to be smarter AND greener. A wider range of products, online access to your statements, and less paper… at Educators, we’re continuing to work hard in order to enhance our services to the education community with improvements that are smarter and greener. SMARTER Principle Protected Notes: Your feedback to us made it clear that you were looking for more lower-risk investment options. So after introducing Guaranteed Investment Certificates (GICs), Educators is now pleased to also offer Principle Protected Notes (PPNs). PPNs can offer: • Lower risk • Guaranteed principal • Regular income (some PPNs make regular payments before the maturity date) Talk to one of our financial specialists for more details on PPNs, and whether they’re right for your portfolio. GREENER eStatements: Why get another piece of paper in the mail? See your statement the moment it’s ready, online. An eStatement looks exactly like your printed statement, but you view it on your computer, and can then save and print it any time. eNotifications: When you opt to receive eStatements, an eNotification is an email that lets you know your latest eStatement is available to view online. Call us at 1.800.263.9541, and we’ll get you set up with online access (and make sure we have your email address so you can receive eNotifications). At Educators, we’re constantly working on being smarter and greener—so please get in touch with us with any questions (or suggestions) you may have. Educators GICs + special spring bonus rate = a boost in returns for you! Right now until May 31, 2015, get an exclusive bonus rate of 2.1%* on a 2-year GIC (Guaranteed Investment Certificate) with Educators Financial Group. For you, that translates to guaranteed returns at fixed interest rates that are over and above the already premium rates we offer on GICs. But like all great offers, this 2.1% GIC bonus rate could disappear at any time. Take advantage of our GIC Spring BONUS Boost before it’s gone by calling 1.800.263.9541. *Rate subject to change, and offer can be withdrawn at any time. Speak to an Educators financial specialist for full details. Educators Financial Group 2225 Sheppard Avenue East, Suite 1105 Toronto, ON M2J 5C2 Tel. 416.752.6843 or 1.800.263.9541 educatorsfinancialgroup.ca Commissions, trailing commissions, management fees and expenses may all be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Broker license 12185
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