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
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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