Moose Jaw Express Financial Guide 2022

Special Feature

A Special Pull-out Feature How much does it cost to retire in Canada?

If you’re saving for retirement, it’s likely in a registered retirement savings plan (RRSP) or an employee pension plan. But, the question is, what is the cost of retirement in Canada? And how much should you save to retire? Unfortunately there isn’t a simple answer.

There’s a debate in financial planning about what percentage of income Canadians need to save for a comfortable retirement. Recommendations run all the way from 40% up to 70% of what you earned before you left the workforce. But, is it useful to think about retirement planning in these terms? Maybe not.

Since everyone’s situation is different, estimating a percentage isn’t the best strategy. You need to look at: • what retirement means for you, and • what your expenses might be.

An advisor can help you figure out how much you need for retirement and how much you must save. In the meantime, start by answering these 10 questions to get a rough idea.

1. When did you start saving for retirement?

“The older you are when you start saving for retirement, the higher the percentage of income you must put aside. That’s because you’ve lost years of compounding,” says Gordon Pape, author of RRSPs: The Ultimate Wealth Builder. “A 25-year-old might only need to save 8% to 10% of income each year. However, a 45-year-old might have to save as much as 25%.”

In short, the longer you save, the more you’ll likely have in your nest egg. Investment income can also build your account balance.

2. When do you plan to retire?

Are you considering retiring at 60 instead of 65?

You’ll need to save more because you’re losing five prime contribution years. And, your savings will have to last longer.

On the other hand, maybe you need to delay your retirement date? If so, you’re not alone. In fact, 21% of respondents to a 2020 survey said they plan to retire later due to the COVID-19 pandemic.* In this case, strategizing your savings, income and care options will be key to your eventual, happy retirement. *Source: CPA Canada’s Canadian Finance Study 202.

3. How long are you going to live?

No one can predict their date of death. However, Canadians are generally living longer. According to the most recent census from Statistics Canada, Canadian children born that year expect to live to 82. Not to mention, those who are 100+ are the fastest-growing

age group in Canada.

Given this, it’s wise to factor longevity in your retirement plan, especially if: • your relatives lived to 95, and • you’re in good health.

4. What are your plans for retirement?

How do you picture spending time in retirement?

A modest retirement may only require 50% of your pre-retirement income. But if you’re planning an active retirement with travel, for example, you may need 70% or more of your previous earnings.

Rest assured: you will generally spend less in retirement than you did when you worked full-time. There are a lot of expenses that will start to go away. For example, you won’t have the cost of commuting, buying lunch, or updating your wardrobe.

Despite these savings, retirees spend differently as they grow older. When planning for your retirement income needs, it’s useful to think about your retirement in three stages:

•

The first stage comes immediately following work. You may be in good health and you’ll have money to spend on travel and other leisure activities.

• Next comes a quieter stage. Your energy may start to dip, and you may become more comfortable with a slower pace.

• Finally, as health issues become more prominent, you may pay significant sums on health care as you age. These costs may include longterm care.

All of this is very personal. No two retirement experiences are alike. To help plan for these scenarios, consider various retirement income options.

5. Do you have a workplace pension?

If your employer sponsors a workplace RRSP or Pension plan and matches some or all of your contributions, this annual tax-deferred bonus will reduce the amount you have to save on your own.

6. How much will you earn on your investments?

To calculate how much you need to reach your retirement savings goals, you’ll need to assume a rate of return on your investments. While there’s no predicting exactly how steady your returns will be, diversifying your portfolio can help.

An advisor can help you diversify your portfolio

and select a realistic number for your investment projections.

7. What assets do you have?

One of the first places you’re likely saving is in a registered plan. And you can save up to 18% of your earned income in: • an RRSP, or • an employer-sponsored defined contribution (DC) plan.

You’ll get a tax deduction for your contributions, and your investments will grow on a tax-deferred basis. Contributions to your defined benefit plan will very likely reduce your RRSP contribution room. Unused RRSP contribution room can be carried forward to future years.

“I strongly encourage people to max out their RRSP contributions every year. This can be an enormous challenge. But in future, you’ll be glad that you did it,” says Bruce Sellery, author of The Moolala Guide to Rockin’ Your RRSP Beyond your RRSP, you may have assets such as: • a Tax Free Savings Account (TFSA), • other unregistered savings, • real estate, or • a business.

Depending on the value of these assets, you may not need to save as much in a workplace pension or RRSP. 8. Will you make early withdrawals from your RRSP? When you withdraw money from your RRSP, you pay tax on the withdrawal at your marginal rate. You also lose the contribution room and the benefit of compound interest over time. Saving up an emergency fund in a TFSA is a better option, since contribution room is restored in the next year.

9. How much do you want to leave for loved ones?

Do you want to spend all your money when you’re alive? Or do you want to leave a legacy for your children or favourite charity? This decision will play a role in how much you need to save for—and spend in—retirement.

10. How often should you review your retirement savings plan?

It’s a good idea to review your retirement savings plan with an advisor: at least once every three years, or in connection with a major life event (i.e. birth of a child, a divorce, or the loss of a spouse).

Wherever you are in your retirement savings, it’s likely a good time to have a conversation with your advisor. If you don’t have an advisor, find one to work with.

By Sun Life staff (Oct. 5/2021) This article is meant to only provide general information. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation

https://www.sunlife.ca/en/tools-and-resources/moneyand-finances/saving-for-retirement/how-much-shouldyou-save-for-retirement/

Special Feature

6 Quick Tips to Help You Get Out of a Financial Crisis

A financial crisis can be the result of different factors such as bankruptcy, joblessness, medical bills etc. Regardless of the cause of your financial instability, the consequences can be devastating. A person facing financial turmoil may undergo stress, confusion, loss of confidence and control.

If you are dealing with a financial crisis, don’t worry.

You can re-establish yourself and your credit record with the following 6 tips.

Do not procrastinate If you are facing a financial crisis, it is important that you do not waste any time. There are many people who believe that keeping themselves distracted from their financial condition can allow them to overcome stress.

In reality, this can actually make the problem worse. It is important to remain focused on the problem at hand so you can effectively tackle it. Keep in mind that your financial crisis cannot be resolved overnight – hence, you should carefully plan and budget your expenses.

Stop using credit cards Keeping track of your expenses and where you are spending your money can be complicated. However, until you have your finances in order, you will find your bank account empty.

The first thing you should do is control your expenditure on credit cards. As Charles A. Jaffe once said, “It is not your salary that makes you rich, it is your spending habits.” A useful trick is to cut off all tools

Young children need to learn that money doesn’t grow on trees — or get freely dispensed from ATMs. Here’s how to teach them the value of a dollar.

Five- and 6-year-olds are starting to develop the cognitive skills necessary to understand basic monetary concepts, such as identifying coins, figuring out how to count change, and matching small amounts of money to items they want to buy.

Aside from acquainting kids with the basics of economics, money lessons have other benefits. “Money is a stand-in for many of the values we want to teach our children,” says Janet Bodnar, author of Dollars & Sense for Kids. “If youngsters learn how to spend wisely and delay gratification, they will develop patience and planning skills in other aspects of their lives.”

To increase your child’s money smarts, try these strategies: • Explain how money works. Your child needs to know there’s not a little printing press inside every ATM. Explain that the bank is like a big piggy bank where you keep your money until you’re ready to use it. Tell her that when you spend what’s in your account, it’s gone until you get paid by your boss and can put more in. She should understand that you can’t buy whatever you want and that you need to make careful choices about how

which encourage easy spending such as credit cards.

While this is not a permanent solution, it will give you some time to think about better options for getting out of the financial crisis.

Get a quick loan When you are in the middle of a financial crisis, it is likely that you are unable to meet your daily expenses. When this occurs, you can easily look into quick loans as a temporary measure. This will help you pay off any outstanding debts and ensure that you have enough money for day to day expenditure. However, repaying the loan amount is crucial for avoiding further financial difficulties – hence, do not forget to pay your weekly or monthly instalments.

Pay as much as you can afford each month As soon as you get a quick loan, use it wisely towards your debts. Unmanaged finances and debts are a leading cause of financial difficulties. Thus, timely payments will get you out of a financial crisis faster.

You can also use your savings to pay off your debts.

You can also opt for an Individual Voluntary Arrangement, as this is one of the best options you have and you can pay your debt as you can afford.

Plan strategically Depending on the type of financial crisis you are facing, carefully devise a plan to overcome the problem. The foremost tip is to stop using credit cards or

spending money on unnecessary things. Whether your crisis is due to crushing debts or a medical emergency, plan strategically to deal with it.

It is recommended that you evaluate your situation and find solutions to solve it. You can also search on the internet to look for helpful tips.

Take adequate action Once you have a good plan in place, take the necessary steps to implement it. The best way of dealing with stress caused due to bad finances is to keep yourself focused on resolving the problem. For instance, if your financial crisis is due to personal debts, consider selling some old things which you rarely use. You can then use this money to pay off your debts.

Regardless of your financial situation, it is important to take immediate action to deal with the problem.

https://www.finsmes.com/2017/08/6-quick-tips-tohelp-you-get-out-of-a-financial-crisis.html

Teaching Kids the Value of Money

By Pamela Kramer

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you spend your money.

Build your child’s money skills.

Reinforce lessons he’s learning at school by making a chart that illustrates basic money equivalents.

Post it on the refrigerator or in your child’s room. Help him practice exchanging pennies for nickels and dimes and quarters for dollars.

Play store by putting price tags on items around the house: 50? for a pencil, 75? for a rubber ball, $2 for a Hot Wheels car. Help your child figure out the cost to “buy” each one. Then hand him two onedollar bills and explain that he has enough for the pencil and the ball or just the car, but not all three. Let him choose.

Give your child a small allowance.

It should be enough for her to buy minor items, such as trading cards, hair clips, or ice-cream bars. The next time you go shopping, tell your child to bring her money if she thinks she might want to purchase something. What if your child has blown her wad and still begs for ice cream? Tell her she’ll have to wait until the next allowance day; “If you give in, you’ve defeated the purpose,” Bodnar says.”If your child wants something big, such as a new hardcover book or a toy, help her figure out how much she needs to save each week in order to buy

•

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it. Make sure she has a clear plastic bank so she can watch her money grow.

It is advisable to teach kids to do more with their money than spend it on themselves. Encourage them to donate part of their allowance to charity. The majority of experts agree that a child’s allowance should not be tied to household chores because children should help out around the house as they are part of the family, not because they are being paid.

Let your child do some spending.

When your child wants to make a purchase, help her count out the correct amount. Have her hand the money to the cashier and wait for her change. If your child wants to blow $3 on vending-machine toys

instead of waiting to combine it with next week’s allowance to buy a Beanie Baby, point out the tradeoff but leave the final decision to her. A parent should consider having veto power if they think an item is inappropriate. .

• Offer ways to earn extra cash.

Kids need to learn that they can increase the amount of money they have but that they have to work for it. Make a list of jobs your child can do above and beyond her routine chores, such as raking leaves or polishing silver, along with the amount you’re willing to pay for the job. https://www.parents.com/parenting/ money/family-finances/teaching-kidsvalue-of-money/

Special Feature

5 Pieces of Investment Advice for Real People

We’ve all heard investment advice from an armchair expert before, full of hot tips like “You’d have to be an idiot not to put money in tech stocks right now” or “Invest in oil and you’ll be set for life.”

But investment advice shouldn’t be given — or taken — lightly, and if a single piece of information were the best fit for everyone, we’d all be Warren Buffett rich by now.

Absent magic advice that applies to everyone, there are some universal rules of thumb. We asked financial advisors to share their best investment advice. Here’s what they had to say.

5 pieces of investment advice from the pros 1. Take advantage of employer-matching dollars Don’t ever leave free money on the table in the form of employer matching with 401(k) or 403(b) accounts. Many companies match an employee’s contributions to their employer-sponsored retirement plan, up to a cap. Let’s say your employer matches 100% of your 401(k) contributions on up to 4% of your salary and you earn $50,000 a year. If you contribute 4% of your salary this year — $2,000 — your company will also kick in $2,000, making your annual contribution $4,000. Missing out on an employer’s match is essen-

By Alana Benson (Dec 1, 2021) tially forfeiting free money.

2. The sooner you start, the better Start early. If you don’t know the power of compounding returns, learn it, because it will make you excited about your future.

Investing allows your money to grow instead of sitting idle. When you invest, any returns you earn are added to your balance, and future returns are then based on that bigger balance. For example, if you invested $10,000 and earned a 6% average annual return on your investment, you’d have over $18,000 after 10 years. Give that money 30 years to grow instead and you’d have over $60,000.

The earlier you start investing, the more time your money has to accumulate wealth.

3. Create a financial plan Have a plan. If you can plan yourself, great. If you need to hire someone to hold you accountable, great.

Financial planning is not just for retirees. I would argue it’s more important early in your life and career.

Choosing investments can feel overwhelming — even deciding what kind of investment account to use can be complex. Doing some financial planning upfront creates a roadmap for your financial future. By outlining your financial goals, your timeline and your risk tolerance, you make it easier to answer some of those tricky investment questions.

Part of your financial plan should include whether you’re willing to manage your investments yourself or if you want help. Financial planning can be expensive, but there are options for lower costs.

4. Don’t try to predict the market Even for a professional, attempting to predict the market is challenging. Doing so with an elementary understanding is extremely risky.

Instead of investing in a single stock or industry, a total-market index fund will give you exposure to multiple stocks, which helps diversify your portfolio and lowers your risk. Since index funds are passively managed — they track a benchmark index, like the S&P 500 — fees tend to be lower than actively managed funds.

5. Take the long view Thinking about your investments as a marathon instead of a sprint can help stymie your urge to sell if the market takes a turn for the worse. Even massive dips in the market don’t feel as scary if you plan to stay invested long-term, , because you have time to recover.

As a general rule, money you need in less than five years shouldn’t be invested in the stock market — for short-term goals, you should consider putting it in a high-yield savings account instead.

https://www.nerdwallet.com/article/investing/investment-advice

Benson Trithardt Noren Professional Accountants 144 Ominica St. W Moose Jaw SK S6H 1X2 www.btnca.ca

Tel (306) 693-0656 • Fax (306) 692-3930 LET OUR TEAM HELP YOU WITH ALL YOUR ACCOUNTING NEEDS Derek J. Owens

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Saving your money and reducing your tax!

By Mike Biette, CPA, CMA

February in Canada means two things, spring is right around the corner and so is filing your taxes! Canadian tax returns are typically due by April 30th each year, and one of the few things you can do after December 31st to affect your prior years’ tax return is contribute to a Registered Retirement Savings Plan (RRSP).

But how does someone know if they should contribute to their RRSP? When is it beneficial and when is it better to invest somewhere else? What is the difference between RRSP’s and the TFSA (Tax Free Savings Account)? When should I start thinking of pulling out my RRSP’s? By knowing a few of these basic concepts, as well as when and how to utilize them properly, you can both save yourself thousands of dollars in taxes as well as prevent unwanted penalties from CRA (Canada Revenue Agency).

Think of both RRSP’s and TFSA’s as 2 separate umbrellas. Neither one is “an investment” by itself, but rather an umbrella that you put OVER TOP of whatever qualifying investment you choose to protect from tax.

An RRSP “umbrella” defers taxes owing on the initial contribution and all growth within this account. Once the money is withdrawn from the RRSP umbrella, the taxpayer pays tax on both the initial invested money as well as any growth along the way.

A TFSA can hold similar savings and investments as an RRSP (including cash, GIC’s, stocks, bonds, mutual funds, and ETFs). Although you don’t get any initial tax savings on your tax return, the TFSA

“umbrella” ensures that all the earnings generated within this account (interest, dividends and capital gains) will never be subject to Canadian tax when they are withdrawn.

How do I choose which “umbrella” to use?

There are many factors that can go into deciding which investment “umbrella” is right for you – your financial advisor or accountant can best help you determine this based on your individual situation.

The RRSP umbrella will save you tax based on the tax bracket you are in, so the higher your income – the more you may save. This is a great tool to use for Retirement Savings or saving up for a future home.

If you have children under 18 – an RSP can also help to increase the Canada Child Benefit (the monthly payment you receive for your children) by as much as 23% of the RRSP contribution amount per year!

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The Deadline for contributing to your RRSP this year is Tuesday March 1st. Any contributions between Jan 1 – March 1st 2022 MUST be reported on your 2021 tax return and can help to reduce the taxes you owe (or increase your refund) when you file, while simultaneously increasing your child tax credits.

The TFSA umbrella can be used either for long term savings and investments or short term savings, as the investments can be withdrawn at any time. However, be careful about moving investments in and out of this umbrella, as CRA can penalize you if you exceed the allowable limit per year. The TFSA room available for 2022 is $6,000.

If you have never contributed to a TFSA, and have been a Canadian resident over the age of 18 since 2009, you can contribute up to the maximum limit of $81,500.

Always make sure you know how much contribution room you have available for either of these umbrellas – as CRA can penalize you quite heavily if you contribute over your limit. Knowing the tax treatment of each of these tools can significantly increase your wealth, reduce your taxes (both now and in the future), as well as increase your child benefit payments starting this summer! Knowing when to start drawing out your RRSP’s can be just as important as when and how you contribute them. Come visit the friendly TaxTeam staff at 339 Main Street N Moose Jaw to find out more and get your FREE RRSP check to see how YOU can SAVE YOUR MONEY AND PAY LESS TAX!

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2022 Benefit Payments Calendar Canada Pension Plan Includes the Canada Pension Plan (CPP) retirement pension and disability, children’s and survivor benefits.

February 24, 2022 March 29, 2022 April 27, 2022 May 27, 2022 June 28, 2022 July 27, 2022 August 29, 2022 September 27, 2022 October 27, 2022 November 28, 2022 December 21, 2022 Old Age Security Includes Old Age Security pension, Guaranteed Income Supplement, Allowance and Allowance for the Survivor.

February 24, 2022 March 29, 2022 April 27, 2022 May 27, 2022 June 28, 2022 July 27, 2022 August 29, 2022 September 27, 2022 October 27, 2022 November 28, 2022 December 21, 2022

Veteran disability pension February 25, 2022 March 30, 2022 April 28, 2022 May 30, 2022 June 29, 2022 July 28, 2022 August 30, 2022 September 28, 2022 October 28, 2022 November 29, 2022 December 22, 2022 Canada child benefit (CCB) February 18, 2022 March 18, 2022 April 20, 2022 May 20, 2022 June 20, 2022 July 20, 2022 August 19, 2022 September 20, 2022 October 20, 2022 November 18, 2022 December 13, 2022

Goods and Services tax / Harmonized Sales Tax (GST/HST) Credit April 5, 2022 July 5, 2022 October 5, 2022

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Saskatchewan Social Services The new Saskatchewan Income Support (SIS) program allows clients to select different payment frequency options, such as monthly, twice per month or weekly payments, to better align with their needs and when their payments are due.

The following 2022 dates apply to the Saskatchewan Assistance Program (SAP), Transitional Employment Allowance Program (TEA), and Saskatchewan Assured Income for Disability (SAID): February (cheques mailed Jan. 25, direct deposit Jan. 28) March (cheques mailed Feb. 22, direct deposit Feb. 25) April (cheques mailed March 25, direct deposit March 30) May (cheques mailed Apr. 25, direct deposit Apr. 28) June (cheques mailed May 25, direct deposit May 30) July (cheques mailed June 24, direct deposit June 29) August (cheques mailed July 22, direct deposit July 27) September (cheques mailed Aug. 25, direct deposit Aug. 30) October (cheques mailed Sep. 26, direct deposit Sep. 28) November (cheques mailed Oct. 25, direct deposit Oct. 28) December (cheques mailed Nov. 25, direct deposit Nov. 29)

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Consider working with a financial advisor Article supplied by Leipert Financial

Humans are hard-wired to make emotional money decisions. Often, your choices don’t align with your best interests. Have you ever spent too much money during a sale? Or, have you sold investments during a market downturn? If so, you are not alone.

in your family’s financial position. By setting mutually-agreed upon goals, together you can focus on which areas to improve. You will agree on who handles what and revisit your goals often. One of the biggest benefits of having a financial plan is being able to make changes over time.

Once you have a feel for your family’s cash flow, you can look at bigger financial goals. Buying a home, saving for college and retirement, or investing. These are steps you do not have to tackle alone. Contacting a professional financial advisor is a great step. We are here to help.

What your financial plan may include Now that you know the benefits of having a financial plan, you may be curious what yours may include.

Consider working with a financial advisor.

The benefits of financial planning may include more confidence, stability, and peace of mind. If you’re eager to learn more about the benefits of having a financial plan — at Leipert Financial Group, we’ve got you covered.

Every financial plan looks different.

Depending on your family’s needs, you may be looking for advice in only a few areas. Or, you may prefer a comprehensive financial plan for all areas of your financial life.

A comprehensive plan may include — but isn’t limited to — analysis and advice in these areas:

• • • • • • • •

Cash flow and budgeting Education planning Insurance and risk management Employee benefits Investing Tax planning Retirement planning Estate planning

For details on how to get started, or to book an introductory call, contact Leipert Financial Group at 306-693-6588.

What are the benefits of having a financial plan?

Financial planning isn’t only for affluent families or couples nearing retirement. You are never “too young” or “too broke” for financial advice. There are many benefits of financial planning for people at all levels of income and savings. There is value in the process for everyone.

Creating a plan will help highlight gaps and strengths

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The beginner’s guide to building a budget

Get a clear picture of money coming in and going out Many people live above their means and don’t even realize it. When you want to improve your financial health, the one piece of advice you hear most often is to start a budget. Budgeting helps you better understand how you spend your money and shows you ways to manage your money, pay off debts and save for future financial goals. Whether you’re new to budgeting or you’ve tried it before and failed, understanding which steps to follow makes budgeting for beginners simpler.

Basics of budgeting for beginners Begin planning your monthly budget by figuring out how much you have coming in versus how much is going out every month. Ultimately, you want to end up with a blueprint that specifically breaks down your income and expenses, so you know how much you can spend and how much you can save each month.

Step 1: List monthly income If your only source of income is a single job and you receive a regular paycheck with taxes automatically deducted, your monthly income is the amount left over. This is called your net income or take-home pay.

If you have more than one job, list the net pay for each job to figure out your total monthly income. If you’re self-employed or have outside sources of income, such as a trust fund or parental assistance, record the exact amounts you receive every month.

Step 2: List fixed expenses Certain expenses are fixed, which means you pay the same amount each month. Household bills that fall into this category include your rent or mortgage payment, student loans, automobile loans and personal loans. These are easy to track because the monthly amounts should only change if you rack up charges for paying late. Budgeting for beginners helps you manage your money so you always pay your bills on time and avoid late fees that bust your budget.

Step 3: List variable expenses Some of your monthly bills fluctuate. For example, if you live in a seasonal climate with temperature extremes, your heating and cooling bills change based on the outside temperature. Some utility companies offer budget billing plans that let you pay a flat rate each month for services, making it easier to plug this expense into your budget. However, if you use more energy than your billing plan covered, you may have to pay the difference in one large lump sum.Other varying expenses each month include gas, groceries, personal grooming products and household items that need replenished. Review three months’ worth of bank and credit card statements to create a list of what you typically spend on these expenses. You can also keep all your gas and store receipts for a couple of months to get a precise amount for each expense. Whichever method you choose, calculate an average and plug the amount into your budget.

Creating your budget Once you know how much you expect to earn and spend monthly, create your monthly budget. Start big, and then get more specific in areas that vary and could hurt your overall budgeting plan.

Step 4: Consider the model budget To help create a comprehensive budget, you may want to seek the advice of a financial planner. Most

By Taylor Cenicola financial advisers recommend following the 50/30/20 model for budgeting. This model suggests you use 50% of your take-home pay for needs, 30% for wants and 20% for savings. No matter which budget system you use, choose a tracking method that doesn’t require more time and maintenance than you’re willing to spend on it to avoid setting yourself up for failure.

Step 5: Budget for wants The primary part of your budget should always cover your needs. What’s left over is split between the things you want and your savings. Wants can include shopping, dining out, going to movies and other activities you enjoy. However, some things, such as food, can fall into both the needs and wants categories.

Food is a necessary part of life, but it’s difficult to figure out how much to budget for groceries. To budget for your specific needs and avoid overspending, keep track of how much you spend on groceries over a three-month period and calculate an average to use in your monthly budget.

Step 6: Trim your expenses If your budget proves your expenses outweigh your income, look for ways to cut back. One of the easiest ways to trim your expenses is to evaluate how much money you’re spending on the things you want but don’t necessarily need. For example, a night out with friends costs an average of $81, which really adds up if you go out multiple nights a week. This doesn’t mean you can’t go out and have fun, but you may need to limit your spending to make your budget work.

Another way to cut your expenses and get control of your finances is to see if you can lower the cost of certain services. Contact cellphone, internet and cable television providers to see if a competitor offers a better deal or if you can save money by bundling. Consider dropping premium cable television channels and opt for an economical basic package. You can also explore low-cost streaming options available online.

Setting goals Creating goals and rewards is a fantastic way to increase your chance of budgeting successfully. For example, set a goal to save a specific amount to pay off debts by spending less on unnecessary expenses like dining out, nightclubbing or shopping. Put this money into a savings account to earn interest. When you meet your savings goal, reward yourself with a reasonable splurge on something fun.

Step 7: Budget for credit card debt Wiping out credit card debt should be a major goal in budgeting for beginners. When you choose credit cards with bad terms, it’s easy for your debt to mount up. Consider eliminating high-interest credit cards with a balance-transfer credit card that offers a 0% introductory annual percentage rate to minimize your

costs. If your budget allows, make an extra payment each month to get your balance down and help you pay off your credit card debt quicker.

Step 8: Budget for student loans Paying for college can be difficult, and 54% of young adults reported taking on debt, including student loans, to pay for their education. Interest rates are generally lower on student loans than other types of loans, and you usually don’t have to start repayment until graduation. However, they’re going to be part of your budget for a long time.

Never take out more student loans than you need to pay for your school expenses. Consider refinancing high-interest loans, and make extra payments when your budget allows to get out from under your student loan debt sooner.

Step 9: Budget for auto loans Other than buying a home, buying a car is one of the biggest purchases you’ll make. Before taking on an auto loan, ensure the payment fits in your budget.

Compare auto loan rates from various sources to find the best deal and get preapproved for a car loan to help you stay within your budget. Go into the car dealership knowing exactly how much you want to spend on the vehicle and how much your monthly payments will be to avoid car-buying mistakes.

Step 10: Budget for homeownership Your monthly housing costs takes the largest chunk of your budget. If you already have a mortgage, evaluate the benefits of refinancing your home loan to cut your monthly expenses and the total amount you’ll pay back over the life of your loan. If one of your budgeting goals is to buy a home, remember people often want more house than they can afford. Avoid overspending that creates long-term financial problems by calculating how much you can afford based on your potential down payment, income and debt obligations.

https://www.marketwatch.com/story/the-beginnersguide-to-building-a-budget-2019-08-09

Special Feature

Financial Planning – There’s A Lot in It for You

What does the term “financial planning” mean to you?

• Determining lifestyle expenses?

• Planning for your children’s education?

• Building wealth through taxefficient investment portfolios?

• Minimizing your tax burden?

• Ensuring a comfortable retirement?

• Mitigating risk through insurance?

• Leaving a legacy for your heirs?

Effective financial planning should include all of the above. Think of it as a continuous lifelong process as you prioritize and guide your personal financial decision-making and impose order on your financial life. A financial plan for you and your family creates a comprehensive and integrated roadmap as you travel through life’s stages.

Wealth-building stage In your early years, a financial plan helps you make the most with the least.

Article supplied by Gale Toews Private Wealth Management of Raymond James It’s about setting aside funds for a to set aside for the major purchases and first home, planning for the children’s events in your family’s life, including education, and safeguarding your future your dreams for retirement? How do with the proper insurance protection. you finance this vision of the future? A It’s a time to start an investment and financial plan helps you find the answer. savings plan that ensures some of your Lifestyle management financial resources are invested properly This is much more than balancing a and growing. cheque book every month. It’s a cash Wealth growth and preservation management program to deal with debt stage reduction as well as prioritizing and During the peak earning years and in managing your income and expenses. anticipation of retirement, your financial Tax planning planning begins to reflect investment Effective tax planning involves allocation and diversification strategies knowing how to save, invest, and spend to protect and grow assets that can with the least tax burden. It begins for provide retirement income. many with individual RRSPs, RESPs, Wealth preservation and distribution and TFSAs for their children. Down the stage road, more complex tax strategies come In this stage, your retirement needs into play as estate planning objectives are your focus. This includes estate dominate your financial plan. planning and effective tax minimization Risk management and insurance strategies to ensure the orderly transfer protection of assets to your heirs and other In life’s early stage, insurance helps beneficiaries without unnecessary tax mitigate risk and safeguard you and burdens. your family against sudden personal Key financial planning components losses. It can also protect your income in As your financial plan evolves the event of a disability or catastrophic through life’s stages, it focuses on these critical illness. In retirement, insurance key components: may play an important role in providing Setting financial objectives you with an annual tax-free income, A financial plan starts by knowing or covering long-term care expenses, where you are now – through an as well as protecting the value of your inventory of current financial assets and estate for heirs and beneficiaries. liabilities – and where you want to be Investment planning in the future. How much do you need As each of your financial stages evolves, investment strategies will change, reflecting a shift in asset allocation and investment diversity according to your changing financial needs and risk tolerance as well as the inevitable changes in the market, government tax laws, and economic

Keep it.

You’ve earned it.

Contributing to your RRSP by March 1, 2022 can reduce the amount of income tax payable and can result in a tax refund.

Please contact me for a complimentary review of your RRSP portfolio.

GALE TOEWS Financial Advisor Gale Toews Private Wealth Management of Raymond James Ltd. 602 – 1st Ave NW, Moose Jaw, SK S6H 3M6 306-693-4430 gale.toews@raymondjames.ca www.raymondjames.ca/ GaleToewsPrivateWealthManagement

conditions.

Retirement planning Preparing for retirement begins with a sound financial plan. This focuses on giving you control over when you retire as well as building and protecting the financial resources to support you when that time comes.

Estate planning The culmination of any financial plan involves successful estate planning that maximizes your inheritable assets and allows you to leave a legacy to heirs and beneficiaries with a minimum tax burden.

If not now, when?

A financial plan is about you, your family, and the kind of future you want to create. The earlier you start a plan the better, but everyone, no matter what age or stage in life, will benefit from the planning process.

If you would like more information please contact Gale Toews, Financial Advisor, at Gale Toews Private Wealth Management of Raymond James Ltd. at (306)693-4430.

This material was prepared by Raymond James Ltd. for use by Gale Toews, Financial Advisor of Raymond James Ltd. It is provided for informational purposes only. Statistics, factual data and other information are from sources Raymond James believes to be reliable, but their accuracy cannot be guaranteed.

Securities offered through Raymond James Ltd., member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member - Canadian Investor Protection Fund.

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