|
|
|
|
|
|
| Greetings! |
Over the last few weeks, we've had the opportunity to speak at two terrific events - Wealth University in a Day and The Full Figure Forum on Women and Money. As we often are after these types of events, we were delighted and impressed with how willing women are to share their dreams, their fears and their challenges around money - when they are in a comfortable and safe environment.
What concerns us is how many women aren't - for whatever reason- able to liberate themselves from the guilt, the avoidance, the fear they have around money and how rampant the belief that "some day my prince will come" is even today.
We have some ideas of why women face particular challenges around money and why they would prefer to leave the money stuff to others, but we don't have all the answers. This is why we love to facilitate and participate in money conversations - so that as women, we can come together, engage in meaningful, honest dialogue and figure it out!
By 2010, women will manage 60% of the wealth in North America. We have the capacity to make meaningful changes in our own lives and in our communities. Are you ready to step up? Check out our new course: The Madness of Money: Reclaiming Control of Your Money and Your Life During Turbulent Times.
Read on to learn how renovate your home with a tax payback and find out how much your mutual fund might be really costing you.
Help us empower other women financially. Click below to forward this email to a friend.
|
|
|
|
Your Personal Tax Stimulus Program - Renovate Your Home
|
The Canadian government, like most governments around the world, is looking for innovative ways to get the country's economic engine rolling once again. Most of these stimulus projects are large-scale infrastructure developments - roads, bridges and rapid transit lines. Not much chance of the average Canadian tapping into those mega-bucks. If you're a homeowner, there is one incentive program meant just for you - and you're living in it!
The federal Home Renovation Tax Credit (HRTC) is one way that homeowners can directly benefit from the government's attempt to kick start the Canadian economy and get people back to work, especially in manufacturing and construction. It comes in the form of a "tax credit" on home renovations and improvements. More than 4.5 million Canadian families are expected to benefit. So how can you count yourself in?
There are some things you need to know. First the HRTC is designed as a "family-based" tax deduction and it is for principal residences only. It is a one-time-only program that applies to home renovations and improvements undertaken after January 27, 2009, and before February 1, 2010. A wide range of things can be covered such as fixing a roof or getting a new carpet, installing a more energy-efficient hot water tank or fireplace, or even repairing the swimming pool. The criteria are quite broad - as long the work amounts to an "enduring" improvement to your property. Unfortunately it won't pay for that big screen TV you've been coveting!
Here are the basic numbers: Every Canadian family can deduct 15% of eligible expenditures (the first $1,000 you spend doesn't qualify) to a maximum of a $1,350 credit. To be eligible for the maximum credit you would have to spend $10,000. The costs of labor and professional services, building materials, fixtures, rentals, and permits can all be included.
The HRTC makes most sense if you were already wanting or needing to make the renovations to your home. Although by participating in the program you are stimulating the Canadian economy, the expenditures should still make sense for your household budget. This tax credit is just an added bonus. Find out if this incentive program works for you by checking out: Canada Revenue Agency.
|
INVESTMENTS PLAIN & SIMPLE: Get the "Load" on Mutual Funds
|
In these challenging economic times, it is more important than ever that you know what you are really paying in various fees and commissions for your investments -- and finding out what level of service you can expect for those charges.
Mutual funds are among the most popular investments that Canadians choose, but they have costs that very few people really understand. When you buy and sell mutual funds you may pay a sales charge, called a "load". There are 3 types of load mutual funds:
Front-End Loads (FEL): These sales charges range between 0 - 5% of the amount of the initial investment. You pay this upfront commission when you purchase the funds and you may be able to negotiate the rate. The advantage of a front end load is that it is a fixed amount. You know how much money you have to invest, so you know the fee.
Back-End Loads (also called Deferred Sales Charges or DSC): You may pay this fee when you sell your mutual fund. Back-end loads range from 1% to 8% of your investment and it may be based on the original purchase value of your investment, or the market value at the time of sale. This fee usually declines the longer you own the mutual fund, reaching zero after a period of time - usually 6 or 7 years. Ask your advisor and read the prospectus for a schedule of charges as this will tell you how long you must hold the mutual fund before the back-end load reduces to zero.
No-Load: Often banks and credit unions won't charge a fee if you invest in their own funds. You can also buy no-load mutual funds directly from the company that manages them. Companies like Phillips, Hager & North, Leith Wheeler, Steadyhand or Altamira offer no-load funds. But read the prospectus, sometimes no-load mutual funds have a minimum investment requirement. Although not all mutual funds have a sales charge (e.g. no-load funds), all mutual funds charge a fee for ongoing management and administration of your investment.
Management Expense Ratio (MER) is the annual fee charged by mutual fund companies to investors. It covers expenses such as investment management, marketing, accounting, administrative costs and fees to investment salespeople. MERs typically range from 0.05% (usually for lower risk investments such as money market funds) to more than 2.5% (usually for Canadian and international stock funds). You can find out about the MER in a fund's prospectus or by asking your advisor.
Mutual funds can play an integral role in a balanced investment portfolio, but only if you are fully aware of all the costs and charges that are associated with them. Ask questions!
|
| Upcoming WFLC Workshops |
Build Your Own Financial Plan - 3 month Teleclass program starts October 6th, or do a Weekend Intensive on either Sept 12th & 13th on Salt Spring Island, or Nov 21st & 22nd in Vancouver. If you're tired of worrying about your finances and ready to take control, this program is for you. Build Your Own Financial Plan - FREE-Preview Teleclass - Dial in to this free-preview teleclass to learn how to make smart financial decisions and to see if the Build Your Own Financial Plan program is a fit for you. Thurs June 25th from 6:30 pm - 7:30 pm Sheila's Debt-Free Challenge - Why spend one more day wondering when you will ever get out of debt? Learn to mange your spending and create a plan to get out and stay out of debt! Classes in Vancouver start Monday, Nov 2nd
MoneyMastery Program - Ongoing telecoaching and education for graduates of the Build Your Own Financial Plan program. Become a more confident and savvy investor so you can achieve your financial goals faster and with more ease.
| |
|
Feel free to call us if we can help in any way or if you would like to discuss which one of our programs would best suit your needs. We'd love to hear from you!
Sincerely,
|
|
Karin and Sheila
Karin Mizgala 604-880-4143
Sheila Walkington 604-716-5375 |
|
| Save $75 |
|
| Offer Expires: July 31, 2009 |
|
|
