July 2012
Hello ! (again)





We want to extend a warm welcome to all current and new clients and subscribers to Worldsource Fianancial - Peter Bailey Investment Group.  We are privileged to be of service to all of you.


The social network has been a great vehicle to use to communicate with many of you.  We want to use this month's newsletter to let you know that as a client, you are able to have online access to view your portfolio!  If you are interested, please feel free to send us an email or give us a call within regular business hours. Don't forget to check out our Facebook page and remember that we endeavor to provide such a high level of service that you are proud to refer your family, friends and colleagues.


Have a great day!




Peter, Richard, Claudio and Joanna

10 things to know about estate planning

By Paul Russel, Moneyville.ca June 2012


Many Canadians haven't taken the most basic estate planning step which is writing a will. They should.


Without a will, your estate doesn't automatically go to your spouse and children, but ends up being distributed according to the rules of your province. In addition, without proper planning, almost half the value of your assets could disappear to cover capital gains taxes and probate fees.


Here are 10 steps that can help ensure your final wishes are carried out simply and smoothly.


1. List your assets

The first thing is to figure out what you have. So prepare an inventory of your assets. A net worth calculator can help you through the process. The list should include your home, vacation properties and investments such as RRSPs or RRIFs. It should also include bank accounts, pensions, personal property like cars, boats or jewelry and the value of any insurance policies.


You should also list any debts that relate to these assets - such as loans or mortgages - and record the account numbers and institutions where the debts are held.


2. Who gets your stuff?

Once you have a picture of what you have, you can figure out how to distribute it. In addition to family members, you may also wish to recognize other people and charitable causes as part of your legacy. In the case of charitable donations, a professional adviser can help you structure these to maximize their value for the recipient and for your estate.


3. Talk it over

Discussing estate planning issues can be challenging, but it is an important step. Disagreements or disputes after you're gone can be costly - both in terms of money and family harmony.


By letting family members know your estate plans and the reasons behind your wishes you reduce the chances of disputes after you're gone. Meet with them now and discuss your plans. It can save a lot of heartache later.


4. Consider tax implications

Many people overlook their estate's tax burden. At the time of your death, you're deemed to dispose of all capital property, and your estate must cover the tax on any capital gains.


In addition, your tax-sheltered assets held in registered plans (such as RRSPs and RRIFs) lose their tax-sheltered status upon death and become fully taxable (if you're transferring assets to a spouse, these can be transferred free of tax, but your spouse will eventually pay tax on these upon their death).


There can be other expenses as well. Probate fees - which your estate must pay to the government to confirm the validity of your will - can amount to thousands of dollars depending on the province you live in. There can also be funeral costs and other administrative expenses in settling your estate.


5. Decide how to distribute your assets

Once you've weighed the personal and tax implications of passing on each of your assets, you'll need to determine how you will distribute them.


Different distribution methods are designed to accomplish different estate planning goals - and there are a number of methods that you may consider as part of a distribution strategy. These can include gifts that you make during your lifetime, transferring some assets so that you have joint ownership with your intended recipient, designation a beneficiary directly on your registered plan investments and insurance policies, or using trusts that you establish either before or after your death.


6. Choose an executor

Choosing an executor is one of the most important estate-planning decisions. Your executor will be responsible for carrying out all the instructions in your will.


While the responsibility is significant, most estates can be settled by a layperson with the help of a lawyer. A checklist of what you have to do helps. It may also be a good idea to appoint co-executors so that the responsibilities can be shared. Appointing someone younger than yourself (such as an adult child) also makes sense as appointing someone your own age increases the chance of your executor predeceasing you, or being too infirm to act on your behalf.


If your estate is particularly complex or you think disputes are likely to arise, consider appointing a professional executor to either help your named executor or fully administer your estate. These services are available through most trust companies.


7. Make a will

Once you've determined your method of distribution and your executor, much of what you decide will be documented in your will.


Your will is the cornerstone of your wealth transfer plan. It formally outlines your wishes regarding the distribution of your estate and names the executor in charge of settling your estate and carrying out your wishes as stated in your Will.


Once you and your legal adviser have drafted your will, it's crucial to review it every two to three years, or whenever your circumstances change significantly - when you marry or divorce, welcome a new child, move to another province, or acquire a significant amount of wealth through business or inheritance.


8. Plan for incapacity - power of attorney 

Part of the will creation process - and an essential step in any sound estate plan - is the establishment of Powers of Attorney.


A Power of Attorney is a legal document that appoints a person (or people) to manage your property or personal care in the event you become unable to.

There are two distinct types of Power of Attorney: One relates to the management of your property, assets and investments. The other appoints a person to make personal care and health care decisions on your behalf. Powers of Attorney will generally take effect if you ever become incapacitated, but specific triggering events may be outlined in each document.


9. Consider a living will

You may also consider drafting a living will, essentially a set of instructions that may instruct doctors and other caregivers as to the kind of personal or medical care you may want, or do not want, should you ever become incapable of making those decisions for yourself. In some provinces, these wishes form part of the Power of Attorney for Health Care, but in most cases, the living will is a separate document.


10. Create a master document

Once your plan is set, it's important to tell your family so they can carry out your wishes. A master document is a convenient solution. This document will contain:

* Account information for investment and bank accounts, credit cards, and all other accounts you may have

* Insurance, pension and other benefits you may receive upon death

* An inventory of your assets and liabilities

* Your will, powers of attorney, and living will

* Any instructions or documentation relating to a business you have an ownership interest in.


Give copies to your executor, your spouse, your children and other key family members whom you want to inform about your wishes.

A Tale of Two Quarters

By The Perspective Summer 2012


The opening lines of Dickens' classic A Tale of Two Cities, aptly describes the first half of 2012 just as well as it does the struggle of French peasants before and during the French Revolution. 


"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us."  


In retrospect, the first quarter of 2012 was certainly the best of times as equity markets around the world rose sharply with very little volatility and good cheer seemingly carried over from the end of year holidays. In the U.S., the beleaguered housing market showed signs of a rebound and job growth continued to increase which in turn boosted consumer confidence. In Europe, the debt crisis was put on the back burner and investors instead focused on news that the European Central Bank had injected funds into the region's banks, fueling expectations of an economic turnaround in the region.


While investors focused on the good news, sovereign debt and political unrest continued as policymakers appeared reticent to admit the severity of the crisis and appeared reluctant to implement the necessary actions required to solve it. Meanwhile, in Asia, concerns mounted over a slowdown in economic growth in China, which sent commodity prices tumbling, and dampened the first quarter gains of the S&P/TSX Composite Index.


Just as quickly as the good times had begun, they ended as the second quarter began with volatility in equity markets, reminiscent of 2008. Investors once again focused their attention on the smoldering issues embedded in the European financial and political landscape.


In Greece, elections failed to produce a winner and investors were sent back to the polls again when coalition talks fell apart leaving the country with no government. Meanwhile, concerns continued to mount that anti austerity parties would wrest control of the nation's government and would as a result, decide to default on its debt obligations and leave the Euro zone.


In France, Nicolas Sarkozy lost the country's election to socialist Francois Hollande, who as Europe's chief critic of one-size-fits-all austerity measures caused many to worry about France's commitment of support going forward. Meanwhile in Spain, banks received bailout funding from the government, but did little to offset the concerns many still have over the stability of its banking system. As a result, by the end of the first half, Europe was firmly in the grips of a recession, China's economy continued to slow and investors watched political headlines with the hope that a resolution would emerge.


While a permanent resolution has yet to emerge, central banks continue to implement simulative policies as countries such as China, Brazil, India, Australia, Norway and Denmark have all recently cut interest rates in an effort to move their economies forward. In the case of China, this cut marked the first such move in four years. On this front, the European Central Bank has also expanded its collateral rules to give lenders greater scope to secure funding while the U.S. Federal Reserve has committed to maintaining low interest rates until at least 2014 and while shying away from a third round of quantitative easing, they have opted to implement a close facsimile of it by extending Operation Twist for another six months, through to the end of 2012.


"All these things, and a thousand like them, came to pass in and close upon the dear old year."

Fine-tune your Food Attitude!

 by Miranda Malisani, Nutrionist at Pusateri's Fine Foods - June 2012


Perception and attitude are paramount when it comes to making nutritional changes to lose weight.  Maintaining an open mind and willingness to rid yourself of old habits is important in the process of change.  Everyone has a certain food attitude that can help or hinder his or her weight loss efforts.  You are physically, emotionally, and mentally different than every other person.  You are biochemically unique. You have developed certain food comforts, food phobias, likes and dislikes. We all do. It often starts from 0-5, the formative years, so you may have little recollection of this programming. This is what I call your food-attitude.


If weight loss has been a struggle, I want you to challenge yourself to change your food attitude. Re-shaping your beliefs can create a sustainable lifestyle change.


Here are 5 tips to begin changing your Food Attitude today:


1. Food is fuel. Start thinking about what you need to eat in your day to fuel up your body so it can do what it needs to do. Stop eating just for taste. Challenge yourself daily to eat for health 80% of the time and taste 20% of the time. This is called the 80/20 rule.


2. Food is NOT a burden in your busy day. Demands are great these days. You have a full schedule and realize that you haven't eaten for hours. Stop that. You have to accept that you will have to eat the rest of your life for health if you want to be healthy and fit. If you don't slot eating in your busy schedule, you will end up with some angry and imbalanced organs.


3. Really, you haven't liked (enter a food you dislike) since you were a kid? 90% of my clients tell me that they haven't liked certain foods since he or she was a child. I always ask, 'have you tried it since you were a child?" Stop limiting yourself with food. Try something new every week. While at Pusateri's [or your local grocery store] go down a new aisle or pick up a new product. Your taste buds are forever changing so if you keep no trying new items you will have a brand new appreciation for a variety of foods.


4. Your gut instinct. When you were a child, you knew when you were hungry, and when you were full. I see this so clearly in my toddler. The body has an amazing ability to instinctively know what it needs. Most diet programs do not teach how to hone in on this. We lose this awareness as we grow older and we are filled with negative self-talk that often contributes to emotional eating. Start feeding yourself with positive thoughts today.


5. Weight-Loss is effortless. I bet you've never said that before! You are probably thinking this girl is nuts! But maybe you are so used to thinking it's difficult, and that you will always be overweight because you've always been overweight that your food-attitude sticks in that negative place. You might also feel the weight is protecting you from something deeper that you haven't been able to address. Maybe ask yourself if you are holding on to something emotional that is making you hold on to the weight?


Losing weight and maintaining a healthy weight requres a daily practice. When you shift your food attitude, the weight will come effortlessly and stay off.


Issue: 19
Financial Markets
In This Issue
10 things to know about estate planning
A Tale of Two Quarters
Fine-tune your Food Attitude!
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Peter Bailey
Worldsource Financial Management
272 Lawrence Avenue West, Suite 203
Toronto, Ontario M5M 4M1