Is all publicity good?

I was featured in Acclaim, a magazine published by a great networking group - CAWEE (a women's networking group) .  Check them both out The article is titled - What do K
etchup Viscosity and Insurance Have in Common?  The Answer is Heather Freed

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4 key retirement planning decisions

I was quoted in this article which appeared in both the Toronto Star and The Waterloo Record.

4 key retirement planning decisions: Roseman

Whether you retire early or late, you will make some big financial decisions. So, plan ahead and think things through.

Whether you retire early or late, you will make some big financial decisions. So, plan ahead and think things through.

By: Ellen Roseman On Your Side, Published on Mon Apr 07 2014

             

Whether you retire early or late, you will make some big financial decisions. Your goal is to turn your government benefits, pensions and savings into a lifetime income.

Let’s go through the decisions one by one.
 

When will you apply for Canada Pension Plan?

You can take CPP retirement benefits starting at age 60 and get a reduced amount. You can take benefits at 65 and get a full amount. Or you can defer benefits after 65 (until 70) and get an enhanced amount.

Service Canada has helpful questions to ask in deciding when to take your CPP retirement benefits.

How will your age affect your monthly payment?

Do you plan on working while receiving your pension?

How long did you make CPP contributions? How much did you put in?

What kind of lifestyle do you want when you retire?

How much do you get? You can find the amounts paid at age 65 at Service Canada’s website: The average payment is $633 a month, while the maximum payment is $1,038.

Related: 4 reasons to take CPP early
 

When will you apply for Old Age Security?

You must be 65 to qualify for an OAS pension. Starting in April 2023, the age of eligibility will increase gradually to age 67. This change will affect people born in 1958 or later.

You have the option of deferring your OAS pension for up to 60 months after the date you become eligible in order to get a higher amount.

You may want to defer OAS if your income is high enough to put you into clawback territory. The government calls it pension recovery tax.

You will have to repay part of your OAS if your income exceeds $71,592 in 2014. You will repay the whole thing if your income is $115,716. (This applies to individual income, not household income.)

How much do you get? The maximum monthly amount for OAS recipients is $551.54 in the current quarter.

You can also get a guaranteed income supplement if your income is low. The threshold is $16,728 including full OAS pension for individuals and $22,080 for couples who are both receiving full OAS pension.
 

When will you convert your RRSPs into income?

Everything you hold in registered retirement savings plans must be cashed in or converted to income by Dec. 31 of the year you turn 71.

You can convert RRSPs to a registered retirement income fund (RRIF) or a life annuity any time. You don’t have to wait until 71.

Once you open your RRIF, you will have to make a minimum withdrawal that grows each year and pay full tax on the withdrawal.

You may want to convert your RRSPs earlier than the deadline and transfer any money not required for daily spending into a tax-free savings account or non-registered investment account.

This strategy can help you get more control of your taxes and avoid being pushed into a higher tax bracket. For retirees, it’s the after-tax income you have to consider, not the pre-tax income.
 

Will you replace your employee benefits?

You may have benefits that are paid for or subsidized by your employer. These include dental, optical, pharmaceutical and chiropractic benefits.

These benefits may be cut back when you retire – or when you turn 65, even if you are still working. Should you get coverage on your own? How much would you pay?

Heather Freed, a certified financial planner, helps guide people through the transition from group benefits to individual insurance.

The cost to replace health and dental benefits for a family is $250 to $350 a month, she says. The cost for a single person is $125 to $175 a month. These are average costs and exclude life insurance and disability benefits.

Before making a decision, there are two important things to know, says Freed. What is the value of your employee benefits? What coverage do you have and how many claims do you make?

If you’re a frequent user of employee benefits, find out if you can convert them to individual policies. The conversion deadline may be tight. So, pay attention and don’t delay.

These decisions can be challenging. Consider their implications carefully and find competent advisers to help you on your journey.

Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca or www.ellenroseman.com

It's 2013 Tax Time :-(

Canadians had to pay over $1 billion in additional taxes in fiscal 2012 alone, mostly because what they reported on their tax returns didn't match the dollar amounts provided by employers, financial institutions and other sources, according to CRA. As well, the tax agency rejected almost one in every five tax credit and deduction claims that year.

 

In addition to collecting additional taxes, the CRA will charge interest, currently at a rate of 5% on any overdue tax amounts, Golombek points out. You fail to file a return by the deadline or under-report income repeatedly you may also have to pay a penalty.

 

Golombek has some tips to avoid costly errors:

• Double-check that you've included all income from all sources;
• Compare information on tax slips to investment statements or other supporting documents to ensure accuracy;
• If you're missing information, do your best to get it; estimate amounts when information doesn't arrive in time to file;
• Report all RRSP contributions, even if you're going to claim the deduction in a later year;
• Determine if you are eligible for a deduction or credit before you claim it;
• Make sure your current address is on file with employers, financial institutions and the CRA so that you receive all tax slips and correspondence;
• Be punctual - file your return by the deadline, which is April 30, 2014 for most taxpayers, and respond to any direct CRA correspondence within the required timeframe.

More about Heather Freed

The following article appeared in the "Off Bay Street News" in the January 2014 issue of The Insurance and Investment Journal.

web sites of general interest

I am so tired of winter (and I assume that you are too), so I   thought I would do something different in this month's e-newsletter.

While browsing the web, I came across a few interesting sites.

The first one is 33 Amazing Ideas that will Make your House Awesome.  While none are particularly practical, I really like #5 - Beach sand under your work desk; #6 - spiral staircase slide; #14 - a wall that plays music when it rains; and if you live in a condo or apartment building, #33 - balcony pool.  Perhaps you prefer the pirate ship bedroom or the hammock over the stairs.  There's something in these pictures for everyone (even your cat). 

If Chris Hatfield turned you onto space, you can check out the photographs taken from space by Guy Laliberté, the founder of Cirque du Soleil. I saw some of these photos at the Thompson Landry Gallery in the Distillery District. They are works of art and some you need to stare at for a while before you can translate them to the map that you're used to seeing.  

Finally, for those of you who have a Bucket List and are curious what other people have put on their list, here are some popular ones. They range from drawing faces on all the eggs in your fridge; to go bungee jumping; to eat kangaroo meat (I think kangaroos are too cute); to put a piece of gum on the Market Theatre Gum Wall in Seattle (that I didn't know existed); to throw a dart at a map and travel to where it lands.

If nothing else, these web sites will make you forget that it's January in Toronto for a few minutes and put a smile on your face.

Tax Tips for 2013

Each year I send out a reminder about items that you need to review prior to December 31st to ensure that you minimize the tax owing to CRA.  This year's list includes the following items

1. Non-eligible Dividends -  Starting in 2014, the federal government will be changing the personal tax calculation for non-eligible dividends. As a result of changes to the gross-up rate and DTC rate on non-eligible dividends, the marginal tax rates on these dividends will be going up in 2014.  The top combined federal/provincial marginal tax rates for non-eligible dividends are expected to increase 3.6 percentage points for Ontario residents in 2014.

 

2. Canada Pension Plan (CPP) Retirement Benefits  - If you are between ages 60 and 64 in 2013 and are considering taking CPP pension benefits prior to age 65, you may wish to apply by December 31, 2013. If you start CPP benefits in 2013, your pension will be reduced by a “downward monthly adjustment factor” of 0.54% for each month before age 65 that you began receiving it. Starting in 2014, however, the downward monthly adjustment factor will increase to 0.56% (and will gradually continue increasing to 0.6% by 2016), thus decreasing your CPP pension.

 

3. Charitable donations  - This year saw the introduction of the new Federal First-Time Donor’s Super Credit (FDSC), which was announced in the March federal budget. You can claim this credit if neither you nor your spouse or common-law partner has claimed the charitable donations tax credit in any of the five preceding tax years, from 2008 to 2012. The FDSC, which can be claimed once from the 2013 to 2017 taxation years, provides an additional 25% tax credit on total monetary donations up to $1,000 that are made after March 20, 2013. When added to the regular federal charitable donations tax credit, tax savings would be 40% for total monetary donations up to $200, and 54% for total monetary donations between $200 and $1,000.  December 31 is the last day to make a donation and get a tax receipt for 2013.

 

 

4. Tax Free Savings Plan (TFSA) – Planning to take money from your TFSA soon?  Withdraw the amount before year-end, so you’re able to re-contribute as soon as Jan. 2, 2014.  At that time, you’ll have $5500 of new TFSA contribution room, plus whatever amount you withdrew.  On the other hand, if you wait until January 2014 to withdraw, you’ll have to wait until 2015

 

5. Tax-Loss Selling  - Tax-loss selling involves selling investments with accrued losses at year end to offset capital gains realized elsewhere in your portfolio. Any capital losses that cannot be used currently may either be carried back three years or carried forward indefinitely to offset capital gains in other years. Note that if you purchased securities in a foreign currency, the gain or loss may be larger or smaller than you anticipated once you take the foreign exchange component into account. In order for your loss to be immediately available for 2013 (or one of the prior three years), the settlement must take place in 2013, which means the trade date must be no later than December 24, 2013.

 

6. RRSP Contributions  -Although you have until March 3, 2014 to make RRSP contributions for the 2013 tax year, contributions made as early as possible will maximize tax-deferred growth. If you have maximized RRSP contributions in previous years, your 2013 RRSP contribution room is limited to 18% of income earned in 2012, with a maximum contribution of $23,820, less any pension adjustment.

7. Registered Disability Savings Plans (RDSPs)  - RDSPs are tax-deferred savings plans open to Canadian residents eligible for the Disability Tax Credit, their parents and other eligible contributors.  Up to $200,000 can be contributed to the plan until the beneficiary turns 59, with no annual contribution limits. While contributions are not tax deductible, all earnings and growth accrue on a tax-deferred basis. Federal government assistance in the form of matching Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) may be deposited directly into the plan up until the year the beneficiary turns 49. The government will contribute up to a maximum of $3,500 CDSG and $1,000 CDSB per year of eligibility, depending on the net income of the beneficiary’s family. Note:  since unused CDSG and CDSB room can be carried forward for up to ten years.

8. Fees: Remember to pay all investment management fees, tuition fees, safe deposit box fees, accounting and legal fees if deductible, childcare expenses, alimony, medical expenses and any business expenses by December 31 if your intent is to deduct them on your 2013 tax return.

 

 

Tax strategies should be reviewed by a qualified tax specialist and, where appropriate, your investment adviser, to ensure all appropriate regulations, laws and individual personal considerations are taken into count.

TIFF - Toronto International Film Fetival

Every fall I TIFF
 

I see between 20 and 25 movies most years beginning the Friday after Labour Day and ending a week later on the Sunday. (TIFF starts Thursday evening, but I only start on the Friday.) As the excitement builds in Toronto in the weeks leading up to it, people start asking me about what’s involved. So I thought I’d put it down for all of you.
 

I often get asked “How do you get tickets for TIFF?” There are 3 answers:
 

1.  The simple way - After Labour Day – you can go down to the TIFF box office or go online to www.tiff.netand purchase single tickets. You can also try the TIFF box office at the movie theatre the day of a movie.

2.  TIFF chooses way – The beginning of July, you choose from a number of film packages that TIFF puts together and purchase the voucher. Around Labour Day, you find out what movies you will see.

3.  What I do – The beginning of July, I decide how many movies I want to see and I purchase movie “vouchers”. The middle of August, I go online or buy the Program Book and see what movies I would like to see. I then match that list up with the movie schedule and select first and second choices for the different time slots I am available. Towards the end of August, I get my “selection time slot”, I go online and pick my movies. On Labour Day, I go down to the TIFF box office to pick up my tickets. The movies start the Thursday evening after Labour Day, run all week and end the Sunday 11 days (or so) later. During that time, I normally see around 20 movies – mostly documentaries and foreign films (that are unlikely to play in Toronto).

I normally see 2 or 3 films in a day. (I tried to see 4 in a day one year – but found it too much!) Some of the movies I see by myself, while I go to others with friends. I have a bag with me that includes snacks, a book (just in case, but this year I read my Kobo for maybe 30 minutes during the week), water, an extra sweater or jacket and some days an umbrella.

The best part of TIFF – especially the first half of the festival, is that the director and / or actors are normally available after the movie for a Q & A and you learn about the background of the movies. By the second or third day, while standing in line waiting to get into the movie theatres, you hear complete strangers start up conversations with other people in the line “What have you seen so far that was good?”

This year I saw 19 movies - 2 were Hollywood ones. Some were better than others, but I lucked out this year and didn’t see any “5 beer” movies (the number of beers you need to drink to sit through the movie) and I did see a couple of “Ice Cream Sundae” movies (at the opposite end of the spectrum from the “5 beers”).

TIFF 2013 – My Movies

 

This year, I saw nineteen movies over 7 days. There are two tricks to the selection process. Interpreting the TIFF film critics write up and fitting the movies that sound good into your schedule. Most movies play 2 or 3 different times in different theatres, so you’re constantly reprioritizing. The list of movies that I saw included:

Amazonia – a little unbelievable, but great 3D shots of the wildlife in the Amazon. Can you imagine a domesticated monkey surviving 5 minutes in the wild? This monkey joins a troop of wild capuchins. It is a France / Brazil co-production

Born and raised in captivity, a capuchin monkey suddenly finds himself fighting for survival in the wilds of the Amazon jungle in this remarkable live-action adventure, shot on location in breathtaking 3D.

A Place in Heaven – the main character in the Israeli film is a secular soldier. The film follows his life and personal relations over 40 years.

The fateful contract between a secular Israeli army officer and a devout young Holocaust survivor has profound and unexpected consequences, in this sprawling, decades-spanning epic from director Yossi Madmony (Restoration).

Attila Marcel – a great feel good French movie. A lot of the script reminded me of Sylvain Chomets animated films – especially The Triplets of Bellville. A great performance by Paul, the main character, played by Guillamame Gouix, who has only one word of dialogue (at the end of the movie).

Director Sylvain Chomet (The Triplets of Belleville, The Illusionist) invokes memories of Buster Keaton and Jacques Tati in his first live-action film, about a mute, sweet-natured man-child whose reawakened childhood memories unleash marvellous musical fantasies.

Bethlehem – This Israeli movie, includes a young man (Sanfur), a Palestinian, who is being groomed by the Israeli Secret Police (Shin Bet) officer, Razi. The script was co-written by an Israeli and a Muslim and portrays both sides of this “war”.

Recruited as an informant by the Israeli secret service Shin Bet, a young Palestinian man finds himself caught between two very different kinds of loyalty when he discovers that his employers are plotting to assassinate his radical brother. First-time feature director Yuval Adler spent years interviewing Shin Bet officers and Palestinian militants to create this complex, intelligent, and timely tragedy.

Border – This Italian movie is about two Orthodox Muslim Syrian sisters who try to escape from Syria and the series of twists and turns in the plot. Between you and I – many of the scenes are really far-fetched.

When two sisters learn that a member of their family has decided to desert the Syrian Army and join the Free Army, they must embark on a hazardous journey to Turkey, in this powerful account of contemporary Syria from filmmaker Alessio Cremonini.

Enough Said – this movie came out in general release in September 2013. The comedic timing was fantastic, but you can wait and watch this Hollywood movie on NetFlicks

This smart and decidedly modern romantic comedy from indie stalwart Nicole Holofcener follows the misadventures of a divorcée who finds herself making a new friend — and dating that new friend’s ex-husband at the same time. Enough Said stars Julia Louis-Dreyfus, Catherine Keener and the late James Gandolfini in one of his final screen roles.

Friends from France –This is a French / German / Canada / Russian co-production about 2 French University age kids who go on a tour to Russia (and sneak away to visit with Refusniks). Their innocence disappears over the 2 week tour. Apparently, they managed to recreate the mood and times very well as per the Q & A following the movie.

Set in Odessa in 1979, this uniquely emotional political thriller recreates meticulously the deep-freeze of the Soviet Union at the crest of the Cold War while following a pair of French cousins in their clandestine effort to reach out to the so-called refuseniks — Jews repressed by the Brezhnev regime.

Giraffada – This Italian / German / French /Palestinian) co-production told the story from the perspective of a 10 year old Palestinian boy. Ahmad Bayatra was great in the role of Ziad. This would be a feel good movie if he didn’t think all Israelis were either trigger happy, or womanizers. My nephew says everything is better if there’s a penguin in it. In this case, it’s a giraffe (or two). In this wild and heartfelt adventure epic, a 10-year-old Palestinian boy from the West Bank must travel to Tel Aviv to secure a companion for a distraught giraffe after an air strike kills its mate. Gravity – in general release October 2013. This Hollywood movie kept me at the edge of my seat – go see it in 3D. 3D IMAX if you dare. George Clooney and Sandra Bullock star in this highly anticipated 3D space thriller from acclaimed director Alfonso Cuarón (Children of Men, Y Tu Mamá También). Half of a Yellow Sun – this was my favourite film this year. It was co-produced by the UK and Nigeria. It was based on the book by Chinananda Ncozi Adiche. Great plot, character development and it is based on true events. This movie could be transported to any of the various conflicts and genocides going on today. Chiwetel Ejiofor (12 Years A Slave, Children of Men) and Thandie Newton (Crash, The Pursuit of Happyness) star in this epic chronicle of family ties and war from celebrated Nigerian playwright Biyi Bandele Hi Ho Mistahey! – This Canadian documentary is scheduled to play at TIFF and will probably play as a documentary on CBC Newsworld. It is a documentary about the sad state of affairs in the First Nation communities in Ontario. Legendary documentary filmmaker and activist Alanis Obomsawin chronicles the Attawapiskat First Nations campaign to draw global attention to the Canadian government's shocking neglect of Aboriginal youth education. Manuscripts Don’t Burn –This Iranian movie focuses on the writers remaining in Iran and the censorship and conditions that they live under. There are no credits in this film – due to Iranian censorship laws and none of the actors are still in Iran. The director, Mohammed Rasoulof has spent time in Iranian prisons. Director Mohammad Rasoulof’s latest tackles head-on the machinations of censorship in Iran, detailing the true story of a failed 1995 assassination plot by the Iranian regime against twenty-one writers and journalists. Midway – the photography of the Albatros documenting their life cycle on the Pacific Island of Midway are magnificent. The voice over needs some work. This is a USA production. In bringing the ambitious project Midway to the big screen, the visual artist and first time director Chris Jordan worked with highly skilled collaborators. Producer Stephanie Levy, editor and story by scribe Sabine Emiliani (March of the Penguins), composer and Oscar nominated sound designer Erik Aadahl (Argo, Tree of Life), and Oscar award winning sound designer Ethan Van der Ryn (Lord of the Rings, Argo) discussed the making of this unique film. Omar – This is a Palestinian production that takes place on both sides of the wall in the West Bank. There is love, betrayal, intrigue and murder. Academy Award-nominated Palestinian director Hany Abu Assad (Paradise Now) won the Un Certain Regard Jury Prize at this year’s Cannes Film Festival for this noir-ish psychological thriller set in the occupied West Bank. Palestine Stereo – Palestine/ Tunisia / France / Norway / UAE/ Italy / Switzerland were all involved in this movie. I picked it because the write up had a Canadian connection – but it was a far stretch. What happens in the end is left up in the air, but my impression is that these two moderate brothers became activists for the Palestinian cause. Palestinian director Rashid Mashawari follows his widely acclaimed dark comedy Laila’s Birthday with this compelling and ironic drama about two brothers on the West Bank who, rendered homeless by an Israeli air strike, hustle odd jobs to raise enough money to emigrate to Canada. Real – This Japanese Sci-Fi movie had lots of twists and turns. Most of the movie occurred in the “minds” of the two main characters. Master filmmaker Kiyoshi Kurosawa (Cure, Tokyo Sonata) returns with this story of a man who uses an advanced neurological technology to enter the frightening mindscape of his comatose lover. The Summer of Flying Fish – the film I liked the least this year, a co-production of Chile and France. It was a coming of age film, but it dragged and the character development was not great In this subtle and atmospheric allegory by first-time feature director Marcela Said, a teenaged girl holidaying at a lake house in southern Chile experiences a bittersweet coming of age as she faces disillusionment in love and confronts the incoherency and intolerance of her affluent family’s political views. Trap Street - This film from China deals with love versus National Security and is a reminder that China is not a free country.Big brother is theoretically always watching. The most incongruious scene was when they sang the folk song, Donna Donna A poignant and engaging thriller, Vivian Qu’s feature debut plunges us into the fascinating world of state surveillance in China as it follows a digital mapping surveyor’s investigation of an "off-the-grid" hidden alley. The Wonders – This Israeli film has a light hearted side with cartoons coming to life, but it also explores the seedy side of Jerusalem and the world of “religious men” being used as “faith healers” to get money from the downtrodden.One of the main characters, Ariel, lives in the here and now, something we all should aspire to. Lewis Carroll meets Carol Reed in this dizzyingly funny and fantastical farce from Israeli director Avi Nesher, about a good-natured slacker who becomes embroiled in a labyrinthine conspiracy in the weird criminal-religious underbelly of Jerusalem.