Tax Planning Newsletter FALL 2015 - Gordon Stirrett Wealth...

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TABLE OF CONTENTS FALL 2015 Newsletter Feature Story .............................. 2 The global economy is increasingly connected. We review some recent financial newsmakers. Retirement Planning ................ 4 Today’s vibrant seniors raise questions about the concept of full retirement. Financial Planning ..................... 6 Take a sneak peek at our new financial planning book, Your Money. Your Future. Tax Planning ........................... 8 Taxes can take a big bite out of your money. See how we fare against other Canadians. Debt Management ................... 10 Household debt levels continue to concern. We provide some practical advice to maintain a balance. The Markets ........................... 12 An overview of the Canadian and global markets. Estate Planning ..................... 14 Tax planning is a big part of preparing your estate. We review the basics. Insurance Planning................. 16 Health issues can make life insurance tough to obtain. We look at one option. In the Community ................ 18 Two powerful initiatives provide opportunities for Nova Scotia’s youth. With autumn upon us, it’s common to reminisce about the fresh start of the new school year. In fact, many consider the fall as their unofficial ‘new year’ and a time to tackle new projects or get back on track with their goals. So it’s as good a time as any to check in on your financial plan. One tool that may help is our new book, Your Money. Your Future. We wrote it to address the many questions we hear from Nova Scotians. It’s a quick, clear read that covers a wide range of topics including the personal values that influence financial decisions, the risks and challenges that can hijack your plans, and practical strategies to keep you on track. You can learn more about it on page 6. Other topics in this edition include an overview of the global economic factors affecting markets and investors around the world. Closer to home, we look at Canadian household debt levels, and review some basic principles for managing a healthy debt balance. We also review current tax rates, comparing Nova Scotians’ after-tax income to those in other parts of the country. Also, many Canadians continue to work in some capacity after the age of 65. We look at the financial and personal benefits of this growing trend. And finally, we provide updates on two community initiatives. I Am Potential and SHINE Academics are creating incredible opportunities for young people in two very different ways. If you have questions about anything in this newsletter, or want to discuss your financial plan, please contact us. We are always happy to hear from you.

Transcript of Tax Planning Newsletter FALL 2015 - Gordon Stirrett Wealth...

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Tax Planning

TABLE OF CONTENTS

FALL 2015Newsletter

Feature Story .............................. 2The global economy is increasingly connected. We review some recent financial newsmakers.

Retirement Planning ................ 4Today’s vibrant seniors raise questions about the concept of full retirement.

Financial Planning ..................... 6Take a sneak peek at our new financial planning book, Your Money. Your Future.

Tax Planning ........................... 8Taxes can take a big bite out of your money. See how we fare against other Canadians.

Debt Management ................... 10Household debt levels continue to concern. We provide some practical advice to maintain a balance.

The Markets ........................... 12An overview of the Canadian and global markets.

Estate Planning ..................... 14Tax planning is a big part of preparing your estate. We review the basics. Insurance Planning................. 16Health issues can make life insurance tough to obtain. We look at one option.

In the Community ................ 18Two powerful initiatives provide opportunities for Nova Scotia’s youth.

With autumn upon us, it’s common to reminisce about the fresh

start of the new school year. In fact, many consider the fall as their

unofficial ‘new year’ and a time to tackle new projects or get back

on track with their goals. So it’s as good a time as any to check in

on your financial plan.

One tool that may help is our new book, Your Money. Your Future. We

wrote it to address the many questions we hear from Nova Scotians.

It’s a quick, clear read that covers a wide range of topics including

the personal values that influence financial decisions, the risks and

challenges that can hijack your plans, and practical strategies to

keep you on track. You can learn more about it on page 6.

Other topics in this edition include an overview of the global economic

factors affecting markets and investors around the world.

Closer to home, we look at Canadian household debt levels, and

review some basic principles for managing a healthy debt balance.

We also review current tax rates, comparing Nova Scotians’ after-tax

income to those in other parts of the country.

Also, many Canadians continue to work in some capacity after

the age of 65. We look at the financial and personal benefits of this

growing trend.

And finally, we provide updates on two community initiatives. I Am

Potential and SHINE Academics are creating incredible opportunities

for young people in two very different ways.

If you have questions about anything in this newsletter, or want

to discuss your financial plan, please contact us. We are always happy

to hear from you.

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2 Gordon Stirrett Wealth Management Newsletter

Feature Story

USAThe US continues to plod ahead with low, but positive economic growth. There was some

speculation that the Federal Reserve Bank could potentially raise interest rates in the

fall to offset inflation, but the persistence of low commodity prices, coupled with the China

currency devaluation create uncertain conditions. Under these circumstances, many

analysts suggest a rate change is not as likely as it was.

CanadaWith the low price of oil, Canada’s growth has levelled

off, and several of the key commodity-producing provinces

are at risk of a downturn, which has led to intermittent

speculation of a recession. (Canada has seen five

consecutive months of economic decline, just shy of the

two-quarter decline, which is the standard definition of

a recession.) The devaluation of the Chinese currency adds

to this challenge as it is a large source of exports for

Canadian commodities. The federal bank rate was cut twice

in the last six months to keep people buying and the

economy moving.

Global Economic Highlights The global economy has seen some interesting twists and turns in the last few months, including the challenging situation in Greece, new optimism in the USA and dismal oil prices in Canada.

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Gordon Stirrett Wealth Management Newsletter 3

Feature Story

ChinaChina surprised most global economists in August when

it devalued its currency by roughly three per cent in an effort to

stimulate exports. As the second largest economy in the

world, and a key source of business for many major companies,

such a surprise move created uncertainty in the markets. And

while many contend that the US, the world’s largest economy,

will be largely unaffected, the true impact of this change remains

to be seen.

EUIn Europe, the big newsmaker has been Greece. Its continued economic woes led to a tumultuous summer,

including a CDN $125.1-billion bailout package that comes with a set of severe economic

restrictions from its lenders. As the government to date has been unsuccessful in administering austerity

measures, many are not holding hope that Greece can meet these new demands. Despite all that, the

country saw a 0.8 per cent increase in its economic growth in the second quarter.

Meanwhile, Germany, France and Italy, the three largest members of the eurozone, saw nominal rates of

decline and growth, maintaining relative stability despite the Greek crisis.

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4 Gordon Stirrett Wealth Management Newsletter

Retirement Planning

Finding The Work-Life Balance In Retirement Semi-retirement has become quite a popular concept. Is it right for you?

Most of us have grown up with the idea of working until

we reach the age of 65, and then sailing off into the sunset

of a work-free retirement.

But now, for both financial and social reasons, more than

half of Canadians expect to work in some capacity after

the age of 65.

While many may consider this a defeat—as if we’re

somehow giving up our chance to reap the rewards

of a lifetime of work—others see it as a logical and

meaningful reaction to our longer, healthier life spans.

65 IS THE NEW 50

Better health is a key aspect of this discussion. Many in

their 60s are as vital physically and mentally as they

were in their younger days. They take care of themselves

and maintain healthy lifestyles. While some chronic

illnesses are more common as we age, advances in health

care can make these ailments far less debilitating

than they used to be. This makes many jobs that don’t

require excessive physical exertion much more sustainable

as we age.

PADDING THE NEST EGG

Let’s address the obvious financial implications of

working during retirement. Even a small amount of income

can reduce the need to dip into retirement savings,

essentially prolonging the longevity of your funds. A small

source of income can also delay the date you need to

start government or pension benefits, which can mean an

increase in your monthly benefits when you start

collecting later.*

USE IT OR LOSE IT

Many studies endorse the idea that work provides

extensive psychological and cognitive benefits as well as

financial ones.

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Gordon Stirrett Wealth Management Newsletter 5

Retirement Planning

Those who continue to stay engaged in work in

some capacity—including volunteer roles—show

reduced hypertension, lower levels of depression

and higher levels of life satisfaction than those

who don’t work.

Experts say this can be due to many factors,

including the continuity of meaningful social

engagement, which recent studies also correlate

with reduced impacts of dementia.

THE POST-RUSH CRUSH

Working in retirement may also offset what is

known as the "Rush/Crush" scenario where

retirees bask in the glow of their new-found freedom

from work and responsibility for the first couple

of years, but then sink into a slump of boredom

and depression.

There are several potential reasons for this,

including ‘running out’ of interesting or meaningful

things to do, and losing the sense of self-identity

that many associate with their jobs.

Experts say that many retirees are not aware

of this phenomenon before it occurs, and

are reluctant to talk about it when it does. They

suggest that a more gradual transition, which

may include working part-time, can help reduce

the adverse effects of retirement.

THE IDEAL JOB

As mentioned earlier, not all jobs are conducive

to every age. Physically demanding jobs may not

be possible in our 70s, but many more sedentary

jobs are.

Some seniors are pursuing reduced hours or

contract work with their same employer after their

retirement date. Others start consulting,

lending their years of experience and expertise to

companies without the obligation of having to

go to an office every day.

CONCLUSION

While the decision to work during retirement is

personal, it is one that should be carefully

considered as early as possible to ensure the

maximum financial and social benefits. If you

have questions about this, please contact us.

*Delaying the age at which you collect CPP benefits can increase your monthly benefit by as much as 42%.

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Financial Planning

Over the years, we’ve been fortunate to have many

conversations with Nova Scotians about their financial

goals. While the range of issues, challenges and

priorities is different, we’ve seen dozens of common

themes and questions that need answers.

We wanted to create a single resource to address

these issues simply and clearly, and with Nova Scotia’s

economic landscape in mind.

Your Money. Your Future. is designed to provide an

introduction to the key financial planning principles,

strategies and solutions. It doesn’t pretend to be the

exhaustive resource on every topic. But instead, it’s

meant to arm Nova Scotians with enough information to

help them see the big picture and ask the right questions.

In the book, we explore the most important aspects of

your financial plan—your values and priorities—and how

they impact your outlook toward money. We address the

key risks and challenges that can jeopardize your financial

plan. And finally, we outline the many issues and options

for saving and investing, retirement, insurance, debt and

estate planning.

We’re very pleased to provide a complimentary copy to

each of our clients. (You can pick up a copy at your next

appointment, or call in to request one earlier.) The book

is also available for purchase on our website for $29.95.

We hope you enjoy it, and we look forward to your feedback.

Available November

2015!

Financial planning book for Nova Scotians We are thrilled to announce the launch of our new book,

Your Money. Your Future.

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Gordon Stirrett Wealth Management Newsletter 7

Financial Planning

Examples, charts and illustrations explain the diverse aspects of a solid financial plan.

Information and examples are based on Nova Scotia's data such as demographics, income and tax rates.

Topics range from big picture planning to tactical solutions and strategies.

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Tax Planning

8 Gordon Stirrett Wealth Management Newsletter

Taxes are an important way that governments can

provide the infrastructure and services that make our

communities so great.

But as individuals, Nova Scotians face a big tax burden

– more onerous than most other jurisdictions in Canada.

For example, a Nova Scotian who earns $100,000

can expect to take home $69,262. Whereas the same

income in British Columbia would create a take home

amount of $75,294.

Nova Scotia (and many other provinces) faces high

tax rates due to a number of factors, including an aging

demographic and skyrocketing health care budgets.

Nova Scotia has one of the oldest populations in the

country with 17.2% of the province over the age of 65,

and a projection of 25% by the year 2025.

Older populations tend to consume more health care,

which means higher health care budgets. Nova Scotia

currently spends roughly 41% of its annual budget on

health care. As our population ages, that number is likely

to increase.

As you think about your financial decisions, keep in

mind the tax issues facing Nova Scotia and its aging

demographic. Increases in tax rates and/or reduction

in services should be factored into your long-term planning

to ensure your retirement plan stays intact.

Taxing Times Tax is often a hidden expense that isn’t factored into spending or saving plans. Nova Scotians face some of the highest tax rates in the country, so careful assessment of taxes is critical.

An annual taxable income of $100,000 generates a different after-tax amount depending on where you live.

*Percent of tax on actual dividends received.

Province

$24,706

$25,774

$27,994

$30,289

$26,126

$31,376

$29,769

$30,738

$30,437

$27,980

$24,967

$24,910

$23,100

Tax Payable

24.71%

25.77%

27.99%

30.29%

26.13%

31.38%

29.77%

30.74%

30.44%

27.98%

24.97%

24.91%

23.10%

Average Tax Rate

18.31%

15.15%

17.91%

28.12%

25.38%

29.35%

32.45%

27.09%

24.56%

26.05%

16.12%

15.15%

19.97%

Marginal Rate on Eligible Dividends*

$75,294

$74,226

$72,006

$69,711

$73,874

$68,624

$70,231

$69,262

$69,563

$72,020

$75,003

$75,090

$76,900

After-Tax Tax Rate

38.29%

36.00%

39.00%

43.40%

43.41%

45.71%

45.52%

43.50%

44.37%

39.30%

38.20%

36.90%

35.00%

Marginal Tax Rate

BC

AB

SK

MB

ON

QC

NB

NS

PE

NL

NY

YT

NU

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Gordon Stirrett Wealth Management Newsletter 9

Taxable Income

MARGINAL TAX RATES (%)

2015 Nova Scotia Combined Federal & Provincial Marginal Tax Rates

first $29,590

over $29,590 up to $44,701

over $44,701 up to $59,180

over $59,180 up to $89,401

over $89,401 up to $93,000

over $93,000 up to $138,586

over $138,586 up to $150,000

over $150,000

23.79

29.95

36.95

38.67

42.67

43.50

46.50

50.00

* Marginal tax rate for dividends is a percent of actual dividends received, not the gross amount.

2015 Nova Scotia basic personal amount: $8,481

2015 Federal basic personal amount: $11,327

Interest &Regular Income

11.90

14.98

18.48

19.34

21.34

21.75

23.25

25.00

Capital Gains

10.94

18.21

26.47

28.50

33.22

34.20

37.74

41.87

Canadian Dividends*

RRSP Contribution Limits

Old Age Security Benefits 2015$563.74 Monthly $6,764.88 Annually

For 2015, benefits are repayable if net

income exceeds $72,809. The repayment

is 15% of excess to a maximum of

the OAS received. OAS is eliminated once

income reaches $117,908.

Canada Pension Plan Benefits 2015 (maximum benefits available)

Death Benefit $2,500.00 $ –

Retirement Benefit $12,780.00 $1065.00

Disability Benefit $15,175.08 $1264.59

Survivor’s Benefit (under 65) $6,973.56 $581.13

Survivor’s Benefit (over 65) $7,668.00 $639.00

2015 Annual Total Monthly

Year 18% of Earned Income From the Prior Year to

a Maximum of:

2015 $24,930

2016 $25,370

2017 Indexed

Tax Planning

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Debt Management

Canadian household debt has been a persistent topic

of economists of late. They raise three major concerns:

• Debt-to-Income Ratios Canadians now owe $1.47

for every $1.00 they earn

• Overinflated Housing Markets The biggest house-

hold debt is generally in the form of a mortgage.

If housing prices spike like they have in places like

Toronto and Vancouver, there is always the danger

of a subsequent decrease too, leaving homeowners

with a mortgage that is worth more than the value

of the home.

• Increasing Interest Rates Following on the above,

carrying mortgage debt can get tricky if the interest

rate on the mortgage increases.

So how do we manage debt in a healthy way? The

following tips represent some common sense approaches

to accumulating and paying down debt so that it can be

a useful tool in your financial plan instead of an albatross.

1. Create And Stick To A Budget  Maintaining a healthy

level of debt is simple: balance what you earn with

what you spend. But actually implementing that concept

can be challenging. Gaining a clear understanding

of your monthly expenses, compared to your income is

a key part of developing a budget. Sticking to that

budget is easier if: a) your estimates are fairly accurate

(i.e. you’ve reviewed your spending habits over a few

months); b) you’re committed to your savings

goals; and c) you’ve provided a little wiggle room for

the unexpected.

2. Shop Around For The Best Mortgage Rate For most

of us, the family home is the biggest source of debt.

Mortgage rates are generally lower than other forms of

debt like credit cards or car loans. Rates have been

uncharacteristically low since the economic issues

springing from the market crash of 2008. While they

persist in the low range, it’s always good to look for the

lowest rate as even a small difference in interest rates

can have a big impact on the overall ability to repay your

loan. Your mortgage business is valuable to lenders,

and they are competing for it just like other businesses

do. Make sure to shop around for the rate, terms

and conditions that are best suited to your needs and

financial situation.

3. Make Extra Mortgage Payments You get a bonus

at work. You receive a refund on your taxes. You sell

your stamp collection. No matter how it happens, you

sometimes find yourself with a little extra cash.

And when you do, dedicating that extra money to your

mortgage can have a real impact. For example,

let’s say you have a mortgage of $350,000 with an

interest rate of 3.5% amortized over 25 years.

One extra payment of $5000 will reduce your overall

mortgage and interest paid by $6771 and make

you mortgage-free one year faster. If you add that extra

$5000 every year, your savings jump to $57,753

and you’ll have it all paid off in only 18 years!

The Balancing Act Not all debt is bad, but you can keep your debt load in check by

following some common sense guidelines.

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Gordon Stirrett Wealth Management Newsletter 11

Debt Management

4. Speed Up Your Mortgage Payments  Another somewhat

painless way to reduce your mortgage debt faster

is to use an accelerated payment schedule. So, instead

of having a monthly mortgage payment of say, $1500

a month, you might opt to have a weekly payment of

$375. On a mortgage of $300,000 with an interest rate

of 3.5% amortized over 25 years, this small change in

payment frequency can reduce your total interest by

$20,000 and have you mortgage-free three years faster.

5. Consolidate Your Debt Credit card debt, car loans,

student loans and other non-mortgage type loans

tend to carry higher interest rates than mortgages or

lines of credit. When lumped together in one, lower-

interest consolidated loan such as a line of credit, these

debts can be paid off more quickly, and with lower

overall borrowing costs.

6. Have An Emergency Fund Even the most diligent

savers can face difficulty when the unexpected happens.

The money for a new roof or costly car repairs has to

come from somewhere. Credit cards may allow you to

cover these expenses initially, but their high interest

rates don’t make them practical as a long-term solution.

A small savings fund or access to room on a line of

credit can help offset financial emergencies, and avoid

an unexpected debt trap.

As with many aspects of your financial plan, small actions

can have a big impact on your ability to reach your goals.

If you have questions about your debt situation, please talk

to us.

PURCHASE PRICE: $300,000MONTHLY PAYMENTS: $1,500

Total Interest Over 25 Years: $150,000Total Cost of Purchase: $450,000

INTEREST SAVED: $50,000

3.5%

PURCHASE PRICE: $300,000MONTHLY PAYMENTS: $1,600

Total Interest Over 25 Years: $200,000Total Cost of Purchase: $500,000

4.5%

THE 1% DIFFERENCE

Mortgages are often our biggest

source of debt. Because mortgages

are usually for large amounts

over long amounts of time, even small

increases in interest rates can

have a big impact on how much you

pay to borrow the money. In this

example, increasing the interest rate

by just 1% adds $50,000 in

interest charges.

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12 Gordon Stirrett Wealth Management Newsletter

The Markets

Sector Breakdown (As of October 8th, 2015)

TSX Composite Index As of October 8th, 2015: 13,978.66

The following depicts the make-up of the Toronto Stock Exchange, indicating over

64% of stocks coming from the financials, energy and materials sectors.

Source: Standard & Poors

YTD Return: - 4.47%

Materials9%

Industrials8.3%

Consumer Discretionary7.2%

Telecommunication Services5.4%

Health Care 4.9%

Consumer Staples 4.4%

Information Technology 2.8%

Utilities 2.3%

Financials37.1%

Energy18.5%

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13 Gordon Stirrett Wealth Management Newsletter

The Markets

The following are year-to-date returns of the major markets of the world in their local currency.

Index Oct. 7, 2015

United States (DJIA)

United States (S&P 500)

United States (NAScomp)

Japan (Nikkei 225)

China (SSEA)

Britain (FTSE 100)

Canada (S&P TSX)

France (CAC 40)

Germany (DAX)

Russia (RTS, $ terms)

Australia (All Ord.)

Hong Kong (Hang Seng)

India (BSE)

Brazil (BVSP)

Emerging Markets (MSCI)

World, all (MSCI)

Source: The Economist, October 10, 2015

Markets% change year-to-date

(in local currency)

- 5.10

- 3.10

+ 1.20

+ 5.00

- 5.70

- 3.50

- 5.20

- 9.20

+ 1.70

+ 11.20

- 3.00

- 4.60

- 1.70

- 2.20

- 13.30

- 5.00

For example, if China is doing well, it uses more natural resources, which is good for many of Canada’s industries. These

connections make it essential for investors to keep an eye on world markets. We provide the following market updates

to give you a quick snapshot of what’s happening around the globe. If you have any questions, please contact us.

16,912.30

1,995.80

4791.20

18,323.00

3,197.40

6,336.40

13,868.40

4,667.30

9,970.40

844.10

5,228.40

22,515.80

27,035.90

48,914.30

828.70

396.20

Today, global economies are more connected than ever.

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Estate Planning

From a tax perspective, when you die, you are deemed to

have disposed of all of your assets. If you are single or

the last surviving spouse, many assets such as RRSPs or

RRIFs are then taxable as income. This income is accounted

for by your executor on your terminal (final) tax filing.

For example, if your RRSPs were worth $500,000 at

the time of your death, they would be taxed as if you had

earned $500,000 of taxable income in the final year

of your life. Depending on the other sources of income that

you had in the year of death, the income tax payable can

range between 40 and 50 per cent.

The scenario is thankfully different if you have a spouse.

In that case, assets such as jointly held property or

RRSPs (if your spouse is named as the beneficiary) can

be transferred to your spouse on a tax deferred basis.

WHAT’S TAXABLE AND WHAT’S NOT?

As mentioned, RRSPs, RRIFs and other registered

investments would be taxable upon your death. The major

exception is that these funds can be transferred to

a spouse with no tax implications. So, in the previous

example, if you die before your spouse, they can

receive the full $500,000 in RRSPs without paying taxes

on it. It’s important to note, however, that the surviving

spouse will continue to pay taxes on the income that they

withdraw from the registered account.

WHAT IS EXEMPT?

One major exception to the above rule is tax-free savings

accounts (TFSA). Any funds accumulated in a TFSA

are not taxable upon death (or before). So a TFSA can be

willed to a beneficiary without incurring taxes.

Prudent planning can keep the taxman at bay One of the most surprising facts for people planning their estate is the extent to which taxes come into play. While tax is an unavoidable aspect of estate planning, it is possible to ensure that the majority of your estate lands in the hands of the people and causes that matter to you.

14 Gordon Stirrett Wealth Management Newsletter

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Estate Planning

Other non-registered assets such as bank accounts or

GICs can be transferred to a surviving spouse at death

as long as the spouse is a joint account holder. But

when the surviving spouse dies, capital gains on these

non-registered assets become taxable. Once any capital

gains taxes have been paid, the residual can be paid

to beneficiaries. Often non-registered assets are also

subject to probate fees.

Assets such as a home or cottage that are jointly owned

can often be transferred to the co-owner without tax

implications.

Charitable donations create other tax exemptions. For

instance, a $500,000 investment that is donated to a

registered charity would not incur taxes on the deceased’s

terminal tax filing, and instead would generate a

$500,000 tax credit.

INSURANCE-BASED STRATEGIES

Life insurance policies can be used to offset many

expenses for an estate, including taxes. For instance, you

can buy life insurance to cover funeral costs and

probate fees, and name the estate as your beneficiary.

You can also buy a life insurance policy as a means of

providing tax-free cash to a spouse or any other beneficiary

—neither your estate nor the beneficiary will incur taxes

on the cash in the policy.

Permanent life insurance takes that one step further,

allowing you to invest additional funds into the policy each

year. The beneficiary of this policy would then have the

value of the life insurance policy itself, plus any investment

gains, all tax-free. Again, this policy would not incur any

taxes at death.

The tax implications of estate planning can be complex.

It is highly advisable to review your situation with a

professional. We are very happy to discuss your scenario

and identify any further professional help such as

accounting or legal support that might be needed.

Gordon Stirrett Wealth Management Newsletter 15

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Insurance Planning

For many adults, chronic health conditions make it challenging to obtain life insurance. However,

with guaranteed life insurance policies, there is no requirement for medical information or a

medical examination, which means you can’t be turned down for coverage.

Besides the guarantee, these policies have a few other

differences from traditional life insurance. For instance, the overall coverage amounts are generally

lower. Often the policies are between $25,000 and $100,000. In addition, guaranteed life insurance

is more costly, with premiums that are higher than traditional life insurance. However, the cost of

the premium remains steady throughout your life, with no price increases, and no change in coverage.

Many policies base their premium price on whether you are a smoker or non-smoker. Like most forms

of life insurance, smokers can expect to pay higher premiums.

Some guaranteed life insurance policies offer increased payouts—sometimes up to five times the

policy value—for accidental death. So a $25,000 policy could potentially pay out $125,000 if your

death was accidental.

CONCLUSION

Guaranteed issue life insurance can be a relatively easy way to obtain life insurance coverage if

you have been turned down for traditional life insurance. While no one likes to consider this prospect,

it’s good to know there is a back-up option in place.

As with any insurance issue, it’s important to review the policy carefully to ensure it meets your needs.

If you have questions about this or another aspect of your insurance plan, please contact us.

Insurance for the UninsurableGuaranteed issue life insurance can provide a solution for those whose medical history makes them ineligible for traditional life insurance coverage.

16 Gordon Stirrett Wealth Management Newsletter

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Insurance Planning

Gordon Stirrett Wealth Management Newsletter 17

SAMPLE COSTS The following illustrates the typical monthly premium for a 50-year-old,

non-smoker to obtain $25,000 of guaranteed issue life insurance.

TYPICAL FEATURES OF GUARANTEED ISSUE LIFE INSURANCE

• Offers life insurance coverage without a medical

• Available to those in certain age groups, often 40-75

• Coverage amounts generally lower than traditional life insurance • Premiums generally higher than traditional life insurance

• Premiums and coverage remain constant throughout your lifetime • Premiums higher for smokers

• May include clauses around things like waiting periods and accidental death benefits

MALE $69.45

FEMALE $57.50

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18 Gordon Stirrett Wealth Management Newsletter

In the Community

Post-secondary education can be a strong determinant of success for young

people and their communities.

SHINE is playing a crucial role in helping inner city youth take a step closer to

the opportunities that education can afford.

SHINE is a free, volunteer-run tutoring program, independently operated

by local university students. With space provided by the North End Memorial

Public Library, students from the community—regardless of their economic

means—have access to one-on-one tutoring, healthy snacks and learning

tools. This, combined with the collaborative team atmosphere, gives them

the support they need to tackle the critical subjects of math and science.

The program has been so effective in helping kids that word has quickly

spread via students and teachers. SHINE has grown from 12 students when

it began in 2013 to almost 50 for this 2015-2016 year.

Let Them Shine Tutoring Program Bears the Fruit of its Labour

SHINE has

grown from

12 students

when it began

in 2013 to

almost 50 for

this 2015-2016

year.

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Gordon Stirrett Wealth Management Newsletter 19

In The Community

"To see these young graduates take time out of their busy university schedules to

give back to the program is one of the most rewarding things for SHINE."

As SHINE has progressed, so have its participants,

graduating from high school and moving on to university.

Some of these students are the first in their families to

attend post-secondary institutions.

“These kids worked so hard to make it to university,”

says Loran Morrison, co-founder of SHINE. “Often they are

doing it with limited support or guidance about what

to expect, how to finance their education, or what programs

to choose.”

Seeing this need, SHINE is doing what it can to provide

information and point students in the right direction for

program selection, student loans, and other sources

of funding. They’ve even developed their own small bursary

program, using donated funds to grant modest monetary

sums to deserving students.

One of the true signs of success of SHINE is that some

of the graduates are now volunteering for the program

themselves–tutoring younger peers from their community.

“To see these young graduates take time out of their

busy university schedules to give back to the program is one

of the most rewarding things for SHINE,” says Morrison.

“They see how important education is, and they’re passing

that on to the kids coming up behind them.”

Gordon Stirrett Wealth Management is proud to be

the Founding Sponsor of SHINE. For more information

on the program and ways you can help, please visit

www.shinehalifax.com

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20 Gordon Stirrett Wealth Management Newsletter

In The Community

Gordon Stirrett Wealth Management has been a

long-time supporter of the highly effective Start2Finish

Running & Reading Clubs. This innovative after school

fitness and literacy program supports at-risk elementary

school students and empowers them with tools for

life-long success.

At its core, students have the opportunity to engage

with positive adult role models who want to see them

do well in life.

Kevin Jolly is one of those adults. He’s been leading the

Start2Finish program at St. Joseph A. McKay Elementary

School for the last seven years. While he’s passionate

about the program, he was aware that it was not meeting

the needs of kids when they left elementary school.

“Everything pointed to the need for a creative and

engaging program for junior high youth,” says Jolly. “The

research I’ve done, and the people living and working

in the area say junior high is where these kids start to

lose their way.”

Concerned about the ‘graduates’ of the Start2Finish

program, Jolly developed I Am Potential with a group of

youth from Highland Park Junior High. I Am Potential

is an after-school mentoring program for inner city youth.

It grew out of the conviction that a bright future is

possible for these kids if they can access post-secondary

education and positive adult role models.

The program connects these youth with university

student volunteers once a week. They spend time on a

post-secondary campus and enjoy a sport, a meal,

and hands-on learning projects.

Projects are designed to expose the students to new

areas and opportunities that post-secondary education

affords. For example, in its inaugural year, the youth built

wooden samurai swords using hand tools donated by

Lee Valley Tools at a space provided by the Engineering

faculty at Dalhousie University. This fall youth will have

the opportunity to try projects in Lego-robotics, theatre and

medicine with university student volunteers.

In time, with additional volunteers and resources, Jolly

hopes to offer the program in other schools where interest

and need is high.

Gordon Stirrett Wealth Management is proud to be the

Founding Sponsor of I Am Potential. If you want to learn

how you can help, please visit www.IAmPotential.ca

New program sees the potential in junior high youth I Am Potential picks up where Start2Finish ends

1801 Hollis Street, Suite 1540, Halifax, NS B3J 3N4 tel: 902-492-1119 fax: 902-492-9494 toll-free: 1-888-878-0770 email: [email protected] www.gordonstirrett.com