Mark Yestrau, director of wealth management at Bridgeport Asset Management, joins BNN Bloomberg for what happened in the markets on Thursday November 15th. Watch the video →
Considering the historically favourable tax-deferral strategy of retaining and investing corporate earnings vs paying dividends, accumulating assets in a company has long been the default retirement plan for many business owners. Recent changes to how passive corporate income is taxed has renewed interest in a favourable but lesser-known alternative to retained corporate earnings and RRSPs, namely, the Individual Pension Plan (IPP). Most of us are familiar with the common defined benefit pension plan. Based on a formula involving matching ratios, employee service with the company and income level, employees and their employer make regular contributions to the plan. In turn, [...]
John Fisher, president and chief investment officer at Bridgeport Asset Management, joins BNN Bloomberg to discuss Turkey's financial crisis and other markets where he's looking for opportunity. Watch the video →
John Fisher, president and chief investment officer at Bridgeport Asset Management, joins BNN Bloomberg to discuss Brideport's investment strategy and where he's seeing value in the Canadian and U.S. markets.
As many of you are aware, the Canadian government announced new rules in February concerning the taxation of passive income in Canadian controlled private corporations (CCPCs). The Liberals’ original draft legislation proposed to target tax strategies that have been used by small businesses and professionals since the early 1970s so naturally the initial announcement in July 2017 drew widespread condemnation. The government’s concern with the accumulation of passive income-generating investments in private companies stems from the fact that CCPCs pay a blended federal and provincial small business tax rate of 13.5% (in Ontario) on active business income up to the [...]
Previously, we wrote about the risks of gifting your children a down payment in today’s housing market. Stifling mortgage payments, rising interest costs and house price corrections all need to be considered, particularly in hot Canadian real estate markets like Toronto and Vancouver where even modest housing price corrections can wipe-out generous gifts. Still, providing financial assistance to loved ones remains at the top of many parental wish lists, with down-payment support ranking about as highly as the desire to help with education costs. Options like these are also often preferred to cash gifts if there’s any doubt about an [...]
Today’s big test of parental devotion is the gift of money for a house down payment. But is this a smart gift to make?
It’s a question clients ask us a lot: can we, or should we, gift our kids cash for a down payment on their first home? It’s a thorny issue that puts parents in a tricky spot. Most parents’ gut instinct, of course, is to do everything they can to help their children. But in this case, doing so could do more harm than good. We’ll give you three reasons why in a moment. It’s easy to see why more parents are giving their kids an assist in cracking the housing market, especially in big cities like Toronto, where the average residence [...]
As money managers, we get asked about DIY investing all the time — and we agree it can work for some people, especially if they enjoy tracking markets and investments, have the right skills and temperament — and can also handle the extra work and stress that comes along with managing your own money. But there is one big risk when it comes to self-directed investing — and it’s one that many people often forget about.
On April 1, 2018, it is expected that the CRA will double the inter-spousal loan rate from 1% to 2%. We recommend that clients consider making use of this income splitting strategy before the April 1 deadline in order to maximize tax savings.