Wealth Management

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May 15, 2019

The Case for Income Portfolios

2019-05-16T19:30:45+00:00May 15th, 2019|Investing|

Given the recent run-up in stock markets, we thought it would be useful to review the case for including bonds and other income generating assets in an investment portfolio. Over time, publicly traded stocks generally earn higher rates of returns than corporate bonds and other loan-oriented investments.  This is almost a fundamental law of finance in the much the same way that gravity is an indisputable force of nature. Beyond offering a fixed maturity date and an established rate of interest, the basic reason that corporate bonds earn lower returns is that in the event of bankruptcy, bondholders are entitled to receive [...]

Feb 26, 2019

2019 Registered Account Information & Tax Tips

2019-02-26T14:48:14+00:00February 26th, 2019|Financial Planning & Tax|

With the arrival of 2019, we thought it would be useful to remind you of the contribution limits for the various registered accounts you may wish to fund. CRA My Account If you haven't already done so, take the time to register for your CRA My Account.  The account allows you to track your tax refund, view or change your return, check your benefit and credit payments, view your RRSP & TFSA limits, set up direct deposit, receive online mail, and more.  Start the process or access your account here. RRSPs Yearly limits for RRSP contributions are equal to 18% [...]

Feb 8, 2019

Does Your Financial Advisor Need To Act In Your Best Interest? The Answer May Surprise You

2019-02-08T15:08:11+00:00February 8th, 2019|Wealth Planning|

A recent proposal tabled by the Ontario Securities Commission (OSC) that was designed to hold investment advisers who work for bank-owned investment dealers, mutual fund and insurance companies to a higher standard of client care was recently rejected by the Canada’s provincial securities regulators. The quashed “best-interest standard”—an overarching rule stating that investment advisers must put their clients’ interests first—did succeed in bringing to light many conflicts of interest clients face when dealing with financial advisers. Importantly, independent portfolio managers like Bridgeport Asset Management sit outside this debate because they already owe a “fiduciary duty” to their clients: they are [...]

Oct 18, 2018

Individual Pension Plans: A Way for Entrepreneurs to Manage the New Passive Income Tax Rules

2018-10-19T18:05:30+00:00October 18th, 2018|Financial Planning & Tax|

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, [...]

Jun 18, 2018

Are You Prepared for the New Passive Income Tax Rules for Private Corporations?

2018-06-20T12:59:59+00:00June 18th, 2018|Financial Planning & Tax|

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 [...]

May 18, 2018

House Rich, Cash Poor: Beware of Strangling Your Kids with Debt

2018-05-22T19:16:36+00:00May 18th, 2018|Financial Planning & Tax|

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 [...]

Feb 21, 2018

Registered Account Contributions

2018-05-18T16:08:13+00:00February 21st, 2018|Investing|

With the arrival of 2018, we thought it would be useful to remind you of the contribution limits for the various registered accounts you may wish to fund. RRSPs The deadline for 2017 contributions is Wednesday, March 1, 2018.

Feb 20, 2018

Goodbye to the Financial Upside Down?

2018-05-18T16:07:24+00:00February 20th, 2018|Investing|

There are trillions of dollars in negative yielding bonds trading right now – literally thousands of investors paying borrowers to take their money. How did the "financial upside down" become a new norm in the world and what happens when interest rates start to move higher?