Archive for the ‘A Woman’s View’ Category

Aug 20
2010

Woman’s View (3 of 3)

Friday, August 20th, 2010

No More Bag Lunches!

by Colleen Pfannenschmidt, Financial Advisor
Raymond James Ltd

You’ve been checking the calendar each week and now that magical day is here. No more alarm clocks going off in the dark. No more bagged lunches to eat at 12:00 pm sharp. No more car pooling or riding the bus. Yes – you are now retired!

Now what?

Most of us can’t wait for that day to arrive, but we have to ask ourselves, ‘Will I be ready?’.

It will of course be great to sleep in, if we want to, or go for that early morning walk or round of golf. Those are the fun things to being retired but, ‘Are you prepared?‘.

There is a lot to consider when preparing for the time when you actually retire.

  • Are you financially prepared to live the life style that you had intended?
    Or are there some things holding up that plan?
  • Will you be caring for an ageing parent
    or still helping your children through university or college?

Caring for elders can be a burden, both financially and emotionally. Care homes can be very costly depending on the type of care needed. In this case first you have to deal with the parent (s) finances. Are their investments in order? Do they need to sell their home and invest the cash to provide a monthly income to live in the retirement facility, or will you be footing the bill? Having elderly parents living with you can cause quite a strain on families. In Europe this may be a common theme, but in Canada most families would find this rather strenuous.

Do you still have dependent children? Many people are having children later in life, so it is not uncommon for the children to be still in school when you decide to retire. Hopefully you will have planned ahead by investing in RESPs or some other form of saving for their education.

Consider these before you retire.

  • You might want to set up a trust for a disabled or mentally challenged child or to help pay for your grandchildrens’ education.
  • If you run a small business, you may need a succession plan detailing how the family will carry on your business. You could continue to receive revenue or you might just sell altogether.
  • Once you are retired, collecting a pension or RRIF payments, receiving CPP and if you are old enough OAS, there is something else you must put in order – your estate.It is very important for everyone to have a will. If you want to pass on your “estate” to the right people, it must be stipulated in a will. If you do not have a will when you die, you will have died “intestate”, making settling your affairs a more lengthy and costly procedure. There are ways to lessen the tax blow on your passing. There are ways to leave your spouse investments that will not incur taxes payable immediately.

There is nothing more empowering as being set financially. I am always available to chat and have coffee. There is no pressure coming into my office, I genuinely care about my clients, there is nothing more satisfying as having happy clients.

In my practice, I work with my clients and their lawyer or accountant to set up the necessary plans.

Comments or questions – Colleen Pfannenschmidt (250) 979-2722
or email colleen.pfannenschmidt@raymondjames.ca

Colleen Pfannenschmidt is a Financial Advisor with Raymond James Ltd. The views expressed are those of the author, Colleen Pfannenschmidt and not necessarily those of Raymond James. Ltd. It is provided as a general source of information only and should not be considered to be a personal investment advice or a solicitation to buy or sell securities. Raymond James Ltd. is a member of the CIPF.

Apr 8
2010

Woman’s View (2 of 3)

Thursday, April 8th, 2010

Don’t Blow That Windfall!

by Colleen Pfannenschmidt, Financial Advisor
Raymond James Ltd

A sudden windfall comes your way – perhaps you’ve received an inheritance, sold some real estate, been offered a buy-out package from your employer or were just lucky and won a lottery prize.

No matter where your windfall comes from, you should put a plan into action. Here are some key points to keep in mind:

  • Adopt a cooling off period.
    If the sum of money is considerable, perhaps invest in a short-term GIC or high-interest savings account, where it is safe.
  • Give yourself time to adjust and to think rationally about how you should invest and manage your new found wealth.
    Curb your instincts to run out and buy that nice little sports car you have been looking at! Impulse buying could lead to further problems. Expensive assets can turn into expensive cash flow liabilities down the road.
  • Be careful who your “friends” are.
    Never discuss any financial matters over the telephone or e-mail, where you didn’t initiate the contact.
  • If you are considering lending money to friends or family, do so with caution.
    Do nothing without the advice of a lawyer (in the case of a lotto win). Choose a reliable financial advisor who you feel you can trust to invest your new found wealth properly keeping your risks and objectives in mind.
  • Prioritize your debts.
    A massive windfall should see all debt retired. If that’s not possible, then prioritize. Pay off all credit card debt immediately. Personal loans at high interest rates come next, followed by any mortgages you may have. Business and investment debt should be kept when interest is tax deductible.
A windfall may be a temptation to take investment risks. Be careful, work with your financial advisor forming a long term plan that suits your individual situation. The key to any financial windfall is to make sure that your “once in a lifetime opportunity” actually lasts a lifetime.

I believe it is essential for all of my clients to receive the most appropriate investment strategies and advice to help grow and protect your assets with fast changing markets. Client service is of greatest importance to me, I am always available for client calls and appointments. I welcome my readers to make an appointment to see me for a chat and a cup of coffee.

Comments or questions – Colleen Pfannenschmidt (250) 979-2722
or email colleen.pfannenschmidt@raymondjames.ca

Colleen Pfannenschmidt is a Financial Advisor with Raymond James Ltd. The views expressed are those of the author, Colleen Pfannenschmidt and not necessarily those of Raymond James. Ltd. It is provided as a general source of information only and should not be considered to be a personal investment advice or a solicitation to buy or sell securities. Raymond James Ltd. is a member of the CIPF.

Mar 30
2010

Wanted: 50+ Women

Tuesday, March 30th, 2010
Soroptimist International
Soroptimist Means “Best For Women”

Our mission is to improve the lives of women and girls
in the community and throughout the world

submitted by Bea Kelly,
Extension Chair, Western Canada Region
Soroptimist International 

Who we are

Soroptimist is an international volunteer organization of women comprised of members either embarking on, in or retired from a career, aiming to create true social and economic equality for women and girls in local communities and throughout the world. Soroptimist means “best for women” and that’s what we strive to be – women at our best striving to help other women be their best. As a volunteer organization we feel uniquely qualified to help women and girls live their dreams.

Central Okanagan

We are now looking for new members for the central Okanagan community. We have clubs in Kamloops and Osoyoos and are planning to charter a club in the central area.

Worldwide

Soroptimist Internationale has about 95,000 members in more than 120 countries and territories. Each of these members have contributed time and financial support to community-based projects since 1921. 

Community Service projects range from large capital grants and funding for equipment, to hands-on service. Projects include:
 Cash grants for women seeking to improve their economic situations through additional education and training
 Supporting Community organizations helping women and girls
 Children of the Street Society
 Women’s Resource & Transition Houses; i.e. donating clothing & personal care kits
 Homeless and/or Women in need
 Making comfort cushions for mastectomy patients
 Purple Card distribution as part of a campaign to help end violence towards women
 Donating hampers to families in need at Christmas and “Christmas in July” 

Soroptimist International has NGO status with the UN and is represented on the Status of Women/Human Rights Commissions. Support many international causes, which include the following:
 Project Sierra/Hope and Homes for Children; transforming the lives of some of the most deprived women and children in the world.
 STOP Trafficking project, ensuring women and girls everywhere have lives filled with dignity and respect. 

JOIN NOW
For more information on how you can become a member of Soroptimist International and make a difference in your community, please contact Bea Kelly at bebe25@telus.net or by phone at 604-945-7071. Also, please visit our international website for more information at www.soroptimist.org and also www.wcsoroptimist.org (Western Canada Region). 

Bea Kelly is the Extension Chair of the Western Canada Region, Soroptimist International. The views and information presented here are those of the author, Bea Kelly.

 

Mar 9
2010

Woman’s View (1 of 3)

Tuesday, March 9th, 2010

R.R.S.P.’s and R.R.I.F.’s

by Colleen Pfannenschmidt, Financial Advisor
Raymond James Ltd

When and why should you convert your R.R.S.P. (Registered Retirement Savings Plan)
to a R.R.I.F. (Registered Retirement Income Fund)?

Throughout your life you may have been contributing to a R.R.S.P. Hopefully you have chosen investments that have grown over the years.

Once you have retired, you will want to convert your R.R.S.P. to an R.R.I.F., in order to receive monthly income from your investments. At this point you may want to change your investments from growth to income. This strategy helps your principal from being eroded.

The Rules of Converting

As with all government registered plans there are rules.
  • You do not have to convert your R.R.S.P. to a R.R.I.F. until no later than December 31st of the year in which you turn 71.
  • If you retire before you reach 71 and do not need extra income, you don’t have to convert.
  • If you retire anytime before you reach 71 and you need income, you can convert to a RRIF at that time.
  • And if you retired early, converted your R.R.S.P. to a R.R.I.F., started taking payments and then decided to go back to work. You can stop your R.R.I.F. payments and convert the plan back to a R.R.S.P. until you reach 71.

How R.R.I.F.’s work

  • No minimum payment is required in the year that your R.R.I.F. is established.
  • Once a R.R.I.F. is established the Canada Revenue Agency insists that you take out a minimum amount each year. You have the choice to base the minimum amount on your age or your spouse’s age.
  • There is no maximum annual withdrawal amount, just remember, however much you withdraw each year is added directly to your income.
  • When you withdraw more than the minimum your investment firm will deduct withholding taxes from your payment, ranging from 10% to 30%.
  • You can receive your payments monthly, bi-monthly, quarterly or annually.
Comments or questions – Colleen Pfannenschmidt (250) 979-2722
or email colleen.pfannenschmidt@raymondjames.ca
Colleen Pfannenschmidt is a Financial Advisor with Raymond James Ltd. The views expressed are those of the author, Colleen Pfannenschmidt and not necessarily those of Raymond James. Ltd. It is provided as a general source of information only and should not be considered to be a personal investment advice or a solicitation to buy or sell securities. Raymond James Ltd. is a member of the CIPF.