Many Canadian families are facing tough decisions about their family business. In fact, according to Dalby, “companies with fewer than 50 employees represent close to 98 percent of all business in Canada and employ slightly more than half the workforce.” In order to make the best possible decision for themselves, their children, and the business, many are turning to experts in succession planning. Succession planning is the process of creating a blueprint for the transfer of the knowledge, skills, management, control, and ownership of a family business from one generation to the next.

However, some estate planning pros believe that turning to succession planning right off the bat isn’t wise. Susan Rechil, a financial planner, believes that the first step should always be a family meeting, according to the article. There are a lot of hard questions that must be answered, and it will require brutal honesty from those involved. For instance, parents have to face facts and recognize whether their children have the ability and desire to take over the business. Both pieces are critical. If the children don’t possess the business acumen necessary, it may mean bringing in an outsider to actually manage the business. On the other hand, children have to honestly tell their parents how they feel about the business and what they see themselves doing in the future.

Susan Rechil notes in the article that whatever the family conference reveals, it’s always good to have a backup plan. Your children may have every intention in the world of running the family business, but what if they go off to college, fall in love with someone, get married, and move away? What if they find a passion for a completely unrelated industry? Always have a plan A and plan B.

Here are some succession-planning tips from the Canada Business Network:

• Start planning five years before you retire.
• Make sure the planning involves the whole family and includes both the future ownership of the business and a fair market valuation of the business.
• Outline all of your options.
• Seek professional help, such as that from a financial planner, lawyer, insurance broker, and accountant.
• Check out the legal and tax implications of your decision.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Photo credit: NASA Goddard Photo and Video (Flickr)

If you consider yourself a bit of a “nerd” or just want to enjoy a free educational event, make sure you don’t miss out on Science Rendezvous this year!

Science Rendezvous is a unique event; it is the only national science festival hosted by 40 of Canada’s top institutions over a period of just one day. The goal? To reinvigorate the interest of Canadians (especially the youth) in the different fields of science and engineering. The event will attempt to accomplish that goal by covering a broad range of interesting topics, such as the chemistry of ice cream.

This year’s event will be held on Saturday, May 11th from 11:00 a.m. to 5:00 p.m. All of the many events taking place across Canada will be free of charge.

Many top scientists will be participating in this festival. They’ll be on hand to answer questions, give lab tours, and guide individuals of all ages through experiments. This event is a massive undertaking that involves over 6,000 volunteers, more than 4,000 of which are university-level science students.

Science Rendezvous is taking place in multiple locations across Canada; however, Toronto residents can enjoy activities from many great organizations, including:

• Elephant Thoughts Global Development Initiatives
• The Hospital for Sick Children
• Let’s Talk Science
• Mount Sinai Hospital
• Ontario Genomics Institute
• Ontario Science Centre
• Ryerson University
• Scientists in School
• University of Ontario Institute of Technology
• The University of Toronto
• York University

For more information on the event, please check out the official Toronto website and the official Science Rendezvous website.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Unfortunately, when planning how they will give to their preferred charities, many individuals and families do not realize that they can maximize their impact. And the failure to do so means that these well-meaning people are paying needless taxes and are minimizing the amount that they could be giving to the causes closest to their heart.

A recent article I found in the Financial Post brought attention to this issue, outlining several problems inherent in giving money to philanthropic organizations in your will. The highlights are below:

1. Your will could be contested. Perhaps you have few family members, or perhaps you don’t believe that your family needs the money as much as your dearest charity. Though you have good reason behind your decisions, your family may not see it that way. If your family members who think they should have inherited more contest your will, this can result in legal costs, delays in the administration of your will, and heartache within your family. This troubling possibility can be avoided entirely by using other methods to give to charity.
2. You miss opportunities for tax credits. If you leave money to a registered charity in your will, you will get a 40-50% charitable tax credit. However, this credit only applies to 75% of your current income for that year. This article gives the example that this becomes a problem if, for instance, your final return shows $80,000 of income and you left 800,000 in your will. You would only get a tax credit for up to $40,000, thereby missing out on $360,000 in tax credits.
3. You are letting your gift dwindle by paying too much in taxes. What is often the case for many is that the money they’ve designated for charity is left to sit in a non-registered investment account account and is taxed every year. When it finally does go through the estate, the money may also be subject to a probate fee. The final gift ends up being diminished by these taxes and fees.

Instead of giving through their will, consider the following: if you give annually, you can take advantage of tax credits and will have greater flexibility regarding the amount given and the charity receiving the gift. Another option is to take out a life insurance policy and name the charity as the beneficiary, which can dramatically increase the gift that the charity receives.

If you have further questions regarding how to maximize your philanthropic impact, contact financial advisor Keith Thomson.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

The classification was given based on a framework from the Basel committee on banking oversight, which guides the assessment of Canada’s financial institutions, reported the Office of the Superintendent of Financial Institutions (OFSI).

As a result of the “too big to fail” designation, the banks will experience greater supervision and capital requirements. Requirements from the OFSI mandate that these banks must have more assets in reserve to guard against any future rush to withdraw deposits. A common equity tier 1 ratio of eight percent will be required by January of 2016, in contrast to the seven percent required for smaller banks and financial institutions.

These mandates were put in place to reduce the possibility that one of the most important banks would fail and subsequently harm the Canadian economy. The banks affected, the Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto-Dominion Bank, make up more than 90 percent of all banking assets in the country. The OSFI stated that the banks are vital to our economy because of their “size, interconnectedness, substitutability, and flexibility.”

John Aiken, an analyst for Barclays Capital, noted that markets expected this designation and that the valuations of the banks will likely remain unaffected. With three years to make the transition, the banks should not be unduly burdened.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Several of this year’s “must-see” works include “A Touch of Glass & Stone, Metal & Wood: Sculpture North,” and “Empowering Spaces.” Many of the expo’s works will be for sale, at a variety of price ranges, allowing all attendees to enjoy their favorite pieces at home or in the office.

In addition to the exhibition of art, the Toronto Art Expo will host a delightful opening night. The expo’s opening night will feature wine and live world music as guests browse the exhibitions.

The Toronto Art Expo will be held at the Metro Toronto Convention Center from April 11 through April 14. The opening night party will take place on April 11 from 6 p.m. to 10 p.m. The hours for the expo are as follows:

• Friday, April 12: 12 p.m. to 8 p.m.
• Saturday, April 13: 11 a.m. to 8 p.m.
• Sunday, April 14: 11 a.m. to 6 p.m.

Admission costs $15 for the general public, with discounts for students and seniors. Children under 12 are admitted free. To purchase tickets and find out more about the expo, visit the Toronto Art Expo website. For other events in the area, visit Toronto.com.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Following the sweeping success of the Oscar-winning silent film The Artist, silent films are experiencing greater recognition and a well-deserved renaissance. Silent films, despite lacking sound, do not lack the ability to excite and captivate audiences. Experience the magic by attending one or more of the films during this festival.

The following films will be screened:

• Passion of Joan of Arc (Thursday, April 4)
• Tokyo Chorus (Friday, April 5)
• The Crowd (Saturday, April 6)
• 1000 Laughs: Slapstick Smorgasbord (Sunday, April 7)
• My Best Girl (Monday, April 8)
• The Railroader (Tuesday, April 9)
• The General (Tuesday, April 9)

These films will be shown at a variety of venues across Toronto. To purchase tickets and learn more about each film, visit the Toronto Film Festival website.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

The exhibit follows R. C. Harris’s “unmatched 33-year career as head of the City’s works department through archival photos, maps and plans and by artifacts rarely or never seen before,” according to the City of Toronto website. Harris became Commissioner of the city in 1912, when he was appointed for his administrative ability. Harris “quickly developed a civic vision that viewed public works as the cornerstone of a greater Toronto.”

What did he do for our city? Two of his major legacies are Toronto’s Prince Edward Viaduct and the R.C. Harris Water Treatment Plant.

For more information about the exhibit, visit the Market Gallery Website at www.toronto.ca/culture/the_market_gallery, email marketgallery@toronto.ca, or call 416-392-7604. The City of Toronto Market Gallery is in the South St. Lawrence Market on Font Street East.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Toronto-Dominion, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Bank of Montreal, National Bank of Canada, and Caisse Central Desjardins were all downgraded in Moody’s most recent ratings. These companies are the largest credit unions in Canada.

The downgrades did not seem to scare off investors, however. Shares of all downgraded banks rose on Monday, which was also not expected.

The only major Canadian bank not included in the cut was the Royal Bank of Canada. For the past five years, Canada’s banking system has received recognition for being the soundest in the world.

The Yahoo! Finance article states, “High levels of consumer indebtedness and elevated housing prices leave Canadian banks more vulnerable than in the past to downside risks the Canadian economy faces.” So far, the Canadian housing market has not suffered like the U.S. housing crisis. According to the article, the housing sector might be peaking due to recent activity and prices, which could mean a downfall is on the horizon.

Moody’s also cited the high capital markets at Bank of Montreal and National Bank, which could mean a market downturn for those banks. There is always something around the corner that is unexpected. For these banks, it is best to be prepared for a downturn and subsequent downgraded rating from Moody’s.

So what are the new ratings? Moody’s now rates TD’s long-term debt at Aa1. Scotiabank and Caisse Central Desjardins are at Aa2, and the remaining others are at Aa3.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

Every day of camp, students get to shoot in new locations near the GTA studio. Students visit places like Harbourfront, Sugar Beach, Distillery District, City Hall, and other fun sites around the studio. They have the opportunity to get some exciting and unique shots at these locations.The class will discuss various photography topics, including composition, exposure, manual mode, and important camera settings. Teens will go on daily field trips to shoot different locations and practice what they learned in the studio. Students will start recognizing different angles and interesting ways to take photos.

After shooting and processing the photos, students will have in-depth reviews and critiquing sessions. This can be very helpful for students to learn from each other. It also inspires and encourages them to do better with each shoot.

For more information, please visit the GTA Photography website www.teens.gtaphotographyclasses.com or call 416-546-9089. The cost of the program is $100. Camp will take place in the GTA Photography Building on Colborne Street.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.

There is a maximum that you can contribute to TFSAs per year. For an individual, the maximum is $25,500, while it is $51,000 for a couple per year. This can be a good option because companies are not offering employee sponsored pensions anymore. Since companies are not offering these benefits, it is important for you to be more proactive in saving. Part of being proactive in saving is making sure that your money is working effectively for you and growing.

Several surprising facts about your RRSP:

You’re not as wealthy as you might think.

First of all, RRSPs are taxable. You can defer these taxes for a while, but you can never fully avoid them. You have to factor the tax into what you have saved so far because part of this will be taken away in taxes. According to MoneySense, “The financial industry has sort of led Canadian investors to this view that if you don’t want to pay taxes, then RRSPs are your answer.” Obviously, this is not true.

You do not want to get to a point where you think you have more money than you really do because of taxes. For example, if you have been lucky enough to save $1 million and you are in the 40% tax bracket, you really only have access to $600,000 of that one million: $400,000 will have to go to the Canada Revenue Agency. This is something you will want to look at very carefully.

Basically, all you need to know is that you shouldn’t take your RRSP balance at face value because some of it will be taken for taxes.

Spending your refund defeats the purpose.

People tend to look at RRSP tax refunds as free money, which is not the case. It’s not free money from the government: it is your money that you shouldn’t have paid in taxes in the first place. It can be important to save this return and not spend it without thinking, especially because you will have to pay taxes on the returned money eventually.

It is definitely tempting to spend the money on a new television or a vacation, but it is smarter to reinvest it or pay off debt you might have. MoneySense says, “Reinvesting your refund can also supercharge your RRSP savings, thanks to the magic of compounding.” They offer the example that if you contribute $5,000 each year to your RRSP and your marginal tax rate is 30%, you will get a refund of $1,500. If you reinvest that into your RRSP the next year, your contribution will be $6,500, making your refund $1,950. Over 10 years of this compounding and 5% annual growth, your RRSP might be worth around $90,000. If you did not reinvest those returns, the value would be just $66,000. That’s a huge difference – just for reinvesting!

This is the best time to catch up.

When the market is down, you can make more money with less risk. This is assuming that you are in a position to make a larger contribution. You might consider catching up on your RRSP by borrowing. It can be hard to contribute in a low market because you might not have the finances to do so, but it can be worth it to cut in other places to make a contribution.

If you have questions about investing in your RRSP, call Keith Thomson at (416) 681-7152 to schedule an appointment.

This material is provided for general information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities mentioned herein and is not intended for, or available to, residents of the U.S.A. or its territories or possessions. Every effort has been made to compile this material from reliable sources however, no warranty can be made as to its accuracy or completeness. Please speak with your investment professional before acting on the information contained herein. All opinions expressed and data provided herein are subject to change without notice and do not necessarily reflect the opinions of Stonegate Private Counsel, a division of CI Private Counsel or its affiliates.