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HomeMy WebLinkAboutThe Citizen, 2011-02-03, Page 12PAGE 12. THE CITIZEN, THURSDAY, FEBRUARY 3, 2011. NC – Now more than ever, Canadians are in need of sound financial advice. Shopping is practically a national pastime, the economy continues to be uncertain, and many people can barely make sense of their bank statements. What’s a person to do? Seeking professional financial advice may be the key. But it’s important that Canadians know that in most provinces in Canada, there is no government regulation dictating who can call themselves a “financial planner” – it’s a buyer beware environment. “It’s never enough to go with instinct or hire someone simply because they appear trustworthy,” says Cary List, president and CEO, Financial Planning Standards Council. “Referrals are good, but you should always check into a person's credentials and professional history.” Here are some tips for hiring a financial planner: • Narrow, aggressive or vague pitches should be approached with skepticism. Situations where significant life savings are allocated to an individual or that boast too- good-to-be-true investment returns should be considered red flags. • Ask about credentials. Beware of the alphabet soup of letters that don't really mean anything when it comes to ethics, competence and the ability to provide sound advice and service. Certified Financial Planner (CFP) professionals must meet rigorous standards of education, examination, experience and ethics in financial planning. • Make sure the individual is accountable to a professional body. Canadians can file a complaint with FPSC should they feel their certified financial planner has not lived up to her ethical obligations. • Insist on a written letter outlining specific terms of the engagement and never sign anything you aren’t clear about. Don’t accept somebody’s word – get it in writing. And remember: financial planning is about more than investing. It includes household budgeting, tax, retirement, estate planning, investing, debt and risk management. Finding the right advisor for you can be one of the most important decisions you can make. NC – Don’t get caught off guard; make note of key dates for the 2010- 11 tax season: February 14 – Reimburse employer for company car operating costs, to reduce operating benefit for the previous calendar year (optional). February 15 – Deadline for employers to remit Ontario employer health-tax (EHT) instalment, covering January 2011. February 28 – Last day to report personal use of car for previous calendar year if personal distance travelled was not greater than 20,000 kilometres and at least 50 per cent of the distance was for business purposes, in order to reduce standby charge for company car (optional). For practical purposes, taxpayers who choose to make this report should really do so by mid-February. It’s also the last day to issue T4s, T4As and T5s to people and CRA and the last day for issuers of TFSAs to file their annual information return. March 1 – Last day to make personal and spousal RRSP contributions applicable to previous taxation year. March 15 – First-quarter instalments due from taxpayers who are required to remit quarterly, it’s also the deadline for employers to remit Ontario employer health-tax (EHT) instalment covering February 2011. March 31 – File trust-income tax return for trusts with a December 31 year-end. April 15 – Deadline for employers to remit Ontario employer health-tax (EHT) instalment covering March 2011. April 30 – File personal income- tax return for previous taxation year and remit balance due, if any, to CRA. As April 30, 2011 falls on a Saturday, this deadline will automatically be extended until Monday, May 2. 2011. File GST/HST-rebate application for employee-related expenses deducted in previous taxation year. As April 30, 2011 falls on a Saturday, this deadline will automatically be extended until Monday, May 2, 2011. NC – Each time you contribute to a Registered Retirement Savings Plan (RRSP) you’re likely envisioning a secure and comfortable retirement. But just how secure is it? Knowing if these hard-earned, tax-sheltered savings are well protected will help you make important investment decisions and plan for a worry-free retirement. The Canada Deposit Insurance Corporation (CDIC) is the federal government organization that exists to protect the savings of Canadians in the event their financial institution fails or goes bankrupt. CDIC insures eligible deposits held in an RRSP separately from other eligible deposits up to a maximum of $100,000. For example, suppose that you have a savings account at ABC Bank and you also have a savings account within an RRSP at the same bank. If ABC Bank fails or goes bankrupt, both accounts will be protected separately up to $100,000, for a total of up to $200,000 in deposit insurance protection. Although bank failures in Canada are rare, they have happened in the past and could happen again. That is why it is important to be aware if your retirement savings are protected by CDIC. In addition to savings accounts, other financial products within your RRSP may be automatically insured by CDIC deposit insurance. GICs or other term deposits with an original term maturity of five years or less will also be protected (provided they are held in Canadian currency at a CDIC member institution). It is important to remember though that regardless of how many accounts or financial products you have in an RRSP registered in your name and in the same financial institution, the total combined coverage is still $100,000. Keep in mind that not every deposit within an RRSP is protected by CDIC deposit insurance. Investment products such as mutual funds, stocks, bonds, treasury bills, and term deposits that mature in more than five years are examples of investments within an RRSP that are not protected. The RRSP must also be held in a CDIC member institution, such as a bank, trust company or loan company for it to be eligible for deposit insurance coverage. For more information on what’s protected, visit www.cdic.ca. Make informed investment decisions when contributing to your RRSP. Whether you are new to the workforce, or planning for retirement, you can take comfort in the fact that eligible deposits within your RRSP are protected by CDIC. Tax dates to mark on your calendar Know how secure your RRSP is When seeking advice ask the right questions FINANCIAL 2011 RSP Deadline March 1, 2011 Seek A Second Opinion! ENIB provides a total wealth management service. A licensed professional can help you plan and achieve your financial, retirement, insurance and education goals. ➟Global Diversification ➟Tax Efficient Investing ➟Private Wealth/ICPM Investment Services Contact Darren Stevenson for a personal account review. Receive a confidential second opinion of how Private Wealth Management can: ➟Reduce your Risk ➟Reduce your Tax ➟Increase your Returns Get a Private Wealth Management Account Working for you today! Call Elliott Nixon Insurance Brokers (519) 523-4481 Established 1910 ELLIOTT NIXON INSURANCE BROKERS INC. 9 Rattenbury St. E., Clinton, ON N0M 1L0 Ph.: 519-482-9924 ~ 1-888-235-9260 Res.: 519-524-9260 Check out RRSP and RRIF plans designed to meet your needs. GIC, Mutual Funds, Seg. Funds Invest in your future today! RRSP DEADLINE: MARCH 1, 2011 Have you ever considered planning your financial future? See Lawrence for a free consultation. Susan Alexander, CFP Doug Sholdice 472 Turnberry St. PO Box 69 Brussels, Ontario N0G 1H0 Phone: 519-887-2662 Toll Free: 1-866-887-2662 Fax: 519-887-2671 www.sholdicefinancial.com susan@sholdicefinancial.com PEAK Investment Services Inc.