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
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