Professional Documents
Culture Documents
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UPDATE AND conferences and investment summits is one of the key indicators that a wealth
OUTLOOK management firm is considered a premier provider by the industry. Northland Wealth
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has been fortunate to have been invited to a number of these events over the last
year and we wish to share with you some of the events we have spoken at, and will be
speaking at, in the near future.
The Big Picture
...you cant ignore what is going Last month, at the Opal Canadian Family Office & Private Wealth Management
on outside of your borders... Forum held in Vancouver, Northland Wealth was asked to moderate a panel discussion
entitled Real Estate Investing Exploring Cross Border Opportunities. Here we were
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Family Office Conference, held in Boston. The discussion, entitled Families Embracing
PULLS A COMMUNITY
the Future, which follows the Chatham House Rule, is designed for participants to
TOGETHER
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accordingly. This exclusive and by invitation only event is the leading, private meeting
for ultra-affluent families in North America, and offers a compelling combination of
...unparalleled acts of unselfishness and
sense of community will have a greater peer-to-peer learning and networking for family office principals and executives.
positive impact than the economic The valuable information and insight gathered at these events allows us to enhance our
devastation of the flood itself.
offering while working towards achieving your familys desired goals. We look forward
to sharing summaries of these presentations with you on our website, future editions
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PROFILE OF A PHILANTHROPIST
there are many simple strategies The experiences and knowledge of our client base
Canadians can employ to either defer or has provided us with valuable insight to allow us
reduce income tax payable. to identify areas where we can provide strategies
and/or education. In this edition ofThe Artisan we
have asked Rob and Janice Dawes to share with
us some information about supporting a charity.
As both Rob and Janice are philanthropic by
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ORIGINS AND UPDATE AND
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UNDERSTANDING OUTLOOK
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ORIGINS AND UNDERSTANDING
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unemployment and positive GDP growth helped by Retirement scenario projections and required rate of return
the relatively cheap Euro.The Northern tier of the Euro analysis after tax and inflation.
zone is also in good shape. The southern tier- Greece, Consolidation of net worth and income statements along with
Italy, Spain, Ireland and Portugal continue to struggle analysis of key debt and cash flow ratios as well as the inter-
with government deficits and high unemployment. relationship of the familys liquid assets, management of a family
Recently, however, while economic growth is elusive, owned business or other fixed assets.
economic activity seems to have stabilized in the Personal and corporate cash management with vendors and tax
southern tier. While further cuts in government authorities in a Family Office context.
expenditures are necessary, some stimulus would Estate planning for optimum asset protection and tax efficient
also seem appropriate. The euro zone should be transfers of wealth.
paying attention to the apparent success of the U.S. Risk assessment and management through the implementation of
in stimulating its own economy. Unfortunately the mitigation strategies and insurance planning.
German public has been adamantly opposed to any Open and discrete consultation on closely held business issues.
stimulus particularly something that will require Development, planning and execution of family foundations and
German financing. The current German Chancellor, tactical philanthropic activities.
Angela Merkel, (now that she has been re-elected),
given her past pragmatic approach, could support
some softening of the austerity policy presently in
place. This would be very instrumental in producing
better growth in the Eurozone.
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nature, It did not take them long to share with us family creation. Excess housing created
why they donate, volunteer, or offer their skills in the boom of 2005 to 2007 has been
and support. It is because it provides a way to give back and absorbed and all that is required is continued home buyer
improve our community and our society. It may sound like a confidence to keep this sector positive.The Federal Reserve
text book statement, but it is the best way we can describe our has pledged to hold down interest rates until growth and
motivation. says Janice. employment reach certain levels, but an end to their asset
What is your biggest take away? purchasing program is expected to usher in a period of rising
interest rates.
The act of helping others can make you feel better. Knowing that
you have given your time, finances, or property to assist people Corporate confidence is improving
in need adds purpose to your life. and this combined with a more
How do you get started? accommodating banking system
Selecting a charity and determining what you would like to do should result in improving GDP
are the first steps. For us it was something that directly affected numbers in upcoming quarters.
our family and we felt that volunteering was the most effective The U.S. corporate sector is also in excellent shape with
way to show our support. earnings growth exceeding expectations quarter by quarter.
How does one determine where they can make the US equity markets have moved to new highs but most U.S.
biggest impact? corporations have continued to sit on high cash balances. This
reluctance to spend on capital expansions or more employees
When we first started to volunteer, we had to determine where
our personal skill sets could be applied. Accessing websites
has provided significant drag on the U.S. economy. Corporate
is the fastest way to gain information on issues connected to confidence is improving and this combined with a more
a charity. As a result, we became better educated about the accommodating banking system should result in improving
charity and their needs and learned where and how we could GDP numbers in upcoming quarters.
dedicate our time in an effective manner. The steady recovery in the US should
What is your story of philanthropy? also provide a lift for the Canadian
For myself, I became a volunteer in fundraising events for the economy.
Canadian Breast Cancer Foundation. They have a number of In Canada, as in the U.S., our corporate sector continues to
ways to participate. I chose to support the CIBC Run for the generate good profit growth. Stable or higher commodity
Cure. My friends and family fully supported my endeavors. For prices, particularly for oil, have improved future prospects
the Run, I become involved in the Committee for York Region
for the very important energy sector. The steady recovery in
and I also decided to participate in the Run. I trained through
the US should also provide a lift for the Canadian economy.
the Running Room to actually run the 5K. Not being a runner
The Canadian financial sector remains in excellent shape
this was a totally new experience and a challenge. We set some
fundraising goals for the team and rallied around meeting the
and housing starts and sales have continued to be strong
target. I have been doing this now for 4 years and every year it despite the tightening of new mortgage rules.
brings forward the importance of being involved. I have also
become involved in other events such the Yard Sale for the Cure
and their Pink Bus Tour.
My husband volunteers his time for the Run as well. He works
with a group of people to manage the logistics on the day itself.
He was also a Big Brother when he was younger and now
volunteers by organizing the Annual Big Brothers Big Sisters
Golf tournament. As a result of his involvement he was asked to
join the Board of Directors to assist in growing their fundraising
initiatives.
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PERSPECTIVES:
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Unfortunately the tendency of financial markets to be The level of involvement is dependent on how much time you
driven by psychology is still with us. Despite the fact that wish to dedicate to the organization. It can be as little or as much
the fears that drove down equity markets a number of times as you want. Our experience has been that you will be welcomed
in the last two years have not materialized, the markets are to join the organization and starting out as a volunteer is a great
still prone to periods of selling panic. Thus a sell strategy entry point.
has profited the short sellers, and as long as this practice is How has philanthropy benefitted yourself?
profitable they will continue to reinforce any market decline.
We met a new group of people who broadened our perspectives
and made us feel that our contributions made a difference. As
an example, when I participated in the Run for the Cure, I met
many survivors of the disease, researchers, corporate partners
as well as media supporters. For my husband, he has had the
opportunity to connect with many organizations within our local
community e.g. Schools, Corporate Sponsors, Government: all
of whom participate in supporting the Big Brothers Big Sisters
with their programs.
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the street. However, the response of local residents to the emergency was
equally impressive. When a call went out for volunteers to help with the YEAR ENDTAX
cleanup in Calgary, thousands of people turned out to fill 600 spots. Donations PLANNINGTIPS
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ranged from vehicles and lodging to child-care and laundry services. As the
gravity of the situation in High River became evident, teams of volunteers
were bussed from surrounding communities to assist residents such as
the elderly who were literally stranded in their own homes; unable to cope Old Age Security (OAS) benefits
with the cleanup. Such were the efforts of volunteers during the flood that If you turned 65 in 2013 and have not yet
the Governor-Generals office recently announced the surprising award of applied for OAS benefits, you should do
commendation to the entire City of Calgary and surrounding communities.. so as soon as possible since retroactive
Companies like Suncor made major cash donations to flood relief efforts, payment of benefits is limited. You must
but specialized pumping equipment and vacuum trucks provided the meet certain residency requirements to be
biggest, immediate assistance during the emergency as the industrys fleet eligible for the benefits and OAS payments
of vehicles was diverted to assist with the cleanup. are clawed back (reduced or eliminated) if
your net income exceeds $70,954 in 2013.
Wildlife officials and enthusiasts resorted to the unusual task of recovering
fish stranded in pools on city streets and parks to limit the damage.
The Flood of 2013 will be remembered for the terrible damage to the
provinces infrastructure, but what will remain with me is the tremendous
efforts of individuals and organizations to combat the emergency. Although
many residents in flood prone areas still face a difficult decision to rebuild
or relocate, the outpouring of private resources has greatly helped to
bridge flood victims over the initial disaster. It is often difficult to find the
silver lining in a situation like this, however in this case unparalleled acts of
unselfishness and sense of community will have a greater positive impact 3. Review asset allocation
than the economic devastation of the flood itself.
Investment income can be taxed in different
ways, depending on the type of income (e.g.
interest, Canadian dividends, or capital gains),
and the type of account in which investments
are held (non-registered or registered). Year
end is an excellent time to review the types of
investments that you hold, and the accounts
in which you hold them.
Jerry A. Olynuk, LL.B, CFP, CFA If you are planning a TFSA withdrawal in
Senior Vice-President & Portfolio Manager early 2014, consider withdrawing the funds
by December 31, 2013, so you do not have to
wait until 2015 to re-contribute that amount.
The Solemn Land (photo on page 6)
By: J. E. H. MacDonald OfThe Group of Seven 4. Contribute to an RESP & RDSP
MacDonald, one of Canadas outstanding artists, Registered Education Savings Plans
lived in Thornhill from 1913-1932. Born in Durham, (RESPs)
England, of Canadian parents, he came with his December is also the deadline for making
family to Hamilton in 1887. Though his formal art contributions to a Registered Education
training was limited, he became one of the founders
Savings Plan (RESP). The first $2,500 of the
of the Group of Seven and participated in most of its exhibitions.
annual RESP contribution per child qualifies
In 1929 he was appointed Principal of the Ontario College of Art, a
for the 20% Canadian Education Savings
position he held until his death. His extraordinary sense of colour
Grant a $500 freebie you wont want to miss
and design vividly interpreted the Canadian landscape in such
out on.
outstanding paintings as The Elements, The Solemn Land and
Mountain Snowfall, Lake Oesa. (CONTINUED ON PAGE 8)
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7 Questions to Ask
Before You Die
by Tom Deans
Deans publication is more a gift than
Registered Disability Savings Plans (RDSPs)
a book, or maybe a gift wrapped in a book.
If your child has a disability, you may be allowed to Adjectives that come to mind are progressive, emotionally
establish a Registered Disability Saving Plan (RDSP). intelligent, sensitive, loving, helpful, and enlightened.
Like RESPs, contributions to RDSPs will not be tax-
We all recognize the complexity of family relationships under
deductible, but investment income can be earned in the the best of circumstances. Deans book provides the foundation
plan tax-free. Investment income, but not contributions, for revealing a critical element to a happy life and a healthy,
will be taxable to the beneficiary when it is paid out of the intentional way of looking at our relationship to money. Wealth
RDSP - up to $200,000 and its pursuit is for many people a defining element in their
life. (i.e. no money, not enough money, too much money). Each
5. Ensure certain payments made by of these wealth circumstances brings its own forms of gift and
December 31st suffering. This suffering can be no more acute than at the time
of a family death and the revealing of wills. Deans presents ideas
Medical expenses, charitable donations, political that ask us to re-assess and better understand the role of money
contributions, moving expenses, child care, certain child in our lives and its impact on the health of our family system.
and spousal support payments, union and professional
membership dues, tuition fees, interest on student loans,
safety deposit box fees, prescribed interest payments
on spousal loans and investment counsel fees should
be paid before December 31, 2013. To ensure that all
appropriate paperwork is in place, target November 30th
as your completion date.
If you own a business, Tim Laceby, CA, CPA of DNTW
Toronto suggests that If your year end is approaching The team at Northland
and you are considering acquiring new equipment for your Wealth Management would
business, purchasing it towards the business year end like to congratulate Victor
will generally accelerate your depreciation tax deduction. Kuntzevitsky on his recent
The personal tax rates on small business dividends are passing of the Level 1 Exam
going up in 2014. If your compensation for 2014 will include of the Chartered Financial
dividends from your small business corporation, consider Analyst (CFA) program. This is
taking the dividend this year to pay less personal tax on a significant accomplishment
the dividend. given that only 38% of those
writing this worldwide exam in June received a
There is no silver bullet to avoid income taxes, however
passing grade. The CFA Program has become the
there are many simple strategies Canadians can employ
gold standard of professionalism in the financial
to either defer or reduce income tax payable. To discuss
and investment communities.
your personal situation further contact our office or your
accounting professional.
The information provided in this newsletter is for informational purposes only and 8965 Woodbine Avenue, Markham, Ontario L3R 0J9
should not be used as investment or tax advice. For investment advice tailored to 508 24 Ave S.W., Suite 300 Calgary, Alberta T2S 0K4
your specific situation and investment objectives, please contact a Northland Wealth
(888) 760-6596 (NLWM) | www.northlandwealth.com
Management professional.
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