Claiming Medical Expenses: Free Healthcare?

Free Health Care? Did you know that Canadians spend on average more than $1,000 on medical expenses each year? It’s estimated that government programs, via our taxes, cover about 72% of medical expenses, which means that we pay for the rest. Your clients may be over-paying on their taxes because they don’t know about medical expense deductions. 

Jean Boivin, Deputy Governor of the Bank of Canada delivered an interesting speech to the Canadian Association for Business Economics on August 23, asserting that how people form expectations is important when it comes to monetary policy, and ultimately, responsible financial decision-making. Tax and financial advisors should take note, as they have a direct role in influencing those expectations with professional strategies, processes and procedures. "Economic outcomes are the result of people's collective decisions,î said Mr. Boivin, "and these decisions depend on how people think and what they expect the future to bring.î Those expectations are crucial, because they allow people to think long term. Since the inception of the Bank's inflation-targeting regime, for example, "well-anchored inflation expectations . . . have led to a better allocation of economic and financial resources and a more stable economy overall.î He concludes that "effective communication and greater common knowledge can . . . make it possible to . . . make more informed decisions; and, ultimately, reach better outcomes. A better understanding of expectation formation and effective communications can positively reinforce each other. This is not only true for monetary policy, but for decision making in general. This speaks to a pro-active need for more, not less constructive communication between advisors and their clients in volatile times. To review the entire speech see: http://www.bankofcanada.ca/2011/08/speeches/how-people-think/ Additional Educational Resources: Portfolio Construction for Real Wealth Management  

BC announced on August 26, it will reinstate the combined 12 per cent PST and GST tax system after its citizens voted to cancel the HST. An 18-month action plan was outlined for the transition process from HST to PST at 7%. The HST will remain in effect during that time, and the 5% GST system will also remain. Some of the transitional rules of note in the background information released include: The return of the funding received from the federal government for adopting the HST. Provincial PST transition rules to mirror federal HST transition rules will be developed. The provincial government will register approximately 100,000 businesses as tax collectors before the PST is re-implemented and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. By the time the PST is re-implemented, there will be an estimated 30,000 new businesses in B.C. with no PST experience. These businesses will need to be registered and provided with detailed information and training to enable them to comply with the tax law. Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government. For more information see: http://www.hstinbc.ca/moving-forward/ ADDITIONAL EDUCATION RESOURCE; Evergreen Explanatory Notes, Advanced Bookkeeping for Selected Business Profiles

                                    EXPLORE RECOVERY FROM VOLATILITY At The Distinguished Advisor Conference November 13-16 in Palm Springs Early Registration Opportunity Ends September 30 Winnipeg, Manitoba. The times are unprecedented but the opportunities to differentiate and do important work are rife. Join thought leaders and a multi-disciplinary advisor audience from across the ranks in the Canadian financial services November 13 to 16 at theDistinguished Advisor Conference to discuss family wealth management at a pivotal time in history:   "In times of great change, advisors have the opportunity to do great work.î says Evelyn Jacks, President, The Knowledge Bureau, founder and host of this event. "In fact, the opportunity to share knowledge, experience, and expertise in thoughtful collaboration is both important and required to move forward. That's what this Distinguished Advisor Conference is about.î The inter-advisory forum will explore new ways to navigate families towards their best possible financial outcomes within changing landscapes: "In times of great change, advisors have the opportunity to do great work.î says Evelyn Jacks, President, The Knowledge Bureau, founder and host of this event. "In fact, the times are unprecedented, which is why the experience, expertise and thoughtful collaboration by industry leaders is required to move forward. That's what this Distinguished Advisor Conference is about.î The inter-advisory forum will explore new ways to navigate families towards their best possible financial outcomes within changing landscapes: Eighteen influential speakers will take the stage to help advisors plan strategically to embrace the advantages of these significant times, build their teams with new competences and grow their practices with preparedness. There is still time to enrol at Early registration fee discounts until September 30. The event takes place at the Miramonte Resort and Spa in Palm Springs; detailed information is available by phone at 1-866-953-4769 or online at www.knowledgebureau.com/dac. Contact Knowledge Bureau for group rates for registrations and flights. Over 150 advisors are expected to arrive in this popular Canadian retirement destination to tackle issues that require management in volatile times: from the global economy to consumerism, debt, portfolio construction, domestic and international tax and retirement planning and persistent challenges to a family's required investment returns. Contact: Evelyn Jacks, President, evelyn@knowledgebureau.com  Agenda, Application Form  

In advance of anticipated recessionary times, disaster management requires that governments review the sustainability of important social programs like the Employment Insurance (EI). But will labor markets contract because of economic volatility or demographics? The reasons could make a difference in rate structure. Statistics Canada, released a study on August 17 which estimates that the labour force is projected to grow to between 20.5 million and 22.5 million by 2031. At the end of 2010, it was 18 million. In the interim, however, a significant slowdown in the rate of growth in the labour force is predicted, however, primarily because of the retirement of baby boomers. Between now and 2016, it is expected to slow to less than 1%, and it will stop its decline after 2026, when baby boomers will have left the marketplace. By 2031, about one in three people in the labour force could be foreign born, which points to the role of Canada's immigration policies in replacing the boomer workforece. How these trends impact the setting of EI rates and benefits is the subject of a series of national consultations, announced by the federal government on August 18. Certainly one of the objectives is not to impede a fragile economic recovery by increasing rates at this time. Yet a plan needs to be put into place to deal with the EI operating deficit, which is not expected to a cumulative positive balance until 2015. The government is requesting your thoughts on these three questions by November 30: ∑ What is a reasonable amount of time in which the EI program should be expected to break-even? (i.e., 2 years, 5 years, 10 years, etc.) ∑ What is an acceptable maximum annual change in EI premiums? ∑ What should be the rate-setting process? Related Document:   Employment Insurance Premium Rate Setting   Additional Educational Resources:    

  Evelyn Jacks, Your Money, Your Life   To read the latest blog entry by Evelyn Jacks: Cash Flow Plan: September 15 Instalment Can Be Avoided  

Canadian taxpayers and investors may be feeling a bit jittery about market volatility but Jim Flaherty, Minister of Finance, says we are in good shape, all things considered. He told the House of Commons Standing Committee on Finance last week that Canada is well positioned to face global economic challenges posed by challenges in the US and Europe. However, the global recovery is fragile, he said, and both governments and individuals need to manage potential fiscal challenges accordingly. While the news coming from the US is not greatóthat the country is in the midst of its weakest recovery since the Great Depression according to Bank of Canada Governor Mark CarneyóCanadians can direct efforts to prepare for a prolonged recovery period. Fiscal sustainability is fundamental, he warned, both at government levels, but also by households, citing that Canadians are as indebted today as Americans and the British. Financial advisors, therefore can take the lead with their clients to discuss debt and cash flow management sooner, rather than later. The Finance Minister, for his part, plans to update the economic and fiscal outlook for Canada later this fall, but in the meantime is committed to return to budgetary balance a year early, by 2014ñ15, through its deficit reduction action plan.     Additional Educational Resources: