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. 

As January 2009 is fast approaching, Tax-Free Savings accounts are often seen in the headlines or being advertised at your local bank. The new Tax-Free Savings Account (TFSA) is a registered account in which investment earning, including capital gains accumulate tax free. Taxpayers over the age of 17 may contribute up to $5,000 each year to such an account. If a taxpayer's contribution room is not used in one year it may be carried forward to the next year allowing for a larger contribution in that year. Unlike the RRSP, contributions to a TSFA do not result in an income tax deduction and withdrawals from a TFSA are not reported as income nor be included in income for any income-tested benefits, such as the Canada Child Tax Benefit or Goods and Services Tax Credit. The CRA will establish contribution room for all taxpayers on the basis of income tax returns filed. Taxpayers who do not file for a number of years may establish their contribution room by filing those returns. Some common questions regarding TFSAs are as follows: Q: Can a corporation hold a Tax Free Savings Account (TFSA)? A: Legislation provides that an individual (other than a trust) who is resident in Canada and 18 years of age or older would be eligible to establish a TFSA.  S. 248 of the Income Tax Act defines an individual as a person other than a corporation.  Thus, a corporation is not be eligible to establish a TFSA.   Q: What slips are associated with a TFSA? A: At this time the only form that has been provided for a TFSA is Form RC236 Application for a TFSA (Tax-Free Savings Account) Identification Number.  This form is for use by the issuers of a TFSA.  No forms have been announced for use by individuals. CRA has announced that it will provide taxpayers the amount of the available TFSA contribution room each year on their Notice of Assessment, based on information provided by the issuers of the TFSA.  CRA has also indicated that taxpayers will have to file returns in order to establish their contribution room. In addition, the CRA has provided details of the information that TFSA issuers must provide each year.  These details include: Name, date of birth, and Social Insurance Number of plan holder, TFSA Account Number, Details of each contribution, withdrawal, transfer in, and transfer out, Fair Market Value of the plan at December 31 of the taxation year. The deadline for the issuers to file their TFSA returns is 60 days after the end of the taxation year. Given that contributions are not deductible and withdrawals are not taxable, it may well be that there will be no reporting requirements by the individual plan holder.  However, CRA has not made its intention clear in this respect.  CRA has confirmed that there will not be a prescribed form for transfer of TFSA amounts between financial institutions. Q: Can a Flow-Through Limited Partnership be held within an RRSP? Within a TFSA? A: The same rules apply to an RRSP and TFSA.  There are no specific restrictions in the Income Tax Act for flow-through shares or limited partnerships that invest in flow-through shares from being held within an RRSP or TFSA, so long as they are listed on a prescribed stock exchange in Canada.  Typically, flow-through shares will not be publicly traded during the first 18-24 months and will then be rolled over into a mutual fund that is publicly traded.  During the period that the flow-through shares are not publicly traded, they are not eligible RRSP or TFSA investments. Caution should also be exercised when considering flow-through shares (or limited partnerships that invest in flow-through shares) in either an RRSP or a TFSA.  Since neither an RRSP nor a TFSA can benefit from the flow-through expenses, it may not make sense to purchase the flow-through shares in an RRSP or TFSA.  Investors may consider whether it is a good idea to transfer those shares or partnership units into their RRSP or TFSA after they have deducted the flow-through deductions.  If the shares are traded on a prescribed exchange, such a transfer will result in a deemed disposition for income tax purposes at the fair market value (FMV) of the shares.  The adjusted cost base of the shares will be zero so the entire FMV of the shares will be reported as a capital gain. If the shares or units increase in value the capital gain within the TFSA will be tax-free.  If they decrease in value, then the loss will not be deductible.  Given the tax-preferred treatment of capital gains, investors should consider whether a registered account is really the best place to hold such investments.  On the other hand if the investor feels that the investment will yield fully-taxable income, then the tax-free status of the TFSA or tax-deferred status of the RRSP may be beneficial.

For many Canadians, the filing of a personal income tax return is the most significant financial transaction of the year. In order the get the biggest bang for your buck when filing your personal tax return in 2009, it is important to know the various non-refundable tax credits that are available to you. In the October 30, 2007 Economic Statement, the minister announced changes to the basic personal amount, the amount for spouse or common-law partner and the amount for an eligible dependant. For 2007 and 2008, these amounts are set at $9,600. For 2009, these amounts are set at $10,100. The income threshold at which these amounts are reduced is set at zero. Definitions S. 118(1)(b) provides that a taxpayer who did not claim the Spouse or Common-law Partner Amount was not married or living common law or was married or living common law but did not live with a spouse or common-law partner and did not support or was not supported by a spouse or common-law partner and who supports and lives with a dependant in a home which the taxpayer maintains, may claim a specified amount for that dependant as a non-refundable tax credit against taxes payable. This credit was previously referred to as the "equivalent-to-spouse" credit, and is typically claimed by a single parent with whom a dependent child resides. Specified Amount The amount is identical to the Spouse or Common-Law Partner Amount. The claim is reduced by the dependant's net income for the year. The amounts prescribed in the Income Tax Act are indexed annually under S. 117.1 to reflect changes in the average consumer price index. However, these amounts have been set at $9,600 for 2007 and 2008 and at $10,100 for 2009. Filing Requirements Use Schedule 5 Details of Dependant to list the dependant and the claim being made; calculate the amount on the Federal Worksheet; and claim the amount on line 305 of Schedule 1 Federal Tax. Qualifying Dependants To qualify, the dependant must be a child, grandchild, brother, or sister of the taxpayerby blood, marriage, common-law partnership, or adoption, the taxpayer's parent or grandparent by blood, marriage, common-law partnership, or adoption or either under 18 years of age or wholly dependent on the taxpayer because of mental or physical infirmity. These qualifications need not be met throughout the year but must be met at some time during the year. S. 118(4) contains the following rules that apply to claiming the amount for an eligible dependant: S. 118(4)(a) - only one person can claim the Amount for Eligible Dependants in respect of the same dependant S. 118(4)(a.1) - no one may claim the Amount for Eligible Dependants if someone else is claiming the Amount for Spouse or Common-law Partner for that dependant S. 118(4)(b) - only one claim may be made for the Amount for Eligible Dependants for the same home. Where more than one taxpayer qualifies to make the claim, the taxpayers must agree who will make the claim or no one will be allowed to. S. 118(4)(c) - if a claim for the Amount for Eligible Dependants is made in respect of a dependant, no one may claim the Amount for Infirm Dependants or the Caregiver Amount in respect of the same dependant. In addition, S. 118(5) provides that no amount may be claimed by a person who is required to pay support to a spouse or common-law partner, or former spouse of common-law partner with respect to the person for whom the claim would be made. This provision applies where either the person lives separate and apart from the former spouse, or claims a deduction for spousal support. Example: Amount for an Eligible Dependant Issue: John and Joan separated during the year. They have two minor children, Jessie and Julie, who live two weeks a month with Joan and two weeks a month with John. Under federal guidelines, John is required to make monthly payments to Joan for the maintenance of the children. John and Joan agree that she will claim Jessie as a dependant and that John will claim Julie. Will this work? Answer: It will not. Joan is entitled to claim a credit for either Jessie or Julie as an eligible dependant, as she is married but not living with John, and she supports both children in the home she maintains. John also meets these tests, but he is required to make child maintenance payments to Joan and is therefore not eligible to claim the credit. Definition of Infirmity The term "infirm" is not defined in the Income Tax Act and CRA takes the position that the term takes on its ordinary meaning (see Appendix A of IT 513). The only guidance given is that the degree of the infirmity must be such that it requires the person to be dependent on the individual for a considerable period of time. Temporary illness is not classed as infirmity. Infirmity is not the same as disability. Death of a Taxpayer In the year of death, the Amount for Eligible Dependants may be claimed in full on the final return and on any of the optional returns filed for the deceased. Part-year Residents Part-year residents must pro-rate the Amount for Eligible Dependants under S. 118.91 according to the number of days they are resident in Canada divided by the number of days in the taxation year. Bankruptcy Where an individual becomes bankrupt in the year, the Amount for Eligible Dependants on the pre- and post-bankruptcy returns must be pro-rated according to the number of days in each period. Non-Residents Deemed residents may claim the Amount for Eligible Dependants. Non-residents filing under S. 217 may be eligible for some or all of the amount. Other non-residents filing under S. 216 or S. 216.1 may not claim the Amount for Eligible Dependants.   Subscribe to EverGreen Explanatory Notes for more information. Or attend The Knowledge Bureau's November Year End Tax Planning Workshop coming to a city near you November 14 to 21.

The status of federally regulated private pension plans has been a point of discussion for many people, as the large drop in equity markets has caused major funding deficiencies. Under current rules, the decline in market values would require many of the pension fund sponsors to make large contributions to these funds and this requirement could endanger the economic viability of those firms leading to job loss, or worse, bankruptcy. In a recent editorial in this publication, the problems faced by organizations who cannot meet pension funding requirements was discussed. The majority of Canadians are rightly concerned about the current market conditions and how this will impact their financial futures, in particular as it relates to their jobs, and the stability of their retirement savings. In light of these concerns, the Federal Government has proposed to extend the solvency funding payment schedule to 10 years from the current time, for solvency deficiencies determined as of December 31, 2008. These extensions will be subject to certain conditions: both members and retirees would need to agree to the extended schedule alternatively, the difference between the 5- and 10-year payment schedule would need to be secured by a letter of credit. Either one of these two conditions would need to be met by December 31, 2009 for the extension to be granted. If neither were secured by the end of 2009, the plan would be required to fund the deficiency over the following 5 years. Note that the structure and requirements for solvency funding will be the subject of consultations in 2009 for the purpose of reviewing the Pension Benefits Standards Act, 1985 and the changes required to the funding framework required by law to address the issues facing defined benefit and defined contribution pensions. FOR THE MOST UP-TO-DATE FISCAL AND TAX NEWS AFFECTING CANADIANS AND THEIR ADVISORS ENROL IN EVERGREEN EXPLANATORY NOTES.

Budget surpluses will disappear, real GDP growth will stagnate but then recover nicely by 2010 and both inflation and interest rates will drop in 2009 according to this economic update. The Canadian dollar is expected to recover to exceed its 2008 level as well, by 2011. In fact, the private sector forecasts, shown below are indicative of a full recovery in a couple of years, as per the chart below. That's significantly good news. Average Private Sector Forecasts: November 27, 2008 Economic Statement, Canada Average 2008 2009 2010 2011ñ13 (per cent, unless otherwise indicated) Real GDP growth February 2008 budget 1.7 2.4 2.9 2.6 November 2008 Economic and Fiscal Statement 0.6 0.3 2.6 2.9 GDP inflation February 2008 budget 1.8 1.9 1.8 1.6 November 2008 Economic and Fiscal Statement 3.8 0.5 1.8 2.2 Nominal GDP growth February 2008 budget 3.5 4.3 4.7 4.2 November 2008 Economic and Fiscal Statement 4.4 0.8 4.4 5.1 Nominal GDP level (billions of dollars) February 2008 budget1 1,590 1,659 1,738 1,890 November 2008 Economic and Fiscal Statement 1,603 1,615 1,687 1,870 3-month treasury bill rate February 2008 budget 3.2 3.8 4.5 4.5 November 2008 Economic and Fiscal Statement 2.4 1.9 2.7 4.2 10-year government bond rate February 2008 budget 3.6 4.2 4.8 5.0 November 2008 Economic and Fiscal Statement 3.7 3.7 4.2 5.0 Consumer Price Index (CPI) inflation February 2008 budget 1.5 1.9 2.0 2.1 November 2008 Economic and Fiscal Statement 2.6 1.7 1.9 2.1 Oil price level (US dollars per barrel) February 2008 budget 82.1 79.8 82.3 77.5 November 2008 Economic and Fiscal Statement 102.5 72.0 79.0 91.1 Exchange rate (US cents/C$) February 2008 budget 98.0 95.5 95.5 96.2 November 2008 Economic and Fiscal Statement 94.9 85.6 88.7 95.8 Unemployment rate February 2008 budget 6.3 6.4 6.2 6.0 November 2008 Economic and Fiscal Statement 6.1 6.9 6.7 6.2 U.S. real GDP growth February 2008 budget 1.5 2.4 3.0 2.7 November 2008 Economic and Fiscal Statement 1.4 -0.4 2.1 3.0 1 Nominal GDP levels have been adjusted to reflect 2008 revisions to Canada's National Income and Expenditure Accounts.Source: Department of Finance survey of private sector forecasters. Risks and Uncertainties The government reports that since the February 26, 2008 Federal Budget, revised projects have reduced revenues and certain expenses. These figures provide an important glimpse at the fallout expected from the financial crisis. Revenues are now projected to be $3.2 billion lower in 2008ñ09 and $8.9billion lower in 2009ñ10, citing the following reasons: ìThe downward revisions reflect both the weaker-than-expected 2007ñ08 results and the weaker economic outlook. The downward revisions in 2008ñ09 are driven by revisions to the corporate income tax forecast. For 2009ñ10, all major revenue streams have been revised down, reflecting the weaker economic outlook.î On the good news side, total program expenses are also expected to be lower in 2008ñ09 than projected in Budget 2008, largely as a result of lower-than-expected direct program expenses. However, in 2009ñ10, program expenses are higher than projected as it is anticipated there will be increased Employment Insurance costsóindicating more job losses are to comeóand elderly benefits. Equalization costs to provinces will also be higher than projected in the budget. Revenue Outlook as per the November 27, 2008 Economic Statement: Actual Projection 2007ñ2008 2008ñ2009 2009ñ2010 2010ñ2011 2011ñ2012 2012ñ2013 2013ñ2014 (millions of dollars) Tax revenues Income tax Personal income tax 113,063 118,685 121,460 127,365 135,445 143,290 151,330 Corporate income tax 40,628 34,080 33,090 35,390 35,750 36,765 38,950 Other income tax 5,693 5,815 5,525 6,015 6,220 6,510 6,860 Total income tax 159,384 158,580 160,070 168,770 177,410 186,560 197,145 Excise taxes/duties Goods and services tax 29,920 26,840 27,640 29,060 30,485 31,895 33,465 Customs import duties 3,903 4,200 4,355 4,640 4,940 5,240 5,530 Other excise taxes/duties 10,384 10,770 10,520 10,230 10,095 10,285 10,225 Total excise taxes/duties 44,207 41,815 42,520 43,930 45,520 47,420 49,220 Total tax revenues 203,591 200,395 202,590 212,700 222,930 233,980 246,365 Employment Insurance premium revenues 16,558 16,500 17,350 17,675 17,670 18,110 18,690 Other revenues 22,271 22,135 28,550 28,525 30,340 31,840 32,205 Total budgetary revenues 242,420 239,030 248,490 258,895 270,940 283,930 297,260 Per cent of GDP Personal income tax 7.4 7.4 7.5 7.5 7.6 7.7 7.7 Corporate income tax 2.6 2.1 2.0 2.1 2.0 2.0 2.0 Goods and services tax 1.9 1.7 1.7 1.7 1.7 1.7 1.7 Total tax revenues 13.3 12.5 12.5 12.6 12.5 12.5 12.6 Employment Insurance premium revenues 1.1 1.0 1.1 1.0 1.0 1.0 1.0 Other revenues 1.5 1.4 1.8 1.7 1.7 1.7 1.6 Total 15.8 14.9 15.4 15.3 15.2 15.2 15.2 Total absent Insured Mortgage Purchase Program 15.8 14.9 15.2 15.2 15.1 15.0 15.0 Note: Totals may not add due to rounding. The revised fiscal outlook confirms the disappearance of budgetary surpluses: Summary of Changes in the Fiscal Outlook Since the February 2008 Budget Actual Projection 2007ñ08 2008ñ09 2009ñ10 (billions of dollars) February 2008 budget underlying surplus 10.2 2.3 1.3 Impact of economic and fiscal developments Budgetary revenues Personal income tax 0.5 0.3 -4.0 Corporate income tax -1.8 -2.8 -3.5 Other income tax -0.2 -0.1 -0.6 Goods and services tax -0.8 -0.7 -1.2 Other revenues 0.1 0.0 0.4 Total revenues -2.1 -3.2 -8.9 Program expenses1 Major transfers to persons 0.1 -0.4 -1.2 Major transfers to other levels of government2 -0.4 -0.1 -0.4 Direct program expenses 2.0 1.3 0.4 Total program expenses 1.7 0.9 -1.1 Public debt charges -0.2 0.2 2.8 Total economic and fiscal developments -0.6 -2.1 -7.2 Impact of actions in this Statement 0.6 6.0 Revised surplus 9.6 0.8 0.1 Note: Totals may not add due to rounding.1 A positive number implies a decrease in spending and an improvement in the budgetary balance. A negative number implies an increase in spending and a deterioration in the budgetary balance.2 Includes putting Equalization on a sustainable growth path.

Monterey, CA. The 5th Annual Distinguished Advisor Conference wrapped up in Monterey, California yesterday, providing over 120 attendees from the financial services across Canada the opportunity to discuss the leading issues in real wealth management, under the theme: Transitioning: The Path to Reciprocity. With a future that includes a new president, the potential for recession, inflation, currency fluctuation, interest rate crunches, debt management, and stagnant global growth rates, issues relating to the needs of boomers and their powerful offspring to diversify risk were discussed in detail. "At this critical juncture in the financial markets, and in global political and economic history, The Knowledge Bureau's Distinguished Advisor Conference again empowered its delegates to lead in their communities with new strategic knowledge for running their practices and serving their clients," said Evelyn Jacks, President and Founder of The Knowledge Bureau and the Distinguished Advisor Conference. "I feel recharged and invigorated," said financial advisor Andy Watson. Against a spectacular backdrop of sea and sealife, all the speakers at the conference were highly rated. Diana Moore for example, found Richard Facia who spoke about Planned Giving with Insurance, knowledgeable and interesting. "Richard was able to drill a very difficult topic down to the specifics that we can use in our practices," noted accountant Margaret Hodgson. Many new business building ideas came out of the presentations. Jordy Chilcott and Terri Williams from Dynamic Funds provided an upbeat and effective presentation which developed an effective meeting framework for advisors' work with transitioning boomer clients, using focused listening skills for crucial conversations. Doug Nelson wowed the audience with his tax-efficient retirement income strategies which elicited a "top notch," rating by veteran financial advisor Bernie Krueckl. Richard Croft covered portfolio construction with TFSAs and Chris Enright updated the audience on new client relationship principals under the OSC's National Instrument 31-103. "Chris made compliance easy to understand," noted Laura Thompson. Technical information, meanwhile was cutting edge and specific to issues of concern to boomers in turbulent times. Dr. Jack Mintz helped advisors look into the future by sharing economic and tax policies to look for in a future uncertain world, while providing data on regional employment and investment growth of significance to Canadians. He urged the audience to address plans to manage higher inflation as a factor in future years. Paul DeSousa expanded on inflation as a real threat to the wealth of the boomer demographic. Advisor Ken Sloan found Paul DeSousa's speech on hedging against inflation "clear and hard-hitting advice", while Grant McPhail found Dr. Jack Mintz's review of the current economic state to be especially informative: "strong knowledge, well-rounded opinions were appreciated". Vancouver-based Maureen Carse agreed, adding "key issues were presented well and objectively structured". Lawyer John Poyser, in the meantime, taught the audience comprised of tax and financial advisors, how to broach the significant topics of passing on the family cottage by organizing family conferences, understanding tax consequences and suggesting a review of wills and estate plans. Larry Frostiak, FCA, meanwhile taught structure around tax efficient strategic philanthropy, while Peter Christianson of Mineral Fields filled in the blanks with the use of flow through shares in tax efficient planning. International speaker Merge Gupta-Sunderji tackled the Millennialsóthose between 14 and 28 years oldówho appear to be creating havoc and frustration within the workplace. Six key strategies for working more effectively with this generation were offered in a high energy presentation, including how to take advantage of their questioning and impatient nature, and how to tap into their techno-knowledge. Once employers can understand the triggers that motivate these extremely bright and savvy people, they will find extremely loyal clients and employees: important for the retention of wealth for boomer families and the growth of the practices of participating advisors. Attendees were treated to a wine tasting featuring outstanding selections from Sheid Vineyards, while discussing the challenges facing couples who have differing view of retirement with Dr. Terry Colton and Erika Penner, MFA. The lively session was couple with outstanding food and camaraderie. Aegon's Enzo Calamo closed the conference with his inspirational speech on Purposeful Wealth: "a superb message, eloquently delivered and thought-provoking," said financial advisor Ken Wilson. Highlights from some of the significant sessions are found in this special report. Look for The Distinguished Advisor Report 2008; a full report, to be available at knowledgebureau.com by mid November. Reserve your copy, which will be forwarded by email link, by clicking here: Yes! I want to reserve my copy of the DAC Full Report 2008. Send me more information. For information on DAC 2009 and its theme Leadership and Opportunity in Turbulent Times, as well as photos of the DAC 2008 experience, see knowledgebureau.com/dac. DAC Highlights: Stewardship in Crisis: New Practices must move away from Salesmanship - Mick Kelly The day began with a powerful presentation by Mick Kelly, Vice President Sales, Retail Markets, at Standard Life. Mick matter-of-factly noted that the wealth of Boomers and the Advisors who serve them are in jeopardy, and that preparedness as an advisor will provide the stewardship clients need, and want, now more than ever. In fact, he noted, practices that move away from salesmanship and towards stewardship will be successful in turbulent times. Exploring the anatomy of the current market crisis, Mick spoke of the now drastically changed industry and financial landscape that advisors will be working in, and noting examples of Merrill Lynch, Lehman Brothers and more, demonstrated why size is essentially irrelevant in a strong business model. Recommending a review of advisor business and marketing plans was essential to this new marketplace, Mick summoned the large audience to question whether their practice could be or is in danger. He then skillfully went on to explore strategic action plans for advisors, framing them all in the reality principle; "Doing with things as they are, not as you would like them to be". Mick walked the audience through an intriguing analysis of Maslow's Hierarchy of Needs for people versus those of companies and then clients. The foundations of trust, security, and functional utility were noted as the basis upon which advisors needed to build their practice, and then and only then, could they move on to other factors of cost, value, convenience, association and image. Coming away from the impactful session, a striking case was made for advisors to move their practices from that of salesmanship to stewardship. The less time advisors spend talking about money with their clients, Mick noted, the more they could build the fundamental depth, trust and security in their long-term relationships and practice. Nelson Reworks Retirement Planning - Doug Nelson, KB Faculty The #1 question of pre-retiring boomers is this: "Will I have enough money to retire?" Yet, we know that those who are most happy in retirement have found a balance between their "health", their "relationships" as well as their "finances". Those individuals who place too much of an emphasis on "finances" risk negatively impacting their "health" and their "relationships". With this in mind, it is timely for advisors to begin to focus on "peace of mind" in retirement. Due to the extremely high volatility in the stock market, "peace of mind" is something hard to come by in the investment world. So why fight it? Why not find a way to provide "peace of mind". This can be done in several ways: By ensuring the overall income plan is tax efficient, you may find that you are able to increase take home income simply by reducing taxes, reducing clawbacks or increasing tax credits. By breaking apart the client's monthly income into those areas that are "basic income needs" vs. "enhanced lifestyle wants" the client is able to see what they would need to live on as a minimum. Then, by ensuring that their "basic income needs" are covered by "guaranteed sources of income" you are able to provide this peace of mind. It is also critical to be able to "quantify" the client's "new" tolerance for risk now that they are retired. By "quantifying" the client's financial risk tolerance, we must now demonstrate the "risk profile" of the portfolio. Finally, to ensure you are making decisions today that will NOT unduly impact the "efficient tax return" tomorrow it is critical to project income three to four years in the future on a rolling 1 year basis.   Ruta Helps Advisors Influence Wealth - Jim Ruta, KB Faculty   The truth today is that only Expertise and Experience will influence your audience today. This is why one of the major changes in models is the necessity of an expert team if you want to get all your clients business. Time was you could pretend you did it all. Today, you do not have that opportunity if you expect to be a client's most trusted advisor (MTA). MTAs are advisors who can quarterback a client's portfolio needs and take them far beyond just the financials. There are live value issues today that the new advisor must know if they want to be top of the list for who to call. New Model advisors are "Super Advisors" in the sense that they must not only combine the best of necessary hard skills (technical knowledge) with premier soft skills (communication and persuasion) but also have deep knowledge of the audience. You'll learn how to redefine your role in the life of your client. Super Advisors take a holistic view of their clients but do not take on the whole project themselves. They quarterback the necessary specialists to get the job done right for the client. They do so with a good understanding of the client's whole financial, business and family situation so every piece not only fits, but it fits well. Chilcott and Williams Teach Solutions by Listening - Jordy Chilcott and Terri Williams Financial advisors are currently under pressure from both their dealers and their clients to offer more. Dynamic Funds conducted investor research last summer with a segment of higher net worth investors. We asked them what the gaps were with respect to their relationship with their financial advisor. The research revealed a few key issues: Some advisors overlook key facts about their clients. Some advisors "miss the person", but get the numbers. Trust & advice have limits. The Diagnostic Selling process is all about asking the right questions, knowing those questions ahead of time and being a good listener. It involves a step-by-step structure for all your meetings so that you know exactly what each meeting should look like and you aren't struggling for the next question as you are trying to listen to your client. It's not rocket science. Diagnostic Selling is simply structuring your client meetings to be about the client ñ not about you. Finding out what their hopes and dreams and financial needs are helps you become more equipped to provide better and more advice and services. DeSousa Covers Inflation-Proofing - Paul DeSousa There are three keys to preserving investor wealth in today's economic environment. The first is to increase portfolio diversification by adding other asset classes. The second is to understand the true measure of inflation and fully hedge against it. The third is to recognize where we are in the investment cycle so as to take advantage of key opportunities that present themselves every 15-20 years. The three keys to preserving wealth during this period are: add other asset classes to your portfolio; understand true inflation; and recognize where we are in the investment cycle. Bullion preserves wealth in both deflationary and inflationary cycles. A 10% to 15% allocation into precious metals bullion not only diversifies, but adds assets that keep their value because they are unaffected by an unlimited supply of continually depreciating printed money from the world's Central Banks. The investment cycle, as indicated by the Dow:Gold ratio, is telling us to be overweight precious metals because true inflation is not only rising, but is already substantially higher than officially reported numbers suggest. Elkins Helps Advisors Manage Charitable Donations - Nicola Elkins Winston Churchill once said "we make a living by what we get, but we make a life by what we give." In today's socially conscious and closely connected world, Churchill's old observation has acquired new relevance. Canadians are wealthier than ever before, and, whether driven by the desire to make a difference, leave a legacy, or help a new generation build for tomorrow, they are giving that wealth back to their communities ñ in gifts of their time, knowledge, influence and increasingly, in cold hard cash. Investment advisors who work with charitable foundations form deeper, more loyal client relationships, expand their suite of expertise and offerings to high net worth investors interested in philanthropy, experience enhanced asset retention and enjoy a higher, and more positive, community profile. And charities themselves receive more and more contributions, spread out over time, bringing greater stability and allowing more long-term planning. Rarely has there been such a winning combination in Canada's long history of investment products. So expect investment advisors to be busier than ever in the next few years supporting the arts, promoting global health or building opportunity for underprivileged kids. Because that's exactly what happens when you help bring charities and well-meaning ñ and wealthy ó investors together. Frostiak Gets Technical on Strategic Philanthropy - Larry Frostiak Have your clients considered charitable giving as part of their estate plan? The key concepts for advisors to consider are the tax aspects of charitable giving, recognizing opportunities and how to integrate them with your client's affairs and the ability to advise and implement strategies for your client. Recognizing opportunities to give ó understanding your clients and recognizing their tax situation (personal and corporate) will give you insight into the optimal tax time for them to make such a gift. You will be able to demonstrate that the tax effectiveness of doing so can serve to reduce their taxes while creating a lasting legacy for charity in their name. There are obviously a number of "tax efficient philanthropic" alternatives and varying issues which will occur between personal and corporate gifts. There are many reasons to give generously and during one's lifetime. Learn how the donation of shares to registered charities, and private foundations, and other gifts in kind, can work wonders in achieving significant tax advantages, while facilitating, concrete planned giving strategies for your clients. Gray Shows Advisors How to Speak Like Leaders - Jim Gray, KB Faculty The past year has been challenging for financial advisors everywhere. It's during times like these when communication takes on even more importance, more urgency.Market conditions aside, an increasing number of advisors are seeking to expand their relationships with key clients, moving from the merely transactional to more complete affiliations. Strong communication is essential to making that transition. Here are the seven keys that Jim Gray covers in "How Leaders Speak": Tell a story Start slowly Be certain Be authentic Employ repetition Be in the moment Put technology in its place Increasingly, smart speakers who feel the need to use PowerPoint and its relations are creating two versions of their presentations ñ a clean, concise deck they deliver from, and a handout copy, organized under the same headings, that includes more detailed material. They've learned it's impossible to speak effectively from a deck smothered in information. Of course, many still try. Clearly, they're not communicating like leaders. Merge Focuses on the Millennials - Merge Gupta-Sunderji In order to work more effectively with Millennials (defined as born between 1980 and 1994, they are also often referred to as Generation Y), it makes sense to first understand the influences and environment that created them. These are the young adults whose childhoods were completely scheduled ñ they were registered for baseball camp, signed up for karate club, and enrolled in dance lessons ñ leaving no unstructured free time in which to get bored. For the most part, their parents were "helicopter" parents ñ adults who "hovered" and were actively involved in every aspect of their children's lives. Whether it was grades, hockey ice time, or visiting college campuses, they could count on Mom and Dad to step in and ensure that they were treated well. This is the first generation to grow up surrounded by digital media, and so as you might expect, they are heavily influenced by the Internet. They've grown up with the ability to link up with people anywhere in the world, so they see the globe as one connected world, and they definitely see it as open for business 24/7. If you can understand how to tap into what makes each individual tick, you will discover that Millennials can be very committed, and then you can help your clients do the same. So how can you tap into this potential? Here are six ideas. Change how you view them. Give them variety and flexibility. State your expectations about results. Praise them. Constantly. Take advantage of their questioning and impatient nature. Tap into their techno-knowledge. Take the time to learn more about these young people ñ not only are they your future customers; they are also your future employees and the employees of the companies that you choose to do business with.

Media Passes Available: Contact The Knowledge Bureau toll free: 1-866-953-4769. Investors and taxpayers will be looking around every corner for help with debt management this year. The tax system may in fact be the best place to look for new cash flow to shore up over-leveraged assets. The Knowledge Bureau will be presenting two nationwide, day long, educational workshops to discuss issues and strategies. The first, this November highlights year end tax planning opportunities in light of the unprecedented events in the financial markets, as well as new investment opportunities. The second, in January, will overview the latest tax changes and discuss in detail, the tax consequences of personal, investment and business debt management. The dates are: November Year End Tax Planning Update - November 14 - 21 January 2009 Line by Line Tax Update and Debt Management Workshop - January 9 to 16 November Year End Tax Planning Update Nationwide Workshop Tour Dates and Venues Date City Venue Location November 14 Winnipeg The Manitoba Club 194 Broadway November 17 Toronto East Crowne Plaza Don Valley 1250 Eglington Avenue EToronto, ON M3C 1J3 November 18 Toronto West Crowne Plaza Hotel Toronto Airport 33 Carlson CourtToronto, ON M9W 6H5 November 19 Calgary Carriage House Inn 9030 Macleod Trail SouthCalgary, AB November 20 Vancouver Terminal City Club 837 West Hastings Street November 21 Edmonton Four Points by Sheraton Edmonton South 7230 Argyle Road Register Now   Date City Venue Location January 9 Winnipeg The Manitoba Club 194 Broadway January 12 Toronto East Crowne Plaza Don Valley 1250 Eglington Avenue EToronto, ON M3C 1J3 January 13 Toronto West Crowne Plaza Hotel Toronto Airport 33 Carlson CourtToronto, ON M9W 6H5 January 14 Calgary Carriage House Inn 9030 Macleod Trail SouthCalgary, AB January 15 Vancouver Terminal City Club 837 West Hastings Street January 16 Edmonton Four Points by Sheraton Edmonton South 7230 Argyle Road Register Now