Should Deposit Insurance Be Raised from $100,000?

The Canada Deposit Insurance Corporation’s (CDIC) deposit protection is automatically applied when investors deposit money with a member bank or credit unions.  The object is to protect depositors should a bank fail.  The good news?  There has not been a deposit insurance payout in almost 30 years.  But now the framework is under review and both advisors and their clients may wish to weigh in, in particular because the deposit insurance limit is currently only $100,000 in specific deposit categories. 

Does the Canadian economy have the resilience to compete through what is projected to be a prolonged economic downturn? Why does the answer matter so much? Because financial advisors, tax preparers, bookkeepers and others in the financial services are being challenged to bring new value to old roles.

Who will inherit the family business? What will it be worth when time for transition comes? Why is this issue so difficult to discuss? It’s important to engage your successful but soon-to-retire business owner clients in strategic planning now, especially if potential economic downturn is on the horizon.

In an increasingly global economy, more and more Canadians find themselves vacationing, owning property, and earning income in the U.S. If your client has financial stakes across the border, it’s important to know the tax implications associated with them. This can include cross border contract work and owning and renting vacation properties.

Don’t miss the opportunity to both plan with your high net worth clients, and weigh in with Finance Canada on two important tax changes proposed in the 2019 Federal Budget. The proposals impact employee stock options and annuities. To provide your views diarize the following deadlines and ensure you act soon: September 16 in the case of Employee Stock Option Plans and October 7 for the new annuity options.

Freedom 55 for Boomers? Unfortunately not.  Canada’s average age of retirement is on the rise. The average age across all retirees in Canada was 63.8, rising steadily from 63 years of age in 2014, according Statistics Canada*. Who is working longer – employed or self-employed people? The trends are interesting and speak to the need for proactive planning.

Will the current income inclusion rate of 50% for capital gains be increased to 75% after the next federal election? It’s an idea that’s been floated by at least one of the parties and a bad one at that, says the vast majority of KBR July poll respondents. Many are especially concerned about a lack of fairness, and a dire impact on the Canadian economy, and they had plenty to say about that.