June 2024
Summer is here! We hope that you have had a great start to the summer and that you continue to enjoy all of the things that summer has to offer, such as; time spent outdoors, BBQs, and of course that extra dose of Vitamin D!
Around the Office:
Please contact our office if any of your information needs to be updated.
On the administrative side, Declan has been working with Keith from start to finish on clients’ Annual Reviews. He has also been dedicating time to focus on the administrative side of moving to Fee-Based Portfolios and ensuring that portfolios are rebalanced and remain within their investment objectives. This is important as we want to ensure that clients’ investment objectives stay within their desired threshold. When portfolios vary beyond a desired threshold, it may introduce an undesired risk.
Declan has been enjoying the warm weather by spending his free time out on the golf course or away with family.
Roman recently was certified as a Certified Executor Advisor by the Canadian Institute of Certified Executor Advisors further demonstrating that he and his team have more to offer his clients.
With this, we have a new addition to our office. We would like to introduce you to Anna S. Wacyk-Groch, Roman’s spouse, who will be assisting Roman and his team. Her focus will be non-financial - an ice breaker to client meetings sharing her experience as a physiotherapist, and the challenges she faced with regards to her mother and her decision to start her new Lifestyle path.
Anna, along with Roman, recently attended the EPC Conference in Niagara Falls. While attending this conference with Anna, Roman came to realize that although he was trying to slow down, he had more to offer to his clients and that the industry seemed to be more focused on the reduction of costs and increase of revenues rather than getting to know the client better. Based on the information presented at the conference, Roman realized with the help of Anna, there was more that could be offered to his clients.
Anna brings to the table 31 years of Physiotherapy experience plus her own personal experiences which include the taking care of her aging mother, dealing with her mother’s medical challenges, the LHIN, long term care residency, and recently, her mother’s death. She has also had a change in her lifestyle; she has moved into her new lifestyle of retirement and is now helping Roman to share her experiences with his clients. Anna is a firm believer in maintaining a healthy lifestyle; she remains physically active through weight training and long walks. She looks forward to returning to her hobbies such as producing artwork, gardening and Ukrainian crafting, just to name a few.
Though it was rumored that Roman is “Retiring”, this is further than the truth. The goal now for Roman is to be more engaged with his clients and hence the introduction of Anna to his Team. In order for Roman to be productive and not busier with his clients, some requirements have been set for any new clients. Please call our office to discuss with Kristin the opportunity of becoming a new client of Roman and his Team.
Roman, Kristin and Anna are looking forward to bringing our services to our clients to the next higher level.
Reminder - Daily Office Staff Meetings - 9:30am to 10:30am
Should you call during this period, please leave us a message on our voicemail. We conduct our daily office meeting during this time and phones will not be answered. This time allows us to organize our day’s tasks, review the previous day’s work, discuss, and complete client reviews and enquiries, as well as review current rates, markets and updates on the latest news.
Annual Reviews
As a reminder, every year we prepare an Annual Review for each of our clients. This is an important process to ensure we are up-to-date with the most current information, as well as ensuring your information is accurate and meeting your Financial Lifestyle needs. Preparing your review involves a detailed process that not only has us look back on the past year but also look at the upcoming year for potential needs that might arise and ensuring client files are up to date and accurate. Spending the time to go over your entire portfolio is even more important given the current situation in the world. A lot has changed for many people, and many things that may have not been thought about before have come to the forefront. To help ease some of your scheduling stress, we are currently booking Annual Reviews via virtual meeting, telephone, or in person, depending on your preference and comfort level. For those doing their Annual Reviews by Zoom/Microsoft Teams or by telephone, the reviews will be uploaded to your Client Portal and/or mailed before the scheduled meeting date.
Our office remains closed to public/walk-ins, however, we are available by telephone and in-person meetings by appointment only.
If you would like for us to wear a face covering for your in-person meeting, please notify our office before your scheduled meeting, and we will be more than happy to do so.
For clients requiring an evening appointment, some evenings have been set aside to accommodate. Please be advised that due to the high demand for evening appointments, availability may be limited.
Technology Update, IT and Cyber Security - Roman
Social engineering refers to all techniques aimed at talking a target into revealing specific information or performing a specific action for illegitimate reasons. My goal in this edition of our office newsletter is to keep the Cyber Security explanation simple. With that said, I am suggesting and highly recommending when you have time to watch the movie The Beekeeper (2024). While The Beekeeper is a work of fiction, it draws inspiration from real-world incidents of fraud and manipulation, so you can familiarize yourself with typical scam tactics. For the ladies, Jason Statham stars in this movie, and for the men, Jason Statham stars in this movie. Enjoy and please be informed and educated.
Financial Planning Insights by Keith
Canada's 2024 Federal Budget and How that Impacts You
The 2024 Canadian federal budget has introduced several significant changes to the tax and capital gains framework:
One of which is Increased Inclusion Rate: Starting June 25, 2024, the capital gains inclusion rate has risen from 50% to 66.67% for individuals and entities. This change affects gains over $250,000 annually for individuals, while all capital gains for corporations and most trusts will be subject to the higher rate.
The changes to capital gains taxation in the 2024 Canadian federal budget will have several implications for business owners, particularly those with significant annual gains or those looking to sell their businesses.
- Higher Tax Burden on Gains: The inclusion rate increases from 50% to 66.67% for capital gains over $250,000 means that business owners who sell assets or their businesses for substantial gains will face a higher tax bill. For corporations and most trusts, this higher inclusion rate applies to all gains regardless of amount.
- Lifetime Capital Gains Exemption: The budget has increased the Lifetime Capital Gains Exemption (LCGE) from just over $1 million to $1.25 million. This exemption is crucial for business owners selling small businesses, qualifying farms, or fishing properties. It ensures that many middle-class entrepreneurs can benefit from tax-free gains up to the new threshold.
- Canadian Entrepreneurs' Incentive: The new Canadian Entrepreneurs' Incentive introduces a preferential inclusion rate of 33.33% for up to $2 million in capital gains per individual over a lifetime. This incentive is designed to encourage investment in capital-intensive and high-growth sectors, benefiting entrepreneurs who reinvest in their businesses or new ventures.
These changes may require strategic tax Planning. Business owners might need to reconsider their tax planning strategies. With the higher inclusion rate, it might be beneficial to use strategies like deferring gains, utilizing net capital loss carryforwards, or exploring share exchanges under tax-deferred provisions. We recommend you consult with your trusted tax professional for guidance.
Overall, while the changes are aimed at increasing fairness in the tax system, they impose a higher tax burden on significant capital gains, affecting business owners who need to be more strategic in their tax planning and investment decisions. The increased LCGE and new entrepreneurial incentives do provide some relief and encouragement for reinvestment in the economy.
Estate and Tax Planning – Roman
Legal Will - A normal or standard Will, often referred to as a legal Will, is usually a type-written document that is prepared by a lawyer. The testator (person whose Will it is) typically signs the Will in the lawyer’s office, in the presence of two witnesses. Do it yourself Wills “Will Kit” or information obtained from the internet are fine as long as the Will is properly witnessed. The testator’s signature must be witnessed by two individuals. The Will should include an attestation clause (Affidavit of Execution), where the two witnesses sign to show that they have witnessed the testator signing or approving the Will.
Multiple Wills – In some situations, a testator (person whose Will it is) may decide to draft two of more separate Wills (can be done within the same Will), with each Will dealing with different assets. Why, you ask? For, in Ontario, this may and can Minimize Probate Fees. Some assets do not require probate in order to be transferred to a beneficiary. Some examples could be small bank accounts, possibly property that was registered with the Land Registry Office on purchase done approximately around 2003 and earlier and owning property outside of Ontario to name a few. Please consult with your legal advisor on the possible advantage pertaining to your own situation whether or not multiple Wills can be beneficial with regards to your Will and estate.
No Longer Here – But Never Forgotten
I was thinking about her loving daughters facing their first Mother’s Day without her physical presence. I remember my first Mother’s Day after my own beloved mother left this earth, and wanted to investigate some ways we can continue to recognize and celebrate the women who made such a difference in our lives.
No matter what kind of relationship we had with our mothers, be it loving and nurturing or complicated and strained, it’s important to review and remember. As we acknowledge this loss, we can reflect on all that she brought to our lives. Perhaps she was a source of comfort, support, wisdom and encouragement or maybe she challenged us to be better and push beyond our limits. Whatever her role, she helped shape us into the individuals we are today. Let’s explore how we can enshrine with gratitude the love, lessons, and legacy.
Memorial Traditions and Rituals
Establishing a memorial tradition or ritual can provide a meaningful way to connect with your mother’s memory on special occasions or whenever you feel the need. Some suggestions include:
- Lighting a candle or releasing a sky lantern in her honor.
- Creating a small memorial garden or planting a tree in her name.
- Visiting her gravesite or a place that was special to her, bringing flowers or other tokens of remembrance.
Remembrance Gatherings
Host a gathering with family and friends to share stories, memories, and celebrate your mother’s life. This can be an annual event or a one-time occasion, where loved ones come together to remember her and honor her impact on their lives. Encourage attendees to share their favorite memories, stories, or lessons learned from your mother, fostering a sense of community and connection.
Memory Albums and Scrapbooks
Creating a memory album or scrapbook filled with photos, letters, and mementos that represent your mother’s life is a beautiful way to preserve her memory. Share this keepsake with family members or friends, allowing everyone to contribute their memories and reflections. This tangible tribute can be revisited and cherished by generations to come.
Charitable Acts and Contributions
Honor your mother’s memory by making a donation or volunteering at a charity or organization that was meaningful to her. Giving back to the community in her name is a powerful way to celebrate her life and continue her legacy of love and compassion. Consider making this an annual tradition, encouraging family and friends to participate in charitable acts in her memory.
Incorporating Her Passions and Values
Embrace the activities, hobbies, or values that were important to your mother. By engaging in these pursuits, you can feel connected to her spirit and celebrate the things that brought her joy. Whether it’s cooking her favorite recipes, listening to her favorite music, or supporting a cause she was passionate about, these activities can help keep her memory alive.
Creating Lasting Legacies
Establish a lasting legacy in your mother’s memory by creating a scholarship fund, sponsoring a community event, or dedicating a bench or plaque in her name. These enduring tributes not only honor her memory but also inspire others to learn about her life and the impact she had on those around her.
Practice Self-Care
Nurture yourself during difficult times; it is essential for healing. Taking small but meaningful steps towards self-care can make a world of difference in managing the grief process and bringing you joy and peace. Consider taking a walk, reading your favorite book, journaling about your experiences to express emotions without judgement, playing music that speaks to the heart or meditating – all which will help provide moments of reflection on this journey.
Conclusion
Honoring and celebrating the memory of mothers who have passed away allows us to protect and treasure the majesty of ‘all that was.’ With each act of gratitude, heartfelt moment of appreciation and dedication of remembrance, we ensure that our mothers continue to live on in our hearts forever.
Rhonda Latreille, MBA, CPCA
Founder & CEO
Age-Friendly Business®
Grief and the Body
It’s important to remember that everyone experiences grief differently, and taking care of physical and mental health is essential for healing and moving forward. To address the stress that grief puts on our physical and mental health, seeking support, practicing self-care, mindfulness, seeking professional help if you are feeling stuck, and taking time for oneself are effective strategies.
How Psychological Abuse Affects the Body
Psychological abuse, often dismissed as less severe than physical abuse, can have profound and lasting effects on the body. Chronic stress and anxiety from emotional manipulation, threats, and verbal assaults can lead to serious health issues. Prolonged exposure to such abuse triggers the body’s stress response, resulting in increased levels of cortisol and adrenaline. This can weaken the immune system, elevate blood pressure, and contribute to conditions such as heart disease, digestive problems, and chronic pain. Additionally, the emotional strain can lead to sleep disturbances, weight fluctuations, and a higher risk of mental health disorders like depression and post-traumatic stress disorder (PTSD). Recognizing and addressing psychological abuse is crucial for both mental and physical health.
Find Yourself
“The best way to find yourself is to lose yourself in the service of others.”
Mahatma Gandhi
This article is reproduced with permission from Age-Friendly Business, no reproduction in part or in whole is permitted without consent.
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This newsletter was written, designed, and produced by Roman A. Groch and Keith McConkey, for the benefit of Roman A. Groch and Keith McConkey, Mutual Fund Representatives with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.