WINTER 2015

David R. Demoe, CFP Senior Financial Advisor Email: ddemoe@assante.com

Trevor Marsh, CPA, CA, CFP Financial Advisor Email: tmarsh@assante.com Assante Capital Management 109 Russell Avenue, St. Catharines, ON L2R 1V8 Telephone: (905) 680-3095 Website: assante.com/advisors/ddemoe David Demoe and Trevor Marsh are committed to developing a comprehensive, personalized approach to meeting your financial and lifestyle goals. They can help develop a plan that could include market investments, retirement savings options, insurance products and tax planning. They will provide you with sound financial advice to manage your wealth and secure your future.

Partnership Provides Clients Full Financial Services

David Demoe and Trevor Marsh announce a new business partnership

that provides their clients with a full range of professional financial services. Their integrated wealth management services offer counsel to individuals, families and businesses on retirement planning, tax minimization strategies, investing severance packages, insurance, and the whole range of investment opportunities to manage financial assets.

David Demoe’s many years of financial planning experience coupled with Trevor Marsh’s more than 20 years of experience as a Chartered Accountant (CA) creates the ideal partnership in the investment industry. Both David and Trevor are Certified Financial Planner (CFP) professionals, one of the highest qualifications a financial professional can attain. It is the mark of a highly trained, highly ethical professional who adheres to internationally recognized professional standards.

“Our clients can now leverage investment advice, insurance advice, accounting services and tax planning

counsel to secure their financial legacies,” says David.

Trevor adds, “Our respective backgrounds and business experiences provide our clients with the full perspective – and that’s what sets us apart in developing financial plans and managing investments.”

“Today, there is a real need to regularly consult with your financial advisor,” says David. He explains that there are many variables that impact financial portfolios. With each political crisis comes new global pressures on the financial markets. Canada’s tax laws keep changing, and recently new benefits have been introduced. Plus, people progress through different stages of their lives and we all have our own unique set of circumstances. David comments, “So, it is important to regularly review your portfolio to maximize any advantages to be had, as well as to guard against possible troubles.”

Be sure to carefully read through David’s and Trevor’s 10-Point Checklist for Financial Health in 2015 on page 4. n

2

FINANCIAL PLANNING

You slip on the ice, injure your back, and can’t work for over half a year. It’s not a far-fetched scenario – back

injuries are among the most common claims for disability insurance.1 You may not be able to control everything life sends your way, but you can prepare financially for some of the more common calamities.

Emergency fundsYou never know when a hardship will arise – job loss, illness, major home repair, emergency travel or another unexpected event. To manage the financial consequences, many experts recommend keeping an emergency fund of secure investments equal to three to six months of living expenses.

If you’re reluctant to tie up that much capital in secure, generally low-interest investments, an alternative is to set up a line of credit you can access easily in case of emergency.

Job lossIf you lose your job and receive severance, the first thing to do is seek advice, not just sign the documentation. Speak with a lawyer to confirm that terms are acceptable. Find out from your accountant if any portion of the payment is eligible to roll over to your Registered Retirement Savings Plan (RRSP). You may also want to

find out about the possibility of splitting the taxable amount over two years.

Next is your job search. If you’re fortunate enough to find a position quickly, your severance becomes a windfall. On the other end of the spectrum, if your severance runs out before you find your desired position, you may need to dip into your emergency fund or find alternative sources of income to supplement Employment Insurance (EI) benefits.

Illness or injuryA Statistics Canada survey showed that more than one in seven Canadians aged 15 and over has a disability that limits them in their daily activities, with almost half classifying their disability as severe or very severe.2 What happens if it’s a disability that prevents you from working?

Mental health conditions and musculoskeletal/back issues are the most common claims in Canada for long-term and short-term disabilities. The next most common claim for short-term disabilities is injury, and for long-term disabilities, cancer.1

To protect yourself from the financial repercussions of illness or injury, insurance can help. There are two types of coverage you may want to consider.

Disability insurance. Disability insurance replaces a portion of your regular income if illness or injury prevents

you from working. If you have disability insurance under your employer’s group plan, you may want to check the level of coverage. If the definition of disability is too restrictive, the percentage of income replaced is too low, or the benefit period is too short you may want to add personal coverage. If you’re self-employed, you can purchase personal disability insurance to replace a percentage of your income.

Critical illness. Where disability insurance replaces income, critical illness insurance covers expenses associated with an illness — so you don’t have to use your savings. Cancer, heart attack and stroke are the most common conditions covered by critical illness insurance policies. Two of five Canadians are expected to develop cancer during their lifetimes.3 Every year an estimated 70,000 Canadians have a heart attack and 50,000 Canadians have a stroke.4

If you want to make sure you’re prepared for any calamities, talk to us. Knowing that you and your family are protected from the unexpected can help provide you with peace of mind. n 1 Towers Watson, Staying@Work survey, 2011/2012 2 Statistics Canada, Canadian Survey on Disability, 2012 3 Canadian Cancer Society, Canadian Cancer Statistics, 2013 4 Heart and Stroke Foundation, 2014 Report on the Health

of Canadians

Do you really need both disability and critical illness coverage? Both can be worthwhile

When it comes to disability insurance and critical illness insurance, it’s worthwhile to have both. For one thing, the benefits operate differently.

Disability benefits are paid out over time. They are designed to replace a percentage of your income to cover regular living expenses when an illness or injury prevents you from working.

A critical illness benefit, on the other hand, is a one-time payment made if you develop one of the conditions covered by your policy, such as

cancer, heart attack or stroke. You can use it for whatever you want: to pay for a private nurse or caregiver, childcare, medication and treatment not covered by provincial healthcare, out-of-country medical treatment, or fund a leave of absence for you or your spouse.

While some conditions are covered by both types of insurance, disability insurance protects you from a great many injuries and medical conditions that are not critical illnesses.

Managing finances when life throws you a curve ball

3

INVESTMENT PLANNING

When it was introduced in 2009, people weren’t sure how best to use the Tax-Free Savings Account (TFSA). Replace a regular savings account? Complement a Registered Retirement Savings Plan (RRSP)? In the half dozen years since then, numerous strategies have emerged, helping Canadians at every stage of life benefit from tax-free saving. n

Make tax-free investing a family affair

Young and starting out

When you’re starting out, a TFSA is ideal to save for short-term goals, like a vacation or car. It’s also a tax-free way to save for a down payment on a house in addition, to or instead of, using the RRSP Home Buyers’ Plan, which has a $25,000 limit per person.

If you think you may need to withdraw funds in the near future, start with a TFSA. Later on, when your annual income increases and you pay tax at a higher rate, you can contribute to an RRSP and benefit from a greater tax deduction. You might even consider withdrawing TFSA funds to make an RRSP contribution and then use any tax refund to help replenish the TFSA the next year.

As a parent, you can use TFSA strategies to help your children get off to a good start. For example, you and your spouse might use your TFSAs to help cover post-secondary education costs. When your child turns 18, you can give him or her the funds for his or her own TFSA. Your child can draw down these funds over the course of the school year, as needed.

Established

A TFSA is an ideal spot for investments that you expect to earn the highest returns possible, as returns are completely tax-free both within the account and upon with-drawal. But that’s just the beginning of the many ways you might make the most of the TFSA’s unique attributes.

Income splitting. You can gift funds to children 18 and over and your lower-income spouse for their own TFSAs – without attribution back to you.

Retirement savings. A TFSA is an ideal complement to your RRSP for retirement investing. It’s also a great way for a non-working spouse to save for retirement.

Estate planning. Let’s say you want to create an inheritance for your adult child. By dedicating the TFSAs belonging to you, your spouse and child, you can make annual contributions of $16,500 (indexed for inflation). Funds grow tax-free and are paid out tax-free. If you plan on leaving your TFSA to your spouse, funds can be transferred to your spouse’s TFSA without affecting his or her contribution room.

Another estate planning application involves taxes payable by your estate. You can designate TFSA assets to help offset the tax liability so your heirs receive more of what you planned to leave.

Retirees

TFSA withdrawals are not considered taxable income, so they’re an excellent way to support your retirement lifestyle, especially if you’re in a higher tax bracket. Withdrawals won’t affect tax credits or reduce your eligibility for income-based benefits, such as Old Age Security (OAS).

If the withdrawals you are required to make from your Registered Retirement Income Fund (RRIF) are more than you need to cover your living expenses, you can put the excess in your TFSA, where it can grow free of tax.

And finally, here’s a strategy for the pension income credit that could be sweetened with a TFSA. At age 65, you transfer $14,000 from your RRSP to a RRIF and make $2,000 annual RRIF withdrawals from 65 to 71. These withdrawals allow you to claim the credit available on the first $2,000 of eligible pension income. Now, deposit the withdrawals in your TFSA and stretch the tax benefits even further.

We can help you make the most of your TFSA at every stage of life. With another $5,500 of contribution room available for 2015, now is a great time to come in and talk to us.

This material was prepared for and published on behalf of the advisor named herein and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither Assante Financial Management Ltd. or Assante Capital Management Ltd. nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. Certain names, logos or graphics herein may constitute trade names, trade-marks or service marks (“Trade-marks”) of CI Investments Inc. and/or its affiliates or of third parties. The display of Trade-marks herein does not imply any licence has been granted to any third party. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Copyright © 2015 Assante Wealth Management (Canada) Ltd. All rights reserved.

You need to plan your wealth. We can help.

David Demoe and Trevor Marsh view themselves as, first and foremost, financial educators. They strongly believe the more knowledgeable their investors are, the more likely they are to succeed in creating and preserving their wealth. That is why David and Trevor keep their clients well-informed on the markets and investment opportunities. They are always aiming to provide the critical information clients require to make sound investment decisions regarding their finances.

To ensure their client relationships are prosperous, David and Trevor commit to four factors. These core factors speak to a common approach and a mutual respect David and Trevor have with all their clients.

Focus – Listening closely to clients’ goals and ensuring their financial goals are aligned

Honesty – Telling the plain truth all the time and never making promises that cannot or will not be fulfilled

Integrity – Closely monitoring clients’ portfolios on a regular basis and contacting clients when changes are required

Attentiveness – Providing clients with regular portfolio reviews to determine performance and, if necessary, re-visit goals and rework financial plans

On a regular basis, David and Trevor will review clients’ portfolios and revisit their respective financial goals. They help their clients in developing a plan that could include a full range of services: from market investments to retirement savings options, from insurance products to tax planning. In doing so, they provide sound financial advice to manage a client’s wealth and secure their financial future.

If you wish to follow David Demoe’s on-line dialogue on financial matters, connect with him on Facebook, LinkedIn, as well as Twitter. n

As mentioned in the cover story, David Demoe and Trevor Marsh encourage their clients to

systematically and routinely review their financial situation. There is a witty saying. “Many people look forward to the New Year for a new start on old habits.” However, to the contrary, David and Trevor suggest that you start 2015 with this financial checklist to put “a new start on new habits.”

#1 PORTFOLIO REVIEW: Contact your advisor in the next few weeks to conduct the first of your regular portfolio reviews. Conduct a thorough review of your risk tolerance. Resolve to meet more frequently – at the minimum, stick to a quarterly review schedule.

#2 RRSP: Top up your 2014 RRSP contributions and, if possible, consider making your 2015 RRSP contribution early. The sooner you contribute, the more your savings will benefit from tax-deferred compounding.

#3 TFSA: Consider investing an annual contribution of $5,500 into your Tax Free Savings Account. If you haven’t yet contributed to a TFSA, this year you can invest up to $36,500.)

#4 PAY YOURSELF FIRST (and don’t delay): Consider establishing a monthly investment or dollar cost averaging investment into your RRSP, TSFA or other savings vehicles. This practice helps to reduce volatility, which is very beneficial in fluctuating market conditions.

#5 DIVERSIFY INVESTMENTS: Diversify your portfolio holdings and consider investments outside of Canada. The U.S. and other markets in the world

may provide you greater opportunities with less overall risk.

#6 RESP: If you have any children or grandchildren under the age of 18, consider making an RESP contribution (maximum $2,500) to help with post-secondary education costs for each child.

#7 REDUCE DEBT: Review and consider reducing your current non deductible debt. If you have outstanding credit card balances, lines of credit or mortgages maturing in 2015, look at all options to reduce this debt.

#8 LIFE INSURANCE: Review your Life Insurance needs this year (and you can do so with your qualified financial advisor). When was the last time you considered your insurance needs (it should be done every few years)? You will want to be certain you and/or your spouse are adequately insured and that there is sufficient capital for your survivor(s).

#9 YOUR WILL: Review your Last Will & Testament this year. Many thousands of dollars could be saved by making simple changes to your Will that will leave extra money for your children and beneficiaries.

#10 INCOME TAX REVIEW: Review your 2012 and 2013 tax returns with the thought to minimize future income tax payments. Be sure to take advantage of the potential tax savings from the recent introduction by the federal government of income-splitting measures and increased child tax benefits.

Call and arrange a consultation in which David or Trevor can provide you with a full review of your financial opportunities. Is there any better time to do an annual review than the beginning of a year? n

David’s and Trevor’s 10-Point Checklist for Financial Health in 2015