Have We Met?

I ’m Allison. Since joining Stone and Company more than a year ago, I have been working closely with Don, attending and supporting client meetings, preparing documentation and processing trades. I am enjoying getting to know our clients and learning about the business. Prior to joining Stone and Company, I was the regional sales manager for a veterinary supply company. I was also working on a Bachelor of Science. I am enjoying the transition from sales to financial services and recently completed the life licensing requirements as well as the Canadian Investment Funds Course. Away from the business, I enjoy all things outdoors and spend much of my time in the mountains with my eight-year-old son skiing, hiking and camping. I also enjoy taking part in the family farm raising grass cattle and tending to our garden. I look forward to getting to know you better and will work hard to be of assistance to you in the future.

-Allison Stone

What should I do with my tax refund?

With the tax season winding up, many are anticipating a tax refund from CRA. In fact, approximately 59% of Canadians. Setting aside the fact you were lending your hard-earned money to the government free of charge a tax refund can feel like found money. While it may be tempting to take your new-found cash on a shopping spree, I challenge you to consider these 5 alternatives;

Pay down debt. Although it may seem counter-intuitive, the time to make aggressive repayments are when interest rates are low, making a greater dent in the principle. Higher inflation expectations are driving up interest rates. With the Bank of Canada announcing a likely rate hike this July, using your refund to make a lump sum payment may be a good opportunity for you.

Save. A tax refund can provide cash to make a contribution into your RRSP, resulting in additional tax savings for the deduction you can claim in the future. Saving a sizeable retirement takes time, its key to start early thus allowing compounding interest to go to work.

Look to the future. If you have children or grandchildren opening an RESP can be a good tool to save for post-secondary. The Canada Education Savings Grant is a match of 20 percent of the annual contribution on the first $2,500 contributed each year per beneficiary until the end of the year in which the beneficiary turns 17, up to a maximum of $7,200. The government has increased the CESG for low-income families.

Create an emergency fund. In case of sudden financial need, it is beneficial to have access to adequate savings. Job loss, medical emergency or major repairs can put you in a vulnerable situation causing you to seek out short-term loans at high-interest rates. The use of your tax refund to start or augment existing savings could alleviate some of the stress should one of those events arise.

Invest in yourself. Whether you are investing in a new skill, purchasing a tool to pursue a hobby or taking a much-needed break investing in ourselves is important. If your refund is for a small amount, take yourself or a spouse out to celebrate. You are doing the right things!

We are here to use our knowledge and experience to assist our clients in achieving and maintaining financial well-being through implementation of personalized, realistic strategies. If you would like to learn more about our planning services or discuss any of these topics further, give us a call!

Sincerely,

Don, Mary Jane, Penney & Allison.

Passages

2017 to date has been sadly marked by the passing of some very long-standing clients, friends and family. Individuals who profoundly shaped the way in which we relate to the people around us and the values we share. These people will be missed and remembered often. Changes Karen Backlun has left us to found her own firm and while she will be working out of her own location we plan to continue working collaboratively into the future. We applaud her entrepreneurial spirit and wish her the best in her future business life.

As we enter our 32nd year our philosophy and focus remains the same. “ Helping our clients achieve their goals in the most prudent and efficient means possible. “ At present “The media” seems to promote the view that “Doing it yourself “is within the capability of the average person when it comes to arranging their financial affairs. We beg to differ. Everyone is not created equal. Therefore our view and business practise includes a comprehensive financial plan based on a thorough analysis of the client’s needs and objectives. Our code of Conduct states that we hold our client’s interest first and that we hold ourselves to a high standard of advanced knowledge on areas such as taxation, insurance and investment planning, estate and succession planning as well as the plethora of financial products available to today’s consumers.

An area of significant concern at present is the whole idea of Tax Literacy “The average Canadian family now spends more of its income on taxes (42.5%) than it does on basic necessities such as food, shelter, and clothing combined (37.4%).” By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities. Source “The Fraser Institute”

Tax Literacy has a large impact on how much Canadians pay in taxes. Not taking full advantage of all tax sheltering available, be it in RSP’s, RRIF’s, TFSA’s, RESP’s and tax sheltered permanent insurance means that we may be paying too much tax. Many individuals who qualify for some type of financial assistance are not receiving needed benefits because of their unawareness that these programs exist. As advisors we work for the client to obtain the best value for the money available to these people. We get a great deal of satisfaction using our knowledge of financial services to make a positive impact on our clients’ lives.

Fall is on us again. When we bought our farm we began gardening on a larger scale than what we could do in the city. Gardening is a labour of love and the satisfaction that we get harvesting the produce that we have cared for during the summer is one of life’s great joys. Gardening like saving is an act of optimism and trusting in the future.

Thank you once again for your trust and loyal support. We value our relationship and look forward to further discussion and reviews.

Sincerely,

Don, Mary Jane, Penney & Allison.