The following are a collection of items that we believe are important to your financial security planning. We've found that most people we meet have either overlooked these or dismissed their importance. This page is designed to be a reminder of simple steps that can make a significant difference in your Legacy Planning over the long run. After all, the key to solid financial security planning is identifying issues and making minor adjustments that could lead to major improvements down the road.

  How to choose a guardian... the Coco-puffs test!
  When you're thinking about taxes, don't forget:
  What are the big rocks in your jar?
  Financial Pop Quiz

   If you're like most of us, you don't get a lot of time to sit and watch TV. If you do get time, try to catch a re-run of "Everybody loves Raymond". You too may have a very close family that has it's share of "strange but humorous genes that surface from time to time. ;-)
   In one a particular episode, Raymond and his wife were working on their will and were challenged with whom to select as the guardian for their 3 children. Sound familiar? Life is busy for all of us, and often this task get put on the back burner of life... which isn't good.
   In selecting a guardian you may not be like Raymond who is concerned how tall a guardian is (if you're too tall, the kids will fall too far if you drop them). He’s also concerned that they have similar first aid credentials to his (how do you get a Coco-puff out of a child's nose... crush and blow). You will have a few particular items that are unique to your family. We'd like to stress that you need to identify these items and pick a guardian as soon as you can. Your first choice may not be the "best" choice, but it will be better than leaving the decision to the government if you should die without naming a guardian.
   Preparing a will doesn't need to be a daunting task, but it does need to be done right. Therefore, we strongly recommend using a lawyer to prepare or update your will.
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Tax information can be obtained from Revenue Canada at:
       www.cra-arc.gc.ca or by calling 1-800-959-8281
For complex questions, I'd recommend calling an accountant.

   Remember to file a tax return for your Teenager to help them start accumulating RRSP room today! If your child has $2,000 of RSP room and utilizes this at age 18, this deposit will grow to over $600,000 by the time they turn 72 (assuming an 8% annual growth rate). All this from simply reporting a little baby-sitting money on a tax return.
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   Here's a letter that was sent to us that I think you'll enjoy. It goes nicely with the above message on updating your will and prioritizing what's important in your life.

One day, an expert in time management was speaking to a group of business students. To drive home a point, he used an illustration those students will never forget!

As he stood in front of these high-powered overachievers he said, "Okay, time for a quiz." He pulled out a one-gallon mason jar and set it on the table in front of him. He also produced about a dozen fist-sized rocks and carefully placed them, one at a time, into the jar. When the jar was filled to the top and no more rocks would fit inside, he asked, "Is this jar full?"

Everyone in the class yelled, "Yes."

The time management expert replied, "Really?" He reached under the table and pulled out a bucket of gravel. He dumped some gravel in and shook the jar causing pieces of gravel to work themselves down into the spaces between the big rocks. He then asked the group once more, "Is the jar full?" By this time the class was on to him.

"Probably not," one of them answered.

"Good!" he replied. He reached under the table and brought out a bucket of sand. He started dumping the sand in the jar and it went into all of the spaces left between the rocks and the gravel. Once more he asked the question, "Is this jar full?"

"No!" the class shouted.

Once again he said, "Good." Then he grabbed a pitcher of water and began to pour the water until the jar was filled to the brim. Then he looked at the class and asked, "What is the point of this illustration?"

One eager beaver raised his hand and said, "The point is, no matter how full your schedule is, if you try really hard you can always fit additional items in!"

"No," the speaker replied, "that's not the point! The truth this illustration teaches us is fundamental -- If you don't put the big rocks in first, you'll never get them in at all. What are the 'big rocks' in your life -- time with your loved ones, your faith, your education, your dreams, a worthy cause, teaching or mentoring others? Remember to put these BIG ROCKS in first or you'll never get them in at all."

So, tonight, or in the morning, when you are reflecting on this short story, ask yourself this question: 'What are the 'big rocks' in my life?' Then, put those in your jar first.

-Author unknown.
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   Remember those dreaded pop quiz's in school? Well, here's one more. Don't worry, if you need a little help, we're sure your children or grandchildren can handle this one.

   Here goes: Joseph and Rose are discussing investments when Joseph proudly proclaims that while his $1,000 investment from two years ago lost 40% last year, he’s still doing great because of his 80% gain in the first year. Rose, with a little smile replies, well I’ve got you beat. My $1,000 investment has return 4% each of the last two years. Do you know whose savings account holds the highest balance after these past 2 years of investing?

   Here’s the answer:

Joseph- In year 1, his $1,000 grew $800 (1,000 * 0.80)
In year 2, the $1,800 lost $720 (1,800 * (-0.40))
At the end of 2 years, Joseph’s investment totaled $1,080

Rose- In year 1, her $1,000 grew $40 (1,000 * 0.04)
In year 2, the $1,040 gained a further $41.60 (1,040 * 0.04)
At the end of 2 years, Rose’s investment totaled $1,081.

   Rose earned a consistent return and surpassed Joseph’s investment. While Rose won this "race," this example gives absolutely no indication as to who will win the next race. Please keep in mind that retirement planning is not a race, but more like a marathon. If you are comfortable with the volatility in Joseph’s portfolio, this style of investment may be well suited for you. The only way to know what style suits you best is to complete a risk tolerance questionnaire and have a personalized financial plan created for you.