Think Smart with TMFG

When it comes to financial decision-making, "cutting off your nose to spite your face " is not always the best tactic. Senior Financial Advisors Rob McClelland and Mike Connon discuss the common mistakes people make in their financial planning, such as trying to avoid probate by setting up complex structures that are more expensive than the probate fees themselves. They also discuss the potential pitfalls of transferring assets directly to children, joint ownership of accounts, gifting assets, setting up trusts, and creating overly complex wills.

(01:40): Mistakes people make to avoid probate
(02:34): How to deal with a vacation property or cottage?
(03:36): Doing it wrong
(06:10): Issues with joint ownership
(07:42): Setting up a trust
(09:03): Beneficiaries
(11:10): The number one mistake made with Wills
(12:41): Setting up a company- does it make sense?
(13:40): Overly complex Wills

 

Unexpected expenses in retirement can pose a significant financial challenge for retirees. These unforeseen costs, whether they stem from medical bills, home repairs, or other emergencies, can disrupt carefully planned budgets and erode savings. Being prepared for unexpected expenses is crucial to ensure financial security and peace of mind. Listen today to find out what expenses you should be prepared to tackle in retirement.

(01:23): Unexpected healthcare costs
(05:41): Sudden change in taxes
(06:16): What's the average cost of home maintenance
(06:56): What are lumpy expenses?
(07:25): Travel plans?
(10:10): Everything costs money
(10:45): Speculative risks

 

Guaranteed Investment Certificates (GICs) have several downsides. Yet investors keep flocking to them. They typically offer lower returns than other investment options, making it challenging to keep pace with inflation. GICs also lock in your money for a set period, limiting liquidity and flexibility. Moreover, the interest earned on GICs is usually subject to taxation, further reducing overall returns. Additionally, GIC rates can be affected by fluctuations in interest rates, potentially causing missed opportunities for higher yields in a rising rate environment. Learn more about the downsides of GICs today on ThinkSmart.

(04:37): The history of GICs and their dying popularity in the 90s
(06:05): Why is this increase in GIC rates unusual?
(07:45): Deep dive into why GICs can cost you more than you realize
(09:09): How can inflation affect your GICs?
(11:12): Why is there still a run on GICs?
(12:34): How are your investments being taxed?
(14:27): Why are Canadian banks so profitable?
(16:41): Doing it yourself
(17:37): GIC liquidity
(19:38): The real cost of GICs

Maximizing your old age pension and minimizing your old age security clawback in Canada can require careful financial planning and an understanding of the country's pension system. However, staying informed about changes in pension legislation and consulting a financial advisor can help you navigate the complex landscape of maximizing your old age pension benefits in Canada. Listen here today to find out some of the strategies you might want to put into practice.

(01:08): What’s the difference between Old Age Security and Canada Pension Plan?
(02:46): The basics to know to make sure you’re getting your OAS
(03:41): Eligibility
(05:38): How does the OAS clawback work?
(06:58): Some ideas on how to ensure that you get your OAS
(07:54): Mistakes that people make
(09:50): How fee-based accounts can help
(10:38): How to deal with dividend income
(11:07): Maximizing TFSAs
(12:06): Income splitting

(12:45): How to deal with capital gains
(14:28): Gifting tax-free
(15:40): Bonus ideas

Global balanced funds offer several benefits to investors seeking a diversified and well-managed investment approach. First and foremost, these funds provide exposure to a wide range of asset classes, including stocks, bonds, and sometimes alternative investments, helping to spread risk and reduce volatility in a portfolio. This diversification can help cushion the impact of market fluctuations and potentially enhance long-term returns. Learn more about why you should consider global balanced funds.

(00:22): When did we realize the value of the global balanced funds?
(02:57): What a global balanced portfolio looks like
(04:35): Our approach
(05:16): Why choose a balanced fund?
(06:22): Risk Management
(06:57): What is rebalancing?
(08:53): The best way to generate retirement income
(09:34): Transparency is important.
(10:16): Flexibility
(11:21): Advantages of balanced funds
(13:16): What trends are we seeing in balanced funds?
(15:43): What do fees look like in balanced funds?

If we could look into the future what changes could we make to increase your chances of success in the market? Listen today as Senior Financial Advisors Rob McClelland and Mike Connon take you on that journey.

(05:11)  Hindsight is 2020
(06:13): Exciting new ideas
(08:44): Investing in startups

(10:10): How things can go horribly wrong
(17:37): Unforeseeable advancements in technology
(19:51): Companies that have a great product but don’t turn a profit

Today on the ThinkSmart Podcast, Senior Financial Advisors Rob McClelland and Mike Connon discuss the many ways you can unintentionally lose money on your investments. It's astonishing to realize that just a few of these seemingly minor mistakes can be extremely costly to your portfolio.

Don't Miss Our In-Person Evening Speaker Series Why Your Investment Portfolio is Always Underperforming September 28th Thornhill Golf and Country Club 7994 Yonge Street, Thornhill, ON L4J 1W3 Doors Open for Registration and Dinner at 5:45 pm Speakers begin at 6:30 pm

 

Client Registration 

 

Guest Registration 

 

(01:19): Those small mistakes can be costly.
(04:06): Active or passive strategy?
(05:09): What do returns look like for the most common Canadian portfolio mixes?
(06:23): What about GICs?
(06:31): Why rebalance a portfolio?
(06:47): What’s the cost of not rebalancing?
(08:02): Moving to a conservative portfolio.
(08:44): Continuous savings plans are essential.
(09:25): Don’t get caught up with insider information.
(13:14): What you pay in fees matters.
(15:03): Trying to time when you enter the market never works.
(15:52): Moving to cash out of fear.

 

 

How is technology affecting your everyday life and what should we expect to see in the future? Today on ThinkSmart Senior Financial Advisors Rob McClelland and Mike Connon discuss tech pundit Benedict Evans' 2023 big tech review. 

 

(01:34): What is web 3?

(02:30): It’s not just you cryptocurrency is a very confusing subject.

(03:18): Keeping big business and government out of everything sounds good right?

(06:13): Where we came from in the computing world

(06:55): How computing works today

 (07:28): Decentralization, good or bad?

(13:33): Convenience is causing us to choose other means of interacting with the real world

(16:03): Start-ups vs. big companies

 

 

We came across an article that stated, "RRSPs are a big marketing gimmick." Today on, ThinkSmart Senior Financial Advisors Rob McClelland and Mike Connon take a closer look at this statement to weigh the pros and cons of RRSPs as we know them.

 

(01:20): RRSP season now vs. 25 years ago
(01:48): RRSPs vs. Pensions
(03:58): Tax savings with your RRSP

(04:49): Is it really a gimmick?
(06:27): What's the ideal time to make your RRSP contribution?
(07:17): Dollar-cost averaging your contributions.
(08:13): TFSAs vs. RRSPs
(12:05): So, is a TFSA still a valuable account?
(13:02): How do you find the right mix between the two?
(15:17): First Home Savings Account

You might be surprised to hear it, but we make mistakes too. Today on ThinkSmart, Senior Financial Advisors Rob McClelland and Mike Connon discuss some of the mistakes they have made in their personal and professional finances and the big lessons they have learned as a result.

 

Key Points from this Episode:
(01:36): Rob’s investment mistakes
(06:28): Mike’s financial mistakes
(08:12): Business mistakes