This month I'm going to touch on three items... how you may be able to receive free money from the government, the benefits of adding a trusted contact onto your account, and the benefits of an RRSP since the deadline for contributing for the 2020 taxable year is fast approaching.
1. Free Money
Due to COVID-19, the government is offering a Support for Learners program entitling eligible applicants a one-time payment of:
- $200 for each child/youth up to grade 12
- $250 for each child/youth up to age 21 with special needs
The deadline to apply is February 8, 2021. Payment can be made to you by e-transfer or direct deposit and will arrive within approximately 2 weeks. The link to apply online is below. Feel free to share this message with others who have children so they can take advantage of this too.
2. Trusted Contact Person
Who is a trusted contact person and why should I add them to my investment account?
A trusted contact person is someone who knows you and your situation well. They should not have a direct financial interest in the affairs of the client and should not be your Power of Attorney.
By designating a trusted contact person on your account, you allow consent for your advisor to contact your trusted contact person. This would only apply in the event there is concern over your ability to understand your financial situation, your ability to make financial decisions, financial abuse, or if there is concern over the ability to contact you.
This document DOES NOT replace a power of attorney document. The trusted contact person does not have the ability to make decisions on your behalf, it only allows us to reach out to the trusted contact to discuss your situation without breaking our fiduciary duty of maintaining your privacy.
An example of this might be where you start requesting large withdrawals from your account, or shorting Tesla - something largely inconsistent for your behavior or risk tolerance. In this circumstance, we can reach out to your trusted contact and try to understand your situation in more detail. If it appears that the situation could be financial abuse or cognitive impairment, we could avoid making the transaction to help protect your life savings.
Up to 10% of individuals over age 65 report crimes against them, with financial abuse being the most prevalent forms of abuse. As you age it's critical to put plans in place now to help safeguard your retirement savings. Give it some thought as who you might want to add as your trusted contact, and if you already know who you want to add, let us know and we will set it up.
3. RRSP Season Upon Us
RRSP season is fast approaching! March 1st, 2021 is the deadline for RRSP contributions, and if you haven't made them yet it's time to start thinking about making a contribution.
RRSP's might not be the right fit for everyone. If your income is below $90k annually, or if you have potentially higher income years ahead, it may make sense to invest inside of a TFSA. Each situation is unique, and if you're thinking about making a contribution and wondering what's best for your particular situation, please call, e-mail or text!
Looking forward to chatting,
Financial Advisor, BASc