Business & Personal Finance

Retirement planning

Are you ready to retire? How much money do you think you will need? Or do you still have another 20 years or more before retirement? According to the experts, it's never too early to start making retirement plans.

Barbara Hawkins, long-time writer for MoneySense magazine, recommends 6 steps to a wealthy retirement. 

1. Create a "must-have" list.  Estimate how much you spend in all areas and then deduct things that you will no longer have to pay such as child care costs.  You should also deduct luxuries you can do without such as a second car, as well as items that you will no longer need to purchase such as work clothes and the cost of commuting.

2. Next, Hawkins says you should create a "nice-to-have" list containing things such as a special vacation. Keep things within reason.

3. Then, remember that you can count on the government. Hawkins says that despite what fearmongers say, the Canada Pension Plan and Old Age security are in fine shape.

4. Some people are lucky enough to have a defined benefit pension others have RRSPs to which they have been contributing.  These things need to be considered when calculating your overall wealth.

5. Make sure your porfolio is diversified, Hawkins says, by having 30%-50% of your assets in various fixed-income investments such as GIC's  and the remainder in a wide variety of stocks from Canada and other countries.  There are no guarantees, though, since markets are volatile and you may end up retiring right when markets can take a plunge like they did in 2008.

6. Finally, Hawkins recommends treating your "must-have" list and your "nice-to-have" list differently.  The "must-have" portion should represent a 4% withdrawal rate from your portfolio while your "nice-to-have" portion could be treated with more freedom, in particular in the early years of your retirement when you have your health and are more active. Keeping these  two portions separate within your portfolio will ensure that your "must-have" needs are well-covered later on in your retirement.

Planning for retirement may be time-consuming but it will literally pay off in the end making your golden years truly golden. 

 

Here are some great books to help you start your on retirement planning:

 

Economist Jeff Rubin - Author Talk on May 14, 2012

Jeff Rubin, economist and winner of the 2010 National Business Book Award for his title Why Your World is About to Get a Whole Lot Smaller, is going to give an 'Author Talk' at the Toronto Reference Library. 

In a follow-up to his award winning business book, Jeff Rubin will discuss "why the end of cheap oil means the end of growth, and what it will be like to live in a world where growth is over."  With Metro Morning Business Columnist Michael Hlinka.

Details for the program are:

Jeff Rubin
Mon May 14, 2012
7:00 p.m. - 8:30 p.m.
90 mins
Toronto Reference Library Bram & Bluma Appel Salon
789 Yonge St., Toronto, Ontario

Doors open at 6 p.m.

Tickets are required for admission to all Appel Salon events. Tickets are now SOLD OUT for this event.

As most Appel Salon events are free of charge, it is our policy to overbook. In the case of a full program, your free reservation may not guarantee admission.

Unclaimed reservations will be released to standby customers ten minutes prior to the start of the program. We recommend that you arrive early.

For more information on this program, visit the Appel Salon Programs web page.

For those unable to attend, the following title by Jeff Rubin is currently available at the Toronto Public Library: 

Print Format	eBook Format

The book is available in both Print and eBook formats.  To access online in eBook format, an active Toronto Public Library card is required. 

2012 National Business Book Award Finalists

The National Business Book Award is an annual award given to the author of a pre-eminent business-related book published in Canada.

The award has come to be "recognized as one of Canada's most prestigious literary awards. It continues to gain attention from not only the Canadian business world, but also publishers, authors, journalists, academics, economists, politicians and business leaders around the world."

The $20,000 award is presented to the author of the most outstanding Canadian business-related book published in 2011.

The finalists for the 2012 National Business Book Award were recently announced on April 26, 2012.  The three finalists are: 

Print Format	Print Format	Print Format
eBook Format	eBook Format	eBook Format

All three books are available in Print and eBook formats at the Toronto Public Library.  To access online in eBook format, an active Toronto Public Library card is required. 

The five key criteria used in evaluating eligible nominations is provided at the National Business Book Award web site.

Jury members consist of prominent individuals from the business and academic sectors.  This year's jury members are:

• Roger Martin, NBBA Jury Chair and Dean of the Rotman School of Management, University of Toronto
• Jane Cooney, Founder Books for Business
• William A. Dimma, Chairman Emeritus, Home Capital Group Inc.
• Peter Mansbridge, Chief Correspondent of CBC Television News
• Deirdre McMurdy, Adjudicator; and
• The Hon. Pamela Wallin, Senator.

Congratulations to the three finalists!

The winner of the National Business Book Award will be announced on May 28, 2012. 

 

Finding Business Biographies

Are you are going to a job interview or investing in a company? 

If so, you may want to find a biography on a specific company director or executive.  The Toronto Public Library has a number of business databases that may help you in your seach.  They are:

Financial Post (FP) Advisor

• To start a search, click on Directory of Directors on the left side of the home page.
• There is information on over 29,000+ directors and executives of Canadian companies.

Gale Virtual Reference Library

• On the left side of the home page, click on the heading Business.
• Click on the title International Directory of Business Biographies. 4v. 2005. 
• This title examines the career paths, business achievements, leadership styles, business strategies and industry impact of Fortune 500 and Global 500 corporate leaders, as well as entrepreneurs and other notable businesspeople through in-depth biographical narratives.

Mergent Online

• Company Profiles include an Executive tab. 
• Individual executive profiles are available for download or printer friendly format.  Photos are included.

These TPL databases are available via remote access.  An active Toronto Public Library card is required in order to access.

 

 

 

 

Finding Company Histories

Some companies are so successful that they are able to celebrate a long and prosperous history. 

For example, Tiffany & Co. is one of those companies.  The jeweller is celebrating its 175th anniversary this year.  Charles Lewis Tiffany, the company's founder, founded the store in 1837.

Many companies with such an illustrious past sometimes have a web page dedicated to its history at their web site.  If such a web page does not exist for a company that you are interested in, here is a list of Toronto Public Library's electronic resources that may be able to help you find a company history: 

Business & Company Resource Center

• If you do a Company Search, select the desired company from the Results List.
• In the selected company's profile, click on the Histories tab.
• Two sources may be available for your selected company; i.e. Notable Corporate Chronologies and/or International DIrectory of Company Histories.

Financial Post (FP) Advisor

• Historical reports are available for the top currently and formerly traded Canadian companies. 
• These reports include detailed descriptions on operations, 7-year consolidated financial statements, capital stock changes, and company history dating back to incorporation.

Mergent Online

• Company profiles include a History tab.

These TPL databases are available via remote access.  An active Toronto Public Library card is required in order to access.

For those interested in a history of Tiffany & Co., search the Toronto Public Library catalogue with the subject heading Tiffany and Company - History.

Emerging Economies of China and India

The Toronto Reference Library will be hosting an interesting Investment Program entitled Gravity Shift: How Asia's New Economy Shapes the Twenty-First Century.

The speaker is Wendy Dobson, Professor at Rotman School of Management, University of Toronto.  This presentation is based on her book, Gravity Shift, which provides a vision of how China and India will reshape the Asian region, and transform global economic institutions.

	Gravity shift

For those interested in the rapid growth, diversity, and strategic importance of the emerging Chinese and Indian economies, here are details regarding the above-mentioned program:

Wednesday, March 28, 2012
Gravity Shift: How Asia's New Economy Shapes the Twenty-First Century
Speaker:  Wendy Dobson, Professor, Rotman School of Management, University of Toronto
6:30 - 8:00 p.m., Beeton Auditorium, Toronto Reference Library
789 Yonge St., Toronto, Canada
Admission is free.  All are welcome.
If you have any questions regarding this program, please call Answerline at 416-393-7131.

 

For additional information on China's and India's emerging economies, try the following subject headings in the Toronto Public Library catalogue:

Economic forecasting - China
Economic forecasting - India
China - Economic conditions - 21st century
India - Economic conditions - 21st century

 

For economic information on countries around the world, view country reports in the following online databases at the Toronto Public Library website:  (Note:  An active Toronto Public Library card is required for access.)

Mergent Online
Country Profiles are available on the bottom right side of the home page; i.e. underneath the Corporate Calendar.  Includes statistical data with country map.

ViewsWire (The Economist)
Country Analysis is available from the left side of the home page.  Provides analysis and forecasts on 200+ countries.

 

Income Tax Tips

The Canada Revenue Agency states that your 2011 Tax Return for Personal Income Tax needs to be filed on or before April 30, 2012.

When completed, most hope to receive a refund or try to minimize the amount owing.

The February/March 2012 issue of Healthy Directions offers several tips that may help individuals reduce their tax bills.

Here are some of their tips on tax breaks:

1. Plan Ahead
Gather all of your receipts and be sure to submit your income tax and benefit return before the tax-filing deadline in order to avoid paying late-filing penalties.

2.  Registered Retirement Savings Plan  (RRSP)
Any income you earn in a registered retirement savings plan is exempt from tax, as long as the funds stay in the plan.  RRSPs also give you a break at tax time.

3.  Tax-Free Savings Account (TFSA)
A tax-free savings account is a "great way to save money" because you don't have to pay tax on any income earned from investments in your TFSA.

4.  Public Transit Tax Credit
If you or someone in your family is a regular user of public transit, you may be able to "claim a non-refundable tax credit based on the cost of eligible transit passes."

5.  Child Care Expenses
For those who have children, you may be able to claim "child care expenses that you or your spouse or common-law partner paid so that either of you could work, do research, or go to school."

For additional tips, the Canada Revenue Agency has an interesting section entitled "Know Your Credits, Deductions, and Benefits" at their Get Ready to File Your Tax Return page.  This section provides tips on how to reduce your taxes for:

• Individuals and Families
• Seniors
• Persons with Disabilities
• Homeowners
• Students
• Self-employed
• Tax professionals
• Tradespersons

Likewise, the Certified General Accountants of Ontario publish a booklet entitled Your Personal Tax Planning Guide.  It is available for free on the internet.  Click HERE to view the 2011-12 edition. 

After the money tree dies - teaching kids about money

"If you aren't making money, you are spending it"  was a favorite phrase my Dad repeated many times during my childhood.  Like most families, he didn't get much of a chance to spend it, working long hours to support a stay at home wife (this was the 50's) and a family of 6 kids who liked to eat and spend money when they had it.  Needless to say, we all began working at a pretty young age at some not so pleasant jobs so we could buy the things that teenagers want.  And I don't think we were so different from a number of our friends, who had steady after school jobs.

Flash forward to today, where many kids can get all the way through high school and university without ever having to earn a buck.  The Bank of Mom and Dad have provided for everything.  Increasingly more young adults are running into financial troubles because they never have had to manage or earn money.  

There is a wealth of information out there to assist parents and young adults.  How to teach your kids about money makes some of the following suggestions for parents of young children:

• Give children control of money  - take some money that you have in your budget and give them control of it - such as money for clothes
• Teach your kids about earning with pocket money - give your child some money every week - earned or unearned - your choice.
• Teach your kids to save for money goals  - want to buy a big ticket item?  you will have to save your money to get it.
• Teach your children how to create a budget - it doesn't have to be complicated, just teach them how to plan

Check out an interesting article that appeared in the New York Times, entitled "The Frugal Teenager" that chronicles a family's forced decision to begin saying no to their teenage children.

The past few years have garnered a wide variety of books on this topic.  Check out the following titles available at TPL branches:

     

     

Want even more information? check out my colleague's earlier blog on this topic as well.

North York Central's Business Department is hosting programs entitled "Generation Next", which will include a program on managing your finances. 

Income Tax Clinics

It's that time of year again.  Time to prepare our income tax returns.

If you are unable to prepare you income tax and benefit return yourself, the Community Volunteer Income Tax Program (CVITP) may be able to help.

The CVITP assists eligible taxpayers who have low income, and simple, non-complex tax situations.

Eligibility criteria:
These suggested maximum income levels should serve as a guideline only.

Taxpayer Status                    Family Income
Single                                   Up to $25,000
Couple                                  Up to $35,000
One adult with child              Up to $30,000

Eligible taxpapers normally served by the CVITP include:

• Aboriginal peoples
• Low-income individuals and social assistance recipients
• Newcomers to Canada
• Seniors
• Students

Volunteer tax preparation clinics are generally offered between February and April of each year in various locations across Canada.

If eligible, click HERE to find a Volunteer Tax Preparation Clinic near you.

For more information on the Community Volunteer Income Tax Program, visit their web page at the Canada Revenue Agency's web site.  It outlines what volunteers do not prepare tax returns for; e.g. types of complex situations.

For individuals interested in preparing their own income tax returns, the Toronto Public Library has copies of Preparing Your Income Tax Returns published by CCH Canadian Limited. 

TFSAs or RRSPs

Tax-free savings accounts are becoming an increasingly popular savings option amongst Canadians.  In an article entitled 5 Reasons Why TFSAs are a Smart Retirement Investment by CBCnews.ca, it is noted that some financial advisors are recommending TFSAs over Registered Retirement Savings Plans.

Here are some of the major reasons for the rise of TFSA's popularity:

• Flexibility.  Money can be withdrawn without penalty in case of a financial emergency.
• TFSAs may contain various types of investments; i.e. TFSAs allows a person to put up to $5,000 a year of after-tax money into GICs, mutual funds, bonds, stocks or savings accounts.
• Although investors do not get an immediate tax break, investments inside a TFSA can grow tax-free.  In comparison, an RRSP gives a person an up-front tax deduction but the federal government takes its share in income tax assessed on the "back-end cash withdrawals, typically after the taxpaper retires".
• TFSAs don't have to be converted into a RRIF upon retirement.

The article continues "the numbers tell the tale:  At the end of their first year of existence, TFSA's held a combined total of $17.4 billion in assets in close to five million accounts, according to research firm Investor Economics.  Just a year and a half later, midway through 2011, the total asset amount had ballooned to $54.4 billion in 8.6 million accounts.  In other words, the average account holder has bumped up their TFSA holdings by 82 percent in just 18 months."

The articles concludes "perhaps the most stunning trend is that the TFSA is catching up to the RRSP as the tax-sheltered investment of chocie".

In 2010, TFSA contributions totalled $21.8 billion compared with $33.0 billion in RRSP contributions.

 

For those interested in learning more about TFSAs and RRSPs, the Toronto Reference Library is offering the following program by Kurt Rosentreter:

Financial Planning for your Future, RRSPs and TFSAs
Speaker:  Kurt Rosentreter
Date:  Wednesday, February 15, 2012
Time:  6:30 - 8:00 p.m.
Place:  Beeton Auditorium, Toronto Reference Library, 789 Yonge St.

Admission is free.  All are welcome.

 

For those unable to attend, the Toronto Public Library has 10 copies of Kurt Rosentreter's latest book:

	Wealthbuilding : Lifelong Financial Strategies for Success with Your Money

For those interested in TFSA contribution rules, the Canada Revenue Agency has an informative guide entitled RC4466 Tax-Free Savings Account (TFSA), Guide for Individuals.