Monthly Archives: May 2014

Every year, we have our McClelland University Event which is complimentary for our clients and invited guests to educate them on topics that are top of mind. This year, we will have it on Friday, April 25th. Hosted by The McClelland Financial Group at the upscale Eagles Nest Golf Club, it is a day to sit back, relax, enjoy a warm and delicious breakfast and an even more fabulous lunch among like-minded friends.

This event took place at the Eagles Nest Golf Club on Friday, April 25th between 8am and 1pm.

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Safety is priority #1 when on the road but if it was our sole concern then why wouldn’t we all just drive tanks and ensure a safe ride every time? Reason being, there is always a trade-off between risk and reward in all aspects of life. In our example, driving a tank would provide a safe ride, with the trade off being: longer trips, cost a wallet-full for gas and finding parking would be a nightmare.

Obviously we are not going to purchase a tank just to be safe but I can’t help but think that people who ask me to put all their money into GICs, so they don’t need to worry about the market, share the same mentality. It is a solution, but similarly to how the tank only addresses the issue of safety, GIC investors would be trading off the ability to keep up with inflation through stock market growth. This is why you need a balanced mix of assets.

Simply put, I would love to own a Ferrari. It would be fun, but it is expensive (trade-off) and my family of 4 (plus dog) would be in no way happy about the decision (trade-off). Okay, my 9 year old son may be happy…

What we find is that most people will drive a vehicle that has a balance to fit their lifestyle. If you have a family with a dog, like myself, you are going to choose a minivan over a Ferrari. If you are young, single and have a great income, then perhaps a sports car is for you. There is not one vehicle that will be appropriate for every individual’s situation just the same way that there is not one asset mix that will be suitable for every individual’s tolerance for risk

Mike Connon, B.Sc, CFP
Senior Financial Planning Advisor, Co-Branch Manager, Certification in Estate Planning and Trust Strategies

Safety is priority #1 when on the road but if it was our sole concern then why wouldn’t we all just drive tanks and ensure a safe ride every time? Reason being, there is always a trade-off between risk and reward in all aspects of life. In our example, driving a tank would provide a safe ride, with the trade off being: longer trips, cost a wallet-full for gas and finding parking would be a nightmare.

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Under the current system, income earned in a testamentary trust has been subject to tax at graduated rates and planning using testamentary trusts has commonly focused on the potential tax benefits for beneficiaries resulting from this tax treatment. In effect, the system made it possible to split income between a testamentary trust and its beneficiaries.

The February 2014 Federal Budget has largely eliminated this planning by announcing various new tax measures including, most importantly, the introduction of a flat top rate tax applicable to testamentary trust income.