July, 2009
Volume 2, Issue 2
In This Issue
MFG FINANCIAL DISPATCH
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Win One of Two $25 Starbucks Cards
First Half of 2009 – Different This Time?
TFSAs For the Long Term
Update on Cam MacIntosh
MFG Financial Dispatch is our monthly email newsletter designed to keep you up to date on timely financial issues that may affect you and to pass on timeless information and advice regarding financial issues. Articles are generally brief and to the point but you’re always welcome to call or email us for more detailed information. Archived issues are available in the Client Centre on our website (macintoshfinancial.com).
The bar on the left has links to the articles in this issue. We hope you enjoy reading it and find value in the information provided. If at anytime you would prefer not to receive these communications, please reply to the email with “Unsubscribe” in the subject line and you won’t receive another one.
Win One of Two $25 Starbucks Cards
We want to congratulate our two Starbucks card winners from our June draw. Jerry Cohen and Lea Van Dyck each received a $25 Starbucks card just for reading our newsletter and correctly answering four questions.
We’re doing it again this month. If you want a chance to win one of two $25 Starbucks cards just click on the word “WIN” and it will take you to a very short (four questions) multiple choice knowledge questionnaire on our website. (All the answers to the questions are found in the articles in this newsletter.) Once again we’ll make a random draw from all the correct entries and award a $25 Starbucks card to each of the two winners. Good Luck!
First Half of 2009 – Different This Time?
Well we’re now half way through 2009 and the first six months in the global financial markets have been a rollercoaster ride. The year started out with a continuation of the downward spiral of the final months of 2008.
Since the beginning of March however, the markets have recovered a great deal and by June 30th the Canadian market was up about 15% year to date. The US and some European markets were still down lower than where they started the year but some international markets were up as much as 40% or more since the 1st of January. There’s no way of telling which way they’ll go next or where they’ll be by the end of this year, but investing in the stock markets has never been a short term proposition.
Legendary investor and money manager, Sir John Templeton was known to say: “The most dangerous words in investing are: ‘it’s different this time’”.
In the midst of the turmoil (or exuberance) it sometimes seems to be different from the past but history shows us that there really is nothing new under the sun. Even now there is continued volatility in the markets and continued bad economic news in the media but both seem to be diminishing and there seems to be more light at the end of the tunnel.
We know that historically, the stock markets have trended upward over the long term but from time to time, they go through downward cycles or “bear” markets. These bear markets tend to be short-lived in relation to the upward cycles but every time they occur, we’ll hear people say: “Yes, but it’s different this time”. Keeping a long term perspective is the best way to avoid letting short term events sabotage your long term plans and goals.
The June 30th portfolio statements will be going out shortly and you should see some improvement over your March 31st statement. If you would like to discuss your portfolio in light of recent market conditions, please contact our office to arrange a time for a review either by telephone or in person.
TFSAs For the Long Term
Ever since Tax Free Savings Accounts blasted onto the scene in January, there has been much talk and much confusion about how they work and the pros and cons of using them. Following are two aspects of TFSAs that we feel should be addressed:
First of all, we believe that the greatest benefit is to be derived by thinking of TFSAs as long-term, retirement savings plans. As such, your investments with the most potential for long-term growth should be in your TFSA rather than simply putting GICs or other short-term investment vehicles in them. With interest rates as low as they are currently, the tax savings on the small amount of interest that can be earned is likely to be far less than $100 per year.
If you contribute the maximum $5,000 each year and your investments grow at a good long-term rate, the likelihood is that your TFSA will eventually become as important a part of your retirement planning as your RRSP is.
Secondly, like an RRSP, you can designate a beneficiary on a TFSA. By naming a beneficiary you can avoid having the TFSA added to your estate value for probate purposes. This may not be a huge savings in the early stages of TFSAs but over time, this may prove to be a very important estate planning tool. And unlike an RRSP or RRIF, there’s no tax to pay on a TFSA when you die.
There’s much more to TFSAs than first meets the eye. If you would like more information about TFSAs and how they can benefit you please contact us and we’ll be happy answer all your questions.
Update on Cam MacIntosh
By Peter MacIntosh
On a very regular basis we have clients asking about my Father, Cam – how he’s doing, what he’s up to, etc. Well first of all, both he and my mother continue to be blessed with good health and they lead very active lives.
As you probably know, Cam founded our company in 1985 after many years in the sales and marketing side of the insurance industry. Twenty years later, in 2005, he retired from our firm and spent two more years in financial planning with a very small group of clients. He fully retired from financial planning at the end of December, 2007.
In January, 2008 he began a new career of business and lifestyle coaching. This is a great fit for him and I’m sure many reading this have benefited from his “coaching” over the years. In June, 2009 Cam completed the rigorous program of training and exams and has now earned the CPCC (Certified Professional Co-Active Coach) designation.
He has said: “I’ve never been more excited than I am right now! Business and Lifestyle Coaching seems like the best possible way of taking all the business and life experience I’ve gathered and investing that into other people.”
If you’re interested in reading more about Cam and what he’s up to you can visit his website at www.cammaccoaching.com . Feel free to give him a call or send him an email – he’d love to hear from you.
Our website address is macintoshfinancial.com . If you are on your smart phone you can also find our contact information on our “.Tel” page at macintoshfinancial.tel.
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