For your information - December 2007
A very promising outlook for 2008!
I was fortunate to hear Jim Flaherty our Finance Minister speak the other night. If you get the chance to hear him, take the opportunity. He's articulate which is what you want with a Finance Minister but he was also very entertaining. His message was a good one. The Canadian economy is very sound. The last time our financial picture was this bright was after the second world war.
The Bank of Canada reduced rates on Dec 4th. Click here to read the Bank of Canada 's press release. Unemployment is at one of its lowest levels, taxes are being cut, home sales are expected to rise, and further rate drops are expected.
I've had several people notice that our office is supporting the Clinton Global Initiative (CGI). Bill Clinton's foundation is doing great non-partisan work. He delivers a very passionate message at his many speaking engagements. I attended his recent visit and speech in Toronto. He has significant financial support that is being directed to crucial global issues such as education, poverty, the environment, and health care. Contributions can be small or large, and considering all the global challenges we face today, I believe it is imperative we all do as little or as much as we can with the charity of our choice.
RRSP season is fast approaching and I'm expecting the Smith Manoeuvre to gain further prominence. Fraser Smith is passionate about creating a healthy retirement for all Canadians. He feels the Banks have had it their way far too long! A growing number of clients are looking at this "Mortgage Plan": a strategy that taps home equity for tax deductible investments, which essentially gets their money working double-time. They still get to enjoy their rising home equity at the same time as they watch their other investments grow. These clients are effectively "mortgage free" when the value of their investments outstrips their mortgage. They've got the hardest-working mortgages anywhere!
Visit www.smithman.net where you'll find that Fraser has some excellent case studies, which can help you better grasp the concept. I'm confident you'll find it's not very difficult to understand, and I will be more than glad to fill in the blanks. Current retirement pensions will most likely fall short, and we believe this "liberation" strategy is crucial for long term financial security.
So there's much optimism for 2008 and beyond. Whenever the opportunity arises, I will help whomever I can.
Have a wonderful holiday season and a prosperous New Year!
