Newsletter Issue No. 1

Want more
tax-free savings?

Exciting news!

Starting in 2009 you will be able to contribute up to $5,000 every year to your tax-free savings account. And if you are unable to contribute the full $5,000, you can carry forward the unused contribution room to future
years.

While your contribution is not tax deductible, your investment income and your withdrawals are tax-free! Also, after you make a withdrawal, you can re-contribute that amount to your account in the future.

Furthermore, you and your partner can contribute to each other's tax-free savings accounts, subject to your partner's available contribution room.

Please feel free to call me to discuss how this can complement your existing savings plan.

You likely already volunteer your time and contribute financially to several charitable organizations and worthy causes. And while you don't devote time and energy to these efforts in order to minimize your taxes, it's certainly sensible to take advantage of opportunities.

The federal government provides tax credits for donations to registered charities: the first $200 donated receives a federal tax credit of 16% and amounts over $200 get a 29% credit.

Keep in mind that your charitable donations do not have to be claimed in the year they are made. In fact they can be carried forward for up to five years.

You can conduct your due diligence on the Canada Revenue Agency website, which provides information about your chosen charity's fundraising activities, its administrative expenses, and so forth. There are ways to make your financial support more effective. I can help you design a gifting strategy that ensures a lasting and more effective legacy.

For instance, your own foundation can establish a family tradition of philanthropy that will be passed down through the generations. Whether established today or as a legacy in your Will, this endowment can be dedicated to charitable giving year after year. You could support a healthy recreation program for seniors one year and a math camp for aboriginal kids the next year.

Your foundation will grow over time, with a portion of the annual earnings dedicated to charities of your choice each year. The remaining portion will be reinvested back into the fund so the base amount continues to
increase.

Whether you are interested in combining your love of charitable giving with a sensible tax strategy, or you are intrigued by the idea of starting your own foundation, we have several options that I would love to speak with you about, so please feel free to call!

We all know we should take time to plan and prepare for what we want out of retirement, just like we know we should remember to take our vitamins and get around to cleaning out the garage.

But for many of you, there is added significance to planning your retirement because you have the option (or strong desire!) to retire early and take on a new challenge. Our reality is that the average retirement age is rising—we're healthy and robust enough to continue to lead productive, energetic lives.

Self-employment continues to be an exciting prospect for clients. The idea of income, independence and stimulation drives many to plan financially for this post-retirement opportunity.

Just like we were supposed to do with our high school guidance counselors, planning for the next phase means answering questions: What role do you want work to play in your life? Do you get pleasure out of being busy and productive? Do you have family support and encouragement? Would you enjoy the flexibility of volunteering rather than working? Do you think non-

profits would benefit from your expertise and skills?

These are issues that I would enjoy speaking with you about and determine how to make your dreams come true with a good financial strategy.


Is your parents' estate organized?

An admittedly unpleasant task, again, like taking vitamins and organizing the garage, we all know estate planning should be part of our financial plans. Not only should an estate plan spell out wishes, but should also provide for an efficient and tax effective transfer of assets.

If your parents die without a Will (called intestate), then the government uses a formula to determine where and how assets will be dispersed. The formula, while acceptable in some situations, may not be what your parents would have chosen. And you can expect delays and extra legal fees in this case as well.

While the process of sharing financial information could be emotional and difficult for you and your parents, the stress and anxiety could be

even worse for you when making decisions afterwards.

Conversations about health, financial and legal directives as well as naming an executor are essential. It is also critical that you know where your parents keep their important documents such as their tax returns, banking and investment accounts, insurance policies, property deeds, safety deposit box key, and so on.

A list of professionals with whom they deal would be helpful: their lawyer, accountant, financial advisor, etc.

Have they updated beneficiary designations on RRSPs, RRIFs, segregated funds, guaranteed investments and insurance policies? Have your parents assigned a Power of Attorney so someone can handle financial decisions if they are unable?

This will be an ongoing process that you will need to review and update as life changes for your parents and for you. Let me help you get financially organized!

FORWARD TO A FRIEND

This communication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of f reliance upon or use of this publication in contravention of this notice. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.