December 2009
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Dear Ron,
As we sit down to write this quarter's newsletter, we are on the eve of the first big snowstorm of the season here in Ottawa. While the weather outside may be frightful, by most accounts, there seems to be evidence of a little sunshine peeking out from behind the clouds in the economic forecast.
In a release from the Bank of Canada December 8, it was noted that "while significant fragilities remain, global economic developments have
been slightly more positive and the global outlook has improved modestly."
Here at home, the economy
created 79,100 new jobs in Canada in November, bringing
the unemployment rate down one-tenth of a percentage
point to 8.5 per cent. Good news, indeed.
The economic movement we've seen over the past few quarters serves as a good reminder of our two basic investment tenets: invest in a diverse array of products and invest for the long haul.
In closing, I'd like to wish you a very safe and happy holiday season and a prosperous 2010.
As always, if you have any questions, suggestions or comments, don't hesitate to contact us!
Now, enjoy a little more Insight!
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Would you be prepared if struck by a critical illness?
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Not all life insurance plans cover serious illnesses
 Should you have a heart attack, suffer a stroke or get diagnosed with cancer or some other critical illness, will you have the savings or other resources to replace lost income or get the help you need?
Critical-illness insurance may be just what you need. It's a form of protection that can provide you
with a lump-sum payment if you suffer from a covered illness
and the survival period is satisfied.
In some cases, life insurance and group health insurance plans may offer some relief. But not always.
The physical and emotional strain of a critical illness can be severe and when you combine that with the potentially damaging financial impact, the result can be devastating. The lump-sum payment can be used as you see fit. It can cover lost income, pay for medical treatment, or even pay off a mortgage--it's your choice. Then, you can concentrate on getting back on your feet.
For more information or to find out if critical-illness insurance is right for you, call Geroge at 613-841-0944 or contact him by email today.
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Year-end RESP reminder...
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RESP deadline nearing
 Unlike the RRSP deadline, which comes 60 days after the end of the calendar year, the deadline for contributions to the Registered Education Savings Plan is December 31.
To give us a little time to process your contributions, we would appreciate getting them at least a couple of days in advance.
If you need information on this or any other tax matter, please contact us.
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Highlights from the 2009 Budget
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Here's what matters to you
Personal income tax rates
 Budget 2009 essentially delivered $20 billion in personal income-tax relief over
2008-09 and the next five fiscal years. This
includes increasing the basic personal amount and raising the two lowest
personal income tax brackets by 7.5 per cent above their 2008 levels. This means Canadians can earn more income before paying federal income tax
or paying higher tax rates.
Here's what they look like now:
Income Range: Tax rate
$10,320 to $40,726: 15%
$40,727 to $81, 452: 22%
$81,453 to $126, 264: 26%
$126,265 or more: 29%
As well, the deduction for a spouse, common-law partner or eligible dependent has been increased to $10,320 (up 7.5% over the 2008 level of $9,600), effective January 1, 2009. This new amount will be indexed to the rate of inflation for 2010 and subsequent years.
Credit for first-time homebuyers
This budget included a new non-refundable income-tax credit for first-time homebuyers who acquire a qualifying home after January 27, 2009. The credit is calculated by multiplying the lowest personal income tax rate (15 percent in 2009) by $5,000. For 2009, the credit will be $750.
Home renovation tax credit
We're sure you've heard of this one--it was almost like it was the only topic covered by the media when the budget was released.
Eligible home-improvement goods or services must be purchased or acquired by January 31, 2010 and must be claimed on this year's tax return.
If you need more information on this or any other tax matter, please contact us.
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