Helping Investors find their way

Investor's Quarterly SPRING EDITION 2016

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Tax Season Tips - If you use electronic software to do your taxes, the CRA will fill in many of the boxes for you. You simply sign into CRA MyAccount and agree to a download that will include information on your RRSP contributions, plus information from T4s, T4As, and T5s. There were no changes to Ontario personal income tax rates in the 2016 Budget. The new federal marginal tax rate of 33% for taxable income in excess of $200,000 became effective January 1st, 2016. Since April 30th falls on a Saturday this year, the deadline for filing your 2015 personal income tax return will be Monday, May 2nd, 2016

Child Tax Credit and UCCB - The child tax credit is gone and parents must pay tax on the Universal Care Benefit they started receiving last summer. If you had a spouse in 2015, the partner with the lower income claims the UCCB. If you are a single parent, you can choose to record the UCCB as income for your child and claim the child as an eligible.

Investing 101: What is Trailer Commission? - One aspect of the Management Expense Ratio (MER) of a mutual fund is Dealer/Advisor Service Compensation in the form of service fees paid to Mutual Fund Dealers - commonly called "Trailer Commission" or "Trailers." A Trailer is not an additional fee; it is paid out of the overall management expenses of the fund and, as Advisors, is our primary source of income. It typically varies between 0.25% - 1.0% of assets invested in a fund, depending on fund type. When Trailers are paid from a Mutual Fund Company to a Mutual Fund Dealer, some expenses are deducted before the Advisor gets paid to cover: compliance and oversight, account statement costs, regulatory fees, and E&O Insurance. The remainder is paid from the Dealer to the Advisor and goes towards our office overhead, professional association fees, continuing education, and administration staff. The balance remaining is our before-tax compensation for ongoing monitoring of client investments, suitability assessments, maintaining thorough product knowledge, risk management, portfolio reviews, facilitating trades, development and distribution of financial and educational communications, and various related advisory services. Since Trailers are paid based on the current market value of mutual fund assets held, our income is directly tied to the performance of your investments, so we have a vested interest in your success. Preserving your capital and managing volatility is an important aspect of what we do. 

Ontario Budget 2016 - The Children's Activity Tax Credit (CATC) was introduced in 2010 by the Ontario goverment to help parents with the cost of enrolling their children in various extracurricular activities. Last year at this time, we reported the CATC had been doubled and was made a refundable tax credit so low-income people could benefit as well. Ontario Budget 2016 proposes to end the CATC as of January 1, 2017. Don't forget to take advantage of the increased credit before it's gone. 

Healthy Homes Renovation Tax Credit - This credit was announced in 2011 to help seniors by increasing the affordability of renovations to improve the safety and accessibility of their homes. Ontario proposes to end this credit as of January 2017, since 'participation has been lower than expected and provides minimum support to low income seniors.'

Ontario Student Grant - The government proposes to create a simple, integrated, upfront grant - the Ontario Student Grant (OSG) - starting in the 2017/18 school year. The proposed system will cover average college and university tuition for students with financial need from families with incomes of $50,000 or less. The goverment will also expand financial support for mature and married students, and access to interest-free and low-cost loans for middle and upper-income famiiles will be increased by reducing their expected parental contribution. The introduction of the OSG will coincide with the proposed elimination of Ontario tuition and education tax credits, beginning in Fall of 2017. 

We're Moving On Up! - We are pleased to announce that as of March 29th, we are relocating to the historic Main Street district of Newmarket. Our new address will be: 474 Botsford Street, Suite 201, Newmarket, ON L3Y 1T3.

Who is FundEX? - As a National Mutual Fund Dealer, founded in 1995, FundEX has since grown to become one of Canada's largest mutual fund dealerships by maintaining it's core principles of valuing and encouraging the independence of Financial Advisors in Canada. FundEX proudly supports over 700 Financial Advisors across Canada and administers over 14 billion in assets. FundEX is a wholly owned subsidiary of Industrial Alliance and Financial Services Inc., a life and health insurance company whose origins date back to 1892. The fourth largest insurance company of it's kind in Canada, Industrial Alliance contributes to the well-being of over 3 million Canadians, employs over 4,400 people and administers and manages approximately 95 billion in assets. 

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