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Hugh O’Neill, Insurance Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. An important part of the succession process is the estate plan. Regardless of where you are in life; young, old or middle aged, it is important to have your estate plan in place. You should be at ease with how your estate is set up had you passed yesterday. Many farm families get tied up in the thoughts about; who is running the farm? How do family members interact on a day to day basis? Who holds the voting, non-voting shares? How will the brothers or sisters get along? The list goes on. While these are important issues to work through, it is Important to pull yourself away from the day-to-day issues and take a bird’s eye view of the farm and how you want your estate to look. Once you establish what your vision is for the future of your farm, you can begin taking the necessary step that will get you there. Many people are not comfortable talking or thinking about what the world will look like when they are no longer around. It is a difficult subject to bring up with family. However, there is a great relief to getting things out in the open. After setting up the plan, we often sit with the whole family to reveal the business side of the succession plan, letting all family members understand how they will be treated when their parents are gone. It is often assumed that the parents will die first. However, you must consider what will happen should the younger generation; new shareholders of the farm, pass away. People do not always die in order. A plan cannot be complete without considering this possibility. The following questions need to be considered; will the spouse want to retain the shares owned by the partners? Will the partners want the shares to be owned by the spouse? How will the estate of a deceased active shareholder be compensated for the equity held in the farm? Getting back to the parents estate: If there are multiple children on the farm, but not all are farming, what is the appropriate compensation needed for equalization to the non-farming children? Many farmers want to leave pieces of land to non-farming children, however this does not often work well. The farm may need the land to support the operation and the non-farming children may not want to hold the asset and be landlords to the farm. There is also a tax consequence: the land rollover to a non-farming child will likely not qualify for the Section 85 farm rollover provision. You need to work with a good farm succession advisor to get through this part. The final answer lays with the parents to work out what is right for the farm and family situation. The next part of the equation is taxes. Wealth planning is about setting up a plan that will minimize taxation. Many assets are subject to Probate thus your estate will lose value immediately. Also, unnecessary capital gain taxes and income tax may come into play if your estate is not set up correctly. Sound wealth planning can greatly reduce the erosion of your family wealth due to tax. The old saying of “Shirt sleeves to shirt sleeves in three generations”, meaning your family will go from working class to wealthy to working class in three generations due to the erosion of family wealth due to taxes and dissipation of the wealth among multiple heirs. A comprehensive wealth plan can reduce or eliminate that phenomena. Lastly, a good wealth planning team will welcome the participation of all of your advisors, including your accountant, lawyer and lenders. An experienced and knowledgeable team will produce a much better solution than one advisor working alone. Ensure the team you select are welcoming to participation of all the professionals involved in your life.

Daren Givoque, CDFA, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. When a person or couple starts looking into divorce it is hard to know where to turn. It is commonplace to have a lawyer or mediator handle the legal aspects of the divorce and ensure the division of assets are equitable and fair. While divorce lawyers and mediators are excellent at applying the law, understanding people’s rights and negotiating with other lawyers in a legal framework, they don’t specialize in the intricacies of dividing assets. In many cases finding a situation that is fair to both parties may not be as simple as dividing the assets 50/50. This is where the Certified Divorce Financial Analyst (CDFA) comes in. A CDFA provides clarity, accuracy and equity through a collaborative divorce process. They are an expert in all the financial aspects of divorce. A CDFA’s role is to help divorcing couples address the financial issues of divorce using data to help achieve equitable settlements. They are well-versed in analyzing financial records and investments and identifying possible tax consequences that come along with liquidating assets. A CDFA will work with the divorcing individual or couple to create a comprehensive wealth plan. This report outlines all the assets involved in the divorce, taking into consideration the tax consequences and future value of each one. By doing some simple analysis, a CDFA will make it clear that what may seem like an equal division of assets may not actually be fair because of the long-term outcomes of each. For example, a family home may only ever be worth $300,000 while a pension could one day be worth $1 million. If a client is particularly set on keeping the house or the pension a CDFA will be able to help equalize the two so they can be traded in a fair and equitable way. A CDFA can also look after long-term financial planning and give their clients a look at how their life will be affected based on different settlement scenarios. For example, in some cases it may not be financially viable for someone to keep a family cottage as it may be difficult to keep up on a single income. When deciding which assets to keep in a divorce it is important to look at how this will affect your financial situation long term. A CDFA will do that and create a comprehensive wealth plan to help ensure your financial stability going forward. There is no way around it, divorce is stressful. Many people come to their initial meeting with a CDFA scared and unsure about what the future holds. Using a CDFA will help mitigate stress and allow you to go into meetings with your lawyer stronger and more confident about the settlement you want and what the future looks like.

Daren Givoque, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. The investment markets recently seem to have no end in growth. In fact, just when you think that nasty correction will rear its head, some global treaty is signed, or tensions deescalate from a potential conflict. Trouble is may would say the markets are oversold, expensive and a correction is all but waiting for the right catalyst. This has left many investors feeling uneasy. The biggest challenge with investing is getting wrapped up in the emotions of the market. People tend to look at their money emotionally. It symbolizes the cottage, their family trip or a new home. When the market goes up they see the realization of their goals and when it goes down they see them circling the drain. When you use your emotions to invest it is easy to get in over your head. The rollercoaster of the stock market is a tough ride when you panic and sell every time there is a dip. Thankfully, there are a few things you can do regularly that will help you stay on an even keel even when the stock market is going up and down like a yoyo. Complete a personal investment risk assessment This is a questionnaire that you can fill out before you start investing. It asks a series of questions that will help you figure out where you stand as an investor. Some people are comfortable with a lot of risk, while others prefer to protect their money in safer investments. Fill out this questionnaire when you are feeling calm and level-headed. That way you can look back on it to help you stay the course when you are feeling emotional about your investments. Consider buying pooled investments Pooled investments (Mutual Funds, ETFs etc.) allow you to pool your money with other investors and buy into multiple and varied investments. This helps spread the risk around so that if one stock tanks your other investments will help balance out your portfolio. As the age old saying goes: Don’t put all your eggs in one basket. Rebalance annually Get into the habit of taking a good look at your investments every year. When times are good you should consider taking the gains and sheltering them. When the stock market is down, consider buying into profitable companies when their stock prices are low. You also want to make sure you consider building a portfolio that has both equities and fixed income investments. During your yearly review you can look at your investments and make sure that they match your risk tolerance. Picking a specific time of year to rebalance your portfolio is also important. That way you aren’t tempted to act emotionally if there is a dip in the market. People who take the time to rebalance their investments yearly typically do better with their investments as they are making use of the rule of protecting gains and staying within their risk tolerance. Dollar/cost averaging When it comes to the investments having a fixed amount that you are willing to spend and buying a little bit at a time is your best bet. When the market is high you will get fewer investments for your money and when the market is low you will get more. Those who practice dollar/cost averaging tend to do better in the stock market than those who buy emotionally and without a plan. Have a wealth plan When investing in the stock market it is always a good idea to have a wealth plan. Decide what you are trying to do with the money you are investing. Having a time frame and a financial goal will help you figure out the amount of risk you would like to take. Talking this over with a financial advisor will help you create a solid plan and they will also be able to give you professional advice about your investments. Speaking to a neutral third party can help take emotion out of the equation and make sure that you buy into the investments that will help you reach your financial goals. Investing in the stock market is like watching a little boy walk up a hill with a red yoyo. The yoyo will always be going up and down, but the little boy is on a constant, steady incline. It is important that you remember that, like the boy, the stock markets historically go up over time but reacting to the yoyoing of the market will just make investing gut-wrenching and unproductive. When it comes to the stock market stay the course and talk to a professional. Financial advisors are there to help when it comes making the best choices possible for your money.

Daren Givoque, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. There is no doubt that these times are uncertain. The volatility of the stock market lately has proved that. Life is happening and it doesn’t care if you are close to retiring, buying a house or having your first child. It’s times like these the people really start to worry about what their future might look like. However, amid all the fear and anxiety could there be a silver lining? When times are good people tend not to pay attention. Have you ever driven home from work and realized you don’t really know how you got there? When the road is straight and predictable people tend to go on autopilot and react in ways that are easy and comfortable for them. But if you happen to hit a pothole on your regular route you will be jerked out of autopilot and forced to bring your cognition back online. After the initial shock has worn off you will probably be more deliberate and aware of your surroundings as you drive the rest of the way home. The world has just hit a giant pothole. It is a great time to get out of autopilot, re-evaluate and look at your future financial goals. Here are three things you can do right now to help you feel more in control and refocus your energy into something that is productive and will benefit you in the long-term. 1. Look at your investments Take a look at your investment portfolio. This could be a great time to replace investments that have not performing well in the past and to favour more defensive investments that will perform regardless of market conditions. You should always be rebalancing your portfolio annually but times like these are ideal for bargain hunting. The market is at a low so there are some great investment options that are relatively inexpensive. The main takeaway is to get rid of all the dead wood in your portfolio that isn’t serving you and stock up on options that are more likely perform well down the road. 2. Re-evaluate your risk tolerance This is a great time to re-evaluate how you really feel about the ups and downs of the market. Often when people first set up an investment portfolio with a financial advisor, they tend to be relatively aggressive. They want to invest in the stocks that could give them the most bang for their buck - no matter the risk. However, when the market starts to go down, and investments decrease in value the volatility of the market is no longer a possibility. It is real. It is important to take a look at how this makes you feel. Can you really withstand the ups and downs that come with a more aggressive portfolio or would it be better to invest in some more reliable options? No matter what it is a good chance to re-evaluate how comfortable you really are with risk and re-balance your portfolio accordingly. 3. Create a detailed plan Do you have a short, medium and long-term plan? If not, this is the time to create a detailed financial strategy that reflects the goals you want to achieve. Goal-based plans are useful because they take into consideration what you want to accomplish over a certain time period. For example, if you want to retire at age 60 and are expecting a certain standard of living in retirement how are you planning for that? How much time and resources do you have to achieve this goal? This will directly affect your investment strategy as the longer the time frame the greater the level of risk you will be able to tolerate. It is important to reassess and adjust your plan 1-2 times a year to make sure you are on track. Life happens and your plan should reflect that so that you can continue to stay on top of all your goals. This isn’t the time to give into fear. It is important to remember that there are lots of examples of challenges in the marketplace going back decades and, guess what? We always recover. The best thing you can do right now is stop, take a breath and have a good conversation with your financial advisor. At O’Farrell Wealth & Estate Planning we are all working from home, but it is business as usual. Give us a call to talk about how we can help you put together a plan that will make you feel in control now and into the future.

Cyndy Batchelor, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. A New Year brings new goals and plans that we hope to accomplish. Having been through two hard years of living in a Pandemic with many of us experiencing cutbacks at work, we are all feeling the pain of rising prices at the grocery store and at the gas pumps. Here are a few tips to help you stay financially on track in 2022. First and foremost, make a budget. This means writing out your incomes and expenses and knowing exactly what you spend where. If you are overspending, determine what can be cut out of your budget (needs versus wants and eliminating expensive vices). Credit Cards – if you use them then pay them off each month. The high interest rates will eat up a significant portion of your monthly budget. The “Don’t pay until 2023” trap– don’t do it, there are immediate fees and interest payments that start accumulating if you don’t pay - if you can’t afford it today, you probably can’t afford it in the future. Try local marketplace sites for gently used items. You would be surprised what you can acquire for a much lower cost (or even for free). Set aside money for emergencies. Take $100/pay and set it aside in a savings account you don’t touch except for real emergencies. A real emergency is not dinner out or regular bills – it is losing your job, a roof collapsing, or someone in your family getting sick. It is important to be strict with yourself. If you cannot afford dinner out – don’t dine out. Coffee and Tea. $4 a day adds up to $20 a week adds up to over $1000 a year. If you save this instead of spending it, you are already ahead. Invest in a good travel mug and bring your own instead of making the stop at Tim’s or Starbucks. Involve your family – if you have kids who compete in sports or activities involve them in your budget planning. Maybe they want to stop for takeout after a game. If they are more involved, they can make better choices when asking for phone upgrades, new shoes, and those pit stops on the way home from a game. Savings first. 10-20% of your income should be set aside for your future. The future isn’t next week or next year, this is your retirement. If you have a government pension then this is being done for you automatically – otherwise, no one else is saving up for your retirement except you. Ensure you treat yourself occasionally. Life should not be all about being frugal. Make sure to set aside something in your budget for fun or splurging occasionally. It is always good to have some fun too. Speak with a financial advisor about wealth planning and budgeting tools that are available to you today. We welcome questions so please reach out!

Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Everyone knows a wealthy woman. She is inspirational, in control of her finances, has a successful career, and enjoys life to the fullest. As we celebrate International Women’s Day while enjoying a favourite cup of tea or coffee, let’s consider five habits that women can use to build their wealth. Cashflow – Understanding cashflow means understanding the full picture of future expenses – monthly, annually, and one-time. Rather than relying on a credit card debt, create a sinking fund. With a sinking fund you plan for large expenses by setting aside the monthly equivalent. For example, if your next summer vacation is going to cost $4,000 and you have fourteen months to save, you need to set aside $286 per month until that point. You can then enjoy that vacation and begin saving for the next large purchase. Sinking funds are great options for property tax, vehicle maintenance, and sport registrations. Automate – Growing your wealth starts with a plan. RRSP, TFSA and RESP contributions can help you meet those goals. Automate your savings but do not forget about them. Wealthy women will re-visit their strategies at least annually, increase contributions and re-allocate funds as targets are met. Risks – Protecting your wealth means protecting your current income, your health, and your loved ones. An emergency fund, access to credit, and appropriate insurance coverages provide the protection needed in case of death, disability, or disease. Diversification – wealth can grow from a variety of sources, but you should never put all your eggs in one basket. Make sure your investments (mutual funds, etfs or stocks) are diversified across geography and sectors. Build a portfolio that suits your risk tolerance and your time horizon. As their wealth grows, many women further diversify by starting a business, owning rental properties, or investing in private equity. Weakness – wealthy women are talented, and they put themselves in careers where they can excel and achieve their goals. More importantly, they surround themselves with the resources that fill in their weaknesses. They do not waste their time with tasks that hold them back. Not good at paperwork – work closely with a great administrative assistant. Don’t understand cars – find a trusted mechanic. What habits do you already have, and which ones do you want to improve? Take the first step by building a network of trusted women who practice these habits. Surround yourself with likeminded professionals, wise mentors, and supportive family members. Celebrate the wonderful women who are already in your life. Speak with your Financial Advisor today and start implementing some of these habits. We welcome questions so please reach out!

Cole Seabrook, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Over the past few years there has been mixed feelings regarding RRSPs with some individuals believing RRSPs are not the great retirement savings tool they claim to be. Registered retirement savings plans (RRSPs) are vehicles that many people in Canada use to finance their retirement. Contributions that you make throughout your working career are income deductions on your taxes. Have you ever heard people around you saying, “it’s RRSP Season” or “it’s time to contribute to my RRSP”? Many people do not know that you can contribute to your plan until March 1st in the current year to reduce taxes owing for the previous year. This leads to a lower tax bill for the investor. Any investments or transactions made inside your RRSP are not subject to tax, however when you take money out of your account it is taxed as income. In simple terms, you can look at RRSPs as an excellent tax deferral tool. At the age of 71 you must convert your RRSP into a registered retirement income fund (RRIF). It is at this point that people must start taking money out of their RRIF in minimum withdrawals, mandated by the government. Unfortunately, some people are reporting that they are being taxed at roughly 50 per cent when they withdraw their money, causing them to feel like the RRSP they had been paying into their entire career is a tax trap, rather than a valuable tool to support retirement. While this situation is unfortunate, it is the exception not the rule. Recent studies have shown that RRSPs are no worse than any other savings options if your tax rate in retirement is the same as it was when you were paying into the RRSP. For most people, their tax rate decreases in retirement, so they end up paying less tax on their RRIF withdrawals than they would if they had used a different tool to save, which wouldn’t have had the same tax deferral benefit as an RRSP. Regret over using an RRSP normally comes when they see a portion of their savings going to taxes when withdrawn, however, it is important to remember the tax breaks you received when you were paying into your RRSP. Many people are choosing to use tax free savings accounts (TFSAs) as they see it as a better way to save for retirement. While withdrawals from a TFSA are not taxed as income, contributions are not tax deductible. Furthermore, TFSA contributions may not be enough to build retirement savings as the limit you can contribute per year is $6,000. TFSAs can, however, supplement retirement income without any tax implications upon withdrawal. Although every individual has a unique financial situation, with the proper planning, RRSPs are a great savings tool that can reduce current taxes owing and add financial stability to long-term financial plans.

Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. The federal government is currently working on a Disability Inclusion Action Plan with the goal of improving the lives of Canadians with disabilities. As with any federal initiative, this program will take time to develop and implement. In the meantime, we often have clients asking what investment opportunities are available for those are living with a disability in Ontario. What investments are available? Disability can cover a wide spectrum and it should be noted those living with disabilities have access to all the same investment opportunities as everyone else. Registered Retirement Savings Plans, Education Savings Plans, Tax Free Savings Plans – these accounts should all be reviewed as part of an overall financial strategy. In addition, Canadians living with a disability also have access to the Registered Disability Savings Plan. Who is eligible for the RDSP? If a person qualifies for the federal Disability Tax Credit (DTC), is younger than 60, has a social insurance number, and is a resident of Canada, they are likely eligible to open an RDSP. Why sign up for an RDSP? The goal of the RDSP is to provide a retirement income for persons with disability. To reach this goal, the federal government provides grants and bonds for the RDSP. The grant portion correlates with annual contribution amounts and annual income test levels. For example, if your family net income is below $98,040, the first $500 of contribution would receive $1,500 of grant and the next $1,000 of contribution would receive $2,000 of grant. The maximum lifetime grant is $70,000. The government bond is also income tested and a beneficiary could receive up to $1,000 per year or up to a lifetime maximum of $20,000. The grant and bond portions are significant. According to Statistics Canada, in 2017 the Government of Canada paid out $351.6 million in grant and $155million in Bonds into the RDSPs. What other considerations are there? The RDSP has age limits. Once grants and bonds are received there is a 10-year holding period before they can be redeemed without a claw back. The accounts are structured so that grant and bond payments can be received until the end of the year the beneficiary turn 49 and redemptions must begin by the end of the year the beneficiary turns 60. Redemptions are structured based on government calculations which factor in age, and percentage of government contributions vs. beneficiary contributions. Does everyone know? Disabilities are not always obvious. You may have friends or family who already receive the Disability Tax Credit or could be eligible but have not yet opened an RDSP. According to Statistics Canada in 2017 only 32.5% of Ontarians who were eligible for the DTC had an RDSP. Spread the word, you never know who may be eligible. Speak with a Financial Advisor about the RDSP and how it could benefit you or those around you. We welcome questions so please reach out!

Daren Givoque, CDFA, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. As you age, and your children grow up and have families, you may be hoping to leave them an inheritance. Trusts are one way of doing this, but they come with a significant tax burden that you may wish to avoid. The Cascading, or Waterfall Wealth Transfer Concept, can be an efficient way of saving money for your offspring. The concept uses permanent Whole Life or Universal Life Insurance to grow tax-sheltered value that you can access (if needed) but is meant to be transferred to your children or grandchildren. This takes advantage of Section 148(8) of the Canada Income Tax Act which allows you to transfer ownership of a life insurance policy to any of your children or grandchildren on a tax-free basis, provided they are insured under the policy. This applies to a natural or adopted child, grandchild, stepchild, or son/daughter-in-law. This strategy can be applied for at any age. For example, a new grandparent may want to provide for a grandchild. It may seem strange to have life insurance for a baby, but there is real merit in purchasing a life policy at a very low cost and building tax-sheltered value that can be accessed if needed. It is an opportunity to tax-effectively set money aside, that you can control until you decide to transfer ownership. The accumulated cash value in the policy could help children or grandchildren pay for significant milestones like post-secondary education or buying their first home. Having a whole life insurance policy in place at a young age guarantees a low premium that will help protect their children when they eventually start their own family. You may also name a contingent owner on the policy, which is a good idea if you are concerned that your grandchild will not be old enough to own the policy before you pass away. Naming their parent as the contingent owner on the policy will ensure that it remains protected until your grandchild can benefit from it down the road. Another possibility is naming someone you trust as an irrevocable beneficiary, to act as a trustee that sees your wishes for the funds are fulfilled. An irrevocable beneficiary helps ensure the accumulated cash value in the policy is used for its original intention and must consent to any policy withdrawals before the insured can access the accumulated value. Any policy changes must be agreed upon by the beneficiary as well as the owner of the policy. This concept is a great way to use life insurance to shelter money and provide tax-free support to your off-spring and their children. I sometimes refer to it as an “Intergenerational Tax-Free Savings Account”.

Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Food for thought on a popular summer project – the vegetable garden. Was the Covid gardening craze worth it? The last few years, my sister and I have helped our Grandma plant and tend a massive vegetable garden. We grew potatoes, carrots, beans, tomatoes, peppers and weeds that would not be tamed. Over the course of the summer we mused, was the garden worth it? Financially, the answer is no. After considering the cost of seeds and plants (thanks Grandma), our time and our mileage, we are lucky to have broken even. Fresh produce is inexpensive—zucchini is a dime a dozen— you’ll often find boxes of the stuff left by friends and family on your front steps or windshield! The best investment would have been sweet corn, but we gave up on growing it years ago – it requires too much space, and the raccoons devour it. Physically and emotionally, however, the vegetable garden was absolutely worth it! Have you ever spent a full hour pulling weeds out by hand, running a massive rototiller, or hilling pepper plants with a hoe? As extra motivation, your Grandma, who began before you, hasn’t even worked up a sweat. Not even the best personal trainer could come up with such an invigorating workout. What is better than chatting for 2-3 hours weekly with your sister and grandma in the garden? Gardening is therapy and can provide a beautiful connection to the past. When the carrots are ready, everyone remembers Grandpa’s special technique for eating fresh produce: pull the carrot, spit on the carrot, rub the carrot on your work pants and enjoy! I don’t care if carrots are $2.99 for 5 lbs. at the grocery store, the emotion behind a self grown carrot trumps any financial benefit. Did it really make sense to grow tomatoes? Absolutely. Think about it—you could buy 18 jars of pasta sauce for $1.75 each at the store, or you could plant 30 tomato plants, repeat after the late frost, weed throughout the summer (maybe) and finally harvest copious amounts of ripe tomatoes. This triggers another adventure: making pasta sauce for the first time ever, with your mom. Four hours of chopping and stirring ingredients and 24 hours simmering in the pan. Totally worth the time spent in the garden with Grandma and in the kitchen with Mom. Some more food for thought – a trusted Financial Advisor will review both the financial and the emotional side of your plan. Certain experiences may not grow your net worth, but they will bring value to your life. As Christmas approaches – be forewarned - my share of this summer garden’s bounty included two laundry baskets of potatoes and I am not afraid to wrap them up as gifts.

Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Grab your favourite cup of tea or coffee and let’s look at ways to combat the impact that lifestyle creep can have on your spending. Lifestyle creep is a behavioural and financial change that can occur when your income increases due to a salary raise or a new job, or when one liability payment, such as completing your car payment, drops off. You find new ways to spend that “extra” money. It becomes habit to buy fancier clothes or to upgrade one of your many subscriptions from the ad ladened free version to the premium version. Eventually all these little purchases become part of your daily routine and regular budget. They become necessities rather than luxuries. As your lifestyle changes, new costs are added. A new pool seems like a one-time expense until you add in the annual maintenance costs, the increased energy bills to keep the water warm, and the new pool accessories or pool side furniture. There is nothing wrong with enjoying your successes in life. In fact, with the impact of covid lockdowns, many local businesses need our support. With the Christmas season quickly approaching, many of us will get pulled into a spending whirlwind that seems to increase every year. You constantly want to buy bigger and better presents for everyone on your list. This Christmas lifestyle creep can easily become a budget breaker and put you on the wrong footing for the New Year with expensive credit cards bills to pay. How can we combat lifestyle creep for the Christmas season? Start now and begin implementing a Christmas strategy to combat this inherent lifestyle creep. Identify the friends and family members who truly need nothing. Rather than buying them token gifts or gift cards, take the opportunity to provide a meaningful gift at no cost. Prepare a card that details how much you appreciate them, and how much you enjoy spending time with them. Take them out for a cup of tea, invite them over for a visit, or go for a walk. Spread the word that you would truly appreciate the same. Which would you rather, colourful socks or a visit with a good friend? Does your child need a new game, or would they enjoy an afternoon skating at the outdoor park with their grandparents or cousins? If you take a step back and re-assess, there will always be ways to combat lifestyle creep.

Daren Givoque, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Rebecca Cronk, Fitness Trainer & Owner Becca Langstaff, Fitness Trainer Get Cronk'd Fitness Studio Fitness is often top of mind when it comes to New Years resolutions. While being physically fit is a great goal, working on your financial fitness is also something that is worth your attention. Here are some great tips on how to be fit both physically and financially in 2022. Create a budget It is very important to understand your cash flow. Most people tend to spend frivolously and don’t realize where their money is going. Tracking your spending will help you cut spending where you need to, so you can save for the things that are most important to you. This is also important when starting any sort of fitness program or regimen. It is easy to spend a lot of money on gym memberships, personal trainers and fancy work out gear. Know what you want to achieve and a realistic budget for what you are willing to spend to help you get there. You should never have to suffer financially to reach your fitness goals. Know your credit score It is very important to understand your credit score because it reflects your financial credibility. It also affects lending. Your ability to finance a car or get a mortgage all depends on the health of your credit. Review your credit score on a regular basis to make sure there is nothing on it that shouldn’t be there. Trans-union and Equifax are both companies where your can check your credit score online for a small fee. Borrowell.com and creditkarma.com are websites where you can check your credit score for free, but you should be aware that they will try to sell you a loan. It doesn’t matter how you do it, having a handle on your credit score is an important part of knowing where you stand financially moving into 2022. Know your options When it comes to fitness there are many avenues you can take. If you aren’t sure where to start check out your local gym’s new client offerings and promotional specials. Most fitness facilities will offer trials/consultations to help you find the best option for you. This can be a great way to try out new classes without any significant financial commitment. Pay down high interest debt Credit card debt is a silent killer much like unhealthy eating habits. Credit card companies take roughly 20 per cent of every dollar you put on the card in interest, making it very difficult to pay down. If you only ever pay your minimum payment, you could be in debt for 35 to 40 years. Make it your focus in 2022 to get rid of your revolving high-interest debt. Taking care of that debt will do wonders in improving your financial fitness and if you do the same with reducing the junk foods and sugars you consume, you’ll be off to a great start in 2022. SAVE Using the tools available to you for saving is an essential part of improving your financial fitness. Use your RRSP and TFSA to invest your money and save for the future. Make it automatic on your payday so you don’t have to think about it. Putting money into your RRSP will also give you a tax break which could lead to a refund that you can reinvest. Strategic borrowing can also be used to boost the amount of money you are putting into your RRSP every year. This Strategy is similar with fitness, have a scheduled routine that keeps you on track, so you don’t have to overthink the process. Protect your income One of the biggest mistakes people make is not understanding what might happen if they cannot work. Critical illness insurance, disability insurance and life insurance are all important to have in order to protect you and your family. Using five cents on every dollar to protect the rest of the dollar is what insurance planning is all about and it is an important part of ensuring that you are financially stable no matter what happens. In the gym I would say don’t skimp out on your equipment buy good shoes and work with a partner to ensure you’re safe. Partners have the added benefit of keeping you motivated. Make the commitment When it comes to physical or financial fitness it is important to make the commitment. You don’t have to be putting away thousands of dollars a month or working out every day to make progress. It’s all about finding a routine that works for you, your budget, and your schedule. Getting help from a professional like a financial advisor or fitness trainer can help you outline realistic goals and keep you motivated. There is no reason why 2021 cannot be your best year yet, both physically and financially! Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.