To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insight, or inside information.  What’s needed is a sound intellectual framework for decisions and the ability to keep emotions from corroding that framework"

~Warren Buffet

Investment Planning Services

We have been providing financial advice to clients for over 25 years.  Our clients best interests come first and we strive for long term client relationships that can last a lifetime and even into the next generation.  Financial planning and tax planning go hand in hand. If you want a realistic look at the bottom line, then after-tax investment strategies and after-tax income solutions are the answer. It’s about keeping more of what you earn and making sure you are utilizing strategies to keep more of your hard earned dollars in your pocket.

We consider all aspects of investment and retirement planning including:

  • Investor profiling
  • Risk tolerance analysis
  • Goal setting and asset allocation
  • Retirement income projection
  • Pension, CPP and OAS analysis
  • TFSA or RSP?  RIF or Annuity?
  • After tax planning
  • Cost effective management strategies

Learn more about our Farrow Financial Team.

Taxes. Pay less, Keep more; with after tax planning.

Who doesn’t want to pay less tax?  But, how do you do that?  Do you know what tax strategies you should consider for your personal situation?

Understanding Canada’s tax laws can go a long way towards helping you minimize the taxes you pay.  Learning more about the income tax act makes sense in theory, but in reality, most of us find the topic a bit of a bore.  You may already be dis-interested and planning to stop reading now.

David Chilton was once quoted as saying, “The biggest financial mistake people make is not taking advantage of tax deductions that are available to them.  Why?  They do not know about them.”  Read more ...

 

Financial advice.  What's it worth?

How do we put a price tag on the value of long term financial advice?  This is a lengthy topic.

Financial planners and investment advisors are paid for their services in a variety of different ways ranging from salary, fee based account management, service trailers from MER’s (Management Expense Ratios), and fee for service or flat fee arrangements.  

Investors want to know they are receiving value from their advisor.  Naturally, professional advisors are interested in making sure they are providing value and cultivate long term relationships with their clients.  Let’s take a deeper look at what makes up the best long term value.  Read more ...

 

How is my advisor paid to manage my investment funds?

You consult your advisor for financial strategies and investment advice.  You can deal with your advisor, assistant, and other staff in person, by phone, text, email or website.  Today’s investor looks for service in a variety of different ways.  Investors want both personalized service and digital options available.

Investors are looking to advisors to provide a wide range of services and expertise as the financial marketplace has become increasingly complex. Read more.

 

What is a mutual fund?

I remember clearly sitting in the University lecture hall as our personal finance professor provided a basic summary of mutual funds and how they came to be.

Before mutual funds were available in Canada, investors would purchase stocks and bonds primarily through a stock broker.  Most stocks at that time were sold in lots, with a minimum purchase amount.  This worked fine if you had enough money to purchase a full lot.  For a small investor it was hard to participate in the profits from stocks and bonds if your investible assets were too low.  The effect was people with more money had more investment opportunities than those who did not have the minimum amounts saved to invest.  Read more.

 

The MER.  What does it cost to own a mutual fund?

So, you own a mutual fund and you understand some basic things about it.  You know your money is invested in a variety of stocks and bonds.  You know the purpose of the fund is to make your money grow.  You know the people who manage the fund and take care of your account are paid for what they do.   As an investor, you know you contribute to these ongoing services through the fund.  You may also be familiar with the term used to describe these ongoing costs: Management Expense Ratio (MER).  But what you might not fully understand is exactly how these costs are calculated, who is paid, and for what. Read more.

 

New sections included in your December 31, 2016 Manulife Securities Statement

Changes have been made on investment statements to help increase investor understanding.  Research indicated investors want to better understand “How am I doing?” and “What is it costing me?”  The purpose is to implement a standardized clearly designed, plain language report. 

There are two new sections that will be included in your December 31, 2016 statement from Manulife Securities:  Annual Performance of this Account and Annual Charges and Commissions for this Account.  One is for fees and the other is for performance.  Let’s take a closer look at these two new reports and what they mean to you. Read more.

 

Understanding Investment Costs - A Primer for Investors

In the video link below you will find a 3-4 minute video which takes a simple look at investment costs illustrated as bundled or un-bundled as sometimes referred to.  

Understanding Investment Costs - A Primer for Investors