“Judy, 65, had always let her husband handle their finances. But when he died just months after a cancer diagnosis last year, she was suddenly on her own. ‘The transition has been very difficult and stressful,’ says Judy, who retired last year. ‘Not only was his death untimely but he also handled all our financial affairs, including the family budget, paying bills, savings and investments. I very much regret that I was not more involved in our financial affairs.’ She has begun to educate herself by reading investment articles and personal finance books. She also has begun to look for a financial adviser. The two she has seen so far have recommended switching from dividend stocks to mutual funds in her registered retirement savings plans (RRSPs) and tax-free savings account (TFSA). Taking a look at Judy’s situation is David Shymko, a partner in Macdonald Shymko & Co. Ltd., a fee-only, financial-planning firm based in Vancouver.” Click here to read the rest of the article

The Vancouver Sun – by Peter Kenter, for Postmedia News

“Traditional wisdom suggests that investors follow a typical investment pattern as they grow older: more risky in youth, conservative in middle age and cautious in retirement.  But according to some investment advisers, how you choose to invest may have more to do with the economic climate, your personality and your tolerance for risk than the passage of time.”  Gina Macdonald, a fee-only financial adviser with Macdonald, Shymko and Co. Ltd., comments on the relationship between age and investment strategy. Click here to read the rest of the article

“When Laura Campbell first opened up a tax-free savings account (TFSA) two years ago, she assumed she’d use it just like any other savings account, making withdrawals when she needed a little extra cash.  But after talking to her a financial planner, the Vancouver-based web designer has rethought how she’ll use that account. Now, Campbell’s TFSA is more an investment tool than a rainy-day fund.”  Ian Black, fee-only financial advisor with Macdonald Shymko & Company Ltd. advises on possible tax implications for investments held in a TFSA and the advantage of a TFSA over an RRSP.  Click here to read the rest of the article

“David Hart had worked at Norampac’s recycled paper plant in Burnaby for 35 years when he learned last September that the plant was closing permanently by the end of this year. Despite the shock of the untimely plant closure, at 56 and still shy of his retirement goal of 60, Hart considered himself fortunate. He knew he had a defined-benefit pension that would backstop his retirement…As the holder of a workplace pension plan, Hart is in a minority in Canada, where the latest Statistics Canada figures show 39 per cent of employees are covered by such a plan. Only 25 per cent of private-sector workers have coverage. In British Columbia, that number is lower.”   Gina Macdonald, a fee-only financial adviser with Macdonald, Shymko & Co., offers some comments about workplace pensions and retirement income. Click here to read the rest of the article

“Liam is a lightkeeper, Arlene an artist. Together, they live an idyllic life on an island off the B.C. coast. He’s 53, she’s 59. They have a 23-year-old son who is out on his own.  While the hours of a lightkeeper are long, their housing is provided by the government, casting Liam’s $47,000 a year salary in a better light. Arlene’s earnings are variable. Liam has been working for the government for only 16 years, so his pension will be modest; Arlene has none. Arlene and Liam have two main questions: How much do they have to save to retire with an after-tax income of $50,000 a year? Can they afford to buy a second home on the West Coast and rent it out until they retire without having to sell the duplex?  We asked Brinsley Saleken, a financial planner at Macdonald, Shymko & Co. Ltd. in Vancouver, a fee-only financial adviser and portfolio manager, to look at Arlene and Liam’s situation.” Click here to read the rest of the article

“With all the economic uncertainty – low bond yields, volatile markets and potential loss of capital – we asked the experts what investors Jane and John Doe should do.”  Gina Macdonald, a fee-only financial adviser with Macdonald, Shymko & Co. offers her advice.  Click here to read the rest of this article

“The financial crisis was a wake-up call for boomers, who are living longer than ever before and increasingly carrying debt into their retirement years. There are ways to minimize the risks.” Gina Macdonald, a fee-only financial adviser with Macdonald, Shymko & Co., offers some advice about risk tolerance and asset mix in one’s investment portfolio.  Click here to read the rest of this article 

“When his spouse, Gary, died last year, Zeke was left with two mortgaged houses and some big decisions.  He is living in his weekend home on B.C.’s Sunshine Coast but would like to move back to Vancouver. Should he sell the coast home, or can he keep both properties, Zeke wonders. He is uncomfortable with his $535,000 debt load and is striving to pay it off as soon as possible, making extra payments to his mortgages. Then there is the question of the survivor’s municipal pension from Gary’s employer. We asked Gina Macdonald, a fee-only financial planner at Macdonald Shymko & Co. Ltd. in Vancouver, to look at Zeke’s situation.”   Click here to read the rest of the article

“Life is good for Lou and Dan. They have a successful dental business in a small southwestern Ontario town where housing costs are low.  He’s 37, she’s 32. Their assets total $1.4-million, only $254,000 of which is their house – not bad for a couple with two young children.  Yet success has sparked other dreams. Dan and Lou look to the day they can leave it all behind, pack up their children, now age 2 and 5, and move out West. Dan would sell his practice – say in nine years – and go to work part-time for someone else until he retired at about 55. Life would be simpler, and there’d be the mountains. Their dental corporation grosses about $500,000 a year, from which they each take $35,000 in dividends plus a small salary. They have no company pensions. If they move, their family income will drop substantially and their housing costs will be higher. Is it a plan worth pursuing or is it a gamble?  Keith Copping, a financial planner at Macdonald, Shymko & Co. Ltd. in Vancouver, to look at Dan and Lou’s situation.”  Click here to read the rest of this article

“As engineers earning a combined $262,000 a year, Hailey and Jeff are well ahead of the game. He is 38 she is 32.  Two and a half years ago, they bought a house in downtown Toronto and aim to have the mortgage paid off by the end of its five-year term. Neither has a company pension plan, so they are depending on their RRSPs, which they calculate have earned about 4 per cent a year on average over the past few years. They would like to do better. Their aspirations are the same as many people their age: to pay off their home and have a child or two over the next few years.  Longer term, they want to save for the children’s education and retire by the time Jeff is 55. Their aspirations are the same as many people their age: to pay off their home and have a child or two over the next few years. Longer term, they want to save for the children’s education. We asked Ian Black, a fee-only financial planner and portfolio manager at Macdonald Shymko & Co. Ltd. in Vancouver, to look at Hailey and Jeff’s situation.”  Click here to read the rest of this article