Thournout Turner Wealth Management Group Quarterly Newsletter Winter 2017

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1 Thournout Turner Wealth Management Group Quarterly Newsletter Winter 2017 Views and opinions for the clients and friends of Jim Thournout Vice-President, Investment Advisor A Message from Jim & Allan To our valued clients, Happy New Year! We wish you & your families all the best in 2017! As of January 3rd, 2017 new contribution room has opened up for all TFSA accounts. The limit for this year has been set at $5, and if you have not yet made a contribution, the total limit is $52, The deadline for this year s RSP contribution is Wednesday March 1st. Allan Turner Associate Wealth Advisor, Financial Planner allan.turner@rbc.com As previously discussed in your review meetings and our newsletters, the first regulatory reports will be delivered sometime in January as per new industry standards. If you have any questions regarding any of the information provided, please don t hesitate to contact us directly. Sincerely, Michelle Babcock Associate Advisor michelle.babcock@rbc.com Kathy Van Sas Administrative Assistant kathryn.vansas@rbc.com Jim Thournout Allan Turner

2 CRM2 Answering your questions about new investment industry regulations coming into effect Providing investors with greater transparency about the cost and performance of their accounts is the driving force behind new industry-wide regulations, known as the Client Relationship Model II (CRM2). What is CRM2? New industry-wide regulations that improve how the financial industry reports and discloses information to investors Changes are now being phased in, with full implementation at RBC Dominion Securities by early It includes two new reports: (1) account costs and (2) account performance. Applies to all investment dealers and advisors in Canada, including: Investment dealers regulated by the Investment Industry Regulatory Organization of Canada (IIROC), such as RBC Dominion Securities o Firms regulated by the Mutual Fund Dealers Association (MFDA), such as the respective mutual fund distributor of each of the major banks o Investment counselling firms regulated by provincial securities commissions in Canada To provide investors more details on the fees and performance of their investment accounts To improve investors ability to assess how they are progressing towards their financial goals How will CRM2 affect you? CRM2 does not change the amount you are paying your investment firm; it only provides more detail to you about your account fees and performance. All investors will receive more specific details on the cost and performance of their investments via: Conversations with their investment advisors More details on existing account statements and confirmations Two new annual reports you will receive starting in 2017 for all investment accounts: An Annual Charges and Compensation Report, showing a detailed list of account fees An annual Investment Performance Report to provide details on how the account is performing using a moneyweighted rate of return Why is CRM2 being implemented? CRM2 is part of a global shift towards increased disclosure and transparency in the investment industry Speak with Jim or Allan if you have any questions

3 RSP Quick Tips Quick tip #1 contribute early to maximize your RRSP You have until Wednesday, March 1, 2017 to make your 2016 RRSP contribution. But remember to contribute early to avoid the last minute rush. Contributing early can also boost your RRSP s growth over time, as your RRSP assets will have more time to benefit from tax deferred compound growth. Determining your available contribution room for 2016: Start with 18% of your 2015 earned income, or $25,370 (whichever is less). Subtract any Pension Adjustment appearing on your 2015 T4 tax slip. Add any unused RRSP contribution room carried forward from previous years. You can also check your latest Notice of Assessment, Notice of Reassessment or RRSP Deduction Limit Statement (Form T1028), or log on to your Canada Revenue Agency account at You can start making RRSP contributions for the 2017 tax year as early as January 1, 2017 (March 1, 2018 is the deadline). The contribution limit is rising to $26,010 for Quick tip #3 make the most of your RRSP choices With a RRSP held at a full-service wealth management firm at RBC, you can invest in a wide range of investments, from T-bills, GICs and bonds to equities, mutual funds and select risk management solutions. This gives you greater control over how your RRSP is managed. Consider global diversification to potentially reduce risk. There is no limit on the amount of foreign content you can hold in your RRSP (including U.S. securities). This helps you to diversify, which is a proven risk-reduction strategy. Quick tip #4 remember the final contributions You can contribute to your own RRSP until December 31 of the year you turn 71, at which time your RRSP must be converted into a retirement income source such as a RRIF. If you have a younger spouse and are still earning income, you can continue contributing to their spousal RRSP until they turn 71. The bonus contribution - You can make a cumulative lifetime excess contribution of $2,000 without penalty over the life of your RRSP. After that, there is a 1% per month penalty on any amount you over contribute. Quick tip #2 maximize the tax advantages You can claim your 2016 RRSP contribution as a deduction on your 2016 Income Tax Return to reduce your taxable income and potentially receive a tax refund. It may make sense to wait to claim the deduction if you expect your taxable income to be higher in a future year, as you may receive greater tax savings. You can also claim deductions for contributions made in any previous year since 1991 if you have not claimed them previously. Speak with Jim or Allan to discuss your options

4 E-statements Many of our clients have opted to receive their monthly statements electronically. Just a friendly reminder that IIROC requires clients to log into their DS online accounts and view statements at least annually or they will be reverted back to paper statements. If you are having any problems accessing the system, please contact Kathy directly and she can assist you with this. If you would like to start receiving your statements electronically, please contact Kathy to start this process. DS on-line Through DS Online, you can view your RBC Dominion Securities account information from any computer with secure internet access. DS Online will keep you up-to-date with essential tools, resources and messages. Contact Kathy directly if you would like to gain access to your accounts. Detailed Account Information: View your account information, transaction history, investment news and research 24 hours a day, seven days a week. Intraday Holdings & Balances: Check the value of your equities, options and mutual funds based on current market pricing. Real-Time Quotes: Obtain detailed real-time quotes for stocks and options listed on Canadian and U.S. markets, and daily closing prices for mutual funds. Instant transfers between RBC accounts: Transfer funds instantly through DS on-line from your Royal Bank account into your RBC Dominion Securities accounts. This article is supplied by Jim Thournout and Allan Turner; Investment Advisors with Member-Canadian Investor Protection Fund. This article is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. Quarterly Quote Financial freedom is available to those who learn about it and work for it. Robert Kiyosaki Parting Notes Thank you for reading our Winter 2017 newsletter. As always, we are here to help. If you would like to book an appointment or if you know someone who may benefit from our financial advice or services; please do not hesitate to get in touch with us. Referrals are always welcome. Contact information for the Thournout Turner Wealth Management Group can be found on the first page of this newsletter.

5 Disclaimer This information is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This information is not investment advice and should be used only in conjunction with a discussion with your Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of may from time to time include securities mentioned herein. * and Royal Bank of Canada are separate corporate entities which are affiliated. The inventories of may from time to time include securities mentioned herein. This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns. and its affiliates may have an investment banking or other relationship with some or all of the issuers mentioned herein and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. and its affiliates also may issue options on securities mentioned herein and may trade in options issued by others. Accordingly, RBC Dominion Securities Inc. or its affiliates may at any time have a long or short position in any such security or option thereon. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. Registered trademarks of Royal Bank of Canada. Used under licence Royal Bank of Canada. All rights reserved.