INFOCUS. The Boomer Issue

Transcription

1 INFOCUS The Boomer Issue

2 Join our online community In this issue: f t in Facebook.com/CroweSoberman On Crowe Soberman s Facebook page, you can stay in the loop with the friends you've met at our firm, view event pictures, take surveys or comment on our wall. We want to hear from you! Twitter.com/CroweSoberman Twitter is an up-to-date newsfeed and real-time source for Crowe Soberman information. Linkedin.com/companies/ Crowe-Soberman The Crowe Soberman LinkedIn page is a great resource for business and tax articles, job postings, and other exciting Crowe Soberman news. A message from the Managing Partner 3 Important dates to remember 4 Protecting your personal data 5 Are you a cash machine for your children 7 Redefining retirement 9 Fall events 11 Stay connected 12 Crowe Soberman LLP is a Chartered Professional Accountant firm based in Toronto, Ontario. Our newsletter, infocus, is designed to provide information of a general nature and is not intended as a substitute for professional consultation and advice in a particular matter. We recommend that you speak to your professional advisor before acting on any advice contained in the articles. Youtube.com/crowesoberman On our YouTube Channel you can find Crowe Soberman video content that matters to you and your business. Our videos include quick tips from our professionals and highlights from Crowe Soberman events. We make every effort to ensure that the information presented is timely and accurate when published. However, Crowe Soberman does not guarantee the accuracy and completeness of this publication. In no event will the authors or Crowe Soberman be liable for any damages whatsoever arising out of the use or reliance on the contents of this newsletter.

3 A MESSAGE FROM THE MANAGING PARTNER Jerry Cukier, BComm, CPA, CA, Jerry Cukier Professional Corporation, Managing Partner I hope you have been enjoying your summer so far. Wikipedia says of baby boomers: "As a group, they were the wealthiest, most active, and most physically fit generation up to that time, and amongst the first to grow up genuinely expecting the world to improve with time." Those of us who compose the boomer generation, born between the years of 1946 and 1964, are in the prime of our lives. We are insistent on this. Don't even think about debating this, if you are from another generation! We have worked hard, enjoyed success, created strong relationships with family, friends and business colleagues and have encountered both great joy and challenge along the way. Much has changed as we have grown into the people we are today. Technology intersects with our day-to-day lives in ways we could not have imagined when we became adults. We communicate electronically, digitally and virtually. Once prevalent childhood illnesses like measles, mumps and chickenpox have all but disappeared. Advances in treating chronic and acute diseases such as cancer, diabetes, and heart disease have resulted in much longer life spans, and far greater levels of health and wellness into what used to be "middle" and "old" age. Our children are attaining levels of education and life experience that exceed our own, and our grandchildren will likely surpass that even further. 3

4 This issue of infocus discusses some of the issues that are top of mind with boomers. What should we be considering as we move toward what used to be a traditional "retirement" age in terms of work and continuing professional stimulation? How do we protect our personal data in an age of "cloud computing" and "digital assets"? And, how do we encourage financial independence in our adult kids? I hope you enjoy this issue of infocus. As always, our goal with this publication is to provide some useful information as well as to prompt communication and discussion about interesting issues. If there are any topics you would like us to address in future issues, please don't hesitate to reach out to Heather MacDonald-Santiago, Director of Marketing and Communications, h.macdonald@ crowesoberman.com or Sheila Scott, Marketing Coordinator at sheila.scott@ crowesoberman.com. The theme for our next issue, which you will receive in November, will be Entrepreneurship, with a special focus on Women Entrepreneurs. This will coincide with the celebration of the 20th anniversary of our Women for Women networking breakfast, which this year will be held in late November. Mark your calendars now; more information will follow. Important dates to remember September 15, 2015 The third personal income tax instalment for 2015 is due. New Crowe Soberman website We are excited to announce that Crowe Soberman will launch a brand new website this September! This new user-friendly site will feature: a blog with timely insights from both Crowe Soberman and guest contributors valuable resources to learn more about our services, expertise and the Crowe Soberman team a design that is more accessible as well as mobile friendly; and an archive of past publications and tax letters. You will still be able to find us at The site will also be co-launching with a new Crowe Horwath Canada website, which we invite you to visit to learn more about our national offerings. Here's an exclusive sneak peak of the new JERRY CUKIER, Jerry Cukier Professional Corporation, Managing Partner Jerry is the Managing Partner of Crowe Soberman and has been a member of the firm s Management Committee since Jerry is deeply committed to growing the firm and providing leading-edge advice. Connect with Jerry at: or jerry.cukier@crowesoberman.com. in 4

5 PROTECTING YOUR PERSONAL DATA Jim Barbour, CPA (TN), CIA, CRMA, CFSA, CFE, Managing Director- Crowe Horwath Global Risk Consulting (CHGRC) As we use an increasing number of online services, personal information is sent out onto the Internet at an alarming rate. But is your information safe? In the dark corners of the Internet lurk cyber criminals who prey on unsuspecting individuals by stealing personal information and using it for their own gain. According to the latest statistics from the Canadian Anti-Fraud Centre, there were 1,812 identity fraud complaints from Canadians in December 2014 alone. The losses from these frauds added up to $900,000 for the month and a staggering $1 0,000,000 for 2014! This is the reality of the online world we live in. The number of fraud complaints increases each year with the most common victims being individuals aged or "baby boomers". Many baby boomers are targeted by identity thieves for their accumulated inheritances, substantial home equity and lifetime of savings. When money is combined with cognitive fatigue among aging baby boomers, it can be a recipe for fraud. Older adults who spend a lifetime building good credit have a lot to lose. Cyber-criminals look for personal information such as passwords, account numbers, personal identification numbers (PINs) and social insurance numbers (SINs). With this information they can access your bank and investment accounts, apply for loans, mortgages and credit cards, and/or receive government benefits all in your name. And the list goes on. People who become victims of identity theft take years to recover from the damage to their finances and reputation - all the more reason to better protect your personal data. To minimize the risk of cyber-attacks on your personal data, it is prudent to be aware of the common tactics used to steal personal information. Boomers tend to receive a significant amount of advertisements regarding medical care, asset management, investment opportunities and many other services that cyber-criminals can use as a front. Cyber thieves use forged messages and websites to impersonate legitimate organizations to trick you into disclosing personal information. Hackers can gain access to your computer and install keystroke loggers that steal data or capture account names and passwords as you type them without your knowledge. You can protect your personal data by being vigilant. Look out for fraud's red flags: Unsolicited messages, telephone calls, mail from an unknown origin or overseas that request personal or financial information Mailings and offers that want an urgent response, cash payment or money sent by wire transfers, prepaid cards or cheques 5

6 Investment offers that look too good to be true and cannot be questioned, inspected or checked out further Offers that suggest recipients not tell family or friends about the offer In addition to looking out for red flags, here are some good habits suggested by the RCMP that can reduce your chances of falling victim to cyber-crime: Keep your computer software updated: use strong passwords, firewalls, and anti-virus software Secure your mobile devices and wireless networks Never conduct financial transactions on public Wi-Fi networks or "hot spots" and encrypt sensitive information such as tax returns Confirm that the business or website is legitimate before divulging personal data and only provide the minimum information required Ensure websites are secure prior to submitting your credit card number or other sensitive information. Websites should begin with (hypertext transfer protocol secure) rather than just Review your credit reports at least annually Review bank and credit card statements every month for any suspicious activity Immediately report unauthorized transactions to the respective financial institutions For more Information on protecting your data online, visit the RCMP's website for Cyber Crime Prevention Tips. Still, even with all these measures, it is difficult to protect your personal data when a third-party such as a bank or employer has been breached. If this has occurred, do not panic, but quickly take steps to minimize the damage: Close financial accounts that may be compromised Report your identification (driver s licence, passport, birth certificate) that may be lost or stolen Put a fraud alert on your credit report and track it closely in the following years Here is the key message: To avoid becoming a victim of cybercrime and identity theft, diligently protect your personal information, monitor your accounts and follow up JIM BARBOUR Jim is Ontario Regional Managing Director of Crowe Horwath Global Risk Consulting. CHGRC is a global professional services firm assisting global companies with their governance, risk and compliance needs. Connect with Jim at: or jim.barbour@crowehorwathgrc.com. in When personal and financial documents are no longer needed, shred them 6

7 ARE YOU A CASH MACHINE FOR YOUR CHILDREN? Rubie Nguyen, MMPA, CPA, CA, Senior Staff Accountant, Audit & Advisory You are in your 50s or 60s and looking forward to enjoying retirement life in a few years. You have enough savings in your RRSP and are ready for never-ending vacations on the beautiful beaches in Florida. This morning, you receive a phone call from your son asking for financial help to close on his first house. Despite knowing this will shatter your retirement dreams, you agree to help anyway. If this sounds familiar to you, you are not alone. According to an Ameriprise Financial survey, 30 per cent of baby boomers admit that money spent on adult children has negatively affected their retirement savings. This financial dilemma can be avoided by teaching your children financial literacy and helping them become financially independent at an earlier stage. Here are some tips. Start the money talk by sharing your experience: Remember how excited you were when you taught them how to walk their first steps? But you probably neglected the importance of providing financial guidance before they moved out of the nest. Due to a lack of financial literacy, many young adults get into deep financial difficulties, and suffer from depression as a result. It is important to discuss money matters with your children earlier to help them avoid poor decisions. Start with your own experience of financial failures, and how they can avoid making those same mistakes. Personal stories are inspiring and relatable. Once your children are more familiar with money-related topics and your experiences with money, they will be more open to receiving your advice. Help them put financial matters into perspective and set financial goals: Many young adults avoid considering their finances. To some, being concerned about spending can make them look cheap. To dispel the myths, you need to help them see what money management can bring them. Relate money and financial planning to the realization of their dreams, lifestyle and financial freedom. When your children start to see how saving today can help them take that European trip sooner or to bring their dream of opening a coffee shop closer to reality, they will become disciplined with their spending habits and start to think about their long-term plan. Ask your children what they want to achieve in life and how much money they think they need to get there. Then, work with them to set financial goals and draft 7

8 a detailed action plan. Help them review their plan once a year. Teach your children about budgeting: American Express suggests that generation Y (those born in the early 1980s to the early 2000s) has boosted fashion spending by 33 per cent, travel spending by 74 per cent, and fine dining spending by 1 02 per cent. Young adults finance these luxurious lifestyles by loading expenses onto their credit cards and turning back to "the bank mom and dad" for help. To avoid becoming a cash machine, you should teach your children about budgeting. Explain the difference between assets and liabilities. For example, buying a car with a car loan is buying debt, and is not an asset until the loan is paid off. Tell them that small recurring expenses add up to a fortune on an annual basis. Five dollars spent on a coffee per day is equal to $1,800 per year (read: a round-trip ticket to Europe). Help them find a budgeting app to download onto their smart phone or tablet to keep track of their expenditures. Explain saving and investing: Encourage your children to save and begin investing early. Teach them about the power of compound interest and the risks and rewards of different types of investments. If they are not comfortable with making investment decisions or simply do not have time, you can recommend they seek a trusted financial advisor. be financially dependent on you at some point. Remember, you are not a cash machine! You can teach your children to be financially independent while helping them, by setting clear parameters. For example, if you are asked to pay off some of their debt, you can negotiate an alternative arrangement by offering them an interest-free loan with a specific repayment schedule. This way, they will benefit from your help, but they will also understand you have certain expectations of them. With the tips above in mind, you will be ready to embark on the journey of preparing your children for financially successful and independent lives, and you will be able to enjoy your well-earned retirement without anyone coming to you for instant cash-withdrawals. RUBIE NGUYEN Rubie is a Senior Staff Accountant in the Audit & Advisory Group. Her professional experience includes providing assurance and advisory services to clients in real estate & construction, pension boards, food services, automotive dealerships, manufacturing, retail, and retirement and long-term care facilities. Connect with Rubie at: or rubie.nguyen@crowesoberman.com. in Be clear and honest about your expectations when offering financial help: Your children may still 8

9 REDEFINING RETIREMENT Susan Hodkinson, BA, Chief Operating Officer In generations past, retirement was a definable event in someone's life a milestone, fixed in time. There would be a presentation at the office, a family celebration and some joyfully-arranged tee times for the following week. Work was a thing of the past. While this scenario may still play out in some households, for many baby boomers approaching the traditional retirement age of 65, the idea of such a drastic cessation of such a major part of their lives can be disconcerting, frightening, or simply unimaginable. Fixing the age of 65 as the optimal age at which one should retire happened a few generations ago. Life expectancy, and the youthfulness with which people approach life, has changed materially over the years. While those of us in our 50s reluctantly admit to a few more aches and twinges after activity, many of us are as fit and healthy as we were in our 30s. Mentally and cognitively, we feel at the peak of our games. The experience we have built over the three decades we have been working enables us to contribute at a high level. For those of us who raised families, the kids have become increasingly independent, which frees us up to pursue professional and personal pursuits that we have not had the time for previously. And in many cases, the financial foundations that would allow a complete end to income-earning might not be solid enough yet - that is, we may not be ready to retire financially. Despite all these factors, there are many reasons for transition and change in one's 50s and 60s. Many boomers spend the majority of their careers in one profession and begin to wonder what other interesting things there are to do. While Ontario does not have a mandatory retirement age, employees might begin to feel out of place in an organization made up of people who are the same age as their children, and even grandchildren. 9

10 Businesses can also benefit from natural turnover, since it allows younger people to develop and for new ideas and approaches to be applied to the business. How should baby boomers approach this transitional period in their lives in a way that makes this stage feel like a new challenge filled with opportunity and stimulation? Here are a few thoughts... Remain current, especially as it relates to technology. The pace of change in this area is astounding, and it is easy to get left behind. My 82-year-old mother frequently communicates with her children and grandchildren by text message. She has a Facebook page and regularly uses search engines for gathering information. Paying attention to this area will assist you in most of the other areas suggested below. Look for opportunities to apply your knowledge in new ways. If you have been a corporate executive, consider whether you could apply your technical expertise by teaching at a college or in a continuing education program. If you have managed people successfully over your career and found it satisfying, consider becoming certified as a Coach. If you have built and managed a business, become a mentor to younger entrepreneurs through organizations such as Futurpreneur, which is a national, non-profit organization that provides financing, mentoring and support tools to aspiring business owners aged Seek out board positions. Learn about what it takes to be a good board member, and actively seek out organizations that are interesting to you. Develop, or further develop, a hobby. Consider ways this hobby could be integrated with your professional expertise, or whether the activity could become a business in its own right. Try new things. Pushing yourself out of your comfort zone in one area often results in more confidence doing so in other activities. Stay healthy. Do all the things you know you should do. Eat properly, exercise, and get enough sleep. Inattention to these items in your 50s and 60s is problematic. In other words, you don't bounce back like you used to. Considering all of these items will make your next chapter as full of promise and excitement as previous new beginnings. The future is bright. SUSAN HODKINSON Susan Hodkinson is the Chief Operating Officer at Crowe Soberman, where she has management responsibility for the operations of the firm, including finance, information technology, human resources, facilities and marketing. Connect with Susan at: or susan.hodkinson@crowesoberman.com. in 10

11 FALL EVENTS Human Resources Seminar Susan Hodkinson, COO and Leader of the HR Services Group, will host Crowe Soberman's second human resources seminar this year. Specific topics of discussion will be announced soon. A light lunch will be served. Date: Tuesday, November 10, 2015 Time: 12:00 PM to 2:00PM Venue: Crowe Soberman Office 2 St. Clair Avenue East, Suite 1100 For more information or to request an invitation please contact: lnfo@crowesoberman.com Women for Women Group Breakfast 20th Anniversary! This year's Women for Women breakfast will mark our 20th anniversary! Join us as we ask ourselves, "what are the joys and challenges that the next generation will face at work, home and in life?" There will be a panel discussion accompanied by a light breakfast. The Professional Advisory Group of the Baycrest Foundation The Professional Advisory Group of the Baycrest Foundation aims to educate financial, legal and accounting professionals for the purpose of offering advice to their aging clients and families. The fall breakfast seminar will be a panel discussion that will include Dr. Susan Vandermorris, Psychologist in the Neuropsychology & Cognitive Health Program at Baycrest (topic to be announced). Crowe Soberman is presenting sponsor of this event. Date: Thursday, October 22, 2015 Time: 7:30 AM to 9:30 AM Venue: Loftus Hall, Apotex Centre, Jewish Home for the Aged For more information or to RSVP please contact: Cynthia Li, Administrative Assistant, Baycrest Foundation at cli3@baycrest.org or x5180 Date: TBA (Late November) Time: 7:30AM to 9:30AM Venue: TBA For more information or to request an invitation please contact: wfw@crowesoberman.com 11

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