Royal Mutual Fund dealer violates sales practices rule—will pay over $1 million

After violating the sales practices rule and paying reps higher commissions to sell its proprietary funds, Toronto-based Royal Mutual Funds Inc. has been ordered by the Ontario Securities Commission (OSC) to pay more than $1 million to settle these allegations.
The firm is ordered to pay a $1.1 million administrative penalty and $20,000 in costs. In light of this news, we would like to highlight some important advantages that you the client can enjoy with Precision Wealth Management.
First of all, […]

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RRSP or TFSA Contribution, What’s Best?

Is an RRSP or TFSA Contribution Better?
The answer to the question lies in the status of your personal tax situation, and the amount of disposable income you have.
Quite simply, if you have more than $38,000 per year in earned income and are under age 71, then a RRSP contribution still makes sense from a tax deduction point of view. Your strategy in a RRSP should be to make contributions at a tax rate of at least 10% higher than […]

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Gifts with strings attached are not really gifts

The notion of a true gift is that it is an act of generosity, or love and caring. There are no strings attached. Gifts from investment companies come with two faults. The first is that they come with an expectation of loyalty. The second issue is about who is paying for the gift. In our mind, accepting gifts from investment companies inflates our clients’ costs. We want no part of that and have written to them stating that.
The recent […]

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estate planning parksville

Spring Clean your Estate Plan

As human beings one of our favourite subjects to talk about is estate planning, said no one ever. We tend to avoid this subject like the plague, when we intuitively know that the chances of us dying is approximately 100%.
Estate planning is actually not that complicated and when an effective plan is put in place, one feels a tremendous sense of relief! So what are the components of a well-structured estate plan?
Correct asset structure
A couple should always make sure […]

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Our Family’s 20th Anniversary as Permanent Residents

Feb 6, 2018 our family celebrated our 20th anniversary of the day we landed as permanent residents in Canada.
Louise, the love of my life, with our two daughters Rebecca and Bronwyn emigrated to Canada from South Africa in February 1998. We were in our mid thirties with our two girls aged two years and five months. Emigrating was an extremely emotional decision. Imagine for one minute making the decision to leave your country due to violent crime and corruption, you […]

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The Argument for Investing Globally

Many investors, when investing, tend to focus on Canada and the USA. The reality is that there are many investing opportunities on the planet. As a wealth management firm we believe that a global investment strategy can not only increase your returns, but achieve this with lower risk.
When we analyze the Canadian stock market (TSX), we determine that approximately 75% of this market is exposed to only 3 sectors of the economy—financials, energy and materials. Because of this, the […]

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currency fluctuation

How do currency fluctuations affect your investment portfolio?

One of the advantages of our modern day is the ability to invest around the world, thereby enjoying exposure to companies and regions that were previously not available to us. It is important, however, to understand that once you invest outside the borders of Canada you take on an additional risk — being currency risk. If you are investing in the US, Europe or Asia, the mangers you hire have to keep an eye on the currencies of these […]

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