TK Dale Wealth Podcast

There is a new government program coming out which is intended to help first time home buyers purchase places under $590,000 to individuals or couples who have a household income of less than $120,000.

It comes in the form of an equity partnership where the government will contribute 5% for a resale or 10% for a new build.

The details aren't final and it isn't guaranteed however in this episode I talk about how someone might be able to anticipate the trend in this segment of the market to invest in it.

One area would be to anticipate this influx of buyers and try to buy on the low end and ride the wave up and then sell in three years or even hold the property for the long term. During this time frame one would rent out the property to create and income and hopefully be cash flow positive.

While this is a forward looking statement, disclosure must be written to say that this outcome is not guaranteed.

There are a number of factors to consider when looking at a rental property such as the market, rent and number of units within the property.

In this episode I talk about locations and considerations. Enjoy!

Over the last couple of days I've had numerous conversations about people buying raw land and building on it or just enjoying it.
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I got invited to an event however I didn't actually get the okay from the host.

So what's someone to do?

Just show up anyways and hope it all works out...

Estate planning is something we know we should do but the actual mechanisms of doing so can be a little more complicated.

I had a family that has 85 year old grandparents in long-term care, they have a portfolio currently of around $1 million, are selling the grandparents house and will receive proceeds of around $400,000.

The question arose of how to factor in estate planning while also still giving the grandparents access to the funds.

The idea of joint accounts was tossed around however there are multiple beneficiaries that they have and then the joint accounts would be out of the control of the grandparents and their beneficiaries.

They are already invested in stocks and these new assets are for long term growth, likely to never be spent by the older generation.

The grandparents have a cash flow requirement from the portfolio and that needs to be factored in.

The challenge was finding something that fit the ability to easily transition assets from one generation to the next, while also leaving them in control of the elders and their power of attorney.

In this particular scenario I believe that segregated funds are the best solution.

Segregated funds can be characterized as a hybrid between a mutual fund and an insurance contract.

Segregated funds are an investment with a death benefit and a maturity benefit where the funds flow upon death to the beneficiary like an insurance policy.

The death benefit provides a top-up if the investment loses money at time of death below a pre-determined percentage. The maturity benefit provides a top-up of the investment loses money if it loses money after a set amount of time below a pre-determined percentage.

There are no medical questions or procedures which makes things simple.

The segregated funds for the proceeds of the house are easy as there is no capital gains to factor in.

For the remaining investments they can be moved in right away if the capital gains are acceptable or the client may want to stager them in over a number of years to spread out the capital gains.

The other added benefit, in most cases as long as you aren't avoiding a liability payout, these funds are creditor protected and can generally not be seized.

This is a benefit for most people, people where there is a higher legal risk, self-employed people and also corporate money that would see creditor protection as a benefit.

What I want to you to now is think of an area where a transfer of assets or creditor protection would be beneficial.

Think about how this might benefit you and think about how your life could be different.

Many advisors won't switch the game plan however in this case I believe a switch from equities to segregated funds would have been a benefit years ago.

Call or email to run a scenario by us.

Aging parents is something that many of us have to deal with.

Some aging parents can increasingly use our time, our mental capacity and sometimes financial resources.

I know several people who are trying their best and they are trying to manage their parent's investment portfolios at the same time as take on larger role with the parent's medical care and day to day lives.

This is time consuming and comes with a number of emotional tolls where you may not feel like you're doing your best.

I was asked to manage the parent's portfolio to help alleviate some of this stress and act as an investment manager and consultant to their assets, income, estate and planning.

One of the things that comes with dealing with seniors is the requirement to constantly assess their cognitive abilities. I need to be able to determine when they are acting in full capacity and when they may have a cognitive impairment.

There are various degrees of the impairment. It's not always binary in outcome.

Questions that probe this will come up and I'm testing to see what their understanding and comprehension is.

Do they remember details? Do they understand concepts that I talk about? Can they repeat them back to me? Do they ask the same questions multiple times?

There are many more questions that I will ask and cues that I will look for.

Questions come about - how is your estate setup? Who are the beneficiaries? Who are they and what are their roles in your life?

The reason that I started to manage the portfolio was to free up the capacity of the child who is looking after their parent.

What area in your life do you find spending a lot of time and mental capacity and can it be better spent if you brought in an outside consultant?

How can this outside person be used to make everyone's lives better?

What is the one thing that you would need to do to start this process?

Don't settle on the first person and interview multiple people to find the right fit.

Have you ever had a time when you wished that you had help?

This morning I asked for my wife's help with drop off of one of the kids. I don't like to ask more of her as she already does so much for our family however time dictated that I would be better off with some help. The opportunity also presented itself that she may be able to help.

So I asked. She said yes but it made me wonder where else in my life am I not asking for help? Where else am I not leaning on resources that could make my life easier and better?

I thought about it and it happens all over the place where I tend to do things myself. Whether it comes to running the business, working with my teams, at home with the kids, I workout alone most of the time. Meditation is obviously done in quiet but is traditionally alone.

I'd like to ask you the same question. Where in your life are you not asking for help?

How can your life move faster or become easier with the help of another person?

Is it by consulting a personal trainer? Getting more help with the family? Sending your wife on a spa day or your husband to the golf course?

Perhaps it's talking to that head hunter that you were looking to speak with but don't know how to make your next move.

I'll have you consider that there are areas inside of your finances that require help to push you to the next level. To move things along faster.

Where inside of your finances would it help to have a specialist?

Ask yourself, why do I stay with my current mortgage professional? Why do I work with my current financial advisor?

What would I like to happen faster? What would a better outcome look, feel and sound like?

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Today, I roll out MillionDollarMortgage.com

This is the place that I share my financing specialty on homes that are valued over $1 million and house values over $1.5 million.

This is a unique offering based on my background that I offer a white glove service to families in this market.

Many are very busy with work, extra-curricular activities for their kids and trying to maintain a social life for themselves.

It’s hard enough to go figure out all the differences between lenders so we normally just default to where we currently do our banking. 

Hiring someone like myself can make the process extremely simple and potentially save you thousands by understanding the nuances between the different lenders.

Whether it is a bank, credit union, mono-line, or private mortgage, the differences are vast and I can shop with all of these types of lenders to find out the best fit for yourself.

Then comes the application process: 

·      Getting documents together

·      Waiting for approvals

·      Not knowing where you’re at in the process

·      Hoping that they don’t get distracted and forget to get back to you

·      Hoping that everything works out on closing because they haven’t sent the money to the lawyer

These are just some of the processes that trip people up and cause frustration.

I work with your accountant, lawyer, realtor and other partners in the process of making this become the smoothest reality.

Being upfront and clear.

Acting extremely quick.

Handling problems immediately or even before I become aware of them.

These are all things that I expect from the people that I work with and I extend the same courtesy and work ethic to you.

This is about execution.

Executing things in an extremely efficient manner.

If this sounds like you, I would like to invite you to view the film at MillionDollarMortgage.com

Until next time,

Trevor Dale, CFA

Founder, TK Dale Wealth Management, tkdale.com

Creator, MillionDollarMortgage.com

Portfolio manager, insurance broker, TK Dale Wealth Management

Mortgage agent, iBridge Capital #13056

In this episode Trevor Dale, CFA will discuss:

• Market Overview
• Podcasts over the last month
• Mortgage rates
• Annuities
• Wealth Tip

What caused the ups and downs? Here’s our overview of the last 30 days of economic data.

Market Overview:

• US S&P 500 up 6.9% in June (down 6.6% in May)
• Canadian TSX up 2.15% in June (down 3.3% in May)

There is something that I find most people don't consciously seek out... and that's upping your game.

What do I mean? My hair dresser went on maternity leave and so I was left debating with myself about what to do. 

You see I had a hair cut before that looked horrible when it got longer and when it was shorter it was adequate at best. There was no style and my hair game was horrible.

I work out a lot and have to be quick in the mornings so I wanted low maintenance.

But when you run your own company, you're the face of your company and that image matters.

I'm not fussed about having a manicured persona as I like to focus on my work and spending time with my family. Everything else in life is a distant second.

I don't care about cars either. If I had my way I would walk everywhere however time doesn't permit.

So here was an event that caused me to change the way I thought about getting a hair cut.

An event caused me to change my actions which should have been done before.

This time I went to a barber at an amazing local shop. The barbers are awesome there and they play good music!

Shortly after walking in I walked out with a new mop... one that finally looked good and has some style. Yes it's important.

The weird thing is that even though I knew that I had to make a change, I didn't do anything about it.

It wasn't important enough to me, even though it has a serious level of importance when I'm promoting myself and my company.

I learned that it shouldn't always take a catalyst event such as someone going on mat leave to find the style that I needed.

I'll have you consider that we all have areas that we don't put enough importance on to take action even though we know we should.

Have you been thinking about talking to a financial planner or having your portfolio reviewed?

Don't wait for the catalyst event such as a market downturn or the retiring of your advisor.

Act now and contact us for that nagging thing you know you should do.

Until Next time,
Trevor Dale, CFA

The land of indecision creates chaos. Not having the ability to commit to a decision with your kids leaves them feeling let down. 

Not deciding a yes or no inside of anything in your life including your investments can cause paralysis. 

This goes into what I call a defensive mindset when you should be on the offense.

Making a decision enables you to move forward and put items behind you so that you can stay focused and move on to the next item very quickly.

Constantly moving forward is the offense mindset and allows you to charge forward in your life and investments.