Alternative Healthcare

April 19, 2018

Have you ever considered taking one of those body chemistry. or hormone tests?  This site is sponsored by numerous reputable American Colleges of healthcare professionals – 9 organizations representing 375,000 physicians.  Each submitted the five things patients should question.  Recommend you read this before submitting yourself to additional testing – especially if at additional cost.

The Resilience of Dividends

I thank our friend Nick Murray for the research on this topic. His article can be downloaded from this link below


My summary of his article:

~ 1 ~
Dividends represent excess profit corporations distribute to shareholders.  In most investment accounts we re-invest these dividends which purchase additional shares of the mutual fund. Re-invested dividends are a significant component of growth in our portfolio’s

~ 2 ~
The dividend yield is the annual dollar value of dividends distributed per share divided by the current share price.

~ 3 ~
The average dividend yield of the S&P 500 (US stock index) and the S&P TSX (Canadian stock index)  steadily increase regardless of the actual price of stocks. Note that since dividends are distributed based on share ownership – not the current market value of the shares, dividend yield increases when market values decline.

~ 4 ~
The volatility of the dividend yield is significantly below the volatility of the underlying stock.
It is a terrible mistake for investors with long-term horizons—among them, pension funds, college endowments and savings-minded individuals—to measure their investment “risk” by their portfolio’s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk.

Buffett, annual shareholder letter, page 13, emphasis in the original

Tax Notes

April is tax filing month and as we all know by now, any additional Income tax on 2017 income is due by April 30th.  The following are helpful links and clarification for a few areas where we see confusion:

Are you eligible for child and family benefits?


If you have children in University.
Tuition tax credits have decreased but parents can still receive up to $5,000 of tuition tax credit.  The child’s tuition tax form is needed and to file returns together.


If you are about to or receive OAS (Old Age Security)
Avoiding OAS claw backs – an additional “tax” of 15% on current taxable income above $74,788 (2017) which if paid results  in an effective income tax of 55% on each $1earned over this amount.  There are two strategies – 1 – delay receiving OAS until income is lower or 2 – tax plan to ensure income is below the claw back limit.
We monitor taxable income for our clients to ensure a taxable gain is not triggered inadvertently to cause the claw back.  However, major assets sales – like the family cottage, could cause taxable income to rise above the claw back limit. In that situation, reducing RIF income to the minimum, or pension income splitting or more effective management of non-registered asset income could be used to avoid this “tax”. This article explains OAS clawback in greater detail.


Incorporated business owners splitting income.
The Federal Government announced new budget measures which will eliminate income splitting between family members other than spouses 65 or over.  This flow chart may help you understand these complex rules.  However, unless your children or under age 65 spouse is working in the business for 20 hours or more you will not be able to split dividend income without a prohibitive tax being charged on that dividend income. Link to helpful chart.