3 Questions About Joint Bank Accounts

Finances are a common discussion point in any relationship. When you get married, suddenly your spending habits become of interest to your spouse and your financial futures are intertwined. Some couples choose to handle expenses separately while others choose to combine accounts and live financially joint. There are many arguments to suggest one way is better than the other and ultimately it is up to the couple to determine the right financial path to best accommodate their own situation.

Often when couples are dating while cohabitating, they keep their finances separate. For example, a typically financial arrangement is to split household expenses while paying for one’s own cell phone and credit card bills. This is a common practice and can be very effective in certain situations. It ensures that each person is responsible for their own spending habits and their own debt repayment. Some people choose to carry this practice on after marriage, while others prefer to fully join their financial accounts just as they have joined their lives.

Here are some discussion points to get the conversation going.

Are You Financially Equal?

 If both parties make similar amounts of money and contribute equally to the household, then it can be argued that joint bank accounts aren’t necessary. Each person is financially independent and neither party suffers as a result because income is rather equal and expenses can be split.

Are You Equal in Debt?

 If one party has significant debt such as student loans or a mortgage while the other has remained debt free, this can cause some friction in the household. If one party’s disposable income is tied up with debt repayment, then the couple’s extracurricular activities can expect to take a back seat unless the other party decides to pay for both. Handling one-sided debt is a tricky financial hurdle to pass as a couple.

Age and Health – Life Expectancy

 Your life expectancy may not seem like a relevant topic when it comes to joint bank accounts, but it is absolutely something to be considered. When one party to a joint bank account passes away, the account automatically becomes the sole property of those surviving on the joint account. When you pass away while holding a privately owned bank account where the bulk of your liquid assets are held, there may be the need to present a probated will in order to access the funds. The probate process can take months, whereas access to funds can be an imminent concern. Joint bank accounts can be an especially important thing to have in the event of an untimely death.

There are many additional factors to consider before choosing to combine bank assets such as spending habits of your spouse. Are they a frivolous spender and you are more frugal? Are you ready to have full financial transparency with your spouse? A financial advisor at The Beacon Group of Assante Financial Management Ltd. can help you decide if it’s time to combine your bank accounts and navigate other financial planning concerns.

What You Need to Know About Intestacy Rules

You know that having a will is important, but understanding the implications of not having a valid will in place before you die may put some urgency behind establishing your will as soon as possible. More than half of adult Canadians do not have a valid will to protect their assets upon their death leaving their estate unprotected and their wishes unfulfilled.[1]

Dying Intestate

When you die intestate you forfeit the right to the following:

Control over who your executor is. Anyone who wishes to have the job must apply through the courts, causing delays and additional unnecessary costs.

Control over where your assets go. The Intestacy Rules will be the guide for how your estate is to be distributed and your wishes do not factor into the distribution of your estate.

Control over your own burial process. If you have specific requests for your burial, such as cremation, you will not get to have your say after the fact due to there being no will to guide the process.

The Succession Law Reform Act

Possibly the most important point from above is control over where your assets go. The Succession Law Reform Act (the “Act”) takes over in order to establish lawful distribution of your estate, regardless of what your intentions may have been. The rules are quite extensive and account for many possible situations, but here is how a basic distribution will look and some problems to be faced under the Act if the deceased has a spouse and two children:

The first $200,000.00 of the estate (also known as the preferential share) goes automatically to the surviving spouse while remaining residue is divided into three equal shares; the spouse receives one share while the children each receive an equal share. The residue is divided equally into shares for each additional child should there be any while still providing one share to the surviving spouse.

Some problems with this formula arise when the deceased has a large estate and has left the family with an expensive lifestyle to carry on. The surviving spouse may not have enough money to continue the lifestyle if a large percentage of the estate is held in trust for children under 18 years of age or distributed to children over 18 years of age. Lawfully each child must receive their share of the residue as per the Act, regardless of the needs of the household.

Another problem arises if the deceased and their spouse were separated but not legally divorced and perhaps the deceased has a new common-law spouse of many years but is still legally married to their former spouse. Suddenly a good portion of the deceased’s estate is being distributed to someone they hadn’t intended while their current partner is left out with no legal ground to stand on.

It’s best to protect your family and your assets by having a legal will in place prior to your death to ensure your estate is divided as per your own wishes. For a more in-depth look into intestacy rules and how they can affect you, please contact your financial advisor specializing in estate planning.


[1] LawPRO survey, 2012.

The Importance of Taking Your 10,000 Steps

If you work an office job, chances are you sit for hours each day. You may notice at the end of the day that you feel exhausted even though you did not exert a lot of physical energy. Sitting all day takes an extremely hard toll on your body. The human body is designed for movement. Our many joints and muscles thrive on movement, and many of our bodily functions require movement to work properly.

In short, if we allow ourselves to remain inactive and sedentary for ten hours in a day, we are depriving our bodies of their ability to operate at full speed. Take heart function, for example. When you are sitting still, your blood flows slower and your muscles burn less fat. Without the natural burning of fat, it becomes easier for our arteries to become clogged around our heart and lead to possibly serious heart complications. Considering heart disease is the second-leading cause of death in Canada, improving heart health should be a priority, especially as you approach your golden years.[1]

Sedentary Jobs Are Dangerous

Falling into the trap of eating lunch at your desk, not getting up to stretch your legs, and being glued to your chair for your entire work day can be very dangerous to your health. Consider that you will also likely be sitting for your commute to and from work and that is a lot of time spent not moving.

Exercise May Not Even Combat the Dangers of Long-Term Sitting

Studies have shown that if you sit for ten hours a day and exercise for one hour a day, it is not enough to counteract the ill effects of sitting. So the time spent at the gym after work, although is still a very healthy choice, cannot combat all of the damage caused by remaining seated for the bulk of the day.

What Can You Do?

Get up and walk around as frequently as possible. Deliver your own interoffice mail, or make a point of walking around your office as you are thinking or on the phone instead of leaning back in your chair. Whatever you can think of to get yourself moving.

Get a standing desk. Standing desks allow you to step from side to side and move around your desk instead of swiveling in a chair and never having to stand up.

Drink as much water as possible. Water intake is an important part of any daily routine, but if you drink more water than you normally would your body will process it and cause you to go to the washroom more frequently. This is good because it gets you up and walking. Even if it’s just a short trip to the washroom five times a day, it is at least breaking the habit of sitting all day.

There is plenty of research that shows how inactivity can be harmful to your body. Only 15% of Canadians meet the minimum exercise standard.[2] Don’t let your busy work day cause damage to your health, take matters into your own hands and get your feet moving.


[1] Statistics Canada, 2011.

[2] Statistics Canada, Canadian Health Measures Survey.

4 Retirement Misconceptions of Business Owners

Running a successful business is a lot of work. Much of your time is dedicated to growing and maintaining your business development to ensure the longevity of your business ventures. Oftentimes a small business owner views their company as their retirement fund; the promise of a long-term payout after years of personal investment. This can be a dangerous outlook on retirement for many reasons. Here is a quick breakdown of 4 retirement misconceptions for entrepreneurs.

The Cost of Retirement is Easy to Calculate

Planning financially for the future is more difficult than one might initially think. As a successful business owner, you have likely set a standard of living for you and your family. There is a lifestyle to uphold even after your days at the office are over and done with. Perhaps you have children in post-secondary school who require financial assistance, or maybe you are caring for an elderly parent of your own. Whatever costs are present during your working life will likely follow you into retirement, in addition to whatever costs may be added. It’s difficult to plan in advance exactly how much money you will require to maintain your established standard of living. Also keep in mind that without the demands of your business you are likely going to be spending more on trips and other luxury items. Everything comes with a price tag.

I Know Exactly How Much My Business is Worth

Your business is worth what someone is willing to pay for it. Although there are educated ways to determine the actual value, it still may not be what you have in mind. Business owners have an elevated sense of what their business is worth because it means more to them than just money. However, for a potential purchaser the emotional attachment may not be present and to them it’s just business. Do not overestimate what your business is worth as part of your retirement plan.

My Business is My Sole Retirement Plan

This method of thinking is very dangerous as a small business owner. There are absolutely no guarantees in the business world for never-ending success. In order to secure your future, further retirement plans should be put in place. If business slows and you have to close the doors, would you be able to care for your family? Having a retirement plan that you contribute to on a monthly basis plays an important role in securing financial stability in your future.

I Have a Plan for the Future

Having a plan is a fantastic way to start, however life does not always go according to plans. People can easily get sick, which can be an imposing unforeseen expense. You could pass away before your plan has come to fruition, leaving your family to financially fend for themselves. There are many ways that life can derail your set future plans and having adequate money in a retirement savings is the safest way to protect against unfortunate happenstances.  

Don’t allow your hard-earned money slip through your fingers as you enter retirement. Have a financial plan in place and start contributing early. To discuss other retirement planning strategies, speak with your financial advisor at The Beacon Group of Assante Financial Management Ltd.

What are the Options for Selling Your Business?

If you are contemplating selling your business, there are many options available to you. The decision to sell a company that you have built from the ground up may not be the easiest to come by, but people decide to sell for many different reasons. Whatever your reason for wanting to sell is, there are options for making it the “right” type of sale for you. Here are four different sale possibilities that are common in the small business world.

Sell to a Financial Buyer

 Otherwise known as a long-term investor, this type of buyer is interested in continuing the success of your company and will typically only buy companies that are already profitable and successful. A financial buyer is going to try to maximize your business and gain as high of a return as possible when they in turn sell, which is their ultimate goal. The benefit of selling to a long-term investor is you will likely get a great price for your company because they have the existing capital to make big buy-outs. A downfall with long-term investors is that you can lose the “homegrown” feel that may have made your business great in the beginning.

Sell to Existing Staff

 An individual in your management team can be an ideal candidate for purchasing the company if they are a willing party. Existing management already knows the business and have likely been around long enough to share some of the same emotional investment as you so which can be an important element when considering a sale. A possible downside to this option is that your management team may not be able to afford your target selling price.

Sell to a Strategic Buyer

 Strategic buyers differ from financial buyers in that they are more interested in making your company fit into their own business plans. They will seek out companies that fit their business model and purchase them to in order to enhance their own interests. Strategic buyers are a great option for selling because you know your company continue to build on its core strengths. You will also likely get a good purchase price as strategic buyers are known for their big payouts. A possible downside is the chance your company could be acquired and amalgamated into an existing company, eliminating your brand name.

Partial Recapitalization

 For people who wish to step aside from the daily ongoings but not be completely removed from the business, the best option is partial recapitalization. This allows for the owner to sell either a controlling or a minority number of shares to a buyer while still retaining some equity, depending on the level of involvement the owner wishes to maintain. This is a newer strategy being applied to smaller businesses and it is beneficial for owners who are not fully ready to step away.

If the time is approaching where the sale of your business is the next logical step, make an appointment with your financial advisor at The Beacon Group of Assante Financial Management Ltd. to assist you with preparing the right sale method for your business.

Estate Planning Starts Now

Life is busy and requires non-stop planning to accomplish everything you need to do on a daily basis. We aren’t often prompted to plan as far ahead with our estate, but it’s much better to plan in advance than have your spouse, children, or siblings struggle to distribute and settle your estate with little to no instruction. Take some time and put thought to these five simple estate planning points.

Do You Have a Valid Will?

A will can be easily forgotten about if it was drafted decades ago. But it should be something you are mindful of because the law has the ability to change the validity of your will in ways you may not be aware of. Marriage will make an existing will null and void. This may not be a problem if you remain married to the same person at the time of your original will signing, but life happens and people get re-married. Having a will nullified by marriage is not a position you want to leave your estate in. Always have a valid and up-to-date will properly executed and readily available. It is best to seek legal advice when preparing a will.

Discuss Your Will and Wishes

While you have the opportunity to, have discussions with family members about how you wish your estate to be handled. This leaves no room for question when you are gone and can settle some potentially serious disagreements in the future. Discuss any property you own and what you would like to have happen with it upon your passing.

Prepare Power of Attorney Documents

Although this does not form part of your estate, it is still an integral part of the planning. Having someone you trust and acknowledge to be in charge of your well-being in time of physical need is very important. Power of Attorney needs to be declared when you are fully cognizant of your decision and so should be dealt with while you are still in good health.

Asset Freeze

To do estate planning when you are a business owner who wishes to pass the business to their children often involves an estate freeze. This is when the value of your business is in effect frozen in time and any future capital growth will be to the benefit of your children. This tactic minimizes the amount of taxes due upon death.

Have Life Insurance

Life insurance is best purchased when you are young and healthy. The younger you are when the insurance is purchased, the longer it has to grow in value and interest. It is much more difficult to be approved for life insurance once illness and old age are in play so do this while you are young and healthy to ensure it’s there for your family at your passing.

There are many questions surrounding estate planning and the topic is always best discussed with an estate planning advisor. For further information on estate planning contact The Beacon Group of Assante Financial Management Ltd.

5 Signs You’ve Found Your Calling

Not many people end up with their dream job right out of the gate. It takes time to foster your skills and pinpoint your passions. How do you know when you have landed doing what you are truly meant to do? Here are five signs that you have found your calling in life.

You can provide for your family

A job’s main objective is to pay your bills, but sometimes your bills can be quite high. Things such as caring for elderly parents or saving for your children’s education can really add to the monthly bills. Having a career that comfortably pays for your lifestyle is always a good sign that you have found your calling in life.

You have a good work-life balance

Sometimes jobs can be demanding. So demanding that you miss out on the fun things in life that you are striving to provide. Having your spouse and children enjoying the fruits of your labour while you miss out on everything with long nights at the office is not exactly living the dream. Having a good work-life balance is definitely a good sign that you found your calling in life.

You feel like you’ve accomplished something at the end of your day

Work should not be a forever uphill battle. There will be good days and there will be bad days, but there should be a certain feeling of accomplishment felt at the end of a work day. Everyone has different challenges to face at work, but hopefully you can leave at the end of the day knowing you have found your calling with a sense of accomplishment.

You contribute to the success of your community

Being a business owner is a great way to help out in your community. Providing employment to local talent is an amazing way to help the community out. It’s also an amazing feeling to give back to local charities that are near and dear to your heart. Being able to contribute to causes that mean something to you is certainly a sign that you have found your calling in life.

You have the time and means to do what you love in life

There is more to life than just paying bills. You will know you have found your calling in life when you are able to realize your dreams outside of the office. Having the flexibility to experience life to the fullest and not have your work suffer is something that many people can only dream of.

If you are still searching for your calling in life be sure to keep your mind open to new things. You never know when opportunity will present itself and where you will discover your dream career.