DON MCMILLAN Office: 604.568.1771

Cell: 778.838.6991

#260 1027 Davie Street

Vancouver, BC V6E 4L2

www.tfcpfinancial.com

don@tfcpfinancial.com

Money Matters

Thank you Carol, Monique, Ken

and Jack

Thank you guests for your time!

• Canada Disability Savings Grant (CDSG)

• Maximum annual CDSG – $3,500

• (family net income less or equal to $81,941*)

• Maximum annual CDSG – $1,000

• (family net income greater than $81,941*)

• Maximum lifetime CDSG available per beneficiary is $70,000

• Family Net Income is based on: • Where the beneficiary is a minor, the family’s net income

• Where the beneficiary is an adult, the beneficiary’s net income (and spouse if applicable)

• CDSG Eligible Until: • The last day a beneficiary is eligible to receive the CDSG is December 31st the year in

which the beneficiary turns 49 years of age

Canada Disability Savings Bond (CDSB)

• Maximum annual CDSB – $1,000 (family net income less than or equal to $23,855*)

• Smaller amounts of CDSB with net incomes between $24,183* - $41,544*

• The maximum lifetime CDSB available is $20,000

• Family Net Income is based on:

• Where the beneficiary is a minor, the family’s net income

• Where the beneficiary is an adult, the beneficiary’s net income (and spouse if applicable)

• CDSB Eligible Until:

• Last day a beneficiary is eligible to receive the CDSB is December 31st the year in

which the beneficiary turns 49 years of age

In addition to the Grant, the Canada Disability Savings Bond is available to beneficiaries whose net family income is lower than $39,065.

.

6

Annual Family Net Income

Matching CDSG on Annual RDSP Contributions

Maximum Annual CDSG

Less than or equal to $83,088*

On the first $500 in annual contributions

($3 for every $1 contributed) $1,500

On the next $1,000 in annual contributions

($2 for every $1 contributed) $2,000

Greater than $83,088* or no income info with CRA

On the first $1,000 in annual contributions ($1 for every $1 contributed)

$1,000

7

Canada Disability Savings Bond (CDSB)

• Maximum annual CDSB – $1,000 (family net income less than or equal to $23,855*)

• Smaller amounts of CDSB with net incomes between $24,183* - $41,544*

• The maximum lifetime CDSB available is $20,000

• Family Net Income is based on:

• Where the beneficiary is a minor, the family’s net income

• Where the beneficiary is an adult, the beneficiary’s net income (and spouse if applicable)

• CDSB Eligible Until:

• Last day a beneficiary is eligible to receive the CDSB is December 31st the year in which the

beneficiary turns 49 years of age

In addition to the Grant, the Canada Disability Savings Bond is available to beneficiaries whose net family income is lower than $39,065.

.

Source - Statistics Canada, 2004

More than 3.8 million Canadians age 15 and over have some level of disability.

One in eight Canadians suffer a disability affecting their mobility, agility, hearing, vision or learning. 50% of mortgage

foreclosures are due to disability.

What are the investment

options?

What will you earn?

How should you invest?

How long will you invest for?

» Your contribution of $125 a month = $1,500 a year ($30,000 total)

» RDSP Bond of $1,000 a year to a maximum of $20,000 lifetime

» RDSP Grant of $3,500 a year to a maximum of $70,000 lifetime

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

After 30 Years

Your Contribution

RDSP Bond

RDSP Grant

Total Plan

Results in $395,265 plan total (assuming a 6% rate of return

over 30 years)

$395,265!

12

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

After 30 Years

Your Contribution

RDSP Bond

RDSP Grant

Total Plan

� Your contribution of $10,000 a year to a maximum of $200,000.

� RDSP Bond of $1,000 a year to a maximum of $20,000 lifetime.

� RDSP Grant of $3,500 a year to a maximum of $70,000 lifetime.

Results in $991,039 plan total (assuming a 6% rate of return over 30 years).

$991,039!

• Anyone may contribute to the plan with the written authorization of the plan holder

• Contributions are not tax deductible

• Contributions grow on a tax deferred basis while in the plan

• The lifetime contribution limit is $200,000 per beneficiary

• There is no annual contribution limit

• Contributions are permitted until December 31st of the year in which the beneficiary of the plan turns 59

A Guaranteed Investment Certificate or GIC is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks.

Due to its low risk profile, the return is generally less than other investments such as stocks, bonds, or mutual funds. It is similar to a time or term deposit as known in other countries.

GICs can be registered or non-registered, and come in many forms, from

conventional term deposits to market investments.

GIC's regularly have lifespans of 6-month, 1-, 2-, 3-, 4-, 5- or 10-year terms.

At maturity they can be cashed as taxable income or renewed for another term.

For most GICs, if you withdraw money before the term has matured,

you will not be paid any interest and may even be required to pay a fee.

($) MIN. 1 YR 2 YR 3 YR 4 YR 5 YR

1000 2.15 2.50 2.50 2.80 3.10

1000 2,15 2,50 2.75 3.00 3.25

5000 1.61 2.13 2.21 2.26 2.36

0 1.5 1.75 2.00 2.25 2.50

500 1.25 1.40 1.95 1.60 2.15

1000 1.15 1.40 1.90 1.60 2.50

1000 1.15 1.30 1.40 1.60 1.85

1000 .90 1.10 1.25 1.40 1.75

5000 1.70 1.85 1.95 2.15 2.30

1000 .90 1.25 1.40 1.60 1.85

In finance, a bond is a debt security in which the authorized issuer owes

the holders a debt and, depending on the terms of the bond, is obliged to

pay interest (the coupon) to use and/or to repay the principal at a later

date, termed maturity. A bond is a formal contract to repay borrowed

money with interest at fixed intervals (semi annual, annual, sometimes

monthly).

Thus a bond is like a loan: the holder of the bond is the lender (creditor),

the issuer of the bond is the borrower (debtor), and the coupon is the

interest.

Government of

Canada

marketable bonds

- average yield -

over 10 years

2.50% 2.45% -0.05

Government of

Canada

benchmark bond

yields - 3 year

1.04% 1.03% -0.01

Real return bond -

long term 0.47% 0.42% -0.05

The Daily Interest Savings Account (DISA) guarantees your principal and interest, and is an ideal starter account, or short-term alternative for parking your funds.

With a Daily Interest Savings Account (DISA), it's easy to make regular contributions

Watch your savings add up! Earn 1.50% interest on New Balances.

When you own a share of stock, you are a part owner in the company

with a claim (however small it may be) on every asset and every penny in

earnings.

There are thousands of stocks to choose from, so investors usually like to

put stocks into different categories: size, style and sector.

Most investors start with mutual funds, since they are

automatically diversified, and present investors with a large

variety of flavors - from sector based funds such as tech,

financial, retail or energy to commodities to foreign indexes.

Mutual funds generally hold a large number or stocks, with each

equity only comprising a small percentage of the portfolio.

Mutual fund investors should allow a longer time frame, in terms

of years, to observe slow and steady growth. They should also

make regularly scheduled investments, to take advantage of

dollar cost averaging.

Mutual funds are actively managed baskets of stocks, designed to

beat the market with the assistance of a fund manager.

Individual stocks can be bought by any investor through a

brokerage, and it becomes the responsibility of the individual

investor to maintain his or her portfolio.

Mutual funds are widely regarded as a passive form of investing,

while investing in individual stocks is a more active form.

Both carry inherent advantages and risks, and it is important for

investors to understand the differences between them.

A Segregated Fund (Seg Fund) is a type of

investment fund administered by Canadian

insurance companies in the form of individual,

variable life insurance contracts offering certain

guarantees to the policyholder such as

reimbursement of capital upon death. As

required by law, these funds are fully

segregated from the company's general

investment funds, hence the eponym.

Segregated funds are considered to be insurance products

sold by insurance companies and, as a result, the governing

bodies and regulations responsible for overseeing segregated

funds are usually the same ones that cover insurance

companies.

Segregated funds generally offer a degree of protection

against investment losses. Due to all the extra bells and whistles that segregated funds

offer, fees tend to be higher (on average) than mutual funds.

Also, due to the guarantee against losses, segregated funds

tend to be more restrictive about their choices for

investments, leading to more modest returns.

Life insurance may be divided into two basic classes: temporary and

permanent; further confused by the following subclasses: • Term

� T10, T20, T30, T100 & Limited Pay • Universal

� Variable COI with or without Limited Pay • Whole life

� Surrender cash value, Pay for Life • Accidental Life insurance

� Stand alone or rider

Before you can purchase coverage, you must qualify by meeting specific

requirements. The process is known as risk-classification or underwriting.

The underwriting process helps the insurer determine the rate you will pay,

based on the level of risk you pose and is calculated by:

•Your current health and physical condition. •Your medical history. •Your vocation. (A race car driver, for example, presents a higher risk than a

bank teller.) •Personal habits (including tobacco use and a history of alcohol or drug

abuse). •Your avocations and hobbies. (Hang gliding, for example, is a high-risk

pastime that could increase an applicant's premium.) •Your age. (A 50-year-old applicant will pay a higher rate than a 30-year-

old). Your gender. (Except in states with unisex rates; rates for women are

lower than those for men since women enjoy longer life expectancies).

What is guaranteed issue life insurance? •You cannot be turned down for guaranteed issue life insurance unless you

live in a hospital or long-term care facility. It is one variety of life insurance

with no medical exam. It is intended for individuals whose health problems

prevent them obtaining ordinary life insurance coverage. •It entails no underwriting, so the process of getting coverage can be

completed in a matter of less than fifteen minutes. •It entails no medical examination, so you never have to contact any human

being in person, and you don't have to contact any needles. •Guaranteed issue may be either term or permanent life insurance.

You cannot be turned down

Answer: The death benefits of the insurance

policy are generally free from

income tax to your named

beneficiary or beneficiaries.

» Ask if the advisor is licensed

» Check if the advisor is MFDA licensed

» Check if the advisor has a disciplinary history

» Search the internet

» Never make a cheque payable to the

investment advisor

» If the offer sounds too good to be true - it most

likely is.

» Ask if your advisor has a copy of the InvestRight

Guide from the BC Securities Commission

DON MCMILLAN Office: 604.568.1771

Cell: 778.838.6991

#260 1027 Davie Street

Vancouver, BC V6E 4L2

www.tfcpfinancial.com

don@tfcpfinancial.com