2021, what a year it was. As I look back on this past year, I first want to thank all of our clients for your trust in us to look after your financial matters. The lifelong relationships we build with our clients are what truly energizes and motivates us to keep working hard every day in our mission to manage wealth better than it’s ever been done before. We are proud of our progress at Sagium in 2021 and look forward to an even better 2022. 

It is hard to highlight all of our successes for the year as we have made significant progress in many areas:

Portfolio Management – We have been able to knock it out of the park with a record-breaking year thanks to the ingenuity of our partners at Kinsted Wealth.

Insurance – We have substantially grown our Insurance and Employee Benefit’s business lines and continue to find ways to open access to private care for our clients.

Financial Planning – We have digitized our processes around the discovery and implementation phases of financial plans to help make the process smoother for our clients. 

Digital Portal – To ensure the transfer and storage of your personal information is secure, we have set up a portal so our clients know their data is in safe hands.


At Sagium, our corporate commitment is to donate 1% of our top-line revenue back to the community in our 4-pillars of giving: “MAKE” (Mental Health, Athletics, Kids, Education). We have been impressed at the resilience in the community as we watch very talented individuals lead charitable organizations towards adapting to help those most in need. The tireless efforts made by these organizations and their volunteers are a true sign of the best in humankind. We have done our best to continue supporting these community efforts. In 2021, we rolled up our sleeves to continue our mission to educate citizens and the donors of charitable organizations around tax, estate, and philanthropy planning in an effort to educate everyone on how they can multiply their charitable impact and minimize their taxes as a result of strategic planning. 

Over the past several years, we are proud to have been involved with many charitable organizations, including: 

On behalf of the Sagium Team, we wish you joy over the Holiday Season and the hope of a fantastic 2022!

- Rick Green, Wealth Strategist & Founding Partner

International Women's Day is a day to reflect and imagine a world free of gender bias, discrimination, and stereotypes. This day allows us to celebrate the achievements of women while also striving for gender parity. According to a recent study by Osler, approximately 23% of executives in the financial services industry in 2021 were women. As a woman in finance myself, I wanted to dig deeper into this topic and uncover the realities for women and their finances. I sat down with Naomi Shumka, Chief Financial Officer (CFO) of Sagium and Kinsted Wealth, to discuss her reality as an executive in the financial services industry and her experiences when it comes to her own family and finances. 

Women certainly have unique challenges when it comes to finances. Imagine having a successful career and deciding to take a pause and stay at home with young children. You and your spouse are shopping around for a financial advisor, and the first advisor you talk to finds out you are a stay-at-home mom. While trying to understand your collective situation, the financial advisor directs all questions to your husband, and leaves you out of the conversation. How would you feel if you found yourself in this situation? On the other hand, how would you feel as the advisor if you later found out she was not only an accountant but went on to become a CFO? I uncovered this story during my conversation with Naomi, an experience of hers when she took a career break, that she will never forget. Although the experience with the financial advisor in her story was before her time at Sagium and Kinsted, it is hard to believe that a bias still exists against stay-at-home parents in today's climate and culture.

Women are different when it comes to money. According to a recent report from Merrill Lynch, one of the biggest financial regrets women have is not investing more. This can be due in part to many factors that stack up against women:

1.     Women typically live longer & have smaller nest eggs. When it comes to life and career stages such as parenting and caregiving, women are far likelier to take time off from their jobs than men are.

2.     Money talk = taboo. For women, talking about money is a strong social taboo. Sixty-one percent of women would rather talk about their own death than about money.

3.     Pay and wealth gaps: While the pay gap is well known, the wealth gap is significant. The average single woman has three times less wealth than the average single man.  And on top of all that, women typically take on the lioness' share of household needs and caregiving, which leaves little time to dedicate towards income generation.

The good news, is that women have made great strides over the past several decades and have seen considerable gains in personal and financial power. I gained some useful insights into Naomi's experience during our conversation. Described by her colleagues as hard-working, diligent, and compassionate, there is no doubt that a lot of her success comes from her own grit. One of her first jobs was at The Royal Canadian Mint in Winnipeg. During her time there, Naomi had a mentor who helped and supported her and who she is still friends with today. At another firm where she was the only female in a group of eight males, she credits having a supportive boss. Allyship is a powerful tool for improving representation and the working environment.

'Financial wellness' is a popular term used to describe the security one feels with their finances both now and in the future. If financial wellness is one of your goals, start with understanding what financial wellness means to you; what causes you financial stress, and what you can do about it. It is important to know yourself and understand your relationship with money. It is a different experience for all - some find it stressful, while others find it manageable. Talking to a financial advisor that works with your behaviour with money and money coaching may go a long way.      

Is there someone on your personal financial team that understands you and that you can trust? Your financial advisor should have the proper credentials, but the depth of your advisor's financial knowledge and experience is even more critical. The foremost element of a great financial advisor is someone who has your best interests at heart and asks you about YOUR dreams, YOUR goals, YOUR values & YOUR desired future. That may sound like a lot to ask for, but it should be a non-negotiable for your financial future. 

While the initial part of the financial wellness prescription is to know yourself and have the right advisor and financial team on your side, the second part is to deal with an independent financial firm. The advice and recommendations you receive should be based on your best interests and not limited to the range of products an advisor can offer you. Seek unbiased, independent advice that is customized to you. 

At Sagium, our advisors will ask you questions that make you feel valued and understood, which is ultimately the key to a successful, lasting relationship. Connect with one of our Wealth Strategists to find out your personalized prescription for financial wellness. 

With tax season right around the corner, it is time to start considering your Registered Retirement Savings Plan (RRSP) contributions for 2021. There are many elements to consider when it comes to your RRSP, such as deadlines, contribution room, tax strategies, and Spousal RRSP’s. Here, we have outlined a few simple strategies to get you thinking about your RRSP. 

Maximizing the value of your registered plans by making annual contributions is an important wealth planning strategy. This year’s deadline to contribute to your RRSP is fast approaching. Contributions you make to your RRSP in the first 60 days of the year can be used to offset income from the previous year or the current tax year. 

The last day to contribute for the 2021 tax year is March 1st, 2022.

Each year, you can contribute up to 18% of your previous year’s income into an RRSP, to a maximum of $27,230 for 2020 and $27,830 for 2021. If you happen to miss contributing all of your room in a particular year, that room can be carried forward and contributed to your RRSP in another year. Your Notice of Assessment will provide you with the cumulative room available in your RRSP.

One reason to contribute to your RRSP is the tax deduction or refund you will receive come tax season. There are several ways you can contribute to your RRSP, including a lump sum or scheduled contributions. 

In Canada, tax rates increase as your income increases. A common strategy is to make your RRSP contributions in your higher income-earning years. For example, suppose you plan a parental leave, leaving you with a lower income for the year. In that case, it can be suggested to put your money into a non-registered investment or a TFSA and save the RRSP contribution for a different year, when you can further benefit from the tax break. 

Another common planning consideration is your career path. In the early stages of your career, your income may be quite a bit less than it will be once you approach your peak earning years. You may want to contribute to a TFSA in those earlier career years and save the RRSP room for when you are in your higher income-earning years.

A Spousal RRSP allows you to contribute to your spouse’s RRSP but provides you with the tax deduction and comes out of your contribution room. However, the income at retirement from the Spousal RRSP will be taxed on your spouse. This can help reduce the overall family tax burden at retirement, particularly if one spouse earns significantly more or has more assets than the other. This provides flexibility for the future.

When it comes to your RRSP and ensuring you are maximizing the value of your registered plans, there is a lot to consider. Working with an advisor who understands your objectives to build your financial plan is an excellent start to ensuring you are maximizing the benefit of your contributions, both in the short term and in the long term.

If you would like to have a conversation with one of our wealth advisors about contributing to an RRSP or TFSA or building a plan to make sure you are implementing the right strategy for your vision, give us a call.

Strategies to Maximize the Value of your RRSP

September always brings about a feeling of re-set or renewal; it means back to school for kids or the starting of post-secondary studies. RESP funds can be used for tuition, accommodations, books or other costs connected to a young adult’s education. Many of you have been depositing funds into your child’s RESP for years, so what do you need to know about accessing the funds?

As with all Registered Plans, there are a few rules when it comes to the moment you need to start using the funds:

You will need proof of enrollment into an eligible post-secondary institution. All institutions have documents you can request or access to confirm enrollment, as that confirmation needs to be submitted with the request forms to withdraw funds. These can usually be accessed through student portals or by emailing registrars.
Eligible institutions can be an apprenticeship programs, university, college, nursing schools, teacher training, and some private institutions. The institution can be local, across the country, and even out of country. 
You can view the list of eligible institutions on the Government of Canada website:
https://www.canada.ca/en/employment-social-development/programs/designated-schools.html

RESP funds have two components - PSE (post-secondary education payment) which are funds personally contributed, and EAP (educational assistance payment), which are grant and or bond monies the government contributed. PSE funds can be withdrawn tax-free, while the EAP is the growth or earning on the EAP funds. All funds withdrawn from the EAP component of the RESP are considered taxable income. Typically, this not a significant impact as it is taxable in the beneficiary’s name (the adult student), and they are likely in a low- or no-income tax situation - but it is something to be aware of depending upon your circumstances.
  

How much can you withdraw? For a full-time student the EAP limit is $5,000 in the first 13 week of schooling. After the first 13 weeks additional EAP amounts can be accessed. If it is a part-time program the limit is cut in half to a maximum of $2,500 for the first 13 weeks. For PSE withdrawals there are no limits to the structure of using those funds.
  

As you continue to access the RESP and withdraw funds you will want to be aware of the remaining funds in each of the components mentioned above. Utilizing the EAP dollars, prior to utilizing the PSE monies is recommended, as unused EAP dollars have to be repayed, while your contributions (the PSE monies) are yours to keep.


When closing an RESP there are a few things to consider An RESP can stay open for 35 years, so your student has time to decide on their studies – it can be used for later post-secondary studies or post-graduate studies. You may want to set up a family RESP to have multiple beneficiaries to direct the funding to, incase one beneficiary elects not to continue their education. There is the option to get your investment earnings out of an RESP but the account must be opened for 10 years and the beneficiaries must be at least 21 and not currently continuing post-secondary education.

Contributing to an RESP requires forethought, as well as many years of budgeting and planning. Ensuring you are managing your withdrawals efficiently and effectively is important so that your adult student is set up in the best way possible and you are mindful of any tax implications. There are additional nuances to RESP management depending upon your situation, therefore it is important to reach out to your advisor to learn more.

2021 - A Year in Review

Related Insights

Breaking the Bias: Women in Finance

Strategies to Maximize the Value of your RRSP

Understanding Your RESP

Address

This website is not optimized for Internet Explorer.