THE 2009 BRITISH COLUMBIA BUDGET TD Economics

Interesting TD Economics article by Pascal Gauthier with a focus on British Columbia. Enjoy!

HIGHLIGHTS

• After a small $50 million surplus in fiscal year (FY) 2008-09, planning deficits are estimated at $495 million in FY 2009-10 and $245 million in FY 2010-11
• Return to balanced budget by FY 2011-12, with the help of cost savings worth $1.9 billion over 3 years
• No forecast allowance, but prudent growth forecasts and contingency amounts
• $9 out of every $10 in new spending towards health care
• Few new tax measures, back-end loaded to FY 2011-12
• Capital spending in infrastructure ramped up significantly (+ $14 billion)

British Columbia is feeling the pinch from the severe ongoing global recession, like every other region in the country. Compared to last September’s quarterly fiscal update, downward revisions to growth forecasts by the private sector have translated into a massive revenue shortfall of $6.6 billion over the Province’s 3-year fiscal planning horizon. As a result, for the first time in six years, the province is faced with a deficit. However, the deficits are expected to be modest both in absolute size (cumulating to $740 million over two years) and relative to the size of the economy (at 0.2% of nominal GDP in fiscal year 2009-10). The government has chosen not to include a forecast allowance as in previous years. However, in order to mitigate risks to its projections, it will use economic growth forecasts significantly below the private-sector consensus, and contingency amounts of $250 million to $385 million per year.

Economic and Revenue Outlook

The private-sector consensus forecast for real GDP growth calls for no growth (0.0%) in 2009. Akin to the prudent approach taken by the Federal Finance Department, B.C. Finance is playing it safe by using a forecast significantly below the private-sector average. Their assumption is for a contraction of real GDP of 0.9% this year, which is very close to our own call for a contraction of 1.0%. When compared to the Budget 2008 plan, the downward adjustment to revenue projections is broadly based, but most badly hit are own-source revenues in the form of resource royalties, corporate income taxes, and property transfer taxes. Similarly, but with a lesser difference, their real GDP growth forecast of 2.4% for 2010 lies below the private-sector forecast of 2.8%. Our own forecast for next year is more bullish and suggests some upside risk vis-à-vis their projection, with the main difference hinging mostly on the projected direct and indirect boost to growth from hosting the 2010 Winter Olympics.

Spending measures

Savings worth $1.9 billion over the 3-year planning horizon are being targeted, $250 million of which are yet to be identified. Administrative spending will be put under the microscope, while the number of senior executives in government will be slashed by 20% and no additional planned wage increases are being budgeted for upcoming rounds of public sector negotiations. The expected savings are being recycled towards key spending areas, but mostly health care. In fact, $4.8 billion, or 90% of all additional spending, is slated for health care. The remainder of additional spending will go to education, social services, safety, communities, and the environment.

Very much in line with a theme omnipresent in the Federal Budget and very likely to show up in other upcoming provincial Budgets, infrastructure spending is being ramped up significantly – to the tune of $14 billion over 3 years. Of this amount, $10.6 billion is for approved projects within the Province’s capital expenditure plan, while $2 billion is provided on a cost-shared basis with the Federal government, and the remaining $1.4 billion is for local infrastructure in partnership with the Federal and local governments.

Tax measures

The very few new tax measures introduced were understandably back-end loaded to FY 2011-12 and beyond. As announced in November, a 2-year property tax deferment program is being introduced. The B.C. Mining Flow-Through Share (non-refundable) Tax Credit is being extended by one year to the end of 2009. Expiry dates for film tax credits are being eliminated, while the credits themselves will be made available to other Canadian (non-B.C.-based) companies. Furthermore, starting in FY 2011-12,

The industrial property tax credit will increase from 50% to 60%, saving mills, mines, and other industrial employers $11 million per year. This tax relief will be funded from carbon tax revenues (intended to be revenue-neutral).

The Low Income Climate Action Tax Credit will increase by 10%, representing foregone revenue of $15 million per year.

A Northern and Rural homeowner benefit increase of $200/year, also funded by carbon tax revenues.

The farm land school property tax will decrease by 50%.
Bottom line

Faced with such a U-turn in economic fortunes in a short amount of time, the government has elected to modify its balanced budget legislation to allow for a cyclical deficit. Not having done so, and forcing taxes hikes and/or more drastic spending cuts could have meant exacerbating the recession. In the current context, leaning against this recession, along with other governments, and allowing a modest deficit while ramping up capital spending seems appropriate. As a result of these deficits and additional capital spending, the (taxpayer-supported) debt-to-GDP ratio will end up 2 percentage points (from 13.8% in FY 2008-09 to 15.8% in FY 2011-12) higher by the time a balanced budget is within reach. This would still lie below the 16.1% level recorded in FY 2005-06 and leave the province in a healthy fiscal position once the economic recovery has taken hold.

Pascal Gauthier, Economist
416-944-5730

Municipal Tax Rates-The Gammer Report 01-09

Had a great lunch today with Fraser Valley Commercial Real Estate expert Stephen Gammer, along with the very best of the TD Commercial Banking Team Steve Ponte and Craig Hinton.

Stephen had some really intersing things to say about the new Federal budget anouncements and the state of the market in the Fraser Valley. Clearly this is a matter close to his heart and is extremly well versed on the subject, having attended numorious conferinces and taking a major role in the UBCM

Stephen also writes for the Businnes Journal, take a look at the Gammer Report on his website at www.gammer.ca Here is the January issue regarding Municipal Tax Rates.

 

 

 

The Unchecked Municipal Tax Explosion

Municipal Tax Rates across the province are rising far faster than the rate of population growth and inflation combined. With a shaky economy being the number one issue on everyone’s mind as we face another election (Municipal Elections are November 15), we need to be looking in our individual back yards and asking our local politicians about the sustainability of rocketing tax rates and how much more property owners can bear.

The Canadian Federation of Independent Business released a report this summer stating that between 2000 – 2006, our combined rate of population growth and inflation has risen by 20%. During that same time municipal spending has grown by 35.7% and property taxes grew by 33.3%. Having come back from the Union of British Columbia Municipalities annual meeting in Penticton in late September I was able to get a first hand look into how our local politicians and bureaucrats go about solving local government issues. Controlling their level of taxation wasn’t even on the radar screen; in fact it was the opposite.

 

The #1 policy paper presented at the convention was entitled “Financing Local Government: Achieving Fiscal Balance.” The ways to achieving this fiscal balance include some of the following recommendations, “Removing Restrictions on Existing Revenue Instruments: broaden the allowable uses of Development Cost Charges revenue, use of parcel taxes and flat taxes, taxation of telecommunications companies, and use of hotel tax revenue.” Future sources of revenue the municipalities are looking for are: fuel tax, liquor tax and real property transfer tax.

 

The prospect of the introduction of a local government property transfer tax should be frightening to most home and business owners. The provincial Property Transfer Tax is one of the most hated taxes in BC and pulls in close to a billion dollars government’s coffers (depending on how much the economy grows). Putting an additional local based tax burden on property sales will only hurt home buyers and erode our standard of living and business viability. While at the UBCM I sat in on problem solving sessions where counselors and city staffers talked about the issues confronting their communities. All of their solutions were about obtaining grants from the provincial government or non-profit foundations, performing endless studies, holding community in-put sessions, and lamenting their under funding from the senior levels of government.

As printed in The Business Journal

By Stephen Gammer

www.gammer.ca

5 Tips to find hidden money

  5 steps to help you plan ahead. It’s hard enough these days to be thinking about how you are going to cover necessary items let alone save for the future, but as they say we don’t plan to fail- we fail to plan! This week Aaron Theilade from Investors group shares 5 simple principles to find that hidden money and start saving today for a better future.

Investing regularly is important. If you’re going to achieve your retirement and other financial goals, you should consistently contribute to your RRSPs and non-registered investments. “Paying yourself first” through monthly contributions is an excellent strategy to build an investment portfolio. If you’re like most Canadians, however, you are not sure where to look to find the extra money needed to invest. There is a way – in fact, there are four good ways to perhaps uncover “hidden” money you already have, which you can use to start an investment plan on a regular basis. All it takes is a bit of smart money management using the strategies set out below.

 

Review your household budget Carefully reviewing “how” your family spends its money and making changes can free up cash flow. Start by determining if expenses are essential, including your mortgage and utility payments, or if they are non-essential such as buying lunch at a restaurant every work day. Then ask yourself, what can I do differently? Small and simple changes like ensuring you turn off lights when you leave a room can make a major difference in how much money you have left to save each month. * The GVRD has created a great money-saving guide to reusing, repairing and renting goods in the lower mainland, to recive a copy, send me an email I would love to pass it along!

 

Debt consolidation can increase your ability to invest “Debt consolidation simply means paying off a number of higher interest rate loans or other high-cost debt by taking out a single loan at a lower interest rate for a consolidated overall lower monthly payment,” says Jane Olshewski, Senior Specialist – Financial Planning Programs at Investors Group. “You can choose to consolidate debts such as car loans, education loans, credit cards or lines of credit and benefit through a single, more affordable monthly payment which is lower than the sum of the many monthly payments you were making previously.” It can be an effective way to regain control of your finances, manage your monthly cash flows, free up money for other purposes and reduce stress. Additionally, any repayment plan that can allow you to move from simply servicing your debt balances to actually eliminating them is positive as well. If you own a home, you can also consider consolidating your debt using a home equity loan. Your loan is secured by your home at usually a much lower interest rate than you currently pay on most credit cards, which can often range from 19 percent to over 28 percent. By paying less interest monthly, you’ve created additional cash flow that can be used towards your retirement, other financial goals or paying down your principal. * A TD Canada Trust HELOC or Home Equity Line Of Credit is a simple interest account that can be an extremely efficient way to manage cash flow and save thousands on interest costs, send me an email at david.hudson@td.com 

 Restructure your mortgage Sometimes, changing the structure of your mortgage can help you find the money you need to make regular investment contributions. Many individuals set their mortgage repayment at the highest amount they can afford in order to minimize interest payments and pay off their mortgage as quickly as possible. Although these are two important goals, other goals like building an investment portfolio to prepare for retirement and protecting against uncertainty through insurance products also need to be taken into consideration. Does it make sense to pay off your mortgage over a different term to provide you with the cash flow you need to start an investment portfolio or to fund the monthly premiums on a life and/or disability insurance policy? If you have built up extra equity in your home, does it make sense to use the equity to cover your RRSP contribution or to start an RESP? With the help of a personalized comprehensive financial plan including a cash flow analysis prepared by a Investors Group Consultant you can decide how quickly you want to pay off your mortgage while working towards your financial goals.

 Get tax back now, not later Getting a tax refund cheque from the government each year might seem like a “windfall” profit – but it’s not. By having too much tax withheld from your pay each month, you are actually giving the government your money to use throughout the year – and they aren’t paying interest to you for your kind gesture. Instead, if you are an employee and your employer makes tax deductions on your behalf, you can reduce the amount withheld from your pay cheques each month by filing a T-1213 form with the Canada Revenue Agency (the CRA). The CRA will then issue a “letter of authority” to your employer, authorizing your employer to reduce withholding taxes. You can then invest part of your usual year-end tax refund immediately each pay period.

 

Thanks to Aaron for sharing these great tips!

TD Mortgage Rate Lowers!! 3 Year Fixed Closed @ 5.15%

Great news TD Mortgage Rate Lowers!! 3 Year Fixed Closed @ 5.15%

 

TD Mortgage rates are lowering! Today TD Canada Trust Real Estate Secured Lending announced that effective November 19^th 2008 that a limited time offer of 5.15% 3 Year Closed Fixed Rate Mortgage will be offered on applications up to December 31^st 2008. All transactions must be funded by no later than April 30^th, 2009. As with all TD Canada Trust Mortgage products, the offer can be changed or withdrawn at any time – time is of the essence!

The 3 year rate is important as it is the lowest qualifying rate used by TD Canada Trust and BC Mortgage Brokers. This will allow a potential home buyer more purchasing power!

Is your mortgage working for you, or are you working for your mortgage? Today is the perfect time to start saving money.

-Platinum service -100% results- TDdave-

TD Mortgage Rate Lowers! 4.35%!!

Great news TD Mortgage Rate Lowers!!

 

TD Mortgage rates are lowering! Today it was announced that effective November 19^th 2008 that a limited time offer of 4.35% 1 Year Closed Fixed Rate Mortgage will be offered on applications up to December 31^st 2008. All transactions must be funded by no later than April 30^th, 2009. As with all Mortgage products the offer can be changed or withdrawn at any time – time is of the essence! Is your mortgage working for you, or are you working for your mortgage? Today is the perfect time to start saving money. Today!

TD Canada Trust Decreases effective 5 Year Fixed Rate

Good News!

Yesterday TD Canada Trust lowered the effective rate of its 5 year closed term product, effective November 13, 2008 the lowest 5 year closed rate is 5.79%

Tax Benifical Investments

I came across an article that mirrors an important part of any investment or financial planning mantra; it’s all about what you have at the end of the day. The majority of us (myself included) look only at the rate of return, the ‘juice’ we receive for placement of our money. While under the ‘percent of return spell’ we lose all sense of control and disregard the banal things like tax implications.

It’s like focusing on “the best mortgage rate”, as l often ask “do you want the best rate, or would you like to save the most money?” This is why I take the time to ensure the proper lending product is selected. After all; what good is the best rate if you are going to pay far more in penalties a few years down the road?

Sometimes the best TD Mortgage rates are going to be higher or lower than what is in the marketplace, but with dozens of options to work with making the right choice can easily save thousands of potential interest and fees.

A Professional financial planner helps guide you to make the most of your money – not just ’sexy’ rates of return, after all what’s more important, bragging to your friends about your incredible ROI or quietly putting more money in your pocket…

Make tax-smart investments, not returns, the priority

Interest is fully taxed, so capital gains and dividends are better options

Jim Yih, Canwest News Service Published: Friday, March 14, 2008

If you had to choose between two investments, one offering returns of 10% and the second offering returns of 8%, which would you choose?

This is not a trick question. Most people would choose the 10% investment. However, if the first investment produced an after-tax return of 6% while the second investment produced returns after tax of 7%, which would you choose now? No matter what return you make, the real indicator of success is the after-tax return.

As the saying goes, “It’s not what you make, but what you keep that counts.” This is crucial in the investment world.

What is tax-smart investing?

Tax-smart investing is simply being aware and focused on the after-tax implications of any investment decision. Tax-smart investing is especially important when investing non-RRSP money because any investment earnings are taxed, unlike investing money inside an RRSP, where all investment income is tax sheltered.

In the recent federal budget, the government introduced tax-free savings accounts (TFSA), which will also shelter the investor from having to pay any tax on investment income but will not provide a tax deduction at the time of deposit. Any withdrawals from the TFSA will not be taxable.

The introduction of TFSAs is long overdue, as they will open up many new strategies for tax-smart investing but unfortunately, they will not be available until 2009 at the earliest.

What is your after-tax return?

The biggest problem in the investment industry today is that all returns are posted as pre-tax returns and not after-tax returns. Unfortunately there is very limited information available regarding after-tax returns of investments.

Finding after-tax returns for investments is tough because it is complicated, individual and not required by law. That being said, it’s not impossible. For example, in the mutual-fund industry, companies like Morningstar offer some limited data on tax efficiency and after-tax returns but there are still some inconsistencies in the data. The bottom line is the industry still lacks standards and there is no universally accepted means to posting after-tax returns.

Be aware of tax bite.

When most people consider investment opportunities, the focus tends to be on the quality of the investment and its ability to make money. Although selecting good quality investments is important, different investments will appeal to different investors. In my opinion there’s little or no consideration given to taxation of investments when selecting investments.

Don’t fall into this mistake. The starting point to understanding tax efficiency is to learn about how different investments are taxed.

There are three basic types of investment income:

1. Interest income is the least tax-efficient investment income because it is fully taxable at your marginal tax rate.

Interest income comes from bank accounts, guaranteed investment certificates (GICs), bonds and bond funds.

2. Capital gains income is taxed more favourably than interest income because only half of the total gain is taxable.

Capital gains are taxed only when they are sold or transferred. Until investments are sold for a gain, they are considered unrealized gains and tax is deferred until disposition.

3. Dividend income comes from shares of taxable Canadian corporations. Some mutual funds specialize in investing in stocks that pay dividends regularly. Dividend income is now the most tax-preferred type of investment income because of the changes to the dividend tax credit which can translate into significant tax savings over interest income.

In a country like Canada, where almost 50% of your income gets taxed, tax-smart strategies should always be a priority.

When it comes to investing, being smart starts with some basic understanding about how your investments outside the RRSP are taxed.

Jim Yih is a financial expert, author, columnist and professional speaker. He can be reached at jim@retirehappy.ca or through his other website www.wealthwebgurus.com

The Cash Flow Dam; Relief for canadian small business owners?

One of the growing concerns a lot of my clients have is cash flow for their small business, for them the storm front is becoming just as large on the inside as the outside.

 

  At the end of the day payrolls must be made, inventory purchased and outstanding accounts collected upon.

Although we have recently seen a drop in energy prices-whatever happened to those headlines, it’s like a dream now, the pundits were claiming oil will never be under $100 a barrel again….OOps

Now restrictive credit markets and a sinking loonie, small business owners find themselves in the trenches taking grenades.

 

Good Friend and trusted advisor AARON THEILADE from Investors Group has been kind enough to share ideas about freeing up cash flow for businesses.

Aaron is a very knowledgeable with the mechanics of cash flow damming a concept that has been growing in popularity for a number of years.

As Aaron explains;

“The cash flow dam is a strategy that converts your personal debt into tax deductible business debt.  It’s similar in principle to the Smith Manoeuvre.

Like the Smith Manoeuvre, this strategy was used primarily by higher-net-worth clients.  Few others had heard about it.  Many that did know about it were uncertain of the tax implications.  That’s all starting to change. 

Nowadays, big financial institutions are starting to get in on the act.  National Bank now has a cash flow dam webpage.  Investors Group is quite involved and are looking at implementation as one of our tax strategies. Even RBC has an article on it.

If you’re self-employed and interested in the cash flow dam, consult a good tax advisor.

From a mortgage standpoint, you’ll need a line of credit or re-advance able mortgage.  May I suggest the TD Canada Trust Home Equity Line Of Credit http://www.tdcanadatrust.com/mortgages/home_equity.jsp , or HELOC. TD even has a Green Home Equity Line Of Credit http://www.tdcanadatrust.com/greenhome/index.jsp

 

1.     You use your business income to cover your current expenses and gradually repay your personal debts (ie, against your mortgage)

2.     You borrow money to cover your business expenses.

3.     You can deduct the interest on the borrowed money.

You save on taxes.

Both myself and Aaron can help you implement the cash flow dam and start converting your personal debt into a tax deduction.

 

Aaron can be reached at

AARON THEILADE
Consultant
LANGLEY, BC

Phone (604) 455-1430
aaron.theilade@investorsgroup.com

Came across this press release from TD Canada Trust Small Business group, very interesting stuff enjoy!

 

 

 

######

Cash flow worries top the list of concerns for B.C.’s small business owners

    <<
    - TD Canada Trust Small Business Survey reveals the top challenges and
    rewards experienced by small business owners -
    >>
 
    TORONTO, Oct. 16 /CNW/ - Making payroll. Suppliers' bills. Rising fuel
costs. According to the TD Canada Trust Small Business Survey, these are the
top concerns that keep small business owners in British Colombia up at night.
    The first TD Canada Trust Small Business Survey polled 1,000 small
business owners from across Canada to uncover their biggest challenges in
order to help provide relevant advice for entrepreneurs. The survey found that
more than 30% of B.C. small business owners lose sleep worrying about cash
flow while 14% say rising fuel costs is their biggest concern.
    "Local Small Business Advisors are available to help small business
owners manage their cash flow in order to help make their lives easier," says
Norm Attridge, Regional Sales Manager, TD Canada Trust. "Small Business Week,
October 19th to 25th, is the perfect opportunity to visit a TD branch and
learn more about business financing and how to start - and grow - a small
business."
    Despite concerns about cash flow, 2008 is proving to be a good year for
small business owners. Seventy-two per cent of B.C. business owners graded
their business' performance as an A+, A or B, indicating that they have had
solid growth or that they did as well as they expected. Twenty-six per cent
gave their business a C saying that they did not have the year they planned
and only 2% gave themselves a failing grade.
    For small business owners that gave their business an A or A+, 37%
attributed their great year to innovating with the right products and services
at the right time. This was followed by hiring great talent and retaining the
right people (27%).
    Looking ahead to 2009, small business owners anticipate that the biggest
business challenges will be similar to what they worry about now: cash flow
(23%) followed by managing growth (18%). Rising fuel costs was the third most
common challenge cited (16%).
 
    Owning your own business has its benefits
 
    The best thing about owning a business, according to B.C.'s small
business owners, is controlling their own destiny (37%) and having a better
work-life balance (34%). Only 6% of respondents said that making more money
was the best thing about owning their own business.
 
    Advice from B.C. small business owners
 
    The top piece of advice from small business owners for those wanting to
start their own business is to raise enough capital before starting.
Twenty-two per cent of owners said they would have raised more capital if they
started their business today. The second change they would have made was to
diversify their services more (19%). Small business owners across Canada who
have been in business less than a year, are most likely to say that they
should have raised more capital (41%), whereas business owners who have been
in business 11 or more years, say that they would diversify services more
(22%).
 
    Small business and the environment
 
    The environment is a top priority for small business owners. In fact, 79%
report that it is important to run an environmentally responsible business.
The biggest barriers to adopting more environmentally friendly measures are
cost (40%) and lack of credible industry providers (26%).
 
    Small business and technology
 
    The TD Canada Trust Small Business Survey also asked business owners
about their views on technology. Half of B.C. small business owners say that
e-mail is often a more effective communication tool than using the phone.
Seven per cent of respondents are so dependent on technology that they would
rather have a root canal than give up their BlackBerry.
 
    About TD's sponsorship of Small Business Week
 
    Small Business Week is a nation-wide celebration of entrepreneurship,
October 19th to 25th, 2008, organized by the Business Development Bank of
Canada (BDC) to pay tribute to Canadian small business. With the endorsement
of the Canadian Chamber of Commerce, organized events such as conferences,
trade fairs and seminars provide an opportunity for entrepreneurs to network
and exchange ideas to enhance business growth. TD is a sponsor of Small
Business Week and to recognize its small business customers, TD is conducting
a national advertising campaign, sponsoring SOHO (small office home office)
conferences in Toronto and Vancouver and sponsoring regional events with
chambers of commerce and business associations across the country. To see
events that TD is sponsoring, visit
http://www.tdcanadatrust.com/celebrate/index.jsp?id=2. As well, TD will host
in-branch customer appreciation days at more than 280 branches staffed by a
small business advisor.
 
    About the TD Canada Trust Small Business Survey
 
    The TD Canada Trust Small Business Survey polled small business owners
from across the country to uncover their biggest challenges and to help
provide advice for entrepreneurs interested in starting a business. The survey
was conducted by Angus Reid Strategies from September 4 to 8, 2008 with
English and French speaking small business owners (defined as business owners
with fewer than 20 employees) across Canada using the Angus Reid Forum. The
sample size included 1003 men and women.

 

Vancouver Home and Interior Design Show

This weekend was the Vancouver Home and Interior Design Show, on the recommendation of an excellent Realtor ( Morgan Browne www.morganbrowne.caI decided to take the plunge and visit the show!

The show really was an amazing event, there was lots for all to see, touch and eat! Benjamin Moore http://www.benjaminmoore.com/ Design Stage presented Designing with the Stars, where some of HGTV’s http://www.hgtv.ca/ hottest upcoming talent like Kelly Deck and Wendy Russel, made sure that your pad will be looking tight for the Winter!

Another really cool theme was the Small Space Living presented by WesThurn Designs http://www.westhurndesign.com/ and Canadian Homestead Magazine http://www.canadianhomestead.ca/Formany that live in the Concrete Jungle of Downtown know the pain of having to properly stuff your 500 Sq ft show homes, it was really neat to see the concepts and how you can make things appear larger than they are (note to self)

Moving to the large floor level it was interesting to see the breadth and variety of vendors that the show attracted. Western Living Magazine http://www.westernlivingmagazine.com/ presented the West Xpressd along with BC Hydro http://www.bchydro.com/ a showcase of sustainable design from some of the West Costs local design talent http://www.fatcrowdesign.com/  , from art to architecture. It was definitely one of the highlights of the show and I really learned a great deal from it. some of the Designers featured where:

Alex Suvajec,Brent Comber,Contexture,Fat Crow Design,Greg Ball, Skookum Brand, Pulse Furniture, Keep it Cartesian, Joel Tobman,

Food Stage! Probably my favorite, well I was pretty hungry and the not-to-be-missed cooking demonstrations did not help my grumbling tummy! Forget the food the Kitchen was very sweet, ultra modern and hip to creative concoctions.

Right next door to the food stage was the Lounge, now this is something that I just was not feeling, it was just bizarre to try and make a trade show floor a hip urbaine wine bar, there was no way that it could lose the stigma of that cheesy blue carpet to bad because it looked like Peller Estates http://www.peller.com/okanagan/homepage.php and the Vancouver Sun http://www.canada.com/vancouversun/index.html put a lot of effort into the event

Future Shop http://www.futureshop.ca/marketing/_midnight_publish/splashpage.asp?test%5Fcookie=1 was there promoting Connect Pro, it was need to look at all the automated accessories that are available, kind of like a real life Cribs episode! A ultra-modern exhibit put together by Erik Lauzon of Konstruk Design http://www.konstrukdesign.com/Konstruk_Design_Vancouver_BC.html it showcased the most extreme gadgets that we would all love to have it was pretty cool!

What really excited me was the launching of a new upscale magazine for Fine British Columbia Properties, its called BEST-HOME Canada’s West www.besthomemagazine.com and is in a class of its own, think Robb Report meets DuPont Registry, the magazine is to be published three times a year and is based in Calgary.

I did see a booth from ING Direct but nothing from TD Canada Trust, which I found a little odd as TD Canada Trust is the lead sponsor on a major campaign on the HGTV network, The TD Canada Trust First Timer Mondays $25,000 Giveaway!

I hope that next year I can take a more active role in the show and represent TD Canada Trust!

Lynchism Gem: Ignore the headlines

Famed Money Manager Peter Lynch is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.

It’s not that easy thing to do, every water cooler and dinner table has endless chatter on recession, housing, subprime woes, the credit crunch, Overpaid CEO’s and soaring energy costs.

Makes you want to sit on your thumbs and wait it all out before making any big moves. But what exactly are you waiting for???

Rarely has there been a moment in time that you couldn’t scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, “in spite of all the great and minor calamities that have occurred…all the thousands of reasons that the world might be coming to and end-owning stocks has continued to be twice as rewarding as owing bonds” The top reason not to buy stocks, in Lynch’s view, is if you don’t already own a home-in which case, that should be your first investment. An owner occupied home is nearly always profitable.

Warren Buffet the Oracle of Omaha has recently been quoted to be actively perusing US Stock and companies with his personal account. “Be Fearful when others are Greedy, and be greedy when others are fearful.”

The Fundamentals of the economy especially in British Columbia are very strong. If you are needing to retire and have lived your whole like in Winnipeg and have enough to live well in BC would you not leave the winter behind, if you want to use your RRSP’s and the Canadian Medicare then your California of Canada is right here in the Lower Mainland!

 

Here is a great article in the Vancouver Sun echoing these ideals

#####

B.C. in better position than most to weather financial storm

Derrick Penner

Vancouver Sun

Monday, October 20, 2008

 

VANCOUVER — On the bright side, British Columbia is heading into a period of economic uncertainty with a provincial budget that is in good shape and an economy that is performing well, according to the  Institute of Chartered Accountants in B.C. (ICABC).

However, the B.C. economy is not doing so well when it comes to the competitiveness and productivity of its workforce, the ICABC said in its annual Check Up B.C. report, an assessment of provincial economic performance. B.C.’s labour-force productivity increased by 1.3 per cent between 2002 and 2007, the report said, which lagged the national average of 4.5 per cent.

“At this time of uncertainty, it is imperative that government continues to be conservative in their economic forecasts and considers all policy tools at its disposal to stimulate investment, boost productivity and maintain sound fiscal management,” Richard Rees, CEO of the ICABC.

Rees added that the no one knows what the impact of the current financial crisis will be, and while “many British Columbians stand to lose a great deal,” the province’s economy is “in a better position than many of our competitors to weather some of the challenges.”

The Check Up report measures factors in three general areas: quality of life, work and investment, mostly how these factors performed over 2007.

On the work side, the ICABC noted that B.C. reported a record low unemployment rate of 4.2 per cent in 2007, a year that saw 70,800 new jobs created.

However, in 2008 the job market has softened, the ICABC added, with only 500 net new jobs created in August and an unemployment rate that has risen to 4.6 per cent.

“Already many resource-dependent communities are feeling the effects of reduced consumer demand and lagging commodities markets, and our forest industry continues to stagnate,” Rees said.

“But we are fortunate in B.C. that the provincial government has done a good job creating a sound economic environment.”

© Vancouver Sun 2008