You are more experienced now, your bank account is larger, and it is easier to think further ahead.
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It's that time of year when wish lists for gifts are circulating. Before purchasing that iPad, game system, e-bike or leather jacket, consider a gift that will keep giving well into the future.
After years of overspending on her children, this is what Maude will be doing this year. "I'd hate to add up what I've spent on toys and gadgets while my children were growing up. They're adults now, one with kids of his own. I know how time flies, and money gets squandered, so I'm taking a different approach to the gifts I'll be putting under the tree this year."
After speaking with her financial advisor, here's what's on Maude's shopping list for the holiday season:
Maude will set up a $2500 RESP for each of her two grandchildren, aged two and four. The annual cost of tuition in Canada is projected to be $17,2001 by 2035. Starting an education fund now is a gift that could last her grandchildren a lifetime.
Maude's son has just started investing, and she is proud of his interest in growing his wealth. She is going to transfer some securities from her portfolio to him as a gift this year. She knows she will have to pay a little capital gains tax, but it's a small price to empower him to reap the benefits of future growth.
Maude knows her daughter's biggest financial goal is to purchase a house before she and her husband start a family, but saving for a down payment has been financially challenging for the couple. This Christmas, Maude will offer to match monthly contributions in a savings plan to kick-start and support their homeownership goal.
Maude's husband passed away four years ago. Prior to his passing, he was engaged in the community, helping children struggling with food insecurities. Maude will donate in his name to a local community service organization that funds school breakfast programs.
As far as Maude is concerned, this is the best gift she can offer her children at any time of the year. After her husband died, she had a limited understanding of how to manage her money. Her financial advisor had listened, empathized and educated her into a place of empowerment. Today, Maude not only understands her financial position, she also feels confident maintaining her wealth and ensuring it continues to grow. She knows this would not have been possible without her financial advisor and wants her children to have that guidance where money decisions are concerned.
Maude is well-aware that her gifts might not get the most excited squeals on Christmas morning, but she also believes that they might just end up being the most appreciated.
If you're considering this approach to gift-giving this year, contact our office. One of our financial advisors would be happy to guide you.
*Fictional characters for illustrative purposes only.
1. MoneySense: The tuition always rises - https://www.moneysense.ca/save/investing/resp/tuition-fees-are-always-on-the-rise/
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