The Challenge of a Fair if Not Equal Farm Transition

Because of the special tax rules for farm enterprises, estate planning tends to focus on ensuring that inter-generational rollover conditions are met in order to defer the taxes to the next generation. Where other non-farm businesses would use life insurance to pay off taxes as part of an estate plan, this may not be necessary with a farm as taxes can be successfully rolled over to the next generation when all conditions are met.

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The Problem With Mutual Funds

By: David LeNeveu, Founding Partner Rockmoore Wealth Management [1]

If you are like the majority of investors in Canada, your portfolio of investments in your RRSPs, TFSAs, and other accounts likely hold a number of mutual funds as picked by yourself, suggested by a friend, or recommended to you by an advisor.

Likely, you have been told that by having different mutual funds, you are well diversified and have not given it another thought (other than to make sure they are performing).

While it is true that as an investor, you need to hold a number of different stocks (equities) to be properly diversified, the question very few think to ask is, “Can I be over-diversified?”

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