Advisors react to

Income trusts capped in a housekeeping budget Staying the course: No surprises in Goodale’s first budget Advisors react to “non-event” budget Budget draws mixed reviews from industry associations Industry insiders analyze return to prudence The federal budget and your financial plan (Client letter) Back to main page Advisor Al Nagy was pleased that Canadian soldiers […]

By Deanne N. Gage | March 18, 2004 | Last updated on March 18, 2004

3 min read

Back to main page

Advisor Al Nagy was pleased that Canadian soldiers will no longer pay income tax while on high-risk missions overseas, since he has a few clients who will be directly affected. “I have 24 [client] families who work for the military, some of whom are clients based in Afghanistan,” says the CFP with Investors Group Financial Services in Edmonton. “They’re excellent clients from the point of view that they’re really focused on saving.”

Overall, Rogers applauds the prudence of this budget. “[Finance Minister] Ralph Goodale is continuing to balance the budget and seems committed to reducing the federal debt-to-GDP ratio over the next 10 years,” he says.

However, Rogers would have liked to have seen tax prepaid savings plans fleshed out more. “It should have warranted some consideration on their part because it’s a useful idea that has already gone past the concept stage,” he says.

Rogers also wishes the government would have more incentives in place for those who want to save more than the standard RRSP contribution limits. “Canadians who have the wherewithal to save more for retirement have not been well served by the federal government,” he says.

In that vein, Windeyer would like to see rewards for clients who are taking their financial security into their own hands, such as purchasing long-term care insurance, instead of relying on public homecare facilities. “In the U.S., you can deduct a portion or all of the premiums for long-term care,” he notes. “Here, the government still has not made it tax deductible.”