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Time is running out for families of disabled Canadians to make their 2009 contribution to a Registered Disability Savings Plan. Beating the December 31 deadline ensures eligibility for annual government assistance.

“Not only are RDSPs a tax-efficient investment solution for Canadians with disabilities and their families, the plan can also help provide invaluable peace of mind,” says Jamie Golombek, managing director of tax and estate planning for CIBC. “RDSPs also offer investors the ability to supplement the plan with Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs).”

Unlike RRSPs, contributions to a RDSP are not tax-deductible, but any growth realized within the plan is tax-deferred. Up to $200,000 can be invested within the plan with no annual contribution limits.

“In addition to all the other advantages RDSPs offer, they can also protect beneficiaries from losing valuable disability benefits in most provinces,” adds Golombek. “I would urge those eligible who have not already opened an RDSP to contact their financial advisor immediately to discuss making the most of this important opportunity before the end of the year.”

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Consumers see better days ahead: RBC

One day after StatsCan proclaimed the recession has technically ended, RBC has released the results of a new consumer confidence survey. After the severity of the recession in 2009, it may come as little surprise that 62% of Canadians see better days ahead in 2010.

Only 14% expect the Canadian economy to worsen next year, according to the inaugural RBC Canadian Consumer Outlook.

In the near-term, however, Canadians remain cautious: 47% said they planned on spending less this holiday season, and 18% said they plan on giving no gifts at all.

“The recent economic times have left many Canadians feeling uneasy about their financial well-being and this is reflected in their restraint when it comes to holiday spending,” says David McKay, group head, Canadian Banking, RBC.

On average, Canadians expect to spend $1,218 on holiday purchases, including gifts, decorations and entertaining.

When it comes to the job market, 27% reported at least one household member was worried about losing their job. Just under 40% said they felt their personal financial situation was worse than it was three months earlier, but 27% expect it to improve in the coming quarter.

A small majority (52%) expect interest rates will rise in the next six months, while 42% said they will not.

“Recovery is in sight for the world economy,” says Dawn Desjardins, assistant chief economist, RBC. “We’re off to a slow start but the economy will start to build steam and unemployment will reach its peak early next year and then fall off.”

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SEI launches Canadian focused portfolios

Mutual fund company SEI has launched two new portfolios which will invest primarily in Canadian stocks and bonds with limited foreign investment.

The Canadian Balanced Portfolio invests primarily in Canadian equity funds and Canadian fixed income funds, and is designed for investors with an investment horizon of at least 5 years.

The Canadian Focused Growth Portfolio invests primarily in equity funds, with a focus on Canadian equity exposure, and Canadian fixed income funds. It is aimed at more aggressive investors with an investment horizon of at least 5 to 10 years.

“The Canadian focused portfolios offer investors the benefits of diversification within an economy that is poised for growth,” says Janesse McPhillips, managing director of SEI Private Banking. “Canada is forecasted by the International Monetary Fund to have a higher growth rate than many other developed economies as the global recovery takes hold. SEI is demonstrating its commitment to Canadian advisors and their clients by bringing them the investment solutions they need.”

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Goodbye, Canaccord Capital

Today marks the first day of operations for Canaccord Financial, having retired the company’s old name, Canaccord Capital. The change was originally announced September 29, 2009.

“Over the past several decades Canaccord has grown to become a global financial services firm, with broad operations and diverse product offerings,” says Paul Reynolds, president and CEO of Canaccord Financial Inc. “We believe the name Canaccord Financial better reflects the growing scope of Canaccord’s global businesses.”

The rebranding effort will have a trickle-down effect on the various operating divisions of the firm. Canaccord Capital Corporation is now Canaccord Financial Ltd., while the insurance and estate-planning unit, Canaccord Financial Services Ltd., is now Canaccord Estate Planning Services Ltd.

Canaccord Capital Corporation (USA), Inc., a wholly-owned subsidiary for U.S. brokerage transactions, became Canaccord Financial (USA) Inc.

The company has also changed its TSX ticker symbol from CCI to CF.

(12/01/09)