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(June 14, 2007) Let’s hope your clients don’t mind working well past 65. A new study sponsored by the Canadian Institute of Actuaries found that two-thirds of Canadian baby boomers in their 40s are not saving enough to retire comfortably — or even adequately. “No more than a third will be able to cover their discretionary expenses in retirement,” says Stephen Bonnar, a principal at Towers Perrin.

These findings seem to dispute results from similar retirement surveys that show baby boomers feeling relatively confident about their retirement planning. Three out of four Canadian baby boomers surveyed by Pollara in April, for example, said they planned to retire at age 65 and were well on track to doing so.

The discrepancy is likely because boomers underestimate how much money they’ll need, says Bonnar. For instance, a single person earning $80,000 a year will need at least $1.2 million to achieve 70% of his or her pre-retirement income, he notes. This means boomer clients will need to save about 30% of their income a year.

“Governments need to provide Canadians with more education about the role that different savings vehicles can play in generating retirement income and provide tools and incentives that encourage more households to save,” says Normand Gendron, president of the Canadian Institute of Actuaries.

The study found that baby boomers who are on track to retirement are relying on RRSP savings, contributions in company pension plans, home equity and their own personal savings to bolster the income they will receive from OAS and CPP.

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TD gets a little greener

(June 14, 2007) Another bank is entering the socially responsible investment fund arena, as TD Asset Management has filed the prospectus for the TD Global Sustainability Fund. The fund will invest globally in firms that are considered “best in class” in terms of environmental, social and economic factors.

The fund will assess these companies using the Dow Jones Sustainability World Index, while supplementing the portfolio with emerging companies in the fields of clean energy and resource efficiency.

“Canadians are demanding environmentally sustainable solutions in all areas of their lives, and investing is no different,” said Timothy Pinnington, president, TD Mutual Funds. “We’re pleased to announce a unique fund that offers long-term value with the growth potential of companies on the cutting-edge of new environmental technologies.”

The appetite for SRI funds has attracted other major players in the fund industry, with RBC launching three funds in conjunction with Jantzi Research at the end of May.

The TD Global Sustainability Fund is expected to be available to investors and advisors in September, pending approval by the appropriate securities commissions. It will be available in Investor Series, Advisor Series and F-Series units.

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BCSC issues permanent ban

(June 14, 2007) The BCSC has issued a permanent trading ban on Richard Robert Good, and has also barred him from acting as a director or officer of any issuer or engaging in investor relations activities.

Good admitted to raising nearly $2.4 million through an investment scheme between December 2003 and August 2006. He had promised his investors that the capital would be invested in commodity futures or public resource companies, which he said would deliver high returns.

Only $605,000 was ever invested as promised; $182,000 was lost; and the remainder of the capital was spent on personal expenses.

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Paperless filings rise in 2007 tax season

(June 14, 2007) Canadians continue to prefer filing their taxes electronically, according to data just released by the Canada Revenue Agency. The 2007 tax season saw 12.9 million returns filed using either EFile (8.4 million), NetFile (nearly 4 million) or TeleFile (510,000).

The number of paper filings decreased 4.3% from the year earlier, to 10.7 million, while NetFile and EFile usage were both up by more than 5%. TeleFile usage dropped 12.9%. The CRA received 23.6 million tax returns in the 2007 tax season, with the average refund being $1,254.26.

Self-employed individuals have until Friday, June 15, 2007, to file their income tax returns. If there was an outstanding balance for 2006, it had to be paid on or before April 30, 2007, to avoid interest. A late-filing penalty on amounts owing will apply to returns received or postmarked after June 15, 2007.

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(06/14/07)