What is a Trustee?

Trustees come in a variety of forms. One form relates to registered plans. Investment dealers like BBSL can offer Self Directed Registered Plans to clients like you. Under the Income Tax Act, these types of Plans must have a Trustee. A Trustee provides accountable and transparent services, as they relate to Canada Revenue Agency requirements.

Who is my Trustee?

NatCan Trust Company ~ Natcan Trust Company and its parent company, General Trust of Canada, are affiliate companies of NBCN and member firms of National Bank of Canada Group. With more than $31 billion in assets under administration, they have a reputation for excellent administrative services and have developed an outstanding administrative structure to provide trust services.

Administration Fees

What is a Trustee Fee?

Most Self-Directed plans have an annual trustee fee. This fee is paid to cover significant government reporting requirements and administrative costs associated with the plans. Annual trustee fees range as low as $50 per year to over $250 per year.

When and How do I pay Trustee Fees?

BBSL trustee fees are payable annually in July. For your convenience, BBSL has a number of payment options available. Speak your Advisor for more details.

What is a Correspondent Brokerage Network?

The Correspondent Network was developed to provide administrative and back office services to the independent brokerage network. At Burgeonvest Bick Securities Limited (BBSL) we use National Bank Correspondent Network (NBCN) who is the leading supplier of correspondent brokerage services to the Canadian financial community.

About NBCN National Bank Correspondent Network (NBCN)

NBCN is an independent, wholly owned subsidiary of National Bank Financial. With over sixty associated organizations entrusting more than $20.0 billion in assets held in over 300,000 active accounts, NBCN is the leading supplier of correspondent brokerage services to the Canadian financial community.

NBCN is part of the National Bank of Canada Group and a subsidiary of National Bank Financial. With a strong capital base, National Bank of Canada is Canada’s sixth largest bank. Founded in 1859, the Bank has nearly 500 Canadian branches and representation in 20 U.S. cities and 120 foreign countries.

To learn more, visit their website at: http://www.nbcn.ca/aboutus/index.jhtml

Services Provided by NBCN

NBCN provides many resources to your independent investment advisor – and to you. In an increasingly regulated environment NBCN partners with BBSL to ensure compliance with the changing regulatory requirements. Working with your independent investment advisor, they help to ensure that your financial assets are administered in the most precise and cost-efficient manner. Here are some of the ways NBCN works to support you.

• Manage registered plan contributions and reporting
• Issue cheques and manage credit within an account
• Responsible for the receipt, delivery and safekeeping of funds and securities received
• Responsible for issuing confirmation slips for transactions directed through BBSL
• Manages the printing and delivery of account statements.
• Foreign exchange services
• Segregating of account positions.
• Accept, execute and settle trades in compliance with the instructions given to them by your Advisor with respect to transactions effected for you.

Technology NBCN has invested in technology and systems designed to expedite the timely and efficient management of your assets. Trading facilities and monthly statements reflect all IIROC regulatory requirements.

Research National Bank Financial’s equity research is highly regarded in the Canadian investment community. NBCN provides your independent investment advisor in-depth analysis and ideas from their research team as well as other international research sources retained by NBCN.

Flexible, Secure Retirement Planning NBCN provides your independent investment advisor with a comprehensive suite of product offerings allowing your independent advisor a package competitive with any bank owned firm.

Your Investments Are Secure The safety and protection of your investment assets are of the utmost importance. Each one of your separate accounts as defined by the Canadian Investor Protection Fund (CIPF) is protected by CIPF coverage. CIPF provides for up to $1,000,000 in coverage for any combination of securities and cash.

Additional Information For more information about the Administrative services provided, please contact your Advisor directly. He / she will be happy to answer any questions that you may have.

Finding refunds during market downturns

Market downturns can present a unique opportunity to take advantage of capital losses to offset capital gains. The results are tax savings and/or tax deferral which are available to qualifying investors of a non-registered portfolio. This strategy is commonly called Tax Loss Selling.

Tax Loss Selling involves selling securities with accrued capital losses and then applying the losses to offset capital gains.  The capital loss must first be applied to any capital gains of the current year.  Any unused losses can either be carried back and applied to capital gains for the prior 3 years or can be carried forward indefinitely to use at a future date.

Example

Take the example of our client Anna who realized a capital loss of $50,000 in 2008. The loss was carried back to year 2006 and applied to her capital gains for same amount.  At a 46% marginal tax bracket, she received an $11,500 tax refund.

($50,000 x 50%) x 46% = $11,500

How It Works

Many established Canadian mutual funds have a powerful investment structure that allow for taking advantage of Tax Loss Selling.  Because many mutual funds are available in both a Corporate structure and a Trust structure, moving from one structure to the other will trigger a “sale” for tax purposes with no actual change to the investments.

Individual stocks do not lend themselves as well to this strategy due to the “superficial loss rule”. CRA will disallow a loss if the same stock is repurchased within 30 days of the sale.

To realize a capital loss in any given calendar year, investors need to ensure the “sale” occurs with enough business days to settle in that calendar year.

Anna’s example is the simplest method, although there are other methods for increasingly complex situations. Before implementing a tax strategy, or for specific tax advice with respect to your personal tax implications, contact your qualified tax professional.

Diane Allie is a Certified Financial Planner with Burgeonvest Bick Securities Limited and is located in the Ancaster office. diane.allie@bbsl.ca.

I believe it may have been as far back as 2008, when I indicated that the Chinese government wished to see China as the largest producer of electric cars in the world, surpassing Japan by 2011. My first thought was ‘what kind of cars would they produce? Would these cars be comparable to cars on the road today?’ And of course, and most important, ‘would this next generation of automobiles be affordable?’ Two years later, the sector appears to have surpassed all my expectations. Nissan Motors announced today upcoming retail price of their electric car, the Leaf; the car will have a base price of $32,780, before the US $7,500 Federal tax credit. With an additional $5,000 rebate for buying such a car in the State of California, the sticker price of the car will be approximately $20,000US. According to Nissan, their upcoming electric car will be priced $150 less than Honda’s Civic and $1,000 less than the Toyota Prius (before you include any State incentives). Furthermore, leasing the Leaf may be the most appealing option for US consumers; thanks to the Washington incentive plan, Nissan will be able to pass along the full benefit of the incentive in the lease – a monthly lease payment near $349. Of course, as a reward for these incentives, I expect both Nissan and Toyota will be building these new models within the US over the next twelve to eighteen months.

However, as noted above, the Japanese will not be alone in this new segment of the global auto sector. Japanese and North American automakers have been very aggressive with their recent electric car projects not just to address the issue of rising oil prices and emissions, but also recent developments from China’s auto sector. Chinese auto companies are already introducing their next generation of electric cars to the market. New manufacturers, such as Build Your Dreams (BYD), kicked off retail sales of its electric-hybrid vehicle this week to start marketing their own vehicles within China (also fueled by government incentives). Their new model F3DM, has a retail price of 169,800 yuan, or $24,855 US. With Chinese government incentives not becoming available until July of this year, they do not expect sales to be immediately significant. However, unlike Japanese and US alternatives, what is interesting about this vehicle is that it comes with its own solar panel on the roof of the car, which allows it to run on gasoline, electricity and solar energy. Many of these components and innovations have never been mass produced for North American automobiles, especially in one vehicle.

What makes BYD particularly interesting is that they are already in the final development state of their next generation of this vehicle that will be produced with Daimler Benz next year for exclusive distribution in the European auto market. BYD’s e6, premiered at the recent Geneva Auto Convention, weighs roughly 5,000 pounds, has a range of 330km and can perform 0-60km in fourteen seconds. These specifications already outmatch many of the features that we have seen from comparable Japanese and US models. Furthermore, a report surfaced earlier this month, in the Los Angeles press, that BYD would be opening its US headquarters within the next few months, with speculation of an announcement of a one million square foot automobile assembly plant. At the recent Detroit Auto Show, representatives from BYD stated that they hope to have the e6 available to the US shortly, and start selling the car in the second half of the year. Whether or not the vehicle will be distributed through Daimler has yet to be determined.

As many of my clients already know, I have been following the development of the electric car, and the North American ’smart grid’ quite closely over the past two years. Based on my analysis, I have noted several companies that may benefit greatly from the development of this sector, across several different industries, sectors and market capitalization rates (the company’s size).

James DiCenzo is an Investment Advisor with Burgeonvest Bick Securities Limited located in our Hamilton Office.

The number of dementia related diseases and conditions continue to grow at an alarming rate. While we would love to find a cure tomorrow, those who are affected, including their families and friends, need education, support and a safe place to connect. Today, over 22,000 people throughout Brant County, Hamilton and Halton are affected and are in need of support.

If you thought that just seniors were affected, you are wrong.  Now more than ever, Alzheimer’s disease and related dementias are being diagnosed in those as young as 40 years old. We can all admit that no matter what the age, forgetting who your loved ones are or not knowing how to do simple tasks such as make a cup of tea, is devastating to those affected, and even more so to those around them.

The Alena Sharp Charity Classic is a golf event celebrating it’s 5^th year supporting local chapters of the Alzheimer’s organizations, along with the education and services that they provide. This year the tournament will be held on Tuesday, August 3^rd, 2010 at the beautiful and historic Brantford Golf and Country Club.

As an LPGA Tour Player, Robert and I realize that it is the younger generation that must take the lead to ensure that those dealing with Alzheimer’s and related dementias have the education and support they deserve. We will not forget. These diseases strip all family members and friends of precious time and memories at an alarming rate. My family and I know first hand the sadness and sense of loss Alzheimer’s disease can leave with those who are left to continue after a loved one has passed.

How can you help? Join us and play an incredible golf course with your friends. We are accepting corporate sponsorships, hole sponsorships, golfer registration, donations and prizes.

Our tournament committee will be following up to gage your interest in this event. We hope that you find the time and resources to make a difference in the lives of those living next door, across the street or down your block that are affected by a dementia related diagnosis.

Robert Sells, Title Sponsor

Robert Sells is an Investment Advisor with Burgeonvest Bick Securities Corporation. Robert is located in our Hamilton office and can be reached at 905.528.6505.

A Good Time To Invest?
By: Clarence Bick

Many people believe that the problems facing investors today are greater than at any time in history, but a brief look at the last 60 years gives a different perspective.

1950       Korean War starts

1951       Excess Profits Tax

1952       US seizes steel mills

1953       USSR explodes H-bomb

1954       Senator McCarthy witch hunts / French defeat in North Vietnam

1955       Churchill resigns/Pres. Eisenhower suffers heart attack

1956       War over the Suez Canal

1957       Sputnik launched

1958       Recession / record unemployment in Canada

1959       Castro takes over Cuba.

1960       USSR blockades West Berlin and shoots down U2.

1961       Cuban Bay of Pigs fiasco / Berlin wall built

1962       Cuban missile crisis

1963       President Kennedy assassinated

1964       Gulf of Tonkin – Vietnam war escalates

1965       US economy drained by war effort / civil rights marches

1966       Inflation hits 10 year peak

1967       Arab- Israeli Six Day War

1968       Martin Luther King assassinated –race riots / USS Pueblo seized

1969       Interest rates hit 9% / Market crash

1970       FLQ crisis brings War Measures Act / War in Cambodia

1971       Inflation spiraling – Nixon imposes wage & price freeze

1972       Bombing of North Vietnam resumed / record US trade deficit

1973       Watergate breaks / Inflation surges-food prices up 17%

1974       OPEC oil crisis / Nixon resigns

1975       World recession

1976       Anti-Inflation Board restrains growth / Parti Quebecois elected

1977       Canadian dollar drops below 90 cents US / Inflation tops 9%

1978       Canadian dollar drops below 84 cents / Interest rates over 10 %

1979       Iranian hostage crisis/second oil crisis / Unemployment over 10%

1980       Monetary squeeze/Olympic boycott because USSR in Afghanistan

1981       Pres. Reagan and 3 aids shot / Separatist referendum in Quebec

1982       Canada introduces “6% and 5%” restraints / recession / Tylenol scare

1983       Unemployment of 12.8% highest since 1930s / KAL shot down

1984       Olympic boycott/3^rd World Debt crisis grows / HIV & AIDS linked

1985       US Govt. deficit over $200 billion / State of Emergency in S. Africa

1986       Space Shuttle explodes / explosion at Chernobyl nuclear plant

1987       October 19 stock market drop of 20% / Gorbachev starts Peristroika

1988       US trade deficit grows / Soviets withdraw from Afghanistan

1989       Free Trade Agreement implemented/Berlin Wall collapses

1990       Meech Lake Constitution failure / Iraq invades Kuwait/GST starts

1991       USSR collapses / War in Yugoslavia / Rajiv Gandhi assassinated

1992       Olympia & York bankruptcy / Charlottetown Referendum defeated

1993       Bloc Quebecois in opposition / Yeltsin bombs Russian Parliament

1994       Bond market  collapse / Orange County bankrupt

1995       Mexican Peso crisis / Quebec Referendum / Barings Bank demise

1996       Oklahoma City bombing

1997       Asian debt crisis / Bre-X

1998       Clinton scandals

1999       Impeachment Trials / Kosovo / Y2K

2000       NASDAQ/Tech bubble bursts – 78% drop

2001       Al-Qaeda attacks World Trade Center on 9/11  / Recession.

2002       Corporate Accounting Scandals – Enron & WorldCom

2003       War in Iraq / SARS outbreak

2004       US $ drops / rising oil prices

2005       Natural Disasters (Hurricane, Katrina, tsunami), fuel prices skyrocket

2006       Iraqi sectarian violence, new tax rules hammer Income Trusts

2007       U.S. real estate bubble bursts, Sub-Prime mortgage crisis

2008       Oil reaches $147 a barrel & drops to $38 / financial sector bankruptcies / global credit crisis.

2009     Gold prices spike on depression fears / economic recover begins

Many think today’s problems are worse than any time in history, but a rational review shows otherwise. $100 invested in GICs in 1950 is worth $5,789 in December 2009, and $34,453 in the Toronto stock market (TSX). If you accept that problems will be solved as they were in the past, today can be a great time to invest.

Clarence Bick, MBA, CFP is a principal of Burgeonvest Bick Securities Limited. Burgeonvest Bick Securities Limited is a member of CIPF.

Source:

Andex 2009. PalTrack: $100 invested in 5year GICs on 1 Jan 1950 represents $5,732 on June 31, 2009. The total return on 5year GICs for the six months ending 31 December 2009 was 1.0%. $100 invested in TSX in on 1 January1950 represents $29,985 on June 31, 2009. The TSX composite total return for the six months ending 31 December 2009 was 14.9%.

As part of being good corporate citizens, many of our Burgeonvest Bick family are very active members of Rotary International. With over 1.2 million members in virtually every nation in the world, Rotary International is among the largest and most influential service clubs in the world. The primary goals of Rotary International are humanitarian service, high ethical standards, International Understanding and World Peace.

Local Rotary Projects of the Rotary Club of Ancaster include support for many local organizations, a youth exchange program, Lloyd Kirkpatrick Awards program within the schools, and the Ancaster Rotary Center, a sports complex and “meeting place”. International projects of the Rotary Club of Ancaster include 200 clean water wells within the Artibonite Valley of Haiti (approximately 150 wells have been installed to date). Eradicating Polio from the world is one of the many goals of Rotary International. Rotary expect this goal should be reached within the next few years.

For those who have been clients for awhile, you will know that I have been contributing annually to the Rotary Foundation on behalf of my clients. This foundation is reportedly the largest international charitable trust in the world.

With these donations goes the opportunity to nominate individuals in the community for a Paul Harris Society Award. This prestigious Rotary International Award is given to individuals who live by the motto of “Service above Self” and exemplify this approach to life in “all they say and do”.

This year I received a nomination for Dr. Kim McCallum of Ancaster and I am very pleased to announce that she was given a Paul Harris Fellowship Award this past November by the Rotary Club of Ancaster. Dr. McCallum, is not only a well respected family doctor that “goes the extra mile for her patients”, she is a living example of “Service above Self” in our community – a very deserving candidate!

We would like others in our community nominated for this award. As we go forward into 2010, I would ask you to think of those special people that have made a difference in the lives around you and should be recognized for their contributions to our local and / or international communities.

If you know someone that is a model of “Service above Self”, please email me for a nomination form and return the completed form to me. The start of a New Year is such a great time to express appreciation and to say thank you to an individual that makes our world a better place. Please take a minute and nominate someone for this prestigious award.

All the best in the New Year from all of us at Burgeonvest Bick Securities Limited.

John Knechtel CFP
Burgeonvest Bick Securities Ltd.