| You’ve heard this one before – the only 2 things certain in life are death and taxes. And while it is one of life’s most difficult inevitabilities: we all age. And with aging parents in particular comes a series of health and financial issues that, in the absence of adequate planning, can become enormously challenging for the entire family. But isn’t it funny how life tends to get in the way of planning for the future? Waiting until things start going downhill is too late. The earlier these issues are discussed with our parents, the more likely it is that unnecessary problems can be avoided. And because you don’t know what you don’t know - knowing what to discuss and the types of professional advice available will make those conversations that much easier. 
While we haven’t done a good job at bringing up the ‘financial talk’ with parents (reference image above), it’s often just as difficult for parents to talk about the idea that they may one day become dependent - but doing so before a crisis occurs gives them an opportunity to make some very personal decisions for themselves. Decisions like where and how they would prefer to be cared for when they can’t bathe, dress or feed themselves. Most elderly Canadians prefer to stay in their own home as long as possible, and while many believe that the cost of the care they’ll need to do so is covered by public health care, that is often not the case; a home caregiver can cost $70,000+ and a residential retirement facility with healthcare services can cost anywhere from $4,000 to $10,000 per month depending on the province. An article I came across earlier this year featured a CIBC study that found the average out-of-pocket expenses for those with parents over 65 will be about $3,300 a year; as a nation, the care costs Canadians $33 billion a year in direct out-of-pocket expenses and time off work. “The trend is clear. An aging population combined with longer life spans and strained social services has in recent years seen more and more Canadians taking on the role of caregiver for their aging parents. And, in the coming years that tendency is only likely to intensify,” they wrote. When parents don’t have the resources they need to pay for care, or the funds aren’t accessible, adult children may find themselves making up the difference, sometimes at the cost of their own retirement savings. But by planning for care and making the necessary financial arrangements or putting long-term care insurance policies in place, it is possible to protect assets and avoid being a burden to loved ones by providing choice and flexibility. Effective planning also ensures that parents’ wishes for their estate settlement and legacy are honored – and ensuring that all family members affected by the decisions made are present for the conversation is an essential step in maintaining family harmony. To help with next steps, we’ve created many checklists and planning guides such as the Family Inventory (one comprehensive document itemizing everything from account numbers to insurance policies and advisor contact info) to the Financial Planning Checklist for Seniors, Executor Checklists, POA duty checklists, Retirement Checklists, Will & Will planning guides, Long-Term Care insurance planning details, etc. For your own copy just say the word. Of course, working with professional advisory teams like yours truly is one way to ensure that taxes and unique family considerations are accounted for. There really is no one-size-fits-all solution, and there is no substitute for competent professional advice. And while we’re on the topic of aging, another aspect that is even harder to talk about is financial elder abuse; financial abuse of seniors is one of the darker realities of aging. It’s a crime that’s often not seen by the victim, and sadly often perpetrated by family members, close acquaintances or other people in a position of trust. It’s important for seniors, as well as their close friends and family members, to be aware of the warning signs of abuse and what they can do to prevent it. In the latest issue of the Portfolio Advisor, we have written about the 5 common signs of financial elder abuse. For a copy, click here. With so much going on and information coming at us from every angle, it's sometimes hard to keep your finger on the pulse of what's happening. In an effort to keep you in-the-know and provide you with some conversation nuggets for the weekend, I've compiled the following hit list to fill your conversation pipeline. Now you are in-the-know with Word on the Street. Enjoy the weekend, D.
Dian Chaaban
Investment & Wealth Advisor
416.842.4234
Market Minute In this week's Global Insight: - MKT Update: The TSX Energy sector has bounced moderately so far this week along with a 4.2% gain in WTI crude oil.
- One Direction: The past month has presented a sea change in global central bank policies amid numerous hawkish policy shifts. But with most major banks now seemingly rowing in the same direction toward higher rates, are markets finally on the cusp of sustained higher yields? (pg 1)
- Canada Section: We discuss the BoC’s rate hike—the first in seven years—and changes to economic forecasts. Given recent curve flattening, investors should look to add high-quality bonds in the 3–6 year part of the curve. In preferred shares, the increase in yields supports rate reset and floating rate preferreds. (pg 3)
- Other Regional Developments: Positive setup for U.S. Q2 earnings; Cheerless U.K. economic data; China trade accelerates on global demand. (pgs 3-4)
Click here for the Global Insight Weekly. Term of the Week Fiscal Deficit | A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits. A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy. Learn more here. In Focus this Week Bank of Canada Governor Stephen Poloz and Federal Reserve Chair Janet Yellen were singing from the same songbook on Wednesday when they said their respective economies could handle higher interest rates. Yellen’s been singing that tune for a while now, but Poloz’s confidence in Canada’s outlook is new. Just three months ago, he considered it “too early” to say the Canadian economy would stay on a firmer growth trajectory. On Wednesday and for the first time in seven years, the Bank of Canada raised the key interest rate to 0.75%. The hike isn't much of a surprise, experts have been predicting the change for months and Bank of Canada governor Stephen Poloz has been all but spelling it out over the past few weeks. The decision was fueled by our "robust economy" and increased household spending. Why You Should Care A few reasons--some are good and some are not-so-good. First, the good: the loonie touched an 11 month high against the USD on Wednesday and as of today’s market close, up to 1.26 cents (which is quite good for those crossing the border). Interest starved savers are also a little happier. Now, the not-so-good: if you have a variable mortgage or a line of credit, your payments are going to go up; but Wednesday’s 25-basis-point rate hike is unlikely to tip the scales. The increase would add about $165 per $100,000 owed to a borrower’s annual debt-servicing costs. Relatively speaking, rates are still at all-time lows… 
So, What's Next? Sherry Cooper, chief economist at Dominion Lending Centres, said she expects another hike in the fourth quarter of 2017, "the Federal Reserve will also likely increase rates in [the fourth quarter]. Look for a slow crawl upward in interest rates from both central banks in 2018." The next interest rate decision is scheduled for September 6. That said, the press conference was delivered in a cautiously optimistic tone and reminded us of the risks posed to the economy. It doesn’t seem like there is enough to infer that the Bank of Canada is embarking on a traditional rate hiking cycle vs. removing the two “insurance” cuts from 2015, but without wanting to sound too much like central bankers, this development will certainly be data dependent and focus on inflationary pressure will be key to that. We expect this debate will rumble on for quite some time. Click here for the RBC Economics note. Market Movers The U.S. shale revolution is upending the global natural gas market Global gas demand will rise by 1.6% annually over the next five years, the International Energy Agency predicted Thursday. And by 2022, the U.S. will produce more than one-fifth of the world’s natural gas and rival the world’s major exporters of LNG. A shipment of U.S. LNG to the U.K. last week illustrates the shift: it was enough to provide about half the U.K.’s gas needs for this summer, and came only about a year after the U.S. first began exporting LNG from the continental U.S. Read more here | The Guardian China’s interest in Canadian assets continues In the latest deal to make headlines, a Chinese investment firm is set to buy Grouse Mountain, the family-owned resort that dominates Vancouver’s skyline, for around $200 million. The deal comes soon after Ottawa gave the green light to the sale of a satellite-telecommunications company and a retirement-home chain—both also based in B.C.—to other Chinese entities. The latter two deals moved forward despite concerns over security and transparency. Read more here | Globe & Mail Healthy living suits PepsiCo just fine The company known for supplying couch potatoes with Pepsi and Doritos has in recent years increased its focus on healthier (and pricier) products. “Guilt-free” foods like electrolyte water and overnight oats helped it record stronger-than-expected earnings in the latest quarter. And PepsiCo was able to charge more for those items, offsetting flat volumes. Consumers say they’ll pay more for healthy snacks, which is why the segment will grow at a healthy clip of 5.7% a year between 2016 and 2020, according to one estimate. Read more here | Bloomberg Broken Record Amazon says its annual Prime Day—a promotional event for Amazon Prime subscribers—broke records with purchases spiking by more than 60% over last year. If that wasn't enough, Amazon said more members subscribed to Prime on July 11 than any day in the company's history, helping the retail giant surpass its Black Friday and Cyber Monday sales. This year's extended shopping hours (six to be exact) are being partially credited for the frenzy. Read more here | Bloomberg At Your Convenience Canadian convenience store chain, Couche-Tard, is expanding its U.S. footprint. The Montreal-based company announced yesterday it's buying the Holiday chain of convenience stores, which operates in 10 states, predominantly in the Midwest U.S. The deal will see Couch-Tard acquire all 522 Holiday stores and is subject to standard regulatory approval and closing conditions. The company has not disclosed details of the purchase price. Read more here | Financial Post New Home Capital CEO Home Capital Group Inc. has chosen a mortgage industry veteran with a technology background as its new full-time president and chief executive, tasking Yousry Bissada with getting the beleaguered Toronto-based company “running on all cylinders” again. Even after last month’s major investment by Warren Buffett’s Berkshire Hathaway — which made the renowned investor Home Capital’s largest shareholder while staunching the decline in deposit balances at its subsidiary — the 57-year-old former banking executive will face a daunting task when he starts on Aug. 3. Read more here | Financial Post Time is Money Made in collaboration with Google and Qualcomm Technology, luxury designer Louis Vuitton launched its first smartwatch yesterday, the Tambour Horizon. According to Michael Burke, chief executive of Louis Vuitton, “there’s a lot of ugliness out there” when it comes to wearable tech, but “for us, the aesthetic is non-negotiable.” The watch is available in three different finishes (polished steel, brushed steel, and full black) and has 30 different strap options for both men and women. After announcing that Louis Vuitton plans to expand connectivity to many of its products, Burke said, "You can sit on the sidelines and watch, or dive in and participate and try to influence where things go. We're diving in." The Tamours will start at US $2,450, with the black version ringing in at a whopping US $2,900. Read more here | NYT Current Events & Politics A medical milestone Decades in the making, a gene-altering leukemia therapy got a unanimous vote of confidence from an F.D.A. panel. A Food and Drug Administration panel opened a new era in medicine on Wednesday, unanimously recommending that the agency approve the first-ever treatment that genetically alters a patient’s own cells to fight leukemia, transforming them into what scientists call “a living drug” that powerfully bolsters the immune system to shut down the disease. Read more here | NYT “Maps will need to be redrawn” A massive chunk of ice broke away from Antarctica, producing one of the largest icebergs ever recorded. A chunk of floating ice that weighs more than a trillion metric tons broke away from the Antarctic Peninsula, producing one of the largest icebergs ever recorded and providing a glimpse of how the Antarctic ice sheet might ultimately start to fall apart. Read more here | NYT B.C.’s wildfires continue to hurt people and businesses Some 14,000 people have now been displaced by out-of-control fires in the province’s Interior, and the 10,500 people in Williams Lake are on high alert. Local employers are also feeling the pain. Major forestry firms West Fraser and Norbord temporarily closed some mills. The fires have also affected some mining operations and small businesses that serve hikers and campers. The economic impact isn’t currently expected to approach the magnitude of last year’s wildfires in Fort McMurray, Alberta, whose costs neared $10 billion. Read more here | CBC Roger Rising It wasn’t even close for Canadian Milos Raonic who was totally overwhelmed by third-seeded Roger Federer in the Wimbledon quarter-finals. Just one year after Raonic defeated the Swiss great in the Wimbledon semi-finals, Federer methodically picked apart Raonic in straight sets. Elswhere, the top-seeded Andy Murray was hampered by a nagging hip injury that resulted in a five-set loss to American Sam Querrey. Second-seeded Novak Djokovic had a similar result, retiring after two sets due to a shoulder injury that has been ailing him throughout the tournament. Read more here | CBC Astronaut Julie Payette will be Canada’s next governor general There had been speculation that Prime Minister Justin Trudeau would name an aboriginal leader to the post. But it’s hard to argue with Payette’s appointment; Payette was born in Montreal and served as chief astronaut of the Canadian Space Agency from 2000 to 2007. She took part in the mission on the Space Shuttle Discovery to the International Space Station in 1999 and became an officer of the Order of Canada in 2010. Payette is an inspirational Canadian on so many levels. Not only is she an astronaut, but she speaks six languages, and is an accomplished athlete, pianist and singer. She's a 12th-generation Canadian who loves this country as much as anyone could. She's promised to work for all Canadians, and to "promote science, technology and the pursuit of knowledge," as well as embrace our country's core values: tolerance, openness and team work. Read more here | Globe & Mail 10 years for corruption The former president of Brazil, Luiz Inácio Lula da Silva, was found guilty of corruption and money laundering on Wednesday and sentenced to nearly 10 years in prison, a stunning setback for a politician who has wielded enormous influence across Latin America for decades. Read more here | NYT China’s first overseas military base in the Horn of Africa It won’t be the only foreign power in strategically located Djibouti—the U.S. and France are already there—but the move reflects China’s deepening presence in Africa, where it’s spending a staggering US$60 billion on development projects. "It's not about seeking to control the world," the state-run Global Times said of the new base, which it said will support China’s humanitarian operations. The move comes as some also fret about the military ambitions behind China’s US$900 billion New Silk Road infrastructure project. Read more here | Reuters A fresh bid to repeal Obamacare Senate Republican leaders were poised on Thursday to unveil a fresh proposal to repeal and replace the Affordable Care Act, revising their bill to help hold down insurance costs for consumers while keeping a pair of taxes on high-income people that they had planned to eliminate. With the revised bill, the majority leader, Mitch McConnell, Republican of Kentucky, is trying to keep alive his party’s seven-year quest to dismantle the health law that is a pillar of former President Barack Obama’s legacy. But the divisions remain. Read more here | NYT Time to Resign Canada's inquiry into missing and murdered Indigenous women is facing yet another leadership shakeup. Marilyn Poitras, a Saskatchewan lawyer and one of the five commissioners appointed by the feds to oversee the investigation, announced her resignation yesterday. "It is clear to me that I am unable to perform my duties as a commissioner with the process in its current structure," she said. The $54-million inquiry has been plagued by high-profile resignations and complaints by families who say they're frustrated by the inquiry's lack of progress. Read more here | Globe and Mail China’s best-known dissident has died Liu Xiaobo, a literature prof who helped student protestors exit peacefully from Tiananmen Square in 1989 and was serving an 11-year sentence for inciting subversion, won the Nobel Peace Prize in 2010. His death, in hospital but still in custody, served as a reminder of Western governments’ reluctance to press China on its treatment of human-rights advocates, even as President Xi Jinping toughens Beijing’s response to internal dissent. Read more here | NYT The Latest Tweetstorm It took an uncharacteristically long time, but President Trump finally tweeted this thoughts on the latest controversy dogging the White House. "He was open, transparent and innocent," Trump wrote about his son, Donald Trump Jr., who's been caught-up in an email scandal dating back to the 2016 campaign. "This is the greatest Witch Hunt in political history. Sad!" The email chain in question revealed that Trump Jr. was positively giddy at the prospect of meeting a Russian government lawyer who was believed to have "damaging information" on Hillary Clinton. Read more here | Reuters Upcoming Events 5th Annual Stocks, Suits, Scotch | More details coming soon... Just for Fun Winter is Coming! Season 7 of Games of Thrones will debut Sunday. The budget for the epic HBO series climbed from around US$6 million per episode to US$10 million in Season 6. The spending is paying off: HBO’s been setting new records with the series, and last season’s finale was watched by 8.9 million people. In the old, pre-streaming days of TV, huge audiences were common, but in today’s environment of fragmented and niche audiences, Game of Thrones stands out. Time even dubbed it the last consensus show on TV. Read more here | Forbes Take your kids to work (every) day Victoria Sopik was looking for quality child care that would accommodate the occasionally unpredictable demands of her entrepreneurial career. With few options she wound up hiring a nanny, but couldn’t shake the feeling that there had to be a better way. So in 2002, with co-founder Jennifer Nashmi, she started Kids & Company, a different kind of daycare. Today it boasts more than 100 locations and is expanding in the U.S., earning it a spot on the 2017 list of Canada’s Best Managed Companies. The secret was solving a mutual problem for companies and for the parents they employ. Read more here | Canadian Business Coast to Coast From the grasslands of Saskatchewan to the vast boreal forests of Yukon, here are stories from every province and territory. Read more here | Globe & Mail 7 Easy Summer Appetizers Get ready for social summer nights with these seven simple and scrumptious appetizers that are perfect for cocktail time. Read more here | Everything Zoomer
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