Personal Finance Perspectives

[music] >>Hello I'm Greg Bonnell and welcome to MoneyTalk Live, brought to you by TD Direct Investing.

Coming up on today's show we will take a look at some of the big personal finance questions facing Canadians. Pierre Létourneau from TD Wealth will have more of a look at how to get more out of a lifetime capital gains exemption.

An Nicole Ewing will discuss what to consider before cosigning on a mortgage with your children. And Georgia Swan will have some tips on the moves to make you become mortgage free.

Plus in today's WebBroker education segment, but Ryan Massad will show us how to use conditional orders on the platform.

But first an update on markets.

First trading day of the week coming off of the holiday weekend first trading day trading day of the quarter, starting here at home 42 point deficit about 1/5 of a percent with the TSX Composite Index, nothing too dramatic. Noticing earlier that uranium plays getting a bit including Denison, let's see if it's holding onto its gains early in the session. Indeed at 277, but about percent. Noticing some weakness in telecom stocks including Telus today, some of the most active in active tradenames at 21, 28 at about 2%. Now south of the border, the S&P 500 closed the books before the long weekend on its best first quarter since 2019.

A little bit of giveback today. 23 point deficit, a little less than half percent.

The tech heavy NASDAQ fairing against the broader market in terms of the S&P 500, the NASDAQ is down. But not quite as much.

About 18 points about 1/10 of a percent.

Noticing some of the chipmakers getting a bit today probably from keeping the NASDAQ from being down more than it is right now.

Indeed, Micron Technology. 126 books and change up almost 7%. And that's your market update.

As we said, starting the second quarter, you would take a look at the TSX Composite Index, hitting a new all-time high in the first quarter, the S&P 500 again about 10%. That's first quarter performance for that, index.

Since 2019, so, what's gonna take to keep the rally going?

We have a lot to look at an MoneyTalk's Anthony Okolie is here. Warning us about inflation for so long.

So many data points to keep an eye on.

>> I think there's a lot of expectations that inflation will continue to cool. That the feds will start to eventually start to cut rates and I think that's really driven the markets you know higher.

In addition to that, this investor confidence of the US can achieve a soft landing and a cooling but we don't see that severe downturn that people were talking about a year ago. We did get some PC data on Friday, and, I think it's more relevant for Fed officials is that headline, core PCs surprised to the downside in February.

So I think that's positive. In addition, keep in mind that the January data was revised the 10th higher, so that means that February deceleration was not meaningful and TD Securities feels that this is setting up the Fed for potentially starting to cut rates in the June meaning.

So let's see how that plays out.

>> I believe Powell made some comments on Friday, it confused me a little bit. I thought we are on a holiday but apparently a bit busy.

Preaching patients. Don't worry we don't have to rush to cut rates but the market, as you said, the Bank of Canada next week as well.

Always remember this one because my wedding anniversary is coming up and I used to go to Ottawa for releases and if it falls on the same day as my anniversary, big trouble.

The stars always aligned but we will get an announcement on Wednesday for fixed rates.

>> Yes we will get the Bank of Canada's business Outlook survey today. It just came out and I'll go through some of the main highlights. The business sentiment so it still remains weak but it is showing signs of improvement in the first quarter.

We did see the business Outlook indicator, that's basically giving a sense of how businesses are feeling about the economy.

In improved versus the previous quarter.

And this uptake comes after two years of declines and we are seeing improvements across all regions, sectors and firms.

Some other key points, demand written remains subdued which is a lot of price pressures and labour markets to ease. As a result, fewer firms versus last quarter are planning unusually large price hikes over the next 12 months.

So again, I think the Bank of Canada will take this into account when they meet later this month.

>> All right. We've kicked off the second quarter and what about things to given ion, thanks Anthony.

>> My pleasure.

>> MoneyTalk Live's Anthony Okolie. Now let's get a look at the top stories in the world of business and see how the markets are trading.

There was a significant development on the bare trust tax issue heading into the long weekend. The Canada Revenue Agency says it will no longer require bear trusts to file a T3 return for the 2023 tax year unless the agency makes a direct request.

Now, the deadline to file all that had been tomorrow, April 2 before that change was announced on late Thursday afternoon.

You are forgiven for missing it because you are probably hanging out for the long weekend. We will have full coverage of all these developments this week on Monday talk on BNN Bloomberg's 7 PM Eastern time on Wednesday. AT&T says the personal information of more than 7 million customers has been leaked onto the dark web. The US telecom giant says it's investigating the source of the leak, which incurred which occurred rather two weeks ago and included names, dates of birth and Social Security numbers.

The dark web is a part of the Internet that can only be accessed using special software.

TSX gold stocks are in the spotlight, the precious metal itself hitting new all-time highs. Further signs that inflation remains on track to ease further as markets betting on those rate cuts from the US Federal Reserve that Anthony was just talking about, you can combine that with more central-bank buying of gold, among other factors has all been pushing the yellow metal hire.

Right now, the gold index not showing as much but some of the individual names, particularly in smaller up for 5% in that basket. Okay. A quick check on the main benchmark index here in Canada to see how we are trading in the first trading day of this second quarter. Some modest downside pressure but nothing too dramatic.

34 points in the hole, a little more than 1/10 of a percent.

In south of the border, the S&P 500, same story, you pull it back about 19 points, 1/3 of a percent.

Nothing too dramatic but a little red on the screen to start the trading quarter.

Talking with the lifetime capital gains exemption topped $1 million and for owners selling a business, the LC GE can allow you to keep more money in your pocket.

Pierre Létourneau, business succession advisor of TD Wealth joined Kim Parlee to talk about some of the ways to maximize your use of this important tax tool.

>> Lifetime capital gains as a tax bracket available to eligible individuals. Which allows them to claim a deduction to reduce their taxes and maybe eliminate taxes payable on capital gains earned when they sell a certain asset.

It is, to be eligible you need to be a resident of Canada, it's only available to individuals. So corporation is not entitled to the exemption. For business owners, where it's beneficial to them, is the exemption is available on the sale of shares that are qualified small business corporation shares. So ? SBC shares. It becomes a very important tax planning tool for them when they're looking at seller or transferring businesses.

> You mentioned the QS PC shares, any other conditions need to be met for businesses to qualify for this?

>> Particularly for the QS PC share is there a very complex rules and there are three main tests that need to be met. But, in the interest of time, I'm just a focus on one that I see that is a common pitfall. So, the basic asset tests, in order to meet that test for 24 month period prior to the sale of business, the shares have to be shares of a Canadian -controlled private corporation, so CCPC and at least 50% of the value of the corporate assets has to be active business assets. So they can't be passive assets like excess cash or investment assets.

>> Like an operating business… > Right. So if it's a passive accent in the passive assets represent more than 50% of the value of the corporation, you are offside. So any point in time and that 24 month window, you were offside, then you don't, the shares are not QS PC shares and the exemption is not available.

>> Let me ask you but the million-dollar number. Although, million is not what used to be. But anyway.

I know the number. I think specifically as $1,016,836 right now in terms of the exemption available.

Does it mean? How does that work?

>> The exemption represents the amount of gross capital gains that will be taxable.

It is sheltered from tax. And it is indexed to inflation.

So that's why it's now over $1 million and it increases every year with inflation.

That represents roughly a tax savings of 250,000.

And the exact number depends on your tax brackets. And also, which province you reside in. Because tax rates, vary from province to province and territories.

>> I know you mentioned to me earlier to a, we have to be mindful of the alternative in tax for this event to.

> Correct, absolutely.

You know, it a situation where you are using the exemption, you have any other source of income, you may have to pay MT which is recoverable and hopefully you can recover that over time.

>> Let's bring up a board to show us an example scenario of how this might work.

You said 250,000 in terms of savings but take us through what we are looking at.

>> Sure so let's say you start your business and it's not worth much at the beginning and you just incorporate your business.

>> Yes.

>> Yeah shares for the corporation are nominal right?

So your ACB is nominal and then you work really hard in your business, it's very successful, it increases in value would let's say it's now worth $4 million.

You find a purchaser willing to buy the shares for $4 million so on that, you earn a capital gain of $4 million.

The taxable component of the capital gain is $2 million because only 50% of capital gain is taxable.

And that's using an approximate tax rate of 50%. Your total tax bill for that transaction is $1 million.

Now, if you use the exemption, $1 million of that $4 million is exempt. You're left with $3 million.

Half of that is taxable, 1.5 million on your tax bill is now 750,000.

So that's where you get the 230,000 tax savings.

>> That's great material.

You are talking to me earlier to you that if you plan for this, and we will get to this, the use of family trusts can be something that can make this even bigger.

>> Absolutely. Family trust is a common tool used by business owners to multiply the lifetime capital gains exemption by accessing the exemption of other family members. So you can bring in family members into the business as owners through a family trust so they don't necessarily have any control or say in the business that they participate in the growth of the value of the business. So when the time comes to sell the business, the capital gain is earned by the trust but allocated to the beneficiaries.

Assuming the trust allows you to do that.

Then, when they report that capital gain in the individuals, the beneficiaries are able to then claim the exemption and so, the example we just went through, if that business owner had three other family members that they were able to bring in through family trust, if that was done at the right appropriate time, they may be able to fully exempt the capital gain, the whole $4 million. Now, keep in mind that if a beneficiary is using their capital exemption, those funds need to be distributed to them.

So you need to be comfortable with having those individuals receive those funds, also you need to be mindful of the 21 year rule. After 21 years a trust is deemed to have sold all its assets so you need to plan around that if your time arises longer than 21 years.

>> I have 1/32 here but I want to mention, I keep hearing "plan, plan, plan!

" To make the best use of this and be very thoughtful about other taxing as you can have, you need to start early.

>> Absolutely. That's the key point in today's discussion.

You need to start this early and make sure you qualify for the exemption and if you want to bring in other family members, you need to bring in early. So they participate in the growth of the value of the business.

So you need good advisors around you.

Good tax advisors and a good investment advisor will help you plan for all that has to deal with the lifetime capital gains.

>> That was Pierre Létourneau, business succession advisor advisor at TD Wealth.

Now let's get to our educational segment.

There are different order types available in WebBroker.

Joining us now to show us how conditional orders work, Ryan Massad, Senior Client Education Instructor with TD Direct Investing. So Ryan why would an investor consider using a conditional order?

>> Thanks Greg.

One of the greatest things as automation.

You want to be efficient when placing your trades. You can always be everywhere at once.

The more you increase the amount of trades are doing, the amount of stocks or ETF's that you're following, so conditional orders can really help with this.

And they can help with discipline as well.

Help you stick to a plan. If you've got it set automatically.

Now there are 3 Conditional Orders in WebBroker, working to focus on one today called the "one cancels other" order.

So for example, if we look in WebBroker we've got the SP why here, the ETF. And, again, if were following this particular stock, will be love to happen is for it to go up and up and up and then eventually, we might think to sell at the highest price possible. But we also want to be covered just in case things don't go exactly the way we wanted to. And if it goes down. Now, generally, we can place those two orders separately if we wanted.

We can place a limit order and sell at a higher price in the current price.

Or stop order in order to sell at a lower price in case the price goes down.

But, what if we could just do both at the same time?

And then, whichever situation, whatever event occurred first, that would be the one that would be triggered first and it would cancel the others.

And that's where the "one cancels other" order comes in.

>> I understand the order, a little background of why an investor might want to use it. How would you actually enter these orders in WebBroker?

> Definitely. Let's check it out in WebBroker.

In WebBroker, let's say we own this SP why already.

And we are looking to place that kind of train.

So this nice little icon that says "buy and sell".

I'm going to click on the "strategies tab.

Here we have all the conditional orders.

We actually have four. There is a multi-one for option so we will leave that on the side here.

We have one triggers other, one cancels other and a one triggers one cancels other.

So you can get many levels of automation here. We will choose the one that says "one cancels other " today.

When we do that we get an order ticket like we normally do but we get two sections. This is the time where we want to put in the two different levels of the order. If we have RSP Wyatt, and we are looking to sell it, there are two situations. If the CTF were to go up, we would sell it at a higher price than what it actually is today. So right now, it's around 521. And our best case scenario is in our heads here we have planned out is for to be 550. And we want to sell it at that. 550.

And we want that to go "good until cancel" good until we cancel this order. But we also want to be covered in the event that it goes down. Now, we could do that on its own.

We would have to cancel this order than place another. But with this one cancels other order, we can put the other situation on this same traded ticket so let's click down here in "situation number two" here. Where we have the same SP why, we have the same cell order for 100 shares and in this case, we want to catch it if it goes down to a certain point. Now, this triggering event, when the price gets to, let's say 450, we will put "good till cancel". Now we have an either or type of order. If the price from this point on goes up to 550, it will sell at that price or better. However, if the event in which SP why goes down to 450, it will trigger if this size a market order and sell at that point. So you were now covered on both ends. You have to cancel one to do the other. It will do it on its own. And that's one of the beauties of this. You can have this set up across different stocks or different ETF's and it just automates things for you. It makes it much easier to be able to follow more security is at once and stay definitely more disciplined.

>> Great stuff.

Thanks for that Ryan.

> Thank you Greg.

>> Our thanks to Ryan Massad, Senior Client Education Instructor a TD Direct Investing.

And make sure to check out the learning centre in WebBroker for more educational videos, live interactive master classes and upcoming webinars.

It's not easy for young people to get into the housing market in some parents may be in a position to give their child a hand.

Cosigning a mortgage is one option but is it a good idea? Nicole Ewing dis-Director of Tax and Estate Planning with TD Wealth joined Kim Parlee to discuss.

>> I like to think of cosigning a loan is essential you are taking a loan for yourself with all of the responsibilities but with a whole lot less control.

>> That sounds bad.

> I think it's bad.

Ultimately you are putting your name on this loan, you are responsible for it but you might not know when things go off the rails. You might not have noticed that the payment hasn't gone through or that there's going to be, you know, an issue with getting that payment on time. You might not have, you might impact the availability of your own credit. So you need to be thinking about what are you going to need and will you have that room to be borrowing when this loan is taken into consideration as well? Because it's essentially against you as well. So then what you think if your child moves a partner into the home for example, if they have a live-in spouse all of a sudden, now you've entered into a whole host of other issues, again that you don't necessarily have control around. So we have family harmony issues where if things are a little uncomfortable, are you going to raise them in time?

If things aren't paid… Are you then going to be required to make those payments and, yes, you are going to be required to do it. So having a full understanding that cosigning a loan means you are essentially taking that loan and giving up the control to somebody else.

>> All right. Watt eyes wide open when you go into this. So if somebody is listening to this I go "great, I still want to help my daughter but I don't want to do it that way" one of the options?

>> We might want to help with the down payment.

We might want to allow our children to live in our homes longer so they can save that additional money. We may just have financial literacy conversations with them to help explain how you can grow their down payment more quickly. So perhaps we are using our tax-free savings accounts where we can grow our money tax-free, making use of the first home savings account, all of those sorts of tools that the government makes available to allow us to save for a home more efficiently, you can help your children know about those, apply for those, and then hopefully save for those as well.

>> And then for someone who, again is listening and saying "great, how do I know what strategy is there I went to do?" >> Financial advisors are fantastic at this. They can look at your full picture, what you are trying to achieve for your goals as well as your children and help you through some of that modelling and look at what the different options are and give you some great advice.

>> That was Nicole Ewing, Director of Tax and Estate Planning with TD Wealth.

Staying with the topic of mortgages, if you've managed to complete the payments on your home, you may be considering now mortgage free, what the best steps are to take.

Georgia Swan, tax and estate planner TD Wealth joined and he talks Kim Parlee.

>> The first thing I say is you need to take a beat. It's time now to do exactly what you said and refocus on those important things. So either areas of your financial wellness you've been neglecting a little bit in favour of the mortgage.

What does your retirement plan look like?

Are you on track for that? Is your TFS a top dog? Children's education… What is that emergency fund looking like?

Now it's time to re-look at those goals and start with those big ones stuff about the sort of needs and must have had then looked to some of the secondary ones.

So… Is it time to get rid of that 14-year-old car and replace it? Are there are some renovations or repairs to the house?

So you keep going down those tears of things that you now want to focus on and maybe you'll get to the more fun stuff. So is a time to give to the charity that you've always wanted to give to? That's always a good one because you get the charitable donation credit. Or, you know, can you maybe now start helping your kids buy their first home? So you have to take that beat and then decide what are your goals?

Your needs and your wants.

>> Can I ask… I feel that's a whole lot of dues. What about the adults?

>> Don't procrastinate on my retirement planning. And really, remember that you need to keep budgeting.

You didn't get to this point by, you know, not focusing on the important stuff.

My grandfather used to say "you've eaten the elephant, don't choke on the tail now". So you have to keep that focus going.

Now, okay.

I don't want to rain on everybody's parade.

I know that there might be the odd splurge that you want to do, that great vacation to the place you always wanted to go to with a great pair of shoes.

But you can't over splurge. You still have to keep a focus on those goals.

>> What about… I know some people they have paid off their house.

"I've paid off the property! Let's get another one!".

> That's a very common one. And it could be a good idea.

But you have to be very careful about our you cut out to be a landlord? So make sure you do your research. Make sure you have that expert telling you where the best places are… What you're expected return is and be honest with yourself on whether or not you were cut out to be a landlord.

Especially in circumstances where you do a short-term rental.

Do your research because that might not be appropriate where you are. Then, if you're looking at a vacation property though, you have to look at what is going to cost you?

Do you want to go back into debt? And what of the fees to actually maintain it on a go forward basis?

This is all stuff that you need to do to educate yourself to make those right moves.

>> The other thing I was gonna say with vacation properties, I've heard people say "I'm gonna buy something for the family of the states" and just what that opens up right?

> Absolutely because you're buying something obviously in a completely different country.

The laws are different, the value of the money is different, you're not they are all the time to take care of it.

So you have to be really careful in that circumstance.

>> I hate to ask this question but I do think we need to ask it because we need to have some cautionary tales right? What are some of the worst things that you've heard for people?

> The worst thing I see is people that suddenly start treating that disposable income is truly disposable.

And disposable for too long.

So they are the ones that, you know, the endless shopping sprees and so forth and they forgot to kind of regroup and go back to the beginning.

The other thing is I've seen a lot of people, they suddenly start getting into these, you know, business opportunities and "get-rich-quick " schemes and things like that.

With those things go bad, they go horribly bad. And a lot of times they take more than just what you put into them.

So you really have to be careful and, like I said, go back to the fact that you got here by being, you know, by doing your budgeting, doing your planning.

Don't stop now.

>> Okay. So then, I hear you. Someone is saying "Georgia set I'm gonna slow down, take a beat, maybe buy myself a new sweater or something nice kind of thing".

But then what are they do?

How do they figure out what the next right step for them is?

>> Well, this is the place for you have to be in lockstep with your investment advisor or financial planner. Because they're going to ask you you know what is your retirement look like for you?

How much do you think you want in retirement?

And they'll tell you if "yeah, you're there already, you're on your way to being there or you've got a fair bit of work to do". I don't think you can get that information on your own. So, the first step is to go to the people that have the answers that you need and they can help you formulate those needs and wants and work down that list. So that you can know that you are where you need to be.

>> And if you are, you talked a little about this at the very beginning with the needs and the wants but some of the right things to think about if somebody wants to kind of prioritize is like… Retire planning of the children's… Run me through that.

>> Retirement planning, are you there or do you need to put more aside? Your TFS I of course, always a good thing. Make sure you chop that up.

Are your children's education funds where they should be or do you need more?

You know, that emergency fund, a lot of us neglect that and we don't know what the future is get a hold. There could be, you know, issues were you need to help take care your parents or you have your own medical issues or long-term care issues.

So you need to make sure that that's in place before you start looking at some of the fun stuff.

>> Georgia Swan, tax and estate planner at TD Wealth.

Now for an update on the markets.

We are having a look at tedious advanced dashboard, a platform designed for active traders. This is a heat map function, nice picture of the market movers, this is the TSX 60 so let's screen by price and volume.

First trading day of the week and first trading day of the second quarter. The green on the screen is Cameco, Denison in the market update, you have Cameco up a little more than 6%.

As we go across the rest of the board, okay you're looking at the mining space and we did of gold touch fresh new all-time highs today you have… Up a little more Barrick Gold in Kinross up a little more than a percent. All that making sense.

Not much shopping of financials today.

And some weakness as we showed you with Telus and BCE. When you talk about Owen Rogers two, the big telecom plays in this country. Now south of the border, the S&P 500 had its best first quarter since 2019, a little bit of pressure and a little narrowing on the S&P 500 here.

A bit of a clear picture.

AMD to the upside with Intel to a certain degree behind it, trying to find Nvidia in there, usually it pops up at Nvidia down about have a percent. So there you go.

And this seems to be the winner of the chip space today.

For more information about TD advanced dashboards you can visit td.com/advanced dashboard.

Well if you've entered your retirement years that means you'll likely be able to spend some of your nest egg.

Nicole Ewing, Director of Tax and Estate Planning at TD Wealth joined Kim Parlee to discuss what you should keep in mind as you approach D cumulation.

>> >> Is a term used by industry advisors to help distinguish between accounts that are going down in value because there was an unintended consequence or maybe not the portfolio returns you were expecting and the Strategic and expected reduction in account values because you are spending it as it was intended to be used.

Were you saved.

>> You're spending your nest egg.

>> You accumulated it now you'll use that money for your financial goals in retirement objectives.

So we need to distinguish that mindful spending and drawing down of your account values and your assets in order to fund your goals into retirement.

So there's a big difference between account values declining in value because of poor returns versus what we expect most people will see intentionally in reductions in account values which D cumulation, so you're using those funds towards your goals and your spending in retirement years.

>> Okay. What is, what is the strategy and how is it different from retirement planning?

Versus D cumulation?

>> I would say do cumulation is a necessary component of your retirement planning.

For some people, this might be a distinction without a difference. Right?

But it's really a term used to help us focus our attention on the fact that we have finite resources, limited assets and income and we need to be Strategic about how we are spreading that. So D cumulating our assets in her income in an intentional way as opposed to the broader question. We will get more to that.

>> We will get more that in the second so why do you think it is well-thought-out or important to have a well-thought-out strategy and more importantly, what are the things that go wrong?

>> It's important because there are better and worse ways of D cumulating.

The order in which you draw down on your assets or pull from different income sources will make a big difference in terms of how far your money will go, the sorts of tax consequences that you might be subjected to. We need to be mindful about the spending patterns in retirement.

So we might be spending a whole bunch of money as soon as we retire. Maybe we are fulfilling some of our bucket list items.

Then there might be a little bit of a decrease. And then it may be increasing again for healthcare or long-term care needs. And so, having that mindful approach to the order in which you're pulling money out will allow it to survive throughout your retirement years.

>> And I know also to that when you say things that go wrong… There are things like, you talk about income splitting opportunities with your spouse.

That applies to Dickey relation to.

> It does. Things that go wrong, you might've for example, you might have an old age security or OAS clawback that we did not need to have had we been intentional about how we were pulling at her income.

So maybe we had some lower income years that we could have been funding with maybe our… A rift, that we are forced to take, so being mindful in which the order that we are doing that are putting assets into the hands of a spouse, maybe our income splitting by using a spousal RRSP for example, we proactively put income that we know is going to be pulled out in retirement into the lower income earning spouse's hands and so that we can retain from a family unit perspective, we are collectively paying less tax.

>> And just getting more money which is important.

> Let's talk about if you can list out the things that you need to be thinking about.

You've alluded to if they a few in terms of your activity etc.

but what are some of the fun things we need to factor?

>> Number one our goal.

What are we trying to achieve and how much money do we need to have at our disposal in order to fund their retirement that we want? But then we need to be looking at our assets in our income sources.

And whether or not we have control over when and how we receive those.

We would want to be looking at our longevity.

How long we expect to live.

Perhaps our health condition, both current and future.

Marital status, both current and future.

Those of the sorts of things that need to be factored into how and when we are pulling money out.

But it can go on as well. Your cash flow needs… Whether or not you have obligations for foreign taxes, your estate planning goals and what those are… We are looking at the big picture and really trying to strategically decide how we are doing things and in which order to get the best results.

>> You talked a bit about how sometimes when you order things it can be, making sure you're getting the most.

And part of getting the most is paying the least in tax.

So how does that come into consideration?

>> The timing and the order in which we do things it's really relevant here. So, for the order for example, are we drawing down our registered plans for us? Are we taking from our nonregistered?

Maybe we are selling the house before we are doing those things in order to use that to help fund the retirement.

For other people, we are not going to be selling the house ever.

So we need to be looking at whether we are taking from RT FSA, RSP, and Riff order.

The timing of that as well as we come up to the decision of when and how to take our CPP and our OAS… Are the things you could be doing during the years transitioning into retirement, preparing for retirement to have an overall better net result and often times, it's a very tiny switch in our thinking and the timing that we are pulling on assets in can make that big difference in the long term.

So OAS, CPP, whether you're receiving pension income, whether or not you're splitting that with your spouse, all of those things should be factored in to get that better tax result.

>> Part of this I think is just talking with somebody right?

We always say this but it's true.

Talk with an advisor, figure out to help you lay out the strategy.

>> Absolutely.

This is where I think there really this where the value of modelling different types of approaches could be.

Running through those "what if" scenarios and doing it as early as possible. If we are thinking about planning for retirement, certainly by the time we are transitioning into retirement, having conversations with an advisor who can help you really understand the impact of those small decisions that add up will make a big difference.

>> That was Nicole Ewing, Director of Tax and Estate Planning at TD Wealth. As always made sure to do your own research before making any investment or personal finance decisions.

And stay tuned for tomorrow's show, Bryan Rogers, Senior Client Education Instructor with TD Direct Investing will be our guest.

Bryan wants to take your questions will how to get more out of the WebBroker platform. Of course you can get those questions out for Bryan ahead of time by emailing moneytalklive@td.com.

That's all the time we have for today thank you for watching and we will see you tomorrow.

[music]