Meridian
Words on Wealth
fa l l 20 16
More than
just words
We may call this publication Words on
Wealth, but we know that the best way
to plan and achieve your goals is a very
personal process – and it takes more
than words alone to get it done. It is
with this in mind that we bring you the
fall 2016 edition.
We are excited to introduce a new
three-part series on the unique
characteristics and needs of our
Member. We strive to deliver personalized solutions to help
everyone reach their goals – no matter if you’re a millennial (even
though you may not like being called that…), part of Generation X or a
baby boomer. As always, we have a market and headline recap and a
great article about an important regulatory change that will be going
into effect in January 2017.
Please speak with your Meridian Wealth Advisor to discuss all your
financial needs and we hope you enjoy this issue of Words on Wealth!
2
market update
Market moves
and more
3
FINANCIAL PLANNING
A view
of CRM-2
4
INVESTMENT SOLUTIONS
Baby boomers,
this one’s for you
6
Expert’s Corner
The ABCs
of RDSPs
Words on Wealth
Market update
Uncertainty abounds
Just when you think you know what’s
coming next, summer 2016 happens…
What a difference a summer brings.
Although the year started with almost
universal optimism, some cracks
are showing in the global economy.
Interestingly, equity markets in North
America have remained resilient
despite some short-term volatility.
Let’s take a look at what’s going on
around the world.
level of uncertainty, which delayed the Fed’s
On the home front
20, 2017. Although it is unknown how markets will
decision to raise rates. Similar to Canada, the U.S.
equity market has remained strong throughout
this uncertainty.
Race for the White House
While some commentators have referred to the
upcoming U.S. presidential election as a race
to the bottom (some people always do!), either
Hillary Clinton or Donald Trump will occupy the
White House come inauguration day on January
respond on the day after the election, cautious
Stronger energy and commodities prices midyear appeared to give our economy the jolt
it needed. That said, the impact of the Fort
McMurray wildfire in May – beyond the terrible
impact it had on the lives of so many Albertans
– was significant enough to weaken Canada’s
economic figures for the year – even more so
than the Bank of Canada (BoC) had forecasted.
On a positive note, the BoC is forecasting an
economic rebound through the end of the year
as infrastructure spending begins to take hold in
Alberta. Furthermore, this economic uncertainty
has not overly hindered the Canadian equity
market, which has posted strong returns in 2016.
investors are expecting short-term volatility
and a rise in the number of potential buying
opportunities no matter who wins.
On the global front
Brexit caused plenty of headlines and dramatic
short-term volatility in U.K. and European
financial markets that, by and large, eased
in the weeks since the surprising decision.
In fact, many economic indicators, including
employment, showed little signs of change.
While short-term economic challenges are
distracting, there’s nothing more important to
your financial wellbeing than staying focused on –
South of the border
and on track to achieve – your long-term financial
At the beginning of the year, investors believed
that the strong U.S. economy would prompt the
U.S. Federal Reserve Board (Fed) to raise its
federal funds rate a few times before January
2017. However, the U.K.’s vote to leave the
European Union (Brexit) and other significant
macroeconomic events caused a heightened
goals. It’s often the case that as long as your
personal situation stays the same, so can your
path to achieving your goals.
If you have any questions about your
investments, please speak to your Meridian
Wealth Advisor. 
2
fall 2016
Financial planning
Introducing CRM-2
What does this important regulatory initiative mean to you?
You may have heard the phrase “CRM-2” mentioned at your local Meridian
branch or in the investing section of the newspaper. It sounds cryptic, doesn’t it?
Well, given that CRM-2 is one of the most important changes to have occurred
in the investment industry, let’s shed some light on this important initiative and
what it means to you.
CRM-2: what is it and why is it happening?
July 15, 2014 –
CRM-2 stands for Client Relationship Model – Phase 2, a
regulatory initiative to help you better understand the fees
and performance of your investments, and the compensation
associated with financial advice.
Any fees, charges and costs
be disclosed before any
transaction
The next big change: money-weighted returns
Unlike your time-weighted return (TWR), which just measures an
investment’s performance, your money-weighted return (MWR)
measures performance as well as your behaviour (the buys, sells
and other transactions you made).
TWRs were the industry standard. As such, you probably haven’t
seen MWRs before. A key point to remember is this: if you
“bought low” and “sold high” throughout the period, your MWR
would likely be higher than your TWR. However, if you “bought
high” and “sold low,” your MWR may be lower than your TWR. If
this all sounds like a bit much (and heavy on the acronyms) your
Wealth Advisor can walk you through the changes.
Pre-trade disclosure
December 31, 2015 –
Enhanced account
statements
• S
tatements updated to
reflect book cost
• S
ecurities that may be
subject to deferred sales
charges (DSC) are identified
December 31, 2016 –
New “Cost &
Compensation” and
“Performance” reports
• R
eports includes all charges
paid by investors
The value of advice
Research shows that households that receive financial advice
accumulate dramatically more assets – 2.73x more over 15+ years
of advice – than households that do not.1 There are qualitative
differences as well, as households that receive advice tend to
have more confidence in their ability to meet retirement goals.
• S
ummary of performance
over previous year and
since inception
• T
he introduction of moneyweighted returns
Talk to you Meridian Wealth Advisor to learn more about CRM-2. 
Investment Funds Institute of Canada, Value of Advice Report, 2012
1
3
Words on Wealth
Investment solutions
Retirement challenges
for baby boomers
Longer retirements present challenges, but options abound.
Canadians are living longer, so they’re spending more time in retirement. And that
means our retirement dollars need to stretch much further than they did 20 or
30 years ago. But this doesn’t have to be bad news, because you have options.
Working for fun, longer
You can contribute to your registered retirement savings plan (RRSP) until the end
of the year in which you turn 71, so putting off your retirement is always an option.
That doesn’t mean you have to stay in the same job you have right now. It doesn’t
even mean you have to carry on working full-time.
With the right mindset, you could really have some fun with this option. Is there
something you’ve always wanted to do that you could turn into a part-time, postretirement career? Maybe you’re a professional who has always wanted to write.
You could combine your passion for writing and your industry expertise and turn it
into a post-retirement freelance writing career!
The best part is that freelance writing can be done almost anywhere, so you could
even travel while you write. Even if you don’t need to work following retirement,
you might want to do something like this just for the fun of it.
Of course, freelance writing isn’t the only option. If you are an empty nester you
may consider downsizing to a new home and using the proceeds to supplement
your investments or retirement income. While buying, selling and moving are
never “fun” in the traditional sense, it may lead to less grass to mow and fewer
rooms to maintain!
ou might have to scale back some of your
Y
plans a bit, but you shouldn’t have to give up
on your retirement dreams.
4
fall 2016
Invest well
Spend wisely
As you get closer to retirement,
you’re more likely to choose
low-risk investments like government bonds
or guaranteed investment certificates.
Unfortunately, the return on those investments
comes in the form of interest, and interest rates
are very low right now.
Maybe your retirement dream was
to travel the world – and now it looks
like those dreams will have to be scaled back.
That’s OK, because the Internet is full of advice
on how to travel on a budget. Maybe the length
of your trips will need to be cut back or you’ll
take public transit instead of renting a car while
you’re abroad, or you’ll look for more economical
accommodations.
Guess what? It’s time to explore your investment
options. The key lies in building a diversified
portfolio so that your investments offer a
combination of capital protection, capital
appreciation and an ongoing income stream. At
Meridian, this is something we can help you with.
With a few tweaks to your travel budget, the
good news is you’ll still be able to spend part
of your retirement travelling. And this is true of
whatever your retirement goals might be. You
might have to scale back some of your plans
a bit but you shouldn’t have to give up on your
retirement dreams.
The right investment plan will also help to
ensure that you’re taking full advantage of the
various types of savings plans available to you
to maximize your tax-efficient income. The best
options for you will depend on your individual
circumstances but could include a combination
of non-registered savings and registered plans,
like the Tax-Free Savings Account, Registered
Retirement Savings Plan and Registered
Meridian offers a range of investment options
to meet the changing needs of baby boomers.
To learn more about solutions that may be
right for you, contact us today. 
Retirement Income Fund.
ISN’T IT TIME YOUR MONEY
MADE MORE OF ITSELF?
EARN*
1.50%
High Interest Savings Account
• No monthly fees
• No limited time offers or teaser rates
• No minimums
Speak with a Meridian Advisor today.
*1.50% is an annual rate and subject to change without notice. Interest is calculated on the daily closing balance and paid monthly.
™Trademarks of Meridian Credit Union Limited. 09/2016.
5
Words on Wealth
EXPERT’S CORNER
A financial boost for
people with disabilities
Here’s some insight from an expert on how to
make the most of RDSPs.
The Expert
Carol Bezaire
PFPC, TEP, CLU
Senior Vice-President, Tax,
Estate & Strategic Philanthropy,
Mackenzie Investments
Carol Bezaire is Senior Vice
President of Tax, Estate and
Strategic Philanthropy at Mackenzie
Investments. In her role, Carol leads a
team of five Tax and Estate Planning
professionals and one Practice
Management expert, all of whom
support and offer opportunities
to help financial advisors stay well
informed in an ever-changing
marketplace. Carol is also Managing
Director of the Mackenzie Corporate
Charitable Giving Fund.
Carol has been at Mackenzie for
10 years, and spent six years in a
similar capacity at another Canadian
mutual fund company. Carol also
worked for a number of years as an
advisor, providing financial and estate
planning advice to high net worth
individuals.
What are RDSPs for?
People with disabilities have unique needs and face
special challenges throughout their lives. Recognizing
this, the Government of Canada created the
Registered Disability Savings Plan (RDSP) to help them
save and invest for the future.
Who qualifies?
To qualify as an RDSP beneficiary, the disabled person
must be eligible for the Disability Tax Credit, a resident
of Canada, under 60 years of age, and have a social
insurance number. An RDSP can be opened by the
beneficiary or, if he or she is not legally competent, by a
parent, legal guardian, spouse or common-law partner.
How do contributions work?
There’s no annual contribution limit, but there is a
lifetime limit of $200,000. Anyone – parents, spouse,
grandparents, friends – can contribute to the RDSP.
Contributions are with after-tax dollars and can be
invested in mutual funds, stocks, bonds, GICs and other
investments. Growth within an RDSP is tax-deferred.
Are there any other benefits?
There certainly are! Similar to a Registered Education
Savings Plan (RESP), the government matches
contributions through Canada Disability Savings Grants
(CDSGs) and Canada Disability Savings Bonds (CDSBs).
Here’s how they work:
6
fall 2016
Annual CDSG
government $15,000. If the last CDSG or CDSB
was received at age 49 and no withdrawals are
made until age 60, there are no grant or bond
repayments required.
Family net income of
$90,563 or less:
•
300% grant for every $1
on the first $500
contributed ($1,500 maximum)
•
200% grant for every $1 on the next
$1,000 contributed ($2,000 maximum)
•Annual CDSG maximum: $3,500
Annual payments (withdrawals) from the
RDSP, known as Lifetime Disability Assistance
Payments (LDAPs), become mandatory once
the beneficiary turns 60. Like RRIF payments,
they are subject to tax, but in the case of LDAPs,
only the investment-gain and governmentgrant portions are taxed. The payments do
not adversely impact OAS, GIS, CPP and most
provincial programs.
Family net income of over $90,563:
•
100% grant on the first $1,000
•Annual CDSG maximum: $1,000
Annual CDSBs
Family net income of $26,364 or less:
Any other RDSPs facts we
should be aware of?
•
Yes. Here are some of the most important:
Maximum grant of $1,000
Family net income between $26,364
and $45,282:
•
•
An RDSP beneficiary who has high-earning
parents, but who has low or no income on
turning age 19, can still qualify for the
$3,500 annual CDSG maximum and the full
CDSB even if he or she still lives with his or
her parents.
•
Low-income families who can’t afford to
make RDSP contributions should still open an
RDSP to receive up to $20,000 in CDSBs.
•
Unused grants and bonds can be carried
forward for a 10-year period (beginning in
2008.) When doing so, the maximum annual
CDSG is $10,500; it’s $11,000 for the CDSB.
•
In certain circumstances, tax-deferred
transfers are possible from an RRSP, RRIF or
RESP into an RDSP.
Prorated decrease of the $1,000 bond
The Lifetime CDSG maximum is
$70,000 (20 years of the $3,500 annual
maximum). The lifetime CDSB limit is
$20,000. Both CDSGs and CDSBs are
only paid until December 31 of the year
the beneficiary turns 49.
How do withdrawals work?
RDSPs were designed for long-term retirement
saving. To discourage early withdrawals, the
government requires repayment, on a $3 to
$1 basis, of the previous 10 years’ CDSGs and
CDSBs when a withdrawal is made. Here’s an
example: If Emily received $35,000 in CDSGs
over the last 10 years ($3,500 × 10) and withdraws
$5,000 from her RDSP, she must pay the
If you have questions about any of these
ideas, or for a plan that’s specific to your
needs, contact your Meridian Wealth
Advisor today! 
7
Words on Wealth
WHY MERIDIAN WEALth
What does wealth management
mean at Meridian?
It means: Trust. Advice. Planning.
As your trusted Meridian Wealth Advisor and your neighbour,
I take the time to build a strong relationship for the long term,
as well as to understand your unique needs. My goal is to
translate where you want to go into an effective and achievable
roadmap and to find the right investment solutions to help you
save, protect and grow your financial assets.
Words to Ponder
“Success is not final, failure is
not fatal: it is the courage to
continue that counts."
Winston Churchill
Here is how I look forward to building our relationship and your trust:
✔ I provide an unbiased, honest perspective and my decisions are based only on your best
interests. I have no bias toward any particular solution apart from the one that most effectively
helps you meet your objectives;
✔ I ensure you clearly understand your wealth planning options and align your portfolio with the
right solutions to help you reach your goals. We will review your finances together on a regular
basis and I will keep you well informed so you always feel knowledgeable and comfortable.
As a Meridian Wealth Advisor and your neighbour, I am committed to working with you to create
and build the right approach – tailored to your needs, your objectives and your values – to ensure
your family's security. 
* Mutual funds are offered through Credential Asset Management Inc. Mutual funds, financial planning and other securities are offered
through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual
fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities, other securities and cash
balances are not insured or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government
deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently
and past performance may not be repeated. The information contained in this report was obtained from sources believed to be reliable;
however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We are not tax
advisors and we recommend that clients seek independent advice from a professional advisor on tax related matters. Credential Securities
Inc. is a Member of the Canadian Investor Protection Fund.
™Trademarks of Meridian Credit Union Limited. 10/16
meridiancu.ca