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Federal Election 2011

Canada returns to the polls in one o the strangest election calls in Canadian history. It makes one wonder why anelection was called when there seem to be no real major issues and the economy is still in recovery. The outcome islooking like more o the same or a possible Conservative majority. The budget o 2011 could be revamped to addmore tax breaks or Canadian businesses and amilies or it could stay mostly the same as what was proposed.

- Christopher J. Tomlinson

Company Update

On March 15th, it was ocially one ull year since I moved oces and started my own company. To say the least,it has been a great learning curve and am very excited in the direction we are heading. The oce is a lot less lonelysince Chris joined me at the end o the year; Chris assists me on the administration and marketing side o the

business.

Chris also studied political science at UBC and has made some o his own comments about the upcoming electionwhich I have included in the Newsletter. I still continue to look or another licensed advisor to join us and Industrial

Alliance Securities but at this time I have not ound the perect t.

Our greatest compliment is the kind mention o our services to others. As we are still building our business andaccepting new clients, your reerrals are greatly appreciated. I would also like to again thank all existing clients whohave contributed to the growth in our company thus ar and thank everyone or your continued support.

- C. Scott Turner CFP

Turner Quarterly ReportQ1 2011

Dec 31st 2010 Mar 31st 2011 Change

TSX Composite 13443.22 14116.10 +5.1%S&P 500 1257.64 1325.83 +5.42%

Dow Jones IA 11577.51 12319.73 +6.41%

Nikkei 225 10228.92 9755.10 -4.63%

Gold (USD) $1421.40 $1438.80 +$17.4 USD

Oil WTI (USD) $91.40 $106.70 +$15.3 USD

USD/CAD $1.0026 CAD $1.0311 CAD +$0.0285 CAD

CAD 10 yr. Bond 3.122% 3.35% +0.228%

CAD Prime Rate 3% 3% n/a

2011 has ared well to date or North American equity markets in general. The Mid East conicts and continued

Quantitative Easing in the US have signicantly contributed to pushing oil over the $100 p/barrel mark again and goldto new highs. With that, its little wonder we have seen the TSX rise above the 14,000 mark which has not been seen

in almost 3 years. The devastating earthquake in Japan has caused signicant grie to say the least, though the Nikkei225 has shown somewhat o a minimal correction; declining less than 5% since the start o the year. I read a greatarticle days ater the 9.0 quake/tsunami that was titled Earthquakes dont shake the markets that I ound veryinormative.

Canadian bonds have risen somewhat this past quarter but the Bank o Canada has not changed the overnight rateso ar this year. However, economists predict the BoC to raise the overnight lending rate at least another to o a

percent beore the end o the year and Prime rate will more than likely ollow. Here is a brie market report below.

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The question looms which is best? The simple answer It depends.

Tax Free Savings Accounts (TFSAs) were introduced in the 2008 Federal Budget and have become an important tool

when planning nances. Unortunately, everything that is contributed to the TFSA is not tax deductible; with thathowever, everything that is withdrawn is not taxable. This is a mirror image to the RRSP where contributions are taxdeductible but then ully taxable when withdrawn.

Beore making a contribution to either, the rst thing to consider is the objectives o the contributor.

Heres something to consider:

When income tax brackets will be the same in the contribution year as they would be in retirement, the math tells usthat there will be no monetary diference between the two as you can see in the graph below.

TFSA RRSP

Contribution 10,000 10,000

Marginal Tax Rate @ 30% 3,000 0

Net Contribution 7,000 10,000

Total in 25 years @ 6% return 30,043 42,918

Marginal Tax Rate @ 30% 0 12,875Net Proceeds 30,043 30,043

Where the TFSA may be a better solution, is when income tested government benets are actored into the equation.As withdrawals rom a TFSA are not added on to income, like RRSP or RRIFs, withdrawing unds rom a TFSA inretirement will not negatively afect government benets such as Old Age Security clawbacks, Guaranteed Income

Supplement, HST rebates, MSP Premiums, Fair pharmacare, and others which are income tested. These Governmentbenets can add up to thousands o dollars every year or retired Canadians and we would hate to miss out on themdue to poor planning.

I youd like a more in depth analysis tailored to your specic needs and goals, please contact me and Id be glad tohelp.

Scott Turner is a Certied Financial Planner who resides in Kelowna, BC and has over 10 years o experience ofering nancial advice

to amilies, individuals, corporations and trusts. Scott is a licensed investment advisor with Industrial Alliance Securities Inc. and he

encourages you to contact him or a ree consultation.

Financial Planning Tip: TFSAs Vs. RRSPs