I was the outsider. A 12-year-old boy on an overnight hike with a group of church scouts I barely knew. The night was full of with pre-teen angst, laughter and pranks, but not in my case, other than the angst part. I was the quiet one.
And I among the entire troop was the only one with a flashlight. I lent it out a few times for nighttime peeing and dish duty, but watched it closely and clung to it.
It was a cool damp evening in late autumn, somewhere in the mid-altitude Coastal Mountains.
A long hike, a late night, and loads of fresh air eventually brought on a welcome sleep. I don't really remember being particularly cold or uncomfortable in any way, other than socially, as I drifted off to sleep with my troop under an open-air lean-to tarp my flashlight in a Charlton Heston-like grip.
A few short hours later, well before morning, I was the first to notice the unpleasant and cold weight pressing us.
The tarp had collapsed under the weight of ten inches of wet snow, and was now a very uncomfortable blanket of I-want-my-mommy. Soaking wet, and freezing cold in the pitch dark, I felt around for my flashlight, but it was gone.
One of the other boys had taken it to read comics, and then dozed off with the light still on. It was burnt out, useless... other than as a nightstick.
Our warm and dry leaders leapt in to action, demonstrating the best in male nurturing. They stoked the coals and got the fire burning brightly, heated up some hot cocoa, helped us hang and dry our gear, and even shared precious dry socks with me by the fire. Warm feet are like toast and jam in the morning - comfort food for the tootsies - somehow making a cold dark world seem okay.
The rest of the dark night was full laughter, stories and hot sweet drinks from these good men, who somehow managed to make a potentially dangerous misfortune into a pleasant memory.
Year-end Planning, Part 4
In this fourth in the series of articles on year-end planning, this week we cover off a few ideas to help shed light on a few things to consider in late autumn. Like a good boy scout, be prepared:
Charitable donations
Making a charitable donation is one of the ways that you can significantly reduce the personal tax you pay. The final day to make contributions to a registered charity in order to claim the donation tax receipt on your 2014 income tax return is Dec. 31.
As an alternative to cash, you can also donate publicly listed securities in-kind to qualified charities without being subject to tax on the realized capital gain.
You will receive a donation tax receipt equal to the fair market value of the security at the time of the donation, which can help reduce your total taxes payable. If you plan on donating securities in-kind before year-end, then due to the administration involved in processing an in-kind donation, ensure that you start this process well in advance of the year-end to ensure that the in-kind donation is recorded as a 2014 donation.
If you have thought about leaving a legacy but are unsure of the best way to accomplish this, speak to your advisor on the benefits of donating cash or securities in-kind to your own charitable foundation which can be facilitated through some investment firms directly.
You have until March 2 to make a contribution to your RRSP, or a spousal RRSP, and deduct the amount on your 2014 tax return. However, by contributing to your RRSP before Dec. 31 you will benefit from two extra months of compounding tax-free growth which will ultimately increase your savings for retirement.
TFSA contributions
If you have not yet done so, you can now make your Tax-Free Savings Account (TFSA) contribution for 2014 (up to $5,500) and catch up on any unused contribution room from 2009-2013.
The TFSA enables you to earn tax-free investment income, including interest, capital gains and dividends, which results in greater growth compared to a regular taxable account.
You can make tax-free withdrawals any time, for any reason, and any amount you withdraw is added back to your available contribution room on January 1 of the following year. If you are thinking of making a withdrawal from your TFSA in the near-term, consider doing so before Dec. 31. This will allow you to re-contribute the amount withdrawn as early as Jan. 1 rather than having to wait to 2016 to re-contribute.
This publication is not intended as tax or legal advice. Readers should consult a qualified legal, tax or other professional to ensure that their individual circumstances and the latest information have been considered properly.
Mark Ryan is an advisor in Prince George with RBC Wealth Management, Dominion Securities (member CIPF) and can be reached at [email protected].
