I ’m Allison. Since joining Stone and Company more than a year ago, I have been working closely with Don, attending and supporting client meetings, preparing documentation and processing trades. I am enjoying getting to know our clients and learning about the business. Prior to joining Stone and Company, I was the regional sales manager for a veterinary supply company. I was also working on a Bachelor of Science. I am enjoying the transition from sales to financial services and recently completed the life licensing requirements as well as the Canadian Investment Funds Course. Away from the business, I enjoy all things outdoors and spend much of my time in the mountains with my eight-year-old son skiing, hiking and camping. I also enjoy taking part in the family farm raising grass cattle and tending to our garden. I look forward to getting to know you better and will work hard to be of assistance to you in the future.

-Allison Stone

What should I do with my tax refund?

With the tax season winding up, many are anticipating a tax refund from CRA. In fact, approximately 59% of Canadians. Setting aside the fact you were lending your hard-earned money to the government free of charge a tax refund can feel like found money. While it may be tempting to take your new-found cash on a shopping spree, I challenge you to consider these 5 alternatives;

Pay down debt. Although it may seem counter-intuitive, the time to make aggressive repayments are when interest rates are low, making a greater dent in the principle. Higher inflation expectations are driving up interest rates. With the Bank of Canada announcing a likely rate hike this July, using your refund to make a lump sum payment may be a good opportunity for you.

Save. A tax refund can provide cash to make a contribution into your RRSP, resulting in additional tax savings for the deduction you can claim in the future. Saving a sizeable retirement takes time, its key to start early thus allowing compounding interest to go to work.

Look to the future. If you have children or grandchildren opening an RESP can be a good tool to save for post-secondary. The Canada Education Savings Grant is a match of 20 percent of the annual contribution on the first $2,500 contributed each year per beneficiary until the end of the year in which the beneficiary turns 17, up to a maximum of $7,200. The government has increased the CESG for low-income families.

Create an emergency fund. In case of sudden financial need, it is beneficial to have access to adequate savings. Job loss, medical emergency or major repairs can put you in a vulnerable situation causing you to seek out short-term loans at high-interest rates. The use of your tax refund to start or augment existing savings could alleviate some of the stress should one of those events arise.

Invest in yourself. Whether you are investing in a new skill, purchasing a tool to pursue a hobby or taking a much-needed break investing in ourselves is important. If your refund is for a small amount, take yourself or a spouse out to celebrate. You are doing the right things!

We are here to use our knowledge and experience to assist our clients in achieving and maintaining financial well-being through implementation of personalized, realistic strategies. If you would like to learn more about our planning services or discuss any of these topics further, give us a call!

Sincerely,

Don, Mary Jane, Penney & Allison.