The Millenni-factors: Wealthy Millennials have the will to change the world

A generational shift in attitude is underway when it comes to making a difference, with a majority of affluent Millennials determined to leave their mark on the future. According to a recent TD survey of high-net-worth Canadians, 77 per cent of Millennial respondents believe it’s important to leave a legacy, compared to only 33 per cent of Boomers and 42 per cent of Gen Xers.

These Millenni-factors – wealthy Millennial benefactors – feel they have a duty to leave a legacy (63 per cent). The survey also indicates that other generations of high-net-worth individuals, including Boomers and Gen Xers, are less likely to report the same feelings.

“We are definitely seeing significant changes in attitudes towards leaving a legacy. High-net-worth Millennials stand out among other demographics for their heightened desire to positively impact the world,” says Jo-Anne Ryan, Vice President, Philanthropic Advisory Services at TD Wealth. “This trend indicates that the philanthropic giving landscape in Canada will be reshaped in the years to come, as these Millenni-factors look for ways to put their assets to work to change the world for the better.”

According to the survey, the top three reasons wealthy Millennials may leave all, or part, of their estate to a charitable organization include:

  1. They believe the organization has good intentions (36 per cent)
  2. They support the organization’s mission (34 per cent)
  3. They have a personal connection to the organization (26 per cent)

Although the survey reveals that the majority of Millennial respondents polled have the desire to make a positive difference in the world, it also indicates that half (49 per cent) of them don’t have a will and less than a third have a will that is up to date (31 per cent).

“It doesn’t matter how good your intentions are, if you don’t have a will, they may never come to fruition,” adds Ryan. “For Millennials, and indeed all Canadians who have yet to make a will, it’s never too early for estate planning. The same goes for those who have a will that is not up to date. It is always recommended that you review your will at 3-5-year intervals, or whenever a significant life change takes place.”

For Canadians interested in leaving some or all of their estate to charity, TD offers the following tips:

  • Where There’s a Will…
    – If you haven’t done so before, now may be the time to make a will. A will can help give you control over how your assets will be divided, shaping what your charitable legacy can be. If you are like many high-net-worth Millennials, making a lasting difference is important. A financial advisor can help you maximize the value of charitable donations.
  • When Tomorrow Comes
    – As you assess your options about which organization to leave a bequest, it’s important to think about the causes and charities that matter to you. You may also want to consider how relevant these causes will continue to be in the world of tomorrow. No one can predict the future, but you should spend some time thinking about which long-term change is most important to you.
  • Heir Transparent
    – Talk to your heirs, or those who may assume they will be receiving an inheritance from you. It’s important that you set the expectation that you may be leaving some or all of your estate to a charitable cause. This can help avoid conflict and gives you the opportunity to tell them about the charity(ies) you have chosen and why you believe in its (their) mission.
  • Succession Success
    – If you are an entrepreneur, your business may be part of the legacy you leave behind. In fact, according to the TD survey, only 44 per cent of Canadian company owners, with more than $100,000 in investable assets, have a formalized succession plan for their business. As your business is tied to a reputation you’ve worked hard to maintain, developing a succession plan may help ensure that any future owners of the business continue to live up to your values and philosophies.

About the TD Millenni-factor Survey
TD Bank Group commissioned Environics Research Group to conduct a custom survey of 6,021 Canadians aged 18 and older, which included 593 Canadians with $500K+ in investable assets and 310 Canadian business owners with $100K in investable assets. Responses were collected between February 20 and March 1, 2018.

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves more than 25 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with approximately 12 million active online and mobile customers. TD had CDN$1.3 trillion in assets on July 31, 2018. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

SOURCE TD Bank Group

$30M class action lawsuit filed against Industrial Alliance

The law firm of Connolly Obagi LLP has today announced the commencement of a proposed $15 million Canada-wide Class Action against Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance”), together with a claim for $15M in punitive and exemplary damages.

The proposed Class Action is brought by Kristy Armour, of Ottawa, Ontario, who was employed by the Federal Government for sixteen (16) years as an FI-4 (Manager, Financial Audit) until her medical retirement on October 29, 2016.

The proposed Class Members include all persons employed by the Federal Government, or who were employed by the Federal Government, and who received long term disability (“LTD”) benefits from Industrial Alliance under Group Policy No. G-2400 (previously identified as Group Policy No. G68-1400),  at any time dating back to November 1, 1968 through to the present date.

The claim alleges that Industrial Alliance incorrectly calculated the cost of living increase to which all Class Members were entitled on an annual basis.  It is alleged that Industrial Alliance calculated the cost of living increase based on the Class Members’ net LTD benefit after the application of deductions rather than against the Class Members’ gross LTD benefits prior to the application of deductions.

It is also alleged that Industrial Alliance knew that the manner in which it was calculating the cost of living increase, due and owing to the Class Members, was contrary to the terms of the Policy and that it wilfully mislead the Class Members in doing so.

If any person is employed by the Federal Government, or formerly employed by the Federal Government, and is in receipt of, or was in receipt of, LTD benefits from Industrial Alliance under the terms of the Policy identified herein, please email, subject line “INDUSTRIAL ALLIANCE CLASS ACTION”, and provide your name, group certificate number, history of employment with the Federal Government and your history of receipt of LTD benefits.

SOURCE Connolly Obagi LLP

From dollars to digital: Canadian parents worry kids can spend money too easily

In the age of tapping and clicking, cash is becoming part of a bygone era as children are becoming more familiar and comfortable with digital payments. A new survey from TD reveals that nearly seven in 10 (68 per cent) parents say their children are more or just as comfortable using digital payments as handling cash, with their comfort levels increasing as they get older (50 per cent for children ages 4-7 years old and 81 per cent comfort level for children ages 15-17 years old).

But with that come concerns and considerations in this new digital era as eight in ten (80 per cent) parents believe that living in a cashless society can have some negative impacts on young people. Parents worry it is becoming easier for kids to spend money (58 per cent), not realize the consequences of overspending (49 per cent) and become harder to learn the value of money (46 per cent).

“Kids are becoming more and more digitally savvy. Whether it’s accessing an in-app game for a tablet or downloading music from a sharing site online, children are starting at a younger age to understand the concept of making digital purchases by witnessing their parents’ payment habits – often without realizing what it all means,” said Rina DeGrazia, Vice President, Financial Education at TD. “As the payment environment continues to change, it is important to evolve the conversation of how we talk about money to help kids understand the landscape and help ensure they feel financially confident to make smart money decisions throughout life.”

In fact, without these important conversations, Canadian parents are concerned there can be negative impacts for their children, including: not appreciating the value of money (32 per cent), being prone to impulse purchases (29 per cent) and not learning the importance of saving (29 per cent). And when it comes to education, the survey showed that over nine in 10 (91 per cent) Canadian parents feel it is their responsibility to teach their children to use digital payments responsibly.

The survey also found that more than half of Canadian kids have borrowed from mom or dad and have spent more than what they were allowed or expected to spend. What are kids spending this money on? According to the survey, the top categories include: food (63 per cent), in-store shopping (60 per cent), online shopping (46 per cent), and entertainment such as music, movies, and gaming (33 per cent).

“Just as they have for decades, kids continue to ask their parents for money. But what’s different is that today parents may find they aren’t keeping that much cash in their wallets,” continues DeGrazia. “Regardless of how your kids pay to shop at the mall or for online and in-app purchases, it’s more important than ever to help your children keep track of how much they’re spending and to have ongoing conversations about how to manage their money responsibly.”

To help parents feel more confident about teaching their kids about money management and to have ongoing financial conversations, TD offers the following tips:

Age 5 – 6: Introduce your child to money. Whether it’s a board game that involves money management or role-playing games with different types of payment methods, these activities can help kids to understand that payments can take many forms, including coins, bills, debit cards and credit cards.

Age 7 – 8: Take them to the bank to open their first savings account. Encourage children to save some of the money they get as gifts or allowance as this will help build a good savings ethic early in life. Setting up online banking access is a great hands-on approach to teaching your kids about digital money management.

Age 9 – 10: Make the connection about earning money. Talk to your children about your job and what you do to earn an income, showing them how the money is deposited either by cheque or by direct deposit. Start a discussion about some ways they earn money on their own such as doing additional chores like walking the family dog, doing yard work, or being a parents’ helper.

Age 11-12: Discuss your financial goals with your children. Explain that you must create a budget and how to do this as well as how you try to save some of what you earn to achieve those goals. Encourage your kids to participate in decisions about how to spend the family money on things like vacations, holidays and gifts. Empower your kids by having them think through their spending decisions and encourage them to always ask questions about money.

Age 13 – 14: Advise them that they need to keep track of their spending and help them do it. With digital payments and in-app purchases, keeping track of spending can sometimes be tricky. Take the opportunity to sit down with them to review account balances and interest earned on deposits. Tools such as TD MySpend can help teach your child how to keep track of spending and develop healthy spending habits. Also, take the time to introduce the concept of credit. Talk to them about why you have a credit card, show them your credit card bill, explain how interest charges work and discuss the importance of making payments on time and paying the monthly minimum payment, or preferably paying off the balance in full each month.

Age 15 – 17: Once your child understands how credit works, teach them about credit scores and the importance of establishing good credit for the future. Educate them that a good credit score can be achieved by always making the required payment and always on time for all their bills, including credit cards and utility bills, and that establishing these good financial habits can help them when it comes time to getting a student loan, financing a car and helping them qualify for a mortgage when they get older.

About the TD Survey
TD Bank Group commissioned Environics Research Group to conduct an online survey of 1,151 Canadian adults from October 3 – 11, 2018. All respondents were parents of kids 4 – 17 years of age.

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves more than 25 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with approximately 12 million active online and mobile customers. TD had CDN$1.3 trillion in assets on July 31, 2018. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

SOURCE TD Bank Group

Canada’s economy grows for 7th consecutive month


Canada’s economy extended its growth streak to a seventh straight month in August, as a recovery in oil sands production outweighed a summer slowdown in several other key sectors.

Statistics Canada reported Wednesday that real gross domestic product rose 0.1 per cent month over month in August, a slight slowdown from July’s 0.2-per-cent pace. On a year-over-year basis, the economy grew 2.5 per cent.

August’s result was a touch stronger than economists’ expectation of a flat reading for the month. However, only eight out of 20 industry sectors posted gains. It was largely fuelled by a 0.9-per-cent rebound in the mining and oil and gas extraction segment, reflecting the return of production at the giant Syncrude oil sands facility, which had been shut down by a power outage for parts of June and July.

Manufacturing, construction, and retail and wholesale trade all posted declines.

“The main story here is that the growth was not well distributed,” said Douglas Porter, chief economist at Bank of Montreal, in a research note. “The growth was heavily concentrated in a few specific sectors … with the details underwhelming.”

August’s result suggests that the Canadian economy likely grew at about a 2-per-cent annualized rate in the third quarter, economists said – a solid if unspectacular pace, and a significant slowdown from the second quarter’s 2.9 per cent. Nevertheless, it is a bit above the Bank of Canada’s recent estimate of 1.8 per cent. After a strong run of growth this year that has eaten up most of the economy’s spare capacity, the third-quarter pace is likely sufficient to keep capacity tight in many sectors – supporting the case for the central bank to continue raising interest rates.

“Business surveys are increasingly reporting that capacity constraints, not lack of demand, are the most pressing concern at the moment in much of the country,” said Royal Bank of Canada senior economist Nathan Janzen said in a research note.

GDP in the services-producing industries, which make up about 70 per cent of the economy, was up 0.1 per cent in August, led by a 1-per-cent surge in the finance and insurance sector. Statscan attributed the growth in the sector to brisk activity in the bond and equity markets. The real-estate sector also had a strong month, up 0.3 per cent, reflecting a firming of home resales across much of the country, the agency said. But retail trade dipped 0.2 per cent in the month, its third straight decline, and wholesale trade slipped 0.1 per cent.

GDP in goods-producing industries was essentially unchanged month over month. The rebound in oil-and-gas extraction was partly offset by a 0.6-per-cent drop in manufacturing, amid downtime at some auto plants. The construction sector fell 0.4 per cent, its third straight decline, reflecting a slowdown in the building of new homes.

Economists were split Wednesday on whether the August GDP numbers might tilt the Bank of Canada toward another interest-rate hike at its next rate decision in early December, or whether the central bank would hold off until January. The bank raised its key rate last week, by one-quarter of a percentage point to 1.75 per cent, and suggested that it might pick up the pace of rate increases if the economic data warranted.

The financial markets were similarly split after the GDP report, pricing in about a 50-50 chance of a December hike, although they have fully priced a quarter-point increase by January.

“Some of the August weakness looks likely to reverse in September, and the lifting of uncertainty delivered by the [proposed United States-Mexico-Canada Agreement] should contribute to an above-trend pace of expansion thereafter,” said Toronto-Dominion Bank senior economist Brian DePratto in a research report. “Combine a healthy economic outlook with the [Bank of Canada’s] tilt towards hawkishness that accompanied last week’s rate hike, and you have the recipe for further monetary tightening.”

“The [Bank of Canada] governor [Stephen Poloz] has made it clear that every rate decision is ‘live’, which could bring a December hike into play. However, GDP is only slightly outperforming the [central] bank’s forecast, and core inflation is still largely on target. Thus, we remain comfortable in our view that the next hike is most likely to come with the January decision,” Mr. DePratto said.

Text of Bank of Canada interest rate announcement

OTTAWA _ The Bank of Canada raised its key interest rate target Wednesday. Here’s the text of the central bank’s announcement:

The Bank of Canada today increased its target for the overnight rate to 1.75 per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1.5 per cent.

The global economic outlook remains solid. The US economy is especially robust and is expected to moderate over the projection horizon, as forecast in the Bank’s July Monetary Policy Report (MPR). The new US-Mexico-Canada Agreement (USMCA) will reduce trade policy uncertainty in North America, which has been an important curb on business confidence and investment. However, trade conflict, particularly between the United States and China, is weighing on global growth and commodity prices. Financial market volatility has resurfaced and some emerging markets are under stress but, overall, global financial conditions remain accommodative.

The Canadian economy continues to operate close to its potential and the composition of growth is more balanced. Despite some quarterly fluctuations, growth is expected to average about 2 per cent over the second half of 2018. Real GDP is projected to grow by 2.1 per cent this year and next before slowing to 1.9 per cent in 2020.

The projections for business investment and exports have been revised up, reflecting the USMCA and the recently-approved liquid natural gas project in British Columbia. Still, investment and exports will be dampened by the recent decline in commodity prices, as well as ongoing competitiveness challenges and limited transportation capacity. The Bank will be monitoring the extent to which the USMCA leads to more confidence and business investment in Canada.

Household spending is expected to continue growing at a healthy pace, underpinned by solid employment income growth. Households are adjusting their spending as expected in response to higher interest rates and housing market policies. In this context, household credit growth continues to moderate and housing activity across Canada is stabilizing. As a result, household vulnerabilities are edging lower in a number of respects, although they remain elevated.

CPI inflation dropped to 2.2 per cent in September, in large part because the summer spike in airfares was reversed. Other temporary factors pushing up inflation, such as past increases in gasoline prices and minimum wages, should fade in early 2019. Inflation is then expected to remain close to the 2 per cent target through the end of 2020. The Bank’s core measures of inflation all remain around 2 per cent, consistent with an economy that is operating at capacity. Wage growth remains moderate, although it is projected to pick up in the coming quarters, consistent with the Bank’s latest Business Outlook Survey.

Given all of these factors, Governing Council agrees that the policy interest rate will need to rise to a neutral stance to achieve the inflation target. In determining the appropriate pace of rate increases, Governing Council will continue to take into account how the economy is adjusting to higher interest rates, given the elevated level of household debt. In addition, we will pay close attention to global trade policy developments and their implications for the inflation outlook.

Information note

The next scheduled date for announcing the overnight rate target is December 5, 2018. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on January 9, 2019.

France’s AXA sells insurance assets in Ukraine to Canada’s Fairfax


AXA Insurance and AXA Insurance Life will continue to operate and fulfill all their obligations without any changes.

French-based AXA Group, represented in Ukraine by AXA Insurance and AXA Life Insurance, has sold its Ukrainian assets to Canada’s Fairfax Financial Holding Limited. Read also A third of businesses expect Ukraine investment climate to improve – EBA “AXA Group has entered into an agreement with Fairfax Financial Holding Limited (Canada) to sell all its insurance operations in Ukraine. Under the terms of the agreement, Fairfax would acquire a 100% of the non-life entity (AXA Insurance) and the life entity (AXA Life Insurance) in Ukraine,” the company’s press service said on October 23. As reported,

AXA Insurance and AXA Insurance Life will continue to operate and fulfill all their obligations without any changes. “It’s time to make a step forward, which will open up new opportunities for the company and each of its clients. With the new owner, we won’t only keep our leading positions, but also continue to develop the entire Ukrainian insurance market,” the press service added.

The new owner’s headquarters is based in Toronto, Canada, it said, adding that it has been engaged in insurance and investment management since 1985. “The company is listed on the Toronto Stock Exchange (FFH: CN). Its market capitalization is estimated at $15.1 billion. The holding operates in 40 countries across the world,” the report said. UNIAN memo. AXA Insurance, which is the leading insurance company in Ukraine, has been operating since 2007. AXA Insurance started working in the Ukrainian market in July 2013.


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