Compass Newsletter March 2020

Introducing Exempt Edge & EdgeLinkTM

Pinnacle Wealth Brokers is pleased to announce we partnered with Exempt Edge as our new back-office partner and have also joined the EdgeLink Ecosystem.

EdgeLink is an industry ecosystem designed to connect Pinnacle Wealth Brokers as an Exempt Market Dealer to our Investment Issuers which, facilitates the secure transfer of transactional data, a fundamental advancement to our reporting processes.

As an early adopter to the ecosystem, Pinnacle Wealth Brokers believes the foundation of the technology – a secure data connection between Issuers and Dealers so that Investors get a better line of sight into their investments – will result in Industry-leading customer service.

Investors can look forward to enhanced user experience and communication improvements via access to the comprehensive and rapidly evolving investor portal.

The investor portal will provide detailed insight into investor accounts and transactions using advanced visuals to help investors better understand their overall portfolio. Investors will soon have an easily accessible activity log to track account history, investment updates and transaction information.

Adapting the rapidly evolving technology solutions, and establishing the connection with our Investment Issuer partners, Trust Company partners and our Representatives on the industry ecosystem, will result in a significant advancement in our client reporting and client integration processes in 2020 and beyond.

Investors will receive email notifications prompting the access to statements through the Investor Portal, which is accessible from any device, with either the submission of your next Trade Confirmation or the distribution of the Q1 2020 Position Statements.

Why invest in a TFSA?

Now that the Registered Retirement Savings Plan (“RRSP”) deadline (March 2nd, 2020) has passed, it may be an opportune time to consider investing within a Tax Free Savings Account (“TFSA”).

The TFSA program was introduced by the Canadian government in 2009 to provide residents tax benefits on their savings. A TFSA is a tax sheltered investment account where all growth and income earned within is tax free. Unlike an RRSP, an investment in your TFSA uses after tax dollars and contribution does not result in a tax deduction. However, when the money is withdrawn it does not need to be claimed as taxable income as you would with an RRSP.

Canadian residents can open a TFSA and begin contributing when they reach the age of majority; 18 or 19 depending on the province/territory they reside in. In provinces and territories where the age of majority is 19, the individual begins accumulating contribution room at 18 but cannot open the TFSA until they reach 19.

Every year, the Canadian government sets a maximum contribution amount for your TFSA. In 2020 the maximum allowable contribution is $6,000. If you have never contributed to a TFSA before, then your contribution room has been building. Any unused contribution room from previous years is carried forward and can be contributed in the current year. For example, someone who turned 18 before 2009 and has never utilized a TFSA would have $69,500 of room for investment. Your available TFSA contribution room for 2020 can be found on your 2019 Notice of Assessment (NOA) from the Canada Revenue Agency (“CRA”), your CRA My Account online access or by calling the CRA at 1-800-267-6999.

The majority of private market investment opportunities at Pinnacle are eligible to be held in registered accounts, including TFSAs. The ideal balance of investing in a TFSA vs. RRSP is dependent on your financial situation. Consult with your Pinnacle Dealing Representative today to discuss what is best for your personal portfolio.

Lucinda Lunch Program Update

Pinnacle Wealth Brokers held its annual conference with all Pinnacle Dealing Representatives and current investment issuers in Calgary from January 8th - 10th, 2020. While the focus of our conferences is product education and compliance training, there was also an opportunity to raise funds for The Pinnacle 2020 Foundation. We were overwhelmed by the generosity and are pleased to announce that the Lucinda Lunch Program has now been extended to two new schools in rural Honduras with a third being considered.

These programs encourage children to attend ‘forgotten schools’ where the government has not been providing support. There are no supplies, roofs are leaking, and there is not enough space to accommodate the children. One of the new schools is called ‘Mal Paso’ which means poor road/trail. The access is actually too steep for horses and can only be accessed by hiking.

The program is designed with sustainability in mind and is not intended as a simple hand out. It is important that the local people participate in the work, take ownership of the problem and be a part of the solution, and help each other within their community. Parents who wish to participate in the program are expected to volunteer/help with the construction of the kitchen for the lunch program. The mothers have a weekly schedule and take turns making the lunches for the children. All supplies are pooled together so all uniforms and supplies are utilized most efficiently, and only a fraction of the money has to be allocated to new items, leaving additional funds available to feed more schools.

In our part of the world, change takes time and a great deal of funding, yet we often see little impact of our actions. But in rural Honduras, every little bit makes a big difference in the lives of the individuals and their community. If you wish to make a difference, please visit www.pinnacle2020foundation.com