As interest rates continue to disappoint, the hunt for secure income is leading many investors to consider putting their money into investment vehicles outside of their risk tolerance. For example, many companies are increasing the dividends they are paying on their common shares, making these stock investments look very attractive. Don't get us wrong - we like dividend paying stocks for the appropriate client - but they are equities, after all, and their values can fluctuate like anything else in a market downturn. We also need to keep the overall portfolio asset allocation in line with agreed upon limits. Are there any fixed income options left? In past issues we have written about a strategy we call the 'Lifetime GIC'.

Changes to CPP benefits were introduced in December 2009 and will begin taking effect in 2011. The changes are intended to "offer increased flexibility" and "provide the opportunity to enhance benefits".

Previously, if you started CPP benefits at age 60:

1. You must have stopped working at least 2 months prior to receiving benefits.
2. You received a reduction of 30% in the monthly benefit (0.5% reduction for every month that you start early).
3. You could start working again without resuming contributions to CPP.
4. The crossover age where benefits equalize was 77.6. This means that by age 77.6, you would have received the same total benefit amount whether you had taken the reduced amount at age 60 or the higher amount at age 65.

Clara Arnold presents a unique combination: a head for business and a heart for art.

Clara grew up in Montreal, graduating from McGill University with a Bachelor of Commerce. Pursuing her interest in Industrial Relations, she moved to Toronto and obtained her Master's in that field from the University of Toronto.

Over the course of her career, Clara has gained extensive human resources and labour relations experience in diverse industries including broadcasting, retail/ distribution, healthcare, manufacturing and technology. She is currently the VP, Human Resources for TVO.