Indian Residential School (IRS) Program
Planning Your Financial Future
Frequently Asked Questions

Thank you for attending CESO’s Information Session on Financial Management. Want to know more about planning your financial future? As part of our program we’ve compiled frequently asked questions and are posting them on our Web site for your reference. If you have further questions related to any of the topics please consult the contact us page and call us toll free to speak with a CESO Volunteer Adviser in one of our regional offices.

• Banking: How to pay the least amount of banking service fees?
• Wills and Estates: Settling an Estate – How do I make it easier?
• Starting a Business: A friend and I are thinking of pooling our money, forming a partnership and starting a business. Is this a good idea?
• Personal Finances: What kind of income might I have when I retire?
• Investing: I am interested in investing but I don’t know where to start.

Banking

Q. How to pay the least amount of banking service fees?

A. There are a number of steps that you may want to consider in order to reduce the fees that you pay to the bank:

• Know what your monthly transactions are and determine your weekly/monthly current needs.
• Review with your bank the plans that they offer and choose the one that suits your needs. Many banks have special packages for seniors or youths.
• Many transactions like paying bills cost less in service fees if done at an ABM, by telephone or through the Internet rather than paying them at the counter or issuing a cheque and mailing it.
• Use your own bank’s ATM rather than other banks’ or companies’ machines to avoid paying additional service fees.

Q. Can the bank take money from my account because of outstanding loans?

A. No. Money cannot be taken from your account unless you are involved in a lawsuit that requires the paying of funds. If there is still concern, you can open a new bank account. 

Q.  Is the money that I keep at my bank insured?

A. Your deposits are insured up to $100,000 per person to protect your savings in the event your bank fails.

Q. How much will the Northern stores charge me for cashing in my CEP cheque?

A. The Northern stores will waive the cheque-cashing fees (1.5%) if CEP recipients put some of their money on the stores’ debit and pre-paid credit cards. There are fees for loading the cards ($2 or $3) and for establishing the pre-paid Visa ($14.99).

The Arctic Co-op stores charge $10-$20 to cash cheques. These rates are set by local Boards made up of Co-op members. Co-op members have accounts at the store to deposit their cheques and withdraw cash or make purchases. The Co-op does not offer debit or credit cards.

Wills and Estates

Q. Settling an Estate – How do I make it easier?

A. First and foremost you must ensure that you have a will prepared by a lawyer who will ensure that any potential legal entanglements are avoided.

Secondly you must appoint an executor who has some business or other practical experience that will help them work through the various agencies.  Your executor may also want to seek assistance from accountants/lawyers who are familiar with resolving any issues regarding winding up an estate.

Q. Where should I keep my will?

A.  The most important thing is to find a safe place to keep your will so that it can be found after your death. You can keep your will in a safety deposit box at your bank, which may involve an annual fee, or in a fireproof box or safe in your home, or with your lawyer.

After your death your executor must be able to obtain your will, so be sure to tell them where your will is being kept. If you choose to keep it in a safety deposit box, make arrangements with your bank so that your executor is permitted to open your box and obtain your will after your death.

Q. Can somebody apply for settlement money for their deceased parents?

A. Yes. The Common Experience Payment is given to all former students who resided at a recognized Indian Residential School and who were alive on May 30, 2005.

A Personal Representative, like children, may apply for the Common Experience Payment if the former student has died on or after May 30, 2005. The CEP application should be submitted to a trustee by the Personal Representative, and they will be paid the amount entitled. If you are applying on behalf of someone else, you must provide documentation proving that you qualify as a Personal Representative.

Starting a Business

Q. A friend and I are thinking of pooling our money, forming a partnership and starting a business. Is this a good idea?

A. Forming a partnership can be a successful venture however you need to have a clear understanding of the skills and roles each partner will bring to the business; how these skills will contribute to the success of your business and what share of the profits each partner will receive. The selection of a business partner has to be carefully considered as your compatibility as business partners will play a significant role in the success or the failure of the business.

Personal Finances

Q. What kind of income might I have when I retire?

A. Depending upon your types of contributions during your working life you could receive Canada Pension and possibly a company pension. The Federal Government also has Old Age Pension for most Canadians and based on certain criteria there is Guaranteed Income Supplements and Allowances that are also available.

Investing

Q. I am interested in investing but I don’t know where to start.

A. Financial planning can be a detailed and complex process, but don’t let that stop you. First and foremost, find a qualified professional who understands your personal and financial situation, and who you will feel comfortable working with. A trusted financial advisor should be the centre of your investment strategy.  Most bank branches have personnel who are qualified to work with you or you can work with an independent financial advisor.  Professionals with accredited designations in your areas can be found through www.advocis.ca or www.cfp-ca.org.

Q. Is there a minimum amount when investing in mutual funds?

A. No. There is no minimum amount required for mutual funds. Mutual funds are designed for most people.

Do not hesitate to ask the questions you need to determine if you have found the right adviser. Remember that you are considering hiring them–so treat the questioning like a job interview.