As the World Cup of Hockey gets underway, clients may start dreaming about their children making it to the big leagues.
But those chances are slim. In Ontario, for instance, only 0.05% of kids who play hockey in a given year will eventually play one season in the NHL.
Parents with talented children may wonder if they should bother saving for post-secondary in case their teens get drafted. Send them this article on RESPs for hockey kids.
On the bright side, a lucky few kids will get hockey scholarships, giving them a free pass to university. For instance, there’s Shivon Zilis, a Canadian who got a hockey scholarship, moved to the U.S., and appeared on Forbes magazine’s “30 Under 30: The Top Young Investors of Venture Capital.”
More practical parents may fund children’s schooling, but want to get repaid if their kids become NHL stars. This article on how to properly structure an education loan will help.
Regardless, it’s likely better for hockey parents to view weekly rink trips as recreation, rather than as a prelude to a career. This year, clients may also be able to claim up to $500 of expenses per child of the cost of children’s fitness programs, but this benefit will be cancelled in 2017.* And, if your clients coach or run rec leagues, send them this piece from CI Top Broker about purchasing sports liability insurance.
If they make it
Say the kid’s become the next Connor McDavid. We can help.
Last year, we profiled Matt Stajan, centre for the Calgary Flames. Read what he had to say about money management.
And our friends at Benefits Canada profiled Colin Greening, left wing for Ottawa Senators and a pension trustee with the NHL Players’ Association’s defined benefits plan. Read his thoughts on his union’s pension here.
If the client’s child plays for an American team, he’ll run into cross-border tax issues. Our columnist Terry Ritchie delves into those issues.
And that’s not all. Successful, wealthy players have special investment and estate planning concerns to worry about. Here’s how one Toronto advisor structured his practice to work with NHLers.
Just a fan?
Good news: you’re not just supporting your favourite team when you watch games. You’re also boosting the economy, to the tune of $11 billion per year. And, you might be picking up investment management tips, too: our columnist Mark Yamada wrote a piece explaining what portfolio managers can learn from Soviet hockey.
*The original version of this article stated that parents could claim up to $1,000 of eligible expenses under Child Fitness Tax Credit. The correct 2016 amount is $500. Return to the corrected sentence.