Articles & Insights

September tends to be one of the worst months for the stock market, and this year was no different. The weakness over the past month resulted in negative returns across equity markets for the third quarter. The S&P/TSX Composite, S&P 500, and MSCI World Total Return Indexes were down 2.2%, 1.0%, and 1.1% respectively, in Canadian dollars. Year to date, however, they are still up 3.4%, 13.2%, and 11.7%, respectively. The markets have been volatile recently because inflation has not declined as expected, and interest rates remain high. Investors had thought central banks would have started discussing interest rate cuts by now, but that has yet to happen.

Tax-loss selling is a popular strategy for making use of capital losses in non-registered investment accounts. The losses can be used to help offset capital gains realized elsewhere in a portfolio. As well, to the extent that capital losses exceed capital gains in a given calendar year, the residual net capital loss may be used to offset capital gains in any of the three previous tax years or carried forward for use in any future year. CRA form T1A, Request for Loss Carryback, is used to carry back capital losses to a prior year.

Many individuals wonder what they will need prior to going through a detailed financial analysis with our firm. It can vary based on a multitude of factors, however, there are some key figures that must be known prior to such an analysis.

RESPs are an effective tool for assisting family members with education costs. However, opening an RESP is not akin to setting up a trust that will flow at death to the named beneficiaries — as generally occurs with an insurance policy, RRSP or RRIF. While an effective education savings tool, an RESP can run into complications in an estate planning context, particularly in blended families.

No intended spin on Shakespeare’s Hamlet Soliloquy, “To Be or Not To Be” but it works since Central Banks find themselves in a uncertain decision inflection point – do we pause on rate raises or continue?

One of the main factors in a financial analysis and subsequent forecasts is expense levels. Successful sustainability of net worth to age 100 is achievable when expenses are covered by cashflows over the entire period - if you are not in tune with your monthly expenses, even having a discrepancy of $500/month could be detrimental to one’s financial success when it is projected over for 40+ years.

Everyone has some sort of dream retirement mapped out in their minds – if not on paper – whether it’s wintering in warmer climates, playing endless golf or travelling the world. But after a period of higher inflation, uneasy markets and higher interest rates, some are wondering if they will have to scale back their plans.

After paying rent or the mortgage, buying groceries, putting gas in the car and covering a variety of other monthly expenses, it might feel as if there’s little money left to think of investing for the long term. Thanks to higher-than-normal inflation, Canadians are under increasing financial pressure. In a recent Manulife Bank survey, 79 per cent of respondents felt worried about their ability to save for retirement.

The freedom to enjoy life on your own terms, with plenty of time (and money) to travel, focus on your hobbies or do whatever your heart desires may come to mind first when you think of retirement. But funding this milestone stage of life takes planning, discipline and perseverance – and the sooner you start, the better.

When summer gets into high gear, families with young children know about the costs associated with summer camps—not to mention the logistics of getting kids to and from camp, making lunches, and all the other juggling.

Today in the middle of May as I write, the S&P500 sits just north of 4,100. It has been used as a good gauge of market value and direction, it is basically a measure of the performance of 500 of the most successful American public companies. For perspective on where the market sits today, at the end of 2019 the S&P traded around 3,200. That was 3 months prior to the Covid crash in March of 2020.

The first quarter (Q1) of 2023 was a rollercoaster ride for investors. Market volatility unfolded following U.S. and European banking turmoil, and interest rates and inflation climbed—evoking investor fears about financial stability.