Jack Lumsden, Financial Advisor, CFP®, MBA

What you need to know about the Bank of Canada’s latest rate cut. Josh Nye, Canadian Fixed Income Strategist, shares three key takeaways.

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What can investors expect in 2025? Will the U.S. bull market continue its run? Will the headwinds subside for Canada? And what are some key long-term opportunities for investors? Watch the video below for takeaways from our Global Insight 2025 Outlook report.

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What can investors expect in 2025? Will the U.S. bull market continue its run? Will the headwinds subside for Canada? And what are some key long-term opportunities for investors? Watch the video below for takeaways from our Global Insight 2025 Outlook report.

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"We have an opportunity to be advisors who can quarterback our clients’ lives, I want them to feel they can come to me for any recommendation.” -SS The power of referrals and word-of-mouth can go a long way. Read the full article in The Globe and Mail, covered by Deanne Gage. Link in bio 🔗 • #WomenInWealth #FinancialWellness #MoneyTalk #WomenInFinance #InvestmentAdvisor #FinancialGoals #FinancialPlanning #FinancialAdvisor #EmpowerHerInvestments #InvestmentAdvice #FinancialFreedom #MoneyMindset #PersonalFinance #FinancialIndependence

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Annual TFSA contribution limits are going up in 2025.

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Thinking of transferring funds from your Registered Retirement Income Fund to your Tax-Free Savings Account? A direct transfer isn't tax-free, but there may be some options to consider. Nicole Ewing, Director, Tax and Estate Planning, TD Wealth, joins Greg Bonnell to explain.

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Fidelity has released their retirement report for 2024 and their findings are not surprising. Retirees and and Pre-retirees are generally less optimistic about the financial outlook for retirement and the main reason for this is the increases to the cost of living. Much less surprisingly is that retirees who do not have a financial plan are less optimistic than retirees who do have a written financial plan. Having a well designed investment portfolio that has been constructed to suit your time horizon and risk tolerance is important, however your portfolio is directionless if it is not paired with a customized financial plan. This would be equivalent of planning a road trip to a destination but not having a gps or map to guide you to that destination. If you are working with a full service investment advisory team, it should be paramount they offer a customized financial plan and the plan should be revisited and updated on annual basis. This keeps the client and the advisor accountable to ensure the stated goals in the plan are attainable and are on track.

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🌟 Deciding When to Take Your CPP Benefits? Let's Discuss! 🌟 Many of our clients have been pondering a crucial question regarding their retirement planning: "Should I start taking my CPP benefits early?" It's a question with significant implications for your financial well-being in retirement, and the answer isn't one-size-fits-all. Taking CPP benefits before the age of 65 might be tempting for many, especially if retirement comes earlier than expected or if there are immediate financial needs. However, it's essential to remember that starting your benefits early means they will be reduced by a certain percentage for each month before you turn 65. On the flip side, delaying your CPP benefits beyond the age of 65 can result in an increase in your pension amount. It's a decision that requires a careful assessment of your current financial situation, your health, your retirement goals, and your expected longevity. Here are a few considerations to keep in mind: Your Financial Needs: Evaluate your current and future financial needs. Do you have other sources of retirement income? Your Health and Longevity: Consider your health and family history. Longer life expectancies may favor delaying your CPP benefits. Impact on Your Retirement Lifestyle: How will taking CPP early or delaying it affect your desired retirement lifestyle? Tax Implications: Understand the potential tax implications of starting your CPP benefits at different ages. It's a decision that deserves a thoughtful conversation and personalized advice. For a deeper dive into this topic, reach out to us for a consultation. Your retirement journey is unique, and so should be your CPP benefits strategy. Let's make sure your plan aligns with your life goals and financial objectives. 💼📈🏡 #TWG #thewealthbuildinggroup #yourmoney #RRSP #RetirementPlanning #CPPBenefits #FinancialWellness

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Saving for retirement should start early. Take advantage of employer-sponsored plans and consider individual retirement accounts. Regular contributions can lead to a comfortable future. Plan today for a secure tomorrow! #RetirementSavings #FuturePlanning

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Learn how to spot signs of dementia, and which risk factors you can control https://lnkd.in/gM-Q-fiy ​

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Franzia and Glenn, a couple in their 50s, have an annual combined income of $590k. They want to retire early, enjoy big-ticket vacations and maintain multiple properties. Tannis Dawson, a High Net Worth Planner with TD Wealth shares her analysis and how an advisor can help here: https://lnkd.in/eq2Tx_E5 ​

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This is a great work around for income splitting! As you know, there are numerous income splitting strategies, including pension income splitting...but the CPP payments don't qualify. The purpose of income splitting in general is to try to even out income (and therefore tax rates) throughout retirement, which can be many decades. That length of time comes with significant consequences if you don't plan correctly for it. The article lays out that you're still able to split your CPP income, but not via the same mechanism as other pension and RRIF/LIF income. Rather, you need apply for it through Service Canada. Every little bit helps, right?

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This is a hot topic lately as many people's mortgages are up for renewal this year and next. Below we explore how to decide what is right for you. The 1-year and 2-year rates are still quite high, and the difference between 3-5-years isn't all that significant, so the 3-year fixed rate is very popular (I renewed my mortgage a year a go and chose a 3-year). The historical spread between Canadian bank Prime Rate and the Bank of Canada (BoC) overnight rate is 2.20%, as shown in the first graph. It has been lower in the early 2010's, but that's the spread over the past 8-years. Therefore, the variable rate you pay will likely be 2.20% over the overnight rate, hopefully minus some basis points (i.e. Prime - 0.30% as in our second chart). RBC Economics expects the BoC rate to fall to 3% by the third quarter of 2025 then stabilize there for the rest of the year (that's as far as their forecast goes). In the second chart there is some rough math using the spread (2.20% less 0.30%, so an effective spread of 1.90% over the BoC overnight rate) and assuming a 3-year fixed rate of 5.09%. If the BoC holds rates at 3% indefinitely for the full 3-year term (beginning today), then you are better off going for the 3-year fixed rate term. If further cuts into the 2%'s (even just to 2.75% then holds) then the variable rate option looks to be marginally superior. Of course, we can't know what the BoC will do. I personally think that we are in a higher inflation, and therefore interest rate, regime than what we experienced in the 2010's. I do expect rates to come down from current levels but settle at a level higher than what we have grown used to. If you think that has merit, then a 3-year rate looks pretty attractive - even if the BoC does follow the forecast exactly and then settles in the 2%'s, your marginal savings is small, back end loaded, and you get some cash flow relief right now. You also don't have the risk that this is completely wrong and inflation reaccelerates, which looks like it could happen in the US. For me, I'd err on the side of safety for what looks like a marginal difference either way...but the choice is yours.

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