| | EARN MORE ON YOUR CASH With interest rates higher than we've seen in the last decade, new opportunities present themselves. FIRST HOME SAVINGS ACCOUNT Learn more about the new savings account aimed at helping first time home buyers save more. OCTOBER RECAP With the fall weather upon us and even some taste of winter, the markets are feeling the cold. | | | | EARN MORE ON YOUR CASH It’s hard to believe only a little over a year ago the Bank of Canada overnight rate was 1.5%. It’s safe to say the landscape has changed quite a bit since then. While higher interest rates increase the cost of borrowing and usually put a drag on equity markets, it also creates the opportunity for higher fixed income returns using GIC’s and High Interest Savings (HISA). One-year GIC’s are hovering around the 6% mark and our HISA is paying daily interest with an annual yield of 5%. If you find yourself with cash building up in a bank account, consider moving it to your investment account and earn greater returns on interest. As for when we’ll see rates begin to retreat, the market consensus is not until Q3 of 2024. | | | | | | FIRST HOME SAVINGS ACCOUNT (FHSA) While it might not be a buyer’s market with high interest rates, the ability to save more becomes available with the introduction of the FHSA. If you put a TFSA and RRSP into a blender, the FHSA would be the result. Contributions are tax deductible - growth is tax sheltered - withdrawals are tax free when used to purchase your first home. | - $40,000 lifetime limit
- $8,000 annual limit
- Contributions are tax deductible
- Qualifying withdrawals are tax free
- Unused contributions carry over
- Tax free rollover into RRSP/RIF
- 15-year account lifespan
- Must be 18+ years old
| | | | With summer officially over and colder weather setting in, the markets followed suit and finished October on a cooler note. Is this a step towards a bear market or just another healthy correction from the summer highs. We believe the latter is more accurate and isn’t a call to abandon ship. The main culprits this month continue to be the same characters, high interest rates, high inflation. While inflation is slowly creeping towards the target of 2%, interest rates hold steady. “Overall, while 2023 has been a disappointing year for Canadian equities, our work suggests a lot of negativity is already priced into Canadian equities. As such, Canada remains well positioned for the broader normalization we expect to unfold in North American markets over the coming years, particularly as valuations revert and equity performance broadens out.” - Brian Belksi, BMO Chief Investment Strategist We understand it’s never enjoyable seeing statements arrive with values lower than the month before. If you find yourself feeling stressed, there’s a phrase you’ve likely heard us say before as it continues to hold true; “this too shall pass.” | | | | | | EARN MORE ON YOUR CASH With interest rates higher than we've seen in the last decade, new opportunities present themselves. FIRST HOME SAVINGS ACCOUNT Learn about the new savings account aimed at helping first time home buyers save more. OCTOBER RECAP With the fall weather upon us and even some taste of winter, the markets are feeling the cold. | | | | EARN MORE ON YOUR CASH It’s hard to believe only a little over a year ago the Bank of Canada overnight rate was 1.5%. It’s safe to say the landscape has changed quite a bit since then. While higher interest rates increase the cost of borrowing and usually put a drag on equity markets, it also creates the opportunity for higher fixed income returns using GIC’s and High Interest Savings (HISA). One-year GIC’s are hovering around the 6% mark and our HISA is paying daily interest with an annual yield of 5%. If you find yourself with cash building up in a bank account, consider moving it to your investment account and earn greater returns on interest. As for when we’ll see rates begin to retreat, the market consensus is not until Q3 of 2024. | | | | | | FIRST HOME SAVINGS ACCOUNT (FHSA) | While it might not be a buyer’s market with high interest rates, the ability to save more becomes available with the introduction of the FHSA. If you put a TFSA and RRSP into a blender, the FHSA would be the result. Contributions are tax deductible - growth is tax sheltered - withdrawals are tax free when used to purchase your first home. | - $40,000 lifetime limit
- $8,000 annual limit
- Contributions are tax deductible
- Qualifying withdrawals are tax free
- Unused contributions carry over
- Tax free rollover into RRSP/RIF
- 15-year account lifespan
- Must be 18+ years old
| | | With summer officially over and colder weather setting in, the markets followed suit and finished October on a cooler note. Is this a step towards a bear market or just another healthy correction from the summer highs. We believe the latter is more accurate and isn’t a call to abandon ship. The main culprits this month continue to be the same characters, high interest rates, high inflation. While inflation is slowly creeping towards the target of 2%, interest rates hold steady. “Overall, while 2023 has been a disappointing year for Canadian equities, our work suggests a lot of negativity is already priced into Canadian equities. As such, Canada remains well positioned for the broader normalization we expect to unfold in North American markets over the coming years, particularly as valuations revert and equity performance broadens out.” - Brian Belksi, BMO Chief Investment Strategist We understand it’s never enjoyable seeing statements arrive with values lower than the month before. If you find yourself feeling stressed, there’s a phrase you’ve likely heard us say before as it continues to hold true; “this too shall pass.” | | | |
