Wake Me Up When the September FOMC Meeting Ends

It was an incredibly volatile week for markets as investors digested a slew of economic data that reaffirmed the likelihood of a rate-hike pause at the September FOMC meeting next week. U.S. CPI jumped 0.6% in August breaking the three-month streak of taming inflation pressure. While this report was “hot,” the major catalyst, as expected, was the 10.6% increase in gasoline prices that contributed to over half of the increase. The Fed is likely to downplay the spike in energy-driven inflation and keep its focus on the relatively moderate core inflation reading. With that being said, the Fed will want to keep another hike on the table if this summer’s inflation moderation doesn’t continue.

Source: BMO Economics EconoFACTS: U.S. Consumer Price Index (August)

Retail sales were next on the agenda showing a slow down in spending after an early summer burst. Overall sales jumped 0.6% following a downwardly-revised gain of 0.5% the prior month, with much of the gain reflecting an 11% spike in pump prices. Despite rising real wages and a rebound in wealth, the mighty consumer seems to have stepped back in August due to high interest rates, costlier fuel, fading excess savings, and slowing job growth. We expect some further loss of spending power and enthusiasm in the next two quarters, resulting in a temporary stalling in demand and the economy early next year. If so, the Fed might be done hiking rates.

Source: BMO Economics EconoFACTS: U.S. Retail Sales (August)

Stepping away from the markets, it has been just over six months since many of you made the decision to join us on this transition for which we are incredibly grateful for your trust and patience. We wanted to switch it up this week to touch on some of the services we are now fortunate enough to be able to provide with our industry leading team of in-house experts. Mortgages, lines of credit, financial plans, estate plans, and everything in-between. The following is relatively broad so please reach out to a member of our team if you have any questions.  

 

Platinum Banking

Distinctive banking and borrowing needs call for an equally distinctive service offering: a dedicated banker adept at larger, more complex transactions, and able to oversee the unified management of personal, business and holding company accounts. We appreciate that it’s all part of a bigger picture and will coordinate with wealth planning experts, and our U.S. partners, to structure creative, customized solutions.

Exclusive Benefits

• Full suite of cash management, debt and liquidity services
• Access to wealth planning professionals in insurance, estate, tax and more
• Cross-border accounts and commercial services for seamless banking
• Specialized lending capabilities (e.g., leveraged life insurance and large loan products in U.S. or Canadian dollars or Euros)
• Unlimited accounts, cash withdrawals and international debit transactions
• Equity monetization to provide additional capital; single asset financing strategies
• BMO World Elite Mastercard®; preferred exchange rates; BMO Online Banking for Business
• Unified reporting and management of personal, business and holding company accounts

 

Trust & Estate Services

We help families like yours with some of the most emotionally charged decisions you’ll ever have to face – from the care of a loved one, to the planning and execution of your estate. Whether it’s paying bills, managing property, selling international assets, or liaising with beneficiaries, we work together to simplify the inherent complexities of wealth, crafting professional, collaborative solutions that ensure your family is protected today, and always.

Estate Planning & Administration

• Comprehensive planning to transition your wealth to the next generation
• Fiduciary expertise to administer trusts professionally and objectively
• Asset protection and tax strategies to help maximize your family’s wealth over time
• Guidance on managing assets and family members in more than one jurisdiction

Estate & Trust Services

• enCircle concierge services to fully manage personal and financial responsibilities
  (e.g., aging parents, bill payments, investment management, consolidated statements)
• Attorney for Property, Executor, Trustee, or Court-appointed Representative
• Agent services to assist with tax compliance issues
• Estate litigation representation
• Living, Family and Testamentary Trusts
• Escrow agent in M&A deals, with ability to grow escrow funds while in custody

 

Estate & Insurance Advisory Services

Like investment planning, estate and insurance planning is about defining goals, analyzing options, and implementing a sound, time-tested strategy. Working with you, your financial professional, and your legal and tax advisors, our Estate & Insurance Advisors (Financial Security Advisors in Quebec) follow a four-step process to help you achieve lifetime financial security and give you the confidence of knowing your estate will be distributed according to your wishes.

Explore

• What assets could face excess taxation? What kind of legacy do you wish to leave?
• What financial risks and opportunities should you address?

Execute

• Fill in the gaps in your current insurance strategy
• Recommend solutions for tax minimization, income security, asset protection and estate maximization
• Implement a strategy that complements your existing investment and retirement plan

Assess

• Facilitate discussions around succession planning and the use of dual Wills and trusts
• Identify and assess other issues that may impact your long-term goals

Review

• Review results on an ongoing basis
• Adjust strategy as needed to ensure it reflects your ongoing goals

 

Family Wealth Services

To preserve and grow your wealth, we partner with families like yours to identify and establish effective governance structures and best practices – from developing mission statements and committees to educating the next generation. The result is enhanced family unity, and assurance that your values, skills and insights will carry forward.

Stewardship and informed guidance:

• Establish family members’ roles and responsibilities
• Plan and facilitate family meetings (charitable education programs, philanthropic mission statements, succession and legacy planning, family learning, etc.)
• Create and implement a family governance process to execute decisions
• Assist in forming family councils, constitutions and committees
• Develop your household’s intellectual, social and human capital
• Deliver workshops, seminars and guest speaker series (e.g., on topics such as legacy planning, financial fluency, negotiation and conflict resolution)

 

Philanthropy

Through a strategic, process-driven approach, we help you translate important personal values into a philanthropic investment in an organization or charitable cause that deeply resonates with your beliefs. From planning tangible outcomes through to execution, our goal is to leave your family with a lasting legacy in the community and to foster an ongoing understanding of true wealth stewardship.

Planning

• Enrich and nurture knowledge of the charitable sector
• Conduct effective research based on individual aspirations
• Help select philanthropic investments geared to make an impact
• Lever a sustainable approach, maximizing tax and financial benefits
• Establish clear results and benchmarks for giving strategies
• Ensure personal wealth goals are shared throughout generations

Execution

Private Foundation
Management or assistance with all related tasks, including CRA charity returns, meeting preparations, recipient charities and tax compliance issues

BMO Charitable Giving Program
Flexible and cost-efficient; maximizes tax benefits

BMO WealthPath

BMO WealthPath® is a financial wealth planning process that can be changed as your life changes. Our simplified, interactive approach to wealth planning helps you feel more connected to your finances. With BMO WealthPath you can:

• See a visual timeline of your finances and goals pre- and post-retirement.
• Plan in a fully digital platform that makes tracking your
  goals easier and quicker.
• Try out different financial “what-if” scenarios to find the
  best options for you.

How we start

We’ll start by conducting a discovery session to find out what’s important to you. Once your unique goals and financial situation are captured in WealthPath, your financial picture will come to life. You’ll see where you are, where you want to go and how you can get there.

When your WealthPlan is complete you can go online whenever you want to review your plan and try out different “what-if” scenarios to find the best financial options as your circumstances or goals change.

 

The opinions, estimates and projections contained herein are those of the author as of the date hereof and are subject to change without notice and may not reflect those of BMO Nesbitt Burns Inc. ("BMO NBI"). Every effort has been made to ensure that the contents have been compiled or derived from sources believed to be reliable and contain information and opinions that are accurate and complete. Information may be available to BMO Nesbitt Burns or its affiliates that is not reflected herein. However, neither the author nor BMO NBI makes any representation or warranty, express or implied, in respect thereof, takes any responsibility for any errors or omissions which may be contained herein or accepts any liability whatsoever for any loss arising from any use of or reliance on this report or its contents. This report is not to be construed as an offer to sell or a solicitation for or an offer to buy any securities. BMO NBI, its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. NBI will buy from or sell to customers securities of issuers mentioned herein on a principal basis. BMO NBI, its affiliates, officers, directors or employees may have a long or short position in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. BMO NBI or its affiliates may act as financial advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for same. A significant lending relationship may exist between Bank of Montreal, or its affiliates, and certain of the issuers mentioned herein. BMO NBI is a wholly owned subsidiary of Bank of Montreal. Any U.S. person wishing to effect transactions in any security discussed herein should do so through BMO Nesbitt Burns Corp. Member-Canadian Investor Protection Fund.