http://www.pittarofinancial.ca/

Pittaro Financial Services, Montreal, QC (2026)

06/08/2023

As of Monday June 12th, the First-time Homebuyer Savings Account (FHSA) will be available to all Canadians between that ages of 18 to 71 who have not owned a home in the last four years. Through this type of new registered account, you will be able to contribute up to $8000 per year up to a lifetime limit of $40,000.

Tax slips will be issued for contributions in order to reduce your annual income, much like an RRSP, but unlike the existing RRSP Home Buyer Plan (HBP), withdrawals for buying a qualifying home do not have to be repaid. The plan can stay open for up to fifteen (15) years where it will grow tax-sheltered all the while. Withdrawals used to purchase a home are completely tax-free. After fifteen years if the account is not used to buy a home, it can be rolled directly into your RRSP without penalty.

For more information and to open an account, please get in touch with your Pittaro Financial Services Inc. advisor at 514-369-6084.

02/03/2023

Since 1957, the Registered Retirement Savings Plan (RRSP) has helped millions of Canadians save for the future in a tax-efficient way. When combined with workplace pension plans and government benefits like the Canada Pension Plan and Old Age Security, the RRSP can be a valuable source of cash flow in retirement.

March 1, 2023 is the deadline to make RRSP contributions for the 2022 tax year. Keep that date in mind as you read about the benefits of an RRSP, so you don’t miss out on this tax-sheltering opportunity.

How it Works

If you’re a resident of Canada with a valid Social Insurance Number, and you have earned income and also file a Canadian tax return, you can open an RRSP account.

Once you’ve opened an account at a qualifying financial institution, you can begin making contributions to your RRSP. The maximum contribution amount is 18% of your previous year’s earned income (e.g., if you earned $100,000 in 2021, you can contribute up to $18,000 for the 2022 income tax return that you file by May 1, 2023). Certain factors, such as contributions made to your workplace pension plan (known as a pension adjustment) will reduce the amount you can contribute to an RRSP.

Each year, the federal government sets the RRSP contribution limit. For instance, the limit for the 2022 tax year is $29,210, while the maximum jumps to $30,780 for the 2023 tax year. If you don’t make the maximum contribution in any given year, you’re able to carry forward the unused contribution room to future tax years and claim the tax break at that time.

Speaking of tax breaks, that’s the primary benefit of RRSPs. The contributions you make each year will reduce your taxable income, which means your overall tax obligation will be lower. On top of that, any growth you achieve from the investments held in your account – such as capital gains, eligible dividends and interest income – will be tax deferred until you withdraw any funds.

You have until December 31 of the year you turn 71 to close your RRSP. You can either collapse the plan and pay income tax on the entire balance (not recommended unless you need to!), or convert your RRSP into a vehicle like the Registered Retirement Income Fund and start making taxable withdrawals according to a specific schedule.

If you must dip into your RRSP savings to help purchase a home (Home Buyers’ Plan) or cover your educational expenses (Lifelong Learning Plan), those withdrawals are not taxable as long as you re-contribute the withdrawn amount to your RRSP following the prescribed schedule. Ask your advisor for more details about these two plans to see if they might be suitable for you.

What can RRSPs invest in?

Another attractive benefit of RRSPs is their flexibility. You can invest in many different types of securities, such as stocks, bonds, mutual funds, exchange-traded funds, GICs and more. Your advisor can work with you to determine an appropriate mix of investments to hold in your portfolio based on your time horizon, risk tolerance and financial objectives. If there’s a significant income difference between spouses/common-law partners, consider looking into a spousal RRSP that can help lower your overall combined tax burden.

Your advisor can also help you stay disciplined with your RRSP contributions, so you maximize the tax benefits each year. An easy way to contribute is through pre-authorized contributions. You’ll set up a plan where you automatically contribute a set amount of money (e.g., $500) at a set interval (e.g., monthly), so you don’t need to worry about forgetting to make a contribution or having to find the money to make a large lump-sum contribution each year.

Get in touch with us today to learn more about how an RRSP can help you achieve your retirement goals.

02/25/2022

In light of the recent military action in Ukraine, it is important to remember the human lives lost, displaced, and otherwise harmed during a crisis of this nature. As Russia's act of aggression continues, we can only watch and support in what ways we can to ensure that the people of the country struggle to live their lives peacefully.

In times of stress and uncertainty such as these, this document springs to mind., the document in this link springs to mind. For investors here in Canada, the temptation is to try to outsmart the market by exiting and re-entering as news like this is fed to us in real-time faster than ever before. However, even within the same day, we saw February 24th go from being a day of fear and selloff in the market to optimism and growth following US President Biden's address.

So as we watch on it is important to continue our well-laid financial plans as it is proven time and time again to be unwise to try to time the market to our advantage.

10/15/2021

U.S, Canadian and global equity markets started Q3 where Q2 ended, confidently charting a course forwards. By the end of August, equities had notched a seventh straight month of gains, with the S&P 500 Index finishing near its all-time high and the TSX Composite Index on its longest winning streak in four years. Markets then dipped in September on a number of risk-related events, before finishing Q3 close to previous highs.

Fixed income markets remained calm and U.S. treasury yields steady on reassuring economic comments from the Fed. In Canada, it was another positive quarter for ETFs. Canada’s top six banks also posted strong quarterly earnings that easily beat analyst expectations. Overall, approximately a fifth of TSX listed companies and third of S&P 500 listed companies reported handsome corporate results during the quarter, including some of the biggest tech names.

The U.K.’s Freedom Day, celebrating the reopening of its economy went ahead on July 19. Developments in the U.K. are seen as a potential leading marker for the reopening of other western economies. Shortly after, the Canadian federal government unveiled a roadmap to reopen its borders. On August 9, vaccinated Americans were allowed to visit again and from September 7 so may vaccinated travelers from other countries. Q3 also witnessed an historic monetary development as El Salvador became the first nation to adopt Bitcoin, the most popular cryptocurrency, as legal tender.

The Fed left U.S. interest rates in the near zero range but indicated it would begin winding down its US$120 billion monthly government bond buying stimulus by year end. U.S. inflation, although cooling, rose 5.3% on the same period last year, driven by COVID-19 infections impacting economic growth and related shortages of labour and supplies affecting prices. The Fed reiterated it saw no immediate need to raise rates as this recent inflation spike was temporary. However, it signaled rates might start going up sooner than previously planned – possibly by late 2022.

The Bank of Canada also held interest rates at 0.25% saying it expects the economy to strengthen throughout the second half of the year. The bank warned supply chain bottlenecks and rising COVID-19 cases could slow the pace of the recovery though. The bank continued with its bond buying program but scaled back purchases to about C$2 billion per week.

Canadian inflation went north as well. Inflation rose 4.1% in August compared to year ago, the highest since 2003. The Bank of Canada has regularly stated it would intervene should inflation come in persistently above its 2% target, but noted the current bout of inflation was likely transitory.

Capital Markets in Q3

The S&P/TSX Composite Index ended the quarter up 0.17%, led by the Financials (31.9% weight), Energy (13.1%) and Information Technology (11.5%) sectors. The S&P 500 Index posted a 0.58% return led by Information Technology (27.6% weight), Health Care (13.3%), and Communication Services (11.3%) sectors. The MSCI EAFE Index was also in positive territory with an 1.95% return led by the Financials (17.2% weight), Industrials (15.8%) and Information Technology (9.6%) sectors.

For the year to date, the S&P/TSX Composite Index increased 17.5%,the S&P 500 Index rose 15.9% and the MSCI EAFE Index was up 8.2%.

U.S., Canadian and global equity markets started the quarter brightly. By the end of August, equities had notched a seventh straight month of gains, with the S&P 500 Index finishing near its all-time high and the TSX Composite Index on its longest winning streak in four years. Markets then dipped over concern about inflation, the U.S. debt ceiling, the Evergrande crisis in China and speculation on when the Fed’s bond taper would begin, before finishing Q3 close to previous highs.
Fixed income markets remained calm and U.S. treasury yields steady on the Fed’s reassuring comments about its bond tapering plans, a potential rate hike next year and the current inflation spike being temporary. The treasury yield curve flattened somewhat as yields on all but the longest-term US government bonds increased.

In foreign exchange markets, the Canadian loonie appreciated against the U.S. dollar and other G10 currencies due to rising oil prices and the Canadian federal election outcome. Oil prices surged following the threat of Hurricane Nicholas in the U.S. gulf and depleting U.S. crude inventories before declining on Russian plans to increase exports. The debt crisis of the mega Chinese property developer Evergrande at the tail end of the quarter then caused the oil prices and energy stocks to climb again.

Closer to home, Canadian ETF inflows topped more than C$4.9 billion with total assets growing to C$302 billion.

What we can expect now?

The accommodative monetary policies of major central banks are beginning to be pared back so it’s natural we might experience some near-term setbacks and volatility as market conditions shift. The pace of growth will likely be slower but this is understandable as we are coming off a record breaking 12 months of performance. Overall, the outlook remains positive driven by strong economic fundamentals and corporate earnings.

Regardless of where we are in the market cycle, it’s important to take a disciplined approach to investing and stay focused on your long-term financial goals. This strategy helps you keep your emotions out of investing – typically buying high and selling low like many investors do.

We recommend you maintain a diversified mix of asset classes in your portfolio to maximize potential returns and minimize risk. Regularly reviewing and rebalancing your portfolio back to the target asset mix we created also ensures it remains aligned with your goals.

Thank you for your continued trust in us for the opportunity to assist you in working toward your financial goals. We are with you every step of your investment journey, identifying strategies and opportunities, reviewing performance and rebalancing your portfolio to keep you on track. Should you have any questions regarding your portfolio, please do not hesitate to contact our office at 514-369-6084.

The information in this letter is derived from various sources, including CI Global Asset Management, Globe and Mail, National Post, Wall Street Journal, MarketWatch, Bloomberg, Reuters, Investment Executive, Bank of Canada and Statistics Canada as at various dates.This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources and reasonable steps has been taken to ensure their accuracy. Market conditions may change which may impact the information contained in this document. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.

03/24/2021

Available now for all our Investia mutual fund clients is the Investia mobile app. It can be downloaded on the Apple App Store and through Google Play.

With the app you can view client documents (including statements and tax slips for Investia nominee accounts), a detailed list of your holdings, and a list of recent transactions on your accounts.

You may log in using your existing Investia client portal login information. If you do not have an Investia login already, get in contact with David and he will assist you with the onboarding process.

02/12/2021

A reminder that the RRSP contribution deadline for the 2020 tax year is March 1st. We are still taking virtual appointments, and now you can deposit money into your RRSP account through your online banking. This feature is available for all Investia nominee, B2B self-directed, and client-held RRSP accounts.

If you wish to book your appointment, get in touch with one of our advisors at 514-369-6084 or [email protected].

10/08/2020

It has now been more than six months since the World Health Organization declared the global COVID-19 pandemic, upending our home and working lives. As the initial wave of infections subsided and the spread of the virus stabilized through the summer months in most parts of Canada, we adapted to the “new normal.” Heading into the fall, infection rates in some provinces are rising again, raising the possibility of further restrictions to limit the spread of the virus. Amidst the ongoing uncertainty, I hope that you and your family are keeping well.

Recovering from the pandemic-related downdraft of the first quarter, financial markets enjoyed a period of relative calm and optimism throughout the summer of 2020. Equity prices in many markets continued to improve, with some sectors moving sharply higher as lockdown restrictions eased and economic activity gradually resumed. Toward the end of the third quarter, however, investor concerns resurfaced. Markets were rattled by growth in the numbers of COVID-19 infections, uncertainty related to the upcoming U.S. presidential election and the expected economic stress of reductions in government supports for businesses and individuals.

Most global equity markets started the quarter positively, led largely by investor optimism for sectors expected to benefit from current conditions, such as technology and health care. The S&P 500 Index, a broad representation of the U.S. equity market, reached an all-time high in early September before volatility resurfaced as the quarter drew to a close. The U.S. index finished the three-month period up 6.6% for the quarter and 8.4% for the year-to-date in Canadian dollar terms. The MSCI World Index, which reflects returns for developed equity markets around the globe, followed a similar path, and was up 5.7% for the quarter and 4.9% for the year-to-date.

In Canada, the S&P/TSX Composite Index also trended higher through much of the summer, buoyed by sectors such as materials (precious metals), industrials (transportation companies) and consumer staples. Despite continued weakness in the energy sector and broader market volatility later in the quarter, the Canadian benchmark finished three-month period with a gain of 4.7% but remained down 3.1% for the year-to-date.

Central banks around the world continued to gauge the ongoing economic impact of the pandemic in setting monetary policy. The U.S. Federal Reserve, for example, noted that the U.S. economy had picked up considerably, but much depends on the confidence of consumers to spend. The central bank indicated that it would allow inflation to exceed 2% as the economy recovers and that its target interest rate would be left unchanged at 0-0.25% for “an extended period.” The Bank of Canada also kept its benchmark interest rate steady during the third quarter at 0.25% and said it would continue its large-scale government bond purchase program designed to promote liquidity in the financial system. The decline in interest rates has supported bond prices over the past several quarters, resulting in the FTSE Canada Universe Bond Index, a broad measure of Canadian government and corporate bonds, to return 0.4% for the quarter and 8% for the year-to-date.

So far, 2020 has reminded us of several important lessons, one of which is that timing the market is nearly impossible. Many people would have sold their investments shortly after the U.S. market declined nearly 34% in March, believing that a recovery would be a long way off. But from its lowest point on March 23, the S&P 500 took just 140 days to recover – the fastest rebound on record. Those who stayed invested would likely have been rewarded for their patience, while those who sold would have locked in losses.

Looking ahead, the COVID-19 pandemic is far from over and will likely have an impact on investment markets for months to come. Governments and central banks continue to provide support for the economy through accommodative fiscal and monetary policies, but the economic outlook remains cloudy, particularly if further restrictions to limit the spread of the virus become necessary. For this reason alone, keeping a long-term view will be especially important.

In closing, I would like to remind you that my team and I are here to help. Should you have any questions regarding your portfolio, please do not hesitate to contact our office at 514-369-6084.

The information in this post is derived from various sources, including CI Investments, Signature Global Asset Management, Globe and Mail, National Post, Bloomberg, Morningstar, Yahoo Canada Finance, and Trading Economics as at various dates. Index information was provided by TD Newcrest and PC Bond, and all quoted equity index returns are on a total return basis (including dividends). This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources and reasonable steps has been taken to ensure their accuracy. Market conditions may change which may impact the information contained in this document. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.

09/28/2020

To all our clients, the chief economist at Industriel Alliance, Clément Gignac will be hosting online presentations on Thursday, October 6 in both English and in French. He will be discussing how to navigate a market and world ravaged by the COVID-19 pandemic and the outlook for months to come.

Times are:

English: 2:00 PM

Français: 15h

All times are in Eastern Standard Time. For an invite link to the event, please contact David at [email protected].

06/08/2020

Here is an update for our clients by David Fingold, manager of the Dynamic Global Dividend Fund.

https://players.brightcove.net/1535572427001/default_default/index.html?videoId=6158573848001

05/11/2020

Canadians who have lost their ability to earn income due to the COVID-19 shutdown are eligible to receive $2000 a month from the Canada Emergency Response Benefit (CERB). Our partners at Fidelity Investments have put together a handy reference guide for out-of-work Canadians affected by the pandemic, which you can view at the link below. This is especially important for business owners with employees, as you effectively have access to an interest-free loan from the government.

To anyone withdrawing from a RRIF, the volatility in the market has also caused Canada Revenue Agency to change their 2020 rules in regards to RRIF and LIF minimum withdrawals for the year. Minimums are reduced by 25%, though this change does not come automatically and is not retroactively applied to anyone who has already withdrawn their minimum for the year. If you are currently drawing from a registered income plan and would like more information, please contact Pittaro Financial Services Inc.

Pittaro Financial Services

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