Monthly Archives: November 2018

What Should You Be Doing in This Current Market Correction

Markets do not always go straight up and for the past few months we have had some significant daily market moves.   In the last three days, we saw the Dow Jones Index fall over a thousand points.

It is important not to panic during these times but to remember why you are investing in the ancial markets

The key to successful investing in your portfolio is to have a pre-determined investment process and not to get emotional about the markets.   When markets have large swings in daily valuations, it is tough not to act on emotions  and to remember your investment process.

One day or week does not make a market

Having discipline in volatile markets is critical to making the right investment decision.

• The consistent use of an investment process will maximize your investment returns and help achieve your long term goals.

 

• In my 40 plus years of being a student of the market, the one thing that I know that works is being disciplined and sticking to your process, the only way to weather the storm, is to stay the course.

• • Don’t deviate from the plan
  •  It it the foundation for success.

 

Know and understand the securities you are invested in.   Major sell-offs often provide opportunities for buying companies on the cheap and/or to average down you existing holdings

Regular rebalancing of portfolios will help mitigate the impact of volatile markets

 

 

 

https://www.bnnbloomberg.ca/investing/video/financial-planning-for-canadians-with-disabilities~1524106

Bill Shaw, president at Treegrove Investment Management, explains a long-term savings plan that many people may not be aware of: the Registered Disability Savings Plan that helps Canadians with disabilities save for the future. Shaw says the program includes government contributions and possible tax credits to help boost savings.

Disability and Special Need Financial Planning

The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with disabilities and their families save for the future. If you have an RDSP, you may also be eligible for grants and bonds to help with your long-term savings.

You should consider opening an RDSP if you have a long-term disability and are:

• eligible for the Disability Tax Credit;
• under the age of 60 (if you are 59, you must apply before the end of the calendar year in which you turned 59);
• a Canadian resident with a Social Insurance Number; and
• looking for a long-term savings plan.

You may contribute any amount to your RDSP each year, up to the lifetime contribution limit of $200,000. With written permission from the RDSP holder, anyone may contribute to the RDSP.

• Many Canadians are not aware that that they can qualify for the Disability Tax Credit (DTC). If you qualify for the DTC, many additional financial planning opportunities are available to you.

 

• First and foremost, you can open up a Registered Disability Savings Account. By doing so, the federal government encourages saving with generous contributions to RDSPs, even when people don’t contribute themselves.

 

• The RDSPcan be invested and will grow on a tax deferred basis. When money is withdrawn, part of it (the government contributions and investment income) is considered taxable income to the RDSP beneficiary.

 

• Currently, the number of RDSP accounts opened to date is estimated to be about 15% of the people who qualify for the RDSP.    Approximately  643,000 Canadians between the ages of of zero and 59 who are eligible to open an RDSP, showing that the plans are still underused by disabled individuals and their families.

 

• The major benefit of opening an RDSP is to obtain free government grants. These grants are called Canada Disability Savings Grants. An RDSP can receive a maximum of $3,500 in matching CDSGs in any one year and a total maximum of $70,000 over the lifetime of the RDSP’s beneficiary.  The amount a beneficiary can receive will depend on the individual’s or family’s income  For RDSP beneficiaries under age 18, it’s the net income of the child’s parents or guardians that is used to qualify. For those 18 or over, it’s their own family income that is used to qualify, even if they still live with their parents.

 

• For those just opening a plan, Ottawa allows a 10-year carry forward of unused grant and bond entitlements. Since RDSPs have been around since 2008, people can claim unused grant and bond money going back to that year.

For more information, please email Bill@Treegrove.ca