From Hanukah to Chinese New Year the whole world celebrates increasing light of lengthening days, along with our deeper insights of life’s joy and purpose. We wish everyone safe and happy holidays, true joys of Christmas, and abundant peace and prosperity in the new year ahead.
In this brief SWM letter we celebrate significant investment growth in 2021. It continued ten months in a row, with a modest pullback in more recent weeks. This sets a strong base for the year ahead. Once investors and portfolio managers crystalize 2021 gains and complete any tax-loss selling, an all-new 2022 will be here. Omicron will mute the merriment briefly, and central banks will reduce stimulus by easing bond-purchases and inching interest rates higher.
Graduating from early recovery to a more normalized “mid-cycle” of the economy offers plenty of promise for coming seasons and the next few years. Risks are inevitable – without risk we’d actually never reach much reward – but promised potential going forward outweighs any pause along the path.
With this season of tax-planning take a moment to enjoy what you have all shared in a recent client survey (question 7). Your response shows 16% still face such stressful expenses that you feel unable to put aside much yet for retirement planning and tax-savings. Better times are ahead – I assure you. Yes, most of you are clearly focusing on yearly tax-savings and tax-sheltered growth, including HALF now striving toward the ultimate prize, not just yearly goals but to avoid unnecessary taxes for Life and for your Heirs. Specifically,
- 16% feel so stretched with expenses today there is limited room for current tax-planning. No worries, we are honoured to keep working with you and build a stronger and more confident financial future.
- 84% are you are using registered savings to ease yearly taxes, with half also focused to reduce lifetime tax and increase family estate, including tax-free life & health insurances, charitable planning, gifts to family while living, and more. We can discuss this further as you’re ready – we’re always here for you.
Closing this final letter for 2021, we wish every one of you and your families peace and happiness, Christmas joy, and greatest blessings for all the year ahead. I look forward to our next discussions in Q1 2022. Until then, warm and happy wishes from all of our SWM team: Whitney, Ben, Christine, Theresa, Geoff, and even more behind the scenes who remain tirelessly dedicated to our enduring purpose in your planning, Financial Security for Life!
Yours in Financial Security for LIFE!
Brian Weatherdon, MA, CFP, CLU, CPCA. 905-637-3500
627 Guelph Line, Burlington, Ont. L7R 3M7. 1-877-937-3500
Brian@SovereignWealth.ca.
Certified Financial Planner, Certified Retirement Coach
Author: A Lifetime Of Wealth — And How Not To Lose It (2013). Protecting Life, Loved Ones, and Future Dreams (2013). Your Business, Your Retirement: Halton Retirement Study (2015).
** This monthly letter touches on key strategies in Canadian and global investing and financial planning. This letter is not an offer to sell any kind of security, insurance, or program. Historical returns and risk measures are not a valid guide to future performance. Returns are from publicly available sources and research from a variety of firms including but not limited to Canada Life, CIBC, Dynamic, Mackenzie Financial, RBC / PH&N, and more. Opinions in this letter belong solely to the author and no other body is responsible for the content expressed here. We value opportunity to coordinate with your legal and accounting advisers to further your financial goals in home and business. We are grateful always to receive your comments and questions.
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