May 2023 SWM Letter: US Debt-Ceiling, Cybercrime, Reviews.

//May 2023 SWM Letter: US Debt-Ceiling, Cybercrime, Reviews.

May 2023 SWM Letter: US Debt-Ceiling, Cybercrime, Reviews.

Spring is a wonderfully happy time of year and I trust everyone is finding ways to enjoy nature’s majesty and beauty.  We have some helpful thoughts to share, including an update as promised on the cyberbreach alert.

FIRST what’s in each day’s news now is a Déjà-vu Debt Ceiling in Washington.  Little in the world is more divided than U.S. politics.  The daily dance with debt-ceiling deadline threatens disarray in U.S. federal financial systems.  It may force delayed income to pensioners, public employees, etc. until it gets sorted again.  If it seems we’ve heard this story before here are a few words from RiverFront IG to explain:

  • “Americans find themselves at the precipice of another US government default, due to political disagreements around the self-imposed debt limit. … According to the US Treasury, since 1960 Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the ‘debt ceiling.’”

Yes this event will be #79, reminiscent of Shakespeare’s, “full of sound and fury.”   As before they will have to find a compromise:  (a) increase the maximum allowable federal debt,  (b) redefine their debt ceiling,  or (c) extend the deadline to a future date.  This artificial crisis has a long history, to be resolved and reappear as has been its habit.

  • If both parties can get close enough in principle to a compromise to agree to a temporary ceiling extension, a deal to raise the ceiling doesn’t have to be immediately signed. Such an extension, perhaps until fall or early 2024, would allow some breathing room for both sides to fine-tune and then ultimately present the final resolution as a ‘win’ to their constituency.  (RiverFront)

AS WE MEET for our reviews (in-person or zoom) and monitor our progress we see there has been much to celebrate … even despite challenges in all the world around us.  Three of the past five calendar years brought negative markets and tough news:  Covid was followed by a sharp inflationary spiral, and the fastest-ever increase of interest-rates.  Yet when we meet to review your progress we continue to find rising values and resilient net wealth.  Even looking at the past 52 weeks, many investment indexes were down;  CPP netted just 1.3% in its fiscal year just ended.  But through this time, our personal investment summaries since last June and year-to-date are substantially positive.  This is the fruit of sustained strategic planning and our holistic focus to reduce risk and support your wealth.

When we meet for your financial review we’ll catch all of this.  And especially if any personal circumstances change, such as career change, new family members, partial or full retirement, inheritance, or anything that you feel needs a discussion, absolutely reach us immediately so we can talk together.  Always, we will continue to ensure your financial plan is keeping your current and future goals secure.

ADDING AS PROMISED on the mailing-service cyberbreach affecting financial firms here and globally (InvestorCOM and GoAnywhere):  many received notices from Mackenzie, Franklin Templeton, and perhaps others in recent days.  Most important:

  1. If you got multiple notices, each person registers just once for insured identity protection and dark-web monitoring.
  2. Anyone who hasn’t registered for those protections should do so soonest:  Mackenzie’s unique offer is free!
  3. The mailed instructions are quick & easy: use the code for Transunion’s site (avoid phone centres, they’re swamped).
  4. Recent updates on the dark-web monitoring;  no activity has come up related to that cyberbreach.
  5. It was mainly a breach of names & addresses (phone book stuff).  No account #s, holdings, nor asset values.
  6. We urge everyone to enroll for the 2-year ID-theft insurance and credit-monitoring as explained by mail.
  7. Spam and other hacking events are an everyday nuisance:  delete or hang-up on anything suspicious.
  8. No change to SWM precautions:  we confirm personally with you before processing any account changes.

DON’T MIND SUMMER marketsthey’ve already paused a couple of months and if history is any guide we’ll enjoy reasonable growth in these few months ahead.  Your task is to enjoy what you love most, and if you have any needs or questions along the way just reach us – we’re always here to help you. 

Yours in Financial Security for LIFE.

Brian Weatherdon, CFP, CLU. 905-637-3500

Whitney Hammond, CFP, CLU.  905-637-3500

627 Guelph Line, Burlington, Ont. L7R 3M7

** 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.
2023-05-25T11:21:11-04:00May 25th, 2023|