2017 Federal Budget

March 23, 2017

The Liberal government delivered its second fiscal budget after the market closed on Wednesday. Here is a simplified list of who are the winners and losers from its plan:

Winners

  • Investors: Speculation for the past several weeks suggested that an increase in the capital gains inclusion tax from 50% to 66% or 75% was a possibility. No changes were made. In addition, the government has eliminated Canada Savings Bonds.
  • Cities: $11 billion of previously committed infrastructure for affordable housing was announced.

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RRSP Deadline Fast Approaching!!!

February 16, 2017

This is a friendly reminder that RRSP deadline is fast approaching as the final date is March 1st, 2017.

Important Points:

1) Contributions towards RRSP’s deduct from your taxable income.

2) Any taxes you would have paid on your taxable income between the original and new adjusted amount would be a refund pending no other taxable events occur.

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Goodbye Obama, Hello Mr. Trump

January 18, 2017

While everyone is probably tired of hearing about the new US president-elect, his inauguration will be the event that will continue to dominate the headlines and may have a few lasting effects on the financial world. The inauguration day will be headlined by Jackie Evancho (the 16-year-old America’s Got Talent runner up, for those who do not know), 3 Doors Down, and Toby Keith. This is after many performers turned down the invitation to be at the event fearing the backlash that may come from it. The rest of the agenda will include a farewell to the previous President, taking of the oaths, and the presidential address.

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U.S. Raises Interest Rates

December 16, 2016

U.S. Raises Interest Rates

What happened and what it means to you.

Yesterday as expected the US fed raised their target federal funds rate to 0.75%. In her speech Federal Reserve Chairman Janet Yellen stated that “Job gains have been solid in recent months and the unemployment rate has declined” in addition inflation has increased “considerably”. These are good signs that the economy is recovering at a strong pace than expected at the beginning of the year. They believe that it is growing strong enough that the Federal Reserve anticipates another 3 raise hikes before 2018 and continue into 2019, eventually bringing the US fed fund rates closer to their long-term average. This means the US will still experience below average interest rates for the next 2 years.

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