Fred Pye

Global corporates hold potential for capital appreciation and higher yield, to complement core bonds. Learn more about Mackenzie Global Corporate Fixed Income Fund: https://ow.ly/eKEH30sEcZS

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Global corporates hold potential for capital appreciation and higher yield, to complement core bonds. Learn more about Mackenzie Global Corporate Fixed Income Fund: https://ow.ly/gjJu30sEikE

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Annual TFSA contribution limits are going up in 2025.

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What can investors expect in 2025? Will the U.S. bull market continue its run? Will the headwinds subside for Canada? And what are some key long-term opportunities for investors? Watch the video below for takeaways from our Global Insight 2025 Outlook report.

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Condo sales across the GTA and Hamilton area continues to struggle with sales in Q2 down 70% from the 20-year average and 66% from Q2 in 2023. Out of all of the launched presale units in 2Q2024, only 17% sold! Due to the lack of sales, there are now over 25,000 units for sale – it seems sellers have not adjusted their expectations down to where demand sits. There are an estimated 10,000+ units being completed in the second half of this year, adding to the supply-demand imbalance. From the Globe and Mail: “In Toronto, the average price per square foot was $1,529 in the quarter ended in June, according to Urbanation. That is more than double the $606 price per square foot in 2014. In the regions surrounding the city, the average price per square foot was $1,153 in the second quarter of 2024, compared with $484 in 2014.” Would you pay over $800k for a 550-sq. ft. condo? To me, that’s a tough value proposition. If you had 20% to put down on that condo, say you got it for $800k even, your mortgage would be $640,000. At 5%, that puts your monthly payment at over $3,700. Plus condo fees, plus taxes, plus…etc… you’re well over $4,200 per month. Compare that to the average monthly rent of a one-bedroom of ~$2,500. The natural justification is that you’re not building any equity while your rent. Note that almost ¾’s of your mortgage payment goes to interest, not equity, for the first 10-years. For renters, you can take that difference ($4,200 - $2,500 = $1,700/mo.) and save/invest it. This simply suggests that prices at these levels are tilting the math towards renting.

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In their latest update, RBC GAM's Eric Savoie and Daniel Chornous suggest that with cooling inflation and moderating growth, the global economy appears to be on a path toward a soft landing rather than a recession:

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For our last (of 4) strategy pieces on advanced RRSP planning, we look at the “meltdown strategy”. This strategy aims to replace excess RRSP assets with non-registered assets, but is the riskier that the others we have discussed because it uses an investment loan (leverage). The meltdown strategy follows the same principal as the preceding posts – it can be more tax efficient over the long-term to spread out RRSP/RRIF withdrawals over more years. This, of course, depends on both your and your spouse’s retirement date. We talked 2-weeks ago about how a spousal RRSP being key if you think your spouse will retire before you…but I digress. For the meltdown strategy, you would obtain an investment loan to be invested in a non-registered account. You would then pay the interest component of the loan by withdrawing (deregistering) the exact same amount of funds from your RRSP. From a tax perspective, you are accomplishing an offsetting income inclusion (RRSP withdrawal) with an interest expense deduction from the loan – because the cash from the loan is invested in a non-registered taxable account, you can write off the interest. Said another way, you’ve created an offsetting income-expense balance, at least in theory (there are withholding taxes on RRSP withdrawals so sizing is key), which is why you should consult your tax professional before implementing anything like this. It is quite simple to create a tax-efficient non-registered account strategy targeting capital gains. Even heavily discounted bonds will accomplish this quite nicely. This is a complex strategy so you’ll need someone reliable to model this out for you, but it has the potential to help you restructure your savings if you find yourself very RRSP heavy.

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Whether building out a ladder from scratch, or filling a specific maturity bucket, RBC Target Maturity Bond ETF's can add scale and efficiency to your practice. While our Canadian tickers have been around since 2012, we are excited to share RBC iShares' NEW RBC Target Maturity U.S. Corporate Bond ETFs. These tickers invest in a basket of high-quality U.S. corporate bonds, with maturities ranging from 2025 to 2030. Explore the expanded lineup of RBC Target Maturity Bond ETFs:

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What you need to know about the Bank of Canada’s latest rate cut. Josh Nye, Canadian Fixed Income Strategist, shares three key takeaways.

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🔍 Investment Management vs. Holistic Financial Planning: Seeing the Forest for the Trees 🌳💼 In the world of finance, it's easy to get lost in the details of investment management without considering the broader financial landscape. Let me share a story that illustrates the difference between focusing solely on investments and embracing holistic financial planning: 🌟 The Tale of Two Investors: Meet Alex and Jenny. Both are diligent savers with a passion for building wealth. Alex opts for investment management only, diligently tracking market trends and optimizing portfolio returns. Jenny, on the other hand, embraces holistic financial planning, partnering with a trusted advisor to craft a comprehensive financial roadmap. 🔍 The Narrow Focus: Alex, driven by the allure of maximizing investment returns, dedicates all efforts to fine-tuning portfolio allocations and chasing market gains. While Alex's investment prowess yields impressive short-term gains, there's a crucial component missing from the equation: a holistic view of financial well-being. 💼 The Big Picture Perspective: Jenny takes a different approach. Recognizing that financial success extends beyond investment performance, Jenny collaborates with her advisor to address broader financial needs, including retirement planning, tax optimization, risk management, and estate planning. 🌳 Seeing the Forest for the Trees: As time passes, the limitations of Alex's narrow focus become apparent. Despite stellar investment returns, Alex realizes too late the importance of comprehensive financial planning. Meanwhile, Jenny thrives, confident in her holistic strategy that considers all aspects of her financial life. 🔑 The Key Takeaway: While investment management plays a crucial role in wealth accumulation, true financial success lies in embracing holistic planning that considers the bigger picture. By prioritizing comprehensive financial planning, individuals like Jenny position themselves for long-term security and peace of mind. Are your financial objectives clearly defined in a customized financial plan? If not, let's connect. #BeWellAdvised #FinancialPlanning #InvestmentManagement #WealthManagement #PersonalFinance https://lnkd.in/ePZydm-m ​

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Even with the new mortgage rules, for the most part, the real impact is on high-income earners as per this article from Rob Carrick and Tuli Parubets. For G&M subscribers, the full article is here: https://lnkd.in/gcKcaMin

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