Ross McDonald

Here's a useful CRA link showing RRSP, DC and DB RPP, TFSA, etc limits for 2025. Note that for 2025 YMPE = $71,300, and YAMPE (additional tier of income subject to CPP contributions) is $81,200.

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Today’s Toronto Star column was meant to help our readers understand just how complicated it is for the CEO of a Canadian bank to appear before the House of Commons Environment and Sustainable Development committee, with a dose of my own research into what the banks have been doing with their oil and gas loan books since 2020. I’ve posted the first half below; if you want to see how it ends, you have the choice of buying the Wednesday hardcopy, signing up for the $65 (pre-tax rebate) annual digital subscription via the newspaper website, or accessing the piece via your Apple News App: As they prep for Thursday’s Parliament’s #Environment and #SustainableDevelopment Committee hearing, Canada’s big bank CEOs are walking a tightrope. Having been summoned by a Liberal/NDP-dominated committee to allay concerns about the impact of Canada’s financial system on the environment, one’s instinct will be to regale MPs with five minutes of virtuous stories about how your institution is trying to save the turtles. Banks certainly have a good story to tell, but given high energy prices, the CEOs may want to avoid painting themselves into the environmentalist’s corner. During an earlier hearing, some MPs tried to determine if our banks had reduced the availability of capital to oil and gas (O&G) companies, which — if true — could eventually lead to higher domestic O&G prices. Good question. For more than a decade, bank executives have taken useful steps to shrink their institution’s carbon footprint: new energy efficient headquarters, “green energy” purchases from Bullfrog Power, even cutting electricity use through a reduction in the number of computer monitors at their offices. More recently, they’ve wisely put their sizable balance sheets to work in support of renewable projects, such as wind power and solar farms. Twenty years ago, a Canadian wind farm developer might have just one door to knock on (Manulife) if it wanted to raise long term debt. Today, “sustainable finance” seems destined to generate more business for Canadian banks than the entire O&G industry. In the current political and media climate, one can sympathize with bank boards for appointing a “chief sustainability officer” and generating 60-page reports about creating “a more sustainable world.” If Starbucks is going to exit plastic straws, it’s natural that the omnipresent banking sector has wanted to “step up.” What gets less attention is that global banking regulators have spent the last decade jawboning the financial sector about “Breaking the tragedy on the horizon — climate change and financial stability,” as outlined in a 2015 speech by then-Bank of England Gov. Mark Carney. The same fellow who may well be a leadership candidate for the carbon-hating Liberal Party of Canada • Parti Libéral du Canada. https://lnkd.in/gEJCy4U5

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I’m excited to share RBC’s refreshed approach to community investment, an evolution in how we partner with communities to help unlock solutions to drive positive impact. Through Ideas for People and Planet™, RBC, RBC Foundation and RBC Foundation USA are committing C$2 billion in community investments by 2035 to help address three of society’s most pressing challenges: the environmental crisis, a rapidly changing workforce, and growing inequalities.   Our approach is guided by three key ambitions: ·       Support the transition to a net-zero economy ·       Equip people with the skills for a thriving future ·       Drive more equitable opportunities for prosperity As Dave McKay, our President and CEO, said, “This investment reflects our commitment to driving positive change on societal challenges that threaten our collective prosperity.”   We know our community investment partners have the insights and ideas that can drive progress on societal challenges, and that is why investing in these organizations is critical. Our updated approach is designed to be flexible and responsive, supporting our community investment partners’ ideas that seed, scale and sustain solutions to help address the evolving needs of our communities.   Applications open on November 1, 2024, and I encourage charitable and not-for-profit organizations to explore our new funding criteria and share their ideas.   Let’s work together to help drive positive change. For more information, visit https://lnkd.in/gP6NCBHh.   #IdeasForPeopleAndPlanet #CommunityImpact #RBC

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Banks have a responsibility to bring positive change to Canadian society. That’s what I’m so pleased that Concentra Trust, part of the Equitable family, has launched a national Registered Disability Savings Plan (RDSP) awareness campaign to educate Canadians about an underused tool that can be enormously empowering for those with disabilities. The need for this campaign is clear as RDSPs are far less understood than its TFSA or RRSP cousins. Nearly 40% of Canadians living with a potentially eligible medical condition don’t believe they make enough money to contribute. The reality is that beneficiaries actually don’t need to contribute a cent in order to get benefits from this program....that's right it is very different than simply the tax sheltering provided with TFSAs and RRSPs and it is unambiguous that everyone that qualifies will benefit by opening an RDSP. Add compound interest into the mix and you have a truly transformative construct. Many thanks to Lillian Bayne and Michael Hayes, who were instrumental in helping me and so many other Canadians understand how an RDSP represents opportunity, empowerment and stability for those who often need it most.    I’m especially proud of the role credit unions are playing in this effort, and we’re pleased to bridge Canada’s RDSP knowledge gap with them. Our values strongly align with the credit union ecosystem’s community focus and cooperative spirit, and the deeply rooted trust they have with their members will play a crucial role in spreading the word.   I encourage you to explore the resources we’ll share in the coming months and connect with your local credit union if you or someone you know could benefit from an RDSP. Our team has put together a helpful, high-level brochure to get started:  https://lnkd.in/gbFCzccw.   #ChallengerBank #CreditUnions #RDSP   

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This article provides a good discussion on the pros and cons of being public versus the pros and cons of being private and transacting with private equity. There are stories that argue convincingly for all sides of this debate. In my view, the truth lies somewhere in the middle - There are companies can and do thrive in the public markets, and others that wont. Same is true on the other side - There are companies (small and large) that thrive and grow and invest while remaining private. The geography, size, history, timing and specific business matter the most. More IPOs in Canada would be great. The country would absolutley benefit from a more robust public capital market. Government, regulators and market makers should think about ways to facilate that. Arguing blindly for or against IPO or PE doesn't make sense. The facts matter….

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🇨🇦 Canadian securities firms know how important the US investment market is, but without the proper US licenses, they are unable to participate. SEC Rule 15a-6 allows them to engage the US buy side under the supervision of a US chaperone, without having to register their own US broker dealer. And MPX Passport streamlines the US Chaperoning process (offered through MPX's broker dealer affiliate, Marco Polo Securities Inc.). If you're an IIROC member that's interested in distributing to the US buy-side and don't have a registered US broker dealer license, talk to us at Marco Polo Exchange today! 🇺🇸 #SECRule15a6 #regtech #sec #finra #iiroc #investmentbanking #capitalmarkets #crossborderfinance

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Bad politics and worse economics The Canadian government's new capital gains tax increase (with small new exemptions for "certain" entrepreneurs) is nuts! >> It will not raise the $19 billion they assume (many people with capital gains will find ways to move their assets out of the country or take other measures to dodge or minimize the tax). >>There may be a small increase in revenue for the government in the next two months as taxpayers sell some assets ahead of the June 25 deadline. These windfalls will not likely recur. >> It will not only affect the 400,000 "rich" Canadians that they say they are targetting. Many small business owners and entrepreneurs rely on accumulating value in their companies so that they can sell these to fund their retirement. Their capital gains taxes will increase by 50%, jeopardizing their retirement. >> And, most importantly, It will reinforce the view held by many that Canada is not open for business - that this government does not care about innovation, entrepreneurship, or small business. Mardi, I agree. What are Chrystia Freeland, Justin Trudeau, and the Government of Canada thinking??? This looks like a cynical attempt by this government to keep its job on the backs of the Canadians who are trying, against all odds, to create a more prosperous future for themselves and our country.

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There’s been increasing talk about the true costs of the regulatory capital burden on Canadian banks (hint: it goes beyond the banks into the #economy) and the competitive impact of lopsided adoption in the United States and Europe. Here’s my latest. #ICYMI, see the comments for a link to an interview I did in April with RBC CEO Dave McKay. #banks #capital #loans #cdnecon #regulation

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I’m pleased to report that the Globe Advisor magazine recently published an article I wrote. The Globe Advisor is a publication of the Globe and Mail focused on Canadian Investment Advisors (“IA’s”). My article speaks to what the Advisor’s role can be in the sale of their client’s business. It outlines the M&A sale process, speaks to the IA’s role and mistakes to avoid. Hopefully it will be useful information and encourage IA’s to refer deals to AIM Group. #mergersandacquisitions #manda #wealthmanagement Globe Advisor link (requires a subscription): https://lnkd.in/dJquGeqA Link to our website (no subscription required): https://lnkd.in/dtQDxW6K

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#Entrepreneurs and #innovators forgo compensation in the short term in order to benefit from the companies they build. Reducing capital gains disincentivizes innovation and drives high growth startups out of Canada. #capitalgains #budget2024 Canadian Lenders Association

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Thank you to Daina Lawrence and the Globe and Mail for reaching out to talk about Bill C-59 and its impact on intergenerational transfers of incorporated businesses and farms between generations. Kudos to the article co-contributors Jasmin Guenette and Clara Pham. If you are a shareholder of a family run business or farm and are interested in succession/intergenerational transfer, please reach out to your wealth and tax advisors to discuss, as time and details matter. #RaymondJamesLtd #intergenerationaltransfer #Canadianfarms #Canadianenterprise

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Productivity is a problem in Canada because it isn't anyone's priority. Households expend most of their resources chasing real estate. Politicians make low-risk bets on exciting narrow groups of voters—and the kinds of policies that will be needed to move the needle on productivity will upset narrow groups of voters. The biggest companies and investors put dividend increases and fat profit margins ahead of investing for the longer term. Another example: Ottawa's obsession with financial stability. Too little thought is given to the opportunity cost of making sure no bank will ever fail. However, there is some evidence that the banking regulator is taking a step back from its safer-than-safe approach to policy. It would be a baby step in the right direction. My latest: https://lnkd.in/e2ED8E6Y

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I’m reflecting on the steady momentum behind the Call to Purpose. Nearly 200 organizations, including Libro, have stepped up to show that business can—and should—be a force for good. At Libro Credit Union, purpose is more than a value—it’s the heart of how we do business. Together with the Canadian Purpose Economy Project we’re working to redefine success beyond profit and build a better future for generations to come. The call is clear: let’s create an economy that works for everyone. I invite you to join us on this journey: https://lnkd.in/g56K4ryK #PurposeEconomy #PurposeInBusiness #CallToPurpose

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🚨 New podcast alert! For big donors, learn how to unlock smart giving through donor advised funds (DAFs). 👇🏽 In the latest episode of the Mind Your Money podcast, I interview Ian Currie MFA-P™ from Canada Gives about what a Donor Advised Fund (DAF) is and why wealthy Canadian donors may want to consider it over setting up their own foundation. Check it out here: https://lnkd.in/d8jrPz9t #plannedgiving #donor #donate #charity #cpa #cpacanada #cpabc #tax #taxes #taxplanning #taxlaw #taxlawyer #estateplanning

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Is over-cautious financial regulation making Canada's productivity crisis worse? Kevin Carmichael tackles this question in his latest for The Logic. As Jean-Francois Perrault puts it: "There is an economic cost to making an already-safe system safer." It's time that we focus financial regulation on lessening costs and increasing consumer-choice, alongside safety and stability. https://lnkd.in/erhwBmyw

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The following Q&A appeared in this week’s edition of my popular investing newsletter, Internet Wealth Builder (IWB). As you’ll see, it’s nothing if not timely. Q – With Trump’s tariff increase policy and a weakening Canadian dollar, will it be better to invest in US stocks/ETFs in US dollars? On the Canadian side, which sectors will benefit in such an environment? – M.M. A – The Canadian dollar is at its lowest level in four years and is vulnerable to further losses if Mr. Trump hits Canada with his America-first tariff policies. Clearly, the market sees it as a risk. Owning US-dollar denominated securities will provide protection against a further drop in the loonie, but remember this is a two-way street. If the Canadian dollar recovers, you’ll face a foreign exchange loss. As for the second part of your question, no one really benefits from tariffs but there are some sectors that probably won’t feel much impact. Remember that Trump’s primary concern is to protect or create domestic jobs. Imposing tariffs that don’t achieve that does nothing but drive up costs and fuel inflation. That suggests that Canadian natural resources that are scarce in the US or that are strategically important to Washington should not be affected by Trump’s tariffs. Oil is an example. Gold is another sector that should be immune from trade wars. The metal is priced in US dollars and jobs can only be created where there are viable deposits to be developed. Banks and insurance companies, retailers, REITs, and utilities should also see little impact from tariffs. Also, companies that are not in the manufacturing business are not normally targets for tariffs, such as international consulting firms like Stantec, CGI, and Descartes Systems Group. – G.P. Do you have a question about your portfolio that you’d like me to weigh in on? If so, consider becoming a subscriber to one of both of my newsletters, IWB and The Income Investor. As a member, you’ll have the opportunity to ask me anything about your investments, and I’ll provide actionable responses designed to help you build your wealth. Learn more @ https://bit.ly/3njE8Qb and then subscribe @ https://bit.ly/2GzHZb0 💹 📸 Newsweek #MemberBenefit #BuildingWealth #YouAskIAnswer

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CCGG’s Birthday is October 31, 2002. Exactly 22 years ago, on Thursday, October 31, 2002, the Coalition was announced in the Globe and Mail. At the time, CCGG’s co-founder, Stephen Jarislowsky, argued on behalf of institutional investors that in the face of corporate governance failures:  “It is we who should have elected the boards and placed the directors who truly represent all shareholders alike. We failed, but now have a measure of resolve to act together, not to run the corporations, but to make sure they have honest, smart, knowledgeable and experienced directors to assure that companies are well managed for shareholders, and the public, employees, etc.” A call to action with a long-term and sustainable world view that still guides CCGG’s work and mission. 

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Latest in Means & Ways Canada's financial regulator said Friday it will delay imposing stricter capital requirements on commercial banks for a year as part of a planned phase-in of Basel IV reforms. The Office of the Superintendent of Financial Institutions was scheduled to implement the higher capital requirements well ahead of peer countries, however the one-year delay will give the regulator time to consider the implementation timeline in other jurisdictions, according to a statement released on Friday. Scotiabank estimated the new capital rules could have forced banks to shed as much as $260 billion in assets by 2026. One-year won't be enough, and OSFI appears to be buying some time. But it’s nice to see that Canadian regulators occasionally recognize macroeconomic context and competitive landscapes. Here is link to statement: https://lnkd.in/eBN_2PV8 Here is Scotiabank report flagging concerns: https://lnkd.in/esegHYzj

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