The Petrov Wealth Management Group trusts you are having a strong start of the year. As we do every year in preparation for RRSP season and Tax season, we prepared a list of items to keep your financial household in order.

 

We call it “Financial housekeeping”. Here we go…

 

(Clients) We will send you a 2023 year-end portfolio update report

You will receive a consolidated 2023 year-end portfolio update report by email. By “consolidated” we are referring to a combined view all the accounts in your household in one simple report showing you asset allocation, portfolio history, returns and market commentary.

You will also receive a separate set of documents by mail showing you figures separated by account and separated by currency. Clients have given us the feedback that those reports may be confusing which is why we also send you the consolidated view above. These reports are sent to you as a regulatory requirement.

To understand the status and progress of the portfolio overall, we recommend referring to the simpler consolidated report that will be sent by Rina, our associate.

Tax-Harvesting Done

We went ahead with tax-harvesting for all of our clients’ non-registered accounts. We crystalized capital losses and simply “swapped” the investments for 30 days in order to respect the CRA superficial loss rules. We then went and reverted back to our model portfolio positions. We were able to create a silver lining for our clients from a tax perspective. You can apply those capital losses to offset capital gains indefinitely in the future or 3 years back. Be strategic with the timing and consult with your accountant as well.

2024 Handy Financial Planning Facts

You will find attached a summary sheet of relevant financial planning information for the year 2024. Print this and place it somewhere visible in your office or your home.

https://ca.rbcwealthmanagement.com/documents/897053/4095720/2024+handy+financial+planning+facts.pdf

2024 TFSA Contribution Room *(Please contact Rina Kalsi at 514-630-7499 or rina.kalsi@rbc.com to make your contribution)

All Canadians who are over 18 years of age can contribute $7,000 to their TFSA for 2024. We would encourage you to verify if you also have any unused TFSA contribution room from the past and top it up. You can find out what your unused TFSA contribution room is through CRA Online. The total cumulative contribution room since inception is $95,000 CAD.

Maximize your TFSA as early as possible to benefit from Tax-Free investing as long as possible. The earlier you make the contribution, the longer the investments can benefit from being sheltered in a tax-free environment and enhance growth.

2023 RRSP Deadline *(Please contact Rina Kalsi at 514-630-7499 or rina.kalsi@rbc.com to make your contribution)

We strongly encourage you to check this task off your checklist early before the RRSP season deadline. The deadline for contributing to your RRSP for the 2023 tax year is February 29th, 2024. Find out what your available room is and contact us to help you make the contribution.

If you have significant unused RRSP contribution room we can strategize on how to use it optimally. Don’t wait until the last minute! Get this task out of the way as early as possible…

***Please note that if you will be making a transfer from a different banking institution (bill payment), you will need to make the transfer 5 business days prior to the deadline.

 

Have a look at this video of our Senior Portfolio Manager, Alexander Petrov:

Tax-Free First Home Savings Account (FHSA)

A new account is now available for first time home buyers to save $40,000 CAD on a tax-free basis. Similar to an RRSP account, contributions would be tax-deductible, and withdrawals will be non-taxable just like a TFSA account.

In addition to the lifetime contribution limit of $40,000 CAD, you can make a $8,000 annual contribution per year.

While we don’t control the economy outside, we control our household’s economy by keeping our financial house in order!

We primarily take on new clients by referral.

Let us know if we can be of assistance to a loved one or a colleague.

Cheers,

Alexander Petrov