The end of day Monday, March 3rd is the last day for RRSP contributions. Avril and I have reached out to all our eligible clients to determine if RRSP contributions make sense. We go through the pros and cons and potential tax savings for each of you. I’m sure we will have some stragglers, and we still have Monday to contribute and follow-up.
In terms of the economy, its always a good reminder that individual private spending is by far the biggest driver of the economy. Over 65% % of the economy in the US is attributed to the spending of consumers. By way of comparison, in Canada, consumers account for about 10% less.
The top 10% of earners—households making about $250,000 a year or more—are splurging on everything from vacations to designer handbags, buoyed by big gains in stocks, real estate and other assets in the United States.
Those consumers now account for 50% of all spending, a record in data going back to 1989. Three decades ago, they accounted for about 36%.
All this means that economic growth is unusually reliant on rich Americans continuing to shell out. Spending by the top 10% alone accounted for almost one-third of gross domestic product.
With the talks of tariffs and their implementation, as it relates to Canada: tariffs means our goods that are sent to the US will cost more for Americans. But given so much spending is tied to the wealthiest Americans, it might not effect the spending of the wealthiest very much. After all, Canada doesn’t sell Gucci, and Prada, or other expensive luxury goods that the wealthiest in the US purchase.
Speaking of luxury: the best and brightest in the cinema world will be in full display with ostentation fashion statements at the Oscars this Sunday. Personally, it hasn’t been a good year for my movie viewing, and I barely recognize many of the titles. This doesn’t prevent me from making some predictions! I’m going with Demi Moore in The Substance, which I want to see, Adrian Brody as best actor in the Brutalist, and the Dune Part 2 for best film, as it’s the only one on the list I’ve seen this year (on an airplane!)
Have a great weekend.