Hazzardous Notes Newsletter for Jan/Feb, 2022

February 25, 2022 | Kevin J. Hazzard


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Not sure who lives here, but I had a good chuckle when I saw their snow display this week. We can all use a bit of humour these days...

Opening Notes

Welcome to the first edition of the Hazzardous Notes newsletter for 2022.  After being pulled back and forth from our office the past couple of years due to ongoing Covid restrictions, we are hoping that we can stay back in the office for good this time. It does feel like things are beginning to normalize, so we remain hopeful. We have just received notice that we can start meeting clients in our personal offices again. That will be a big help.

Not sure how closely everyone watches the production of these newsletters (if at all?), but you may have noticed that we did not produce our regular November/December issue at the end of last year. I have been dealing with a pinched nerve in my neck over the past number of months, and in early December the nerve pain in my neck went from a bit annoying to intensely painful for several weeks. Turns out it is not the best idea to spend four hours looking up and painting your kitchen ceiling with a pinched nerve in your neck - who knew? Things have eventually settled back down and I am back to my neck pain being just a mild "pain in the neck" again. Hopefully this too will pass...

There have been some significant changes happening in the bond and stock markets to start the year, especially in response to the situation in Ukraine, but also in response to growing inflationary pressures on both sides of the border. The tragedy in Ukraine has been a rude awakening to the world that peace and freedom should never be taken for granted. It unfortunately introduces some anxiety and uncertainty, as we don't know exactly how things will develop there. This is reflected in greater market volatility and spiking oil prices.  As if the Ukraine conflict isn't enough to be thinking about, we were already dealing with signs of inflation and central banks raising short-term interest rates to combat it.  Most stock and bond markets are down YTD in anticipation of 5-6 quarter point rate increases this year. Canada, with our heavier exposure to energy and resources, has demonstrated some relative out performance for a change.  If short-term rates don't rise as quickly or as far as anticipated, and/or we see improvement in the Ukraine situation, we may see some of this weakness unwound as the year progresses.

My family is heading to Florida for March break so we will be off the week of March 14th.  Craig and Michelle will be here if you need anything while I am gone.  Have a great March/April.

Trusted Contact Person (TCP)

If we haven't already discussed this concept with you, we will be doing so soon. We are required to steadily make every client aware of this new initiative to provide us with the name of a "Trusted Contact Person" that we can contact should we suspect that you are being financially exploited. There is no requirement to provide a name, but we want every client to know about their option to provide this to us. Your Trusted Contact Person’s role is to provide or confirm information only – they do not have any authority over your account, cannot make decisions on your behalf, and will not be given access to your detailed account information. We will not ask your Trusted Contact Person for information unless we believe it’s absolutely necessary to help you. This report will hopefully explain all this for you.  Follow this link to be connected to the report (press the back button on the browser to return to the newsletter): Trusted Contact Person

Understanding your RRSP Deduction Limit statement

Shortly after you file your annual tax return, you should receive each year, a Notice of Assessment from the Canada Revenue Agency (CRA).  As part of that assessment, the government will include a RRSP deduction limit statement to help you determine the amount you can contribute to your RRSP.  For the 2021 tax year, you can make a contribution up to March 1, 2022 up to 18% of your 2020 income to a maximum of $27,830 (not including unused room from previous years).  This will increase to a maximum of $29,210 for the upcoming 2022 tax year.  Again, lots of good information in here to help you with planning your RRSP contributions.  Follow this link to be connected to the report (press the back button on the browser to return to the newsletter):  RRSP Deduction Limit Statement

Old Age Security (OAS) & other government income sources

For those approaching age 65, you may have questions about the Old Age Security program (OAS).  This report will give you a good understanding of the OAS pension and related benefits that you may be entitled to receive.  It also covers when these benefits may be reduced and some good strategies to help minimize the reduction.  Follow this link to be connected to the report (press the back button on the browser to return to the newsletter):  Old Age Security and other govt income sources

RBC Special Report - Russia/Ukraine situation

We emailed this report a couple of weeks ago, but wanted to include it again here in case you missed it. The report provides some good historical context for the Russia/Ukraine relationship. It also provides some helpful historical context on the markets and how markets have historically responded in times of war.  Follow this link to be connected to the report (press the back button on the browser to return to the newsletter):  RBC Special report (Russia and Ukraine)