As the year comes to a close, we reflect on a season filled with gratitude, growth and transition.
This year has brought exciting developments to our team. At Hayes Vickers Private Wealth, we are committed to fostering a culture of growth and development for both our clients and our employees. We're excited to welcome new team members who share our dedication to providing exceptional service and we're confident their contributions will further enhance client experience. We invite you to visit our team page to see the friendly faces of our growing team.
We are excited to welcome Jen Vickers-Manzin as our Team Operations Manager. With her extensive experience in organizational leadership and a passion for client service, she will play a pivotal role in streamlining our operations and enhancing the overall client experience. Her ability to align team efforts with our values ensures we remain a trusted partner for your wealth management needs. With 25 years experience in health leadership, she brings a holistic lens to supporting clients’ future planning. We also take this moment to recognize Sarah Kilpatrick who is moving on to her next chapter. Sarah has been a valued member of our team and we wish her the very best in her future endeavors.
Last month, our investment team had the privilege of visiting the Toronto Stock Exchange, one of the most dynamic financial institutions in the world. Natalia, Mansi, Sarah and Finn explored the iconic trading floor, met with industry professionals, and gained behind the scenes insights into the exchange's operations.
Natalia was honoured to join other industry professionals in ringing the bell to mark the official daily opening of the markets. This tradition isn't only to signal the start of trading day but also to celebrate significant achievements, milestones or announcements. The experience offered valuable insights into the markets' inner workings for our investment team and emphasized the importance of being adaptable in today's everchanging economic landscape.
Market Update
Reflecting on 2024 and Looking Ahead to 2025
As 2024 draws to a close, we wanted to take a moment to reflect on the key themes that shaped this year’s investment landscape and share our outlook for the year ahead.
A Look Back at 2024
The year began with concerns about slowing global economic growth, but these concerns were eased by stronger-than-expected growth across many regions. The U.S. economy in particular showed resilience, supported by robust consumer spending, while global inflationary pressures moderated. Central banks began easing monetary policy, creating periods of volatility in bond markets as investors adjusted their expectations for the size and timing of rate cuts. Equity markets saw an exceptional year, with global stocks gaining over 20%, led by North American equities. International and emerging markets also achieved above-average returns. A standout theme for 2024 was the rapid investment and growth of artificial intelligence-driven industries, which are anticipated to drive significant future productivity. In the U.S., the “Magnificent 7” mega-cap technology stocks were pivotal, contributing nearly half of U.S. equity market returns. Despite Canada’s economic growth challenges and divergence to the U.S. economy, Canada’s stock market performed well, driven by contributions from the Technology, Materials, and Financial sectors. The financial sector had the highest contribution to returns as businesses and households demonstrated greater resilience under the weight of high interest rates.
Outlook for 2025
Looking ahead to 2025, we want to highlight our Global Insight 2025 Outlook. While valuations, particularly in the U.S. equity market, are relatively high following another year of strong performance, they remain supported by healthy earnings growth and solid economic projections for both 2025 and 2026. Additionally, a more favorable policy environment could pave the way for further gains.
In Canada, earnings growth is similarly expected to support a more reasonably valued stock market, though uncertainty remains. Challenges such as the effects of tariffs and an uneven economic recovery will require careful navigation. As immigration reaches new targets and productivity revives, we anticipate gradual progress, though some choppiness is likely. In fixed income, opportunities are more selective compared to last year due to lower yields and tighter credit spreads. Nonetheless, with a thoughtful approach, there remain compelling prospects for diversification and income generation.
Staying the Course
As we reflect on 2024, we are pleased with the positive contributions of both equity and bond markets to portfolios. While there are reasons for optimism heading into 2025, we are mindful of elevated market expectations and the possibility of heightened sensitivity to any disappointments in economic or earnings growth.
As highlighted in our Global Insight outlook, we remain committed to a balanced approach: “watchful, cautious, but invested.”
2024 Tax Reporting & Year End Reminders
Tax reporting season can feel overwhelming, but we're here to help make the process as smooth and stress free as possible. Whether you need guidance on accessing your tax slips, understanding key deadlines or optimizing your filings, our team is ready to support you every step of the way. The Client Tax Reporting Guide summarizes key mailing dates and tax slips that clients may receive from RBC Dominion Securities. A few key dates to know include;
- March 3 2025 - last day for 2024 RRSP Contributions
- April 30 2025 - last day to file your 2024 tax return without penalty
- June 15 2025 - last day to file your 2024 tax return without penalty if you are self-employed.
To help make tax time easier, your 2024 tax slips are available through RBC Wealth Management Online, including mutual fund tax slips issued by RBC (tax slips issued by other issuers outside of RBC will continue to be sent by regular mail). Simply log in to RBC Wealth Management Online to view your tax documents. For access to RBC Wealth Management Online or if you have any questions, please contact us. Your guide to 2024 tax reporting outlines the dates that tax slips will become available and other important information regarding account types.
Year-end deadlines
- Contributions must be made by December 27 2024 to your RESP to be eligible to receive the Canada Education Savings Grant for the calendar year. Contribution room can be carried forward to a maximum of $5,000 each for full grant eligibility. If the beneficiary is 17 years old this calendar year, it will be the final opportunity to meet the grant requirements. If you need assistance in transferring funds to your RESP, please click here
- If you open a the First Time Home Savings Account (FHSA) by December 27 2024, you can make the annual $8,000 contribution for 2024 in 2025, however the account must be opened in full by end of the year. These accounts are very interesting because contributions are treated like an RRSP contribution from a tax contribution perspective. The funds can grow tax free inside the FHSA. The contributions plus growth (dollars) can be withdrawn without any tax when the holder purchases their first principal residence. The money does not have to be repaid into the account (unlike an RRSP homebuyer withdrawal). We are highlighting this again because even if you don’t contribute to the plan immediately there is an advantage when opening the FHSA account a year prior to purchasing a home. That is, a double contribution can be made in a future year. For example, if you open the FHSA in 2024 and do not contribute, but your child decides to purchase a home in 2025, they will be able to make a $16,000 donation in 2025 before the purchase, and still get a full contribution receipt for the entire amount. For this reason, we continue to suggest opening FHSA now to take advantage of the extra contribution in a future year.
- The TFSA contribution limit remains the same for 2025, $7,000. There is no limit to how many years you can carry forward unused contribution room. Any unused contribution room from previous years accumulates and can be carried forward indefinitely.
- The RRSP deadline is March 3, 2025, for the 2024 tax season. We will send another reminder closer to this date.
Our warmest wishes to you and your loved ones over the holiday season. We hope your holidays are filled with joy, peace and memories, may the coming year bring happiness and success your way.
All the very best for 2025