A few topics our newsletter touches on this month:

• Our Thoughts:  *new* FHSA, Estate Planning & US equity outlook
• Other Links: Disruptors podcast, Global Insight (monthly)

Our Thoughts:  *new* FHSA, Estate Planning & US Equity outlook

April saw positive returns across equity markets – but that didn’t mean an end to volatility which remains the norm especially as concerns around the banking sector in the US stay top of mind. In a bit of a departure from our usual commentary we want to highlight a few key items that we think are worth your time this month: First Home Savings Accounts (FHSA), Estate Planning videos and a summary of last week’s US equity presentation we hosted in Ottawa.

By the numbers (April): The TSX was up 2.9% and the S&P 500 was up 1.6% (up 1.8% in Canadian dollars). The Europe, Australia & Far East index (EAFE) was up 2.7%, while the Emerging Markets index was down 1.1%. The tech-heavy NASDAQ was up 0.3% in Canadian dollars. The Canadian bond universe was up 1%.

First Home Savings Account (FHSA):

As announced in Budget 2022 by the federal government, RBC Dominion Securities is now able to open FHSA accounts for eligible clients (or their children). You will find a summary document with more detail attached to this newsletter “FHSA.pdf”.

• Must be over 18 and either never owned a home or have not owned one as your principal residence in the current calendar year or any of the four preceding calendar years.
• Lifetime limit of $40,000 with an annual contribution limit of $8,000. You only accrue contribution room if the account is opened.
• You are able to claim a deduction for contributions made during a calendar year. Income as well as capital gains earned are not included in your annual income for tax purposes. Qualifying withdrawals (to buy a home) are non-taxable.
• If funds are not used to purchase a home, they can be transferred on a tax-free basis to an RRSP or RRIF.  Transfers to any other type of account or non-qualifying withdrawals for any other purpose would be added to your annual income.

If you would like to discuss opening an FHSA before the end of the year, please reach out to book a meeting 613-721-8928.

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