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  • 2024 Federal Budget Announcement – Changes to Capital Gains Inclusion Rate

    Every Federal Budget announcement tends to focus on one central tax consideration that draws the attention of Canadians.  On April 16th, 2024, the Government of Canada released its 2024 Budget and interest surrounding the capital gains inclusion rate garnered significant attention because of noteworthy changes and potential planning opportunities. Under current tax rules, when an individual disposes of a capital property (excluding your principal residence) for a profit, only half (50%) of the capital gain is included in your taxable income. Effective June 25th, 2024, the capital gain inclusion rate will increase to 2/3 (66.7%) of capital gains realized on any amount above $250,000. This means that capital gains realized under $250,000 as of June 25th, 2024, will remain at the 50% inclusion rate. Corporations and trusts have no tax threshold and all capital gains earned as of June 25th, 2024, will be subject to the 2/3 (66.7%) inclusion of income. The delay in implementing the increase in the capital gains inclusion rate to June 25, 2024, allows individuals, corporations and trusts the opportunity to capture their capital gains at the 50% inclusion rate. Triggering these gains prior to the June 25, 2024, deadline may save a significant amount of tax but there are other factors to consider as it pertains to an individual’s financial plan. The 2024 Federal Budget announcement to increase the capital gains inclusion rate has generated a lot of attention and questions surrounding the financial plans of many Canadians. In continuing to proactively plan, it is important that you discuss your unique financial situation with your financial advisors so that they may provide a recommendation of the potential tax impact of the 2024 Federal Budget.

  • I’ll be back! – Mr. Bond

    “I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” – James Carville, Political Strategist Global bond markets are larger in size than the global equity markets and since the representation of institutional investors is greater in the global bond markets as compared to the equity markets, bond markets price action is considered more calculative and unemotional. Market pundits therefore often look at the bond markets for cues to gauge what might transpire in the equity markets. Equity markets tend to be more volatile and usually move very fast along with the developing narratives. However, equity markets typically do not stay in disagreement with bond markets for too long. For the first quarter of the year, equity markets marched ahead in anticipation of the nearing policy pivot and support from better-than-expected earnings growth reported by corporates. Bond markets, however, continued to reel under the pressure of rising yields as expectations of policy rate cuts continued to recede on the back of higher-than-expected inflation readings and better-than-expected economic data. As the inflation data persisted, equity markets finally took notice in the month of April and the S&P 500 Index corrected by -5.5% and the S&P TSX Index corrected by about -3.2%. Better-than-expected earnings, however, from the index heavyweights put together with reporting of more benign economic data during the second half of the month brought the equity investors back to the markets. In the United States, April was the third consecutive month where the reported headline inflation came in higher-than-expected. At +3.5% for March (reported in April), the headline inflation was ahead of the expected +3.4% and rose from +3.2% for February (reported in March). For Canada, the number was less concerning as though the headline inflation advanced to +2.9% in March (reported in April) from +2.8% in February (reported in March); it was in line with the expectations and had been falling for the previous two months. The bond markets bore the brunt of disappointing data on inflation as bond yields jumped on both sides of the border. Year-to-date, the yield curves have continued to shift upwards in the United States and Canada (See Figure 1 and 2), disappointing the investors that had bought aggressively into the “bonds are back” narrative of late 2023. Figure 1: United States – Yield Curve (1st Jan 2024 to 8th May 2024) Source: Bloomberg Figure 2: Canada – Yield Curve (1st Jan 2024 to 8th May 2024) Source: Bloomberg The heightened bond volatility and its increased correlation with equity markets during the times of market stress has further raised questions whether Mr. Bond’s usefulness in multi asset portfolios is on a decline?  A sustainable decline in bond yields is a precondition for the asset class to reassert its importance in the portfolios which we think will be met if: a) inflation resumes is downward trajectory without signs of incremental stress on the economic growth; and/or b) economic growth decelerates, unemployment rises, and therefore the probability of policy rate cuts increases again. In the absence of these signs, the bond yields are likely to stay choppy with the ebb and flow of economic data and Central Banks’ guidance, in our view. In the latest Federal Open Market Committee (FOMC) meeting, the committee decided to hold the interest rates at +5.50%. Bank of Canada too held the policy rate at +5.0%. The United States Federal Reserve chair, Jerome Powell, noticed that the recent data suggests the progress on inflation has stalled, however, cited several reasons why he remains optimistic that inflation will be back under control. Labor market is coming back to a better balance and expectations that the contribution of shelter inflation component of inflation calculations will eventually decline as current rents paid begin to reflect in the CPI calculations are the reasons to stay optimistic that “sticky inflation” narrative might not stick for long. The FOMC committee also decided to taper off the quantitative tightening by deciding to reduce the runoff to $25 billion in Treasury bonds each month from the current $60 billion per month from 1 June 2024. This did provide support to the bond markets during early May so far, however, in the current environment, we think continued progress on inflation and/or deterioration in the economic growth and hence a shift in policy rates are the conditions where the narrative of “bonds are back” can hold sustainably.

  • RESPs and Budgeting for your Child Attending School this Fall

    We often receive questions surrounding the savings aspect of a RESP. There are also many considerations when it comes to withdrawing those funds and budgeting for your child to attend school.  Over the past 24 years, tuition at Ontario Universities has risen over 150% or 6.5% annually, far surpassing the Canadian inflation rate during that same period.  This does not include the cost of housing for students which, depending on the city, can be twice as much as tuition. First, you need to manage expectations.  Sit down with your child and go over the plan, the costs, and the funds available for their education.  Discuss with them what they will be contributing and what you will be contributing.  It is important to remember that school, especially in the first year, is a full-time job. Some kids may not be able to commit to working very much during the school year and may not be able to earn any extra income until the summer months. Plan out a budget.  Withdrawn funds from the RESP (Grant and Growth) are taxable to the child while the original contributions in the RESP are non-taxable.  Plan to take the funds out of the RESP over the planned years of education so that taxation is not onerous and to ensure you are not leaving any money left in the RESP at the end of the education period (unless it is a family plan and there are more children who will be attending school). Work with your child to create a suitable need and wants budget.  They should be able to enjoy these years, but they should also have some skin in the game if they want to do a lot of the extras.  Make sure to include items like travel, groceries, cell phone, entertainment, rent, utilities, tuition, laundry, and insurance. If your child has earned any scholarships and is attending school full time, those scholarships will not be taxable. If they are attending school part time or don’t complete their semester/year, those scholarships will be taxable. Be a voice of reason.  Newfound freedom brings adventures and activities to take part in.  As parents, we want our kids to be responsible and have autonomy, but we also need to ensure they are safe and don’t get caught up in something that could deplete their education funds.  Be aware, communicate, and educate them about scams and fraud.  Work together to make sure their bank accounts are monitored. If you have questions about RESPs or budgeting, you can reach out to your Financial Advisor.

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  • SERVICES | O'Farrell Wealth

    HOME SERVICES ADVANTAGE CARRIERS ABOUT US More CONNECT WITH US Services Group RRSPs and Healthcare Benefits: proactive tools to provide your employees with greater financial security and access to health care. If you’re unsure about how to add an Employee Benefits plan to your business, an O’Farrell Financial Group Broker can help you. ​ We take the time to learn about you and your business and take the guess work out of benefits planning. Since we have access to a wide variety of group insurance carriers, we can create a tailored plan for your unique business. Group Retirement Savings Plans By offering Group Registered Retirement Savings (RRSP) Plans, employers are investing in their employees and their business. Group RRSPs can help your employees proactively save for their future, and provide tax savings for your business. You choose the design of the Group Retirement Savings Plan that best suits your business. ​ Options include Group RRSPs, Deferred Profit Sharing Plan, Tax-Free Savings Accounts, Employer Matching or Employer Non-contributing plans. Group Benefit Plans Employees realize the value of Group Benefits Plans, and employers see the difference it makes in the lives of employees; healthier employees results in less turnover and absenteeism. Examples of available products include: ​ Insurance: Life, AD&D, Critical Illness, Disability Long-Term Coverage Paramedical Healthcare and Drug Coverage Healthcare Spending Accounts Dental Care Plans We’re here to help your business thrive! Reach out to us today for more information. Practical Plans for Your Unique Business Our Employee Benefits Division specializes in providing our clients with the best possible solution for their unique needs. We take the time to learn about your business and build a strategy that fits your needs. ​ As group brokers, we have access to a wide variety of insurance carriers and work with them to tailor a customized plan. This allows our Team to obtain the most cost-effective solution for your business. We offer ongoing support and regular reviews to keep you updated on the latest product offerings and allow your benefit plan to adapt along with your business. Protect your most valuable asset with Employee Benefits Plans and Group Retirement Savings Plans. Contact us for a complimentary quote to help you provide the best compensation plan for your Team. REQUEST YOUR QUOTE NOW We are regionally located across Eastern Ontario and the Ottawa Valley to serve you. Feel free to contact us toll-free: 1-877-989-1997 BROCKVILLE 613.865.8080 40 Brock Street Brockville ON CORNWALL 613.935.6254 108 Second Street East Unit 103 Cornwall ON ​ KEMPTVILLE 613.258.1997 292 County Road 44 Kemptville ON ​ RENFREW 343.361.0212 1035 O'Brien Road Unit 14 Renfrew ON ​ WINCHESTER 613.774.2456 510 St. Lawrence Street P.O. Box 518 Winchester ON Looking for information regarding investments and wealth planning? Visit O’Farrell Wealth & Estate Planning. O'FARRELL WEALTH & ESTATE PLANNING © 2023 | All Rights Reserved ​ We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. ​ Investments and wealth planning are provided through Assante Capital Management Ltd. (“ACM”). Mutual fund products are provided through Assante Financial Management Ltd. (“AFM”). Employee benefits and pension consulting services, mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. AFM, ACM, and/or its affiliates are not responsible for any service or product provided through O’Farrell Financial Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation (excluding Quebec).

  • ABOUT US | O'Farrell Wealth

    HOME SERVICES ADVANTAGE CARRIERS ABOUT US More CONNECT WITH US Our Team We are proud of our dedicated Team members who provide top-tier services with professionalism every day. Our Team Request your quote anchor Dermid O'Farrell President & Managing Partner O'Farrell Financial Services Inc. Alex Zewuster Director of Operations & Partner O'Farrell Financial Services Inc. Andrew Beek IT Manager O'Farrell Financial Services Inc. Donna Lee O'Farrell Operations Consultant & Partner O'Farrell Financial Services Inc. Geoff Carter Employee Benefits Broker O'Farrell Financial Services Inc. Kari Ross Operations Associate & Partner O'Farrell Financial Services Inc. Christine Aubin Branch Practices & Partner O'Farrell Financial Services Inc. Erin Campbell Employee Benefits Group Broker O'Farrell Financial Services Inc. Jennifer Shaddick Finance Associate & Executive Associate to Dermid O'Farrell O'Farrell Financial Services Inc. Andrew MacKinnon Director of Finance & Partner O'Farrell Financial Services Inc. Jayne Lavergne Receptionist & Records Coordinator O'Farrell Financial Services Inc. Jenna Piche Administrative Associate O'Farrell Financial Services Inc. OFSI Team The O'Farrell Story Most businesses have a story behind them, and O’Farrell is no different. In 1997, Dermid and Donna Lee O’Farrell founded the company with a belief that when relationships are strong, people will have the confidence to act on their plans. Recognizing that financial planning would be deeply valuable to the people in their community and surrounding area, they set out to build a company that would provide clients with an experience of quality advice, professional discipline, and compassion; something that their clients could believe in, something they can trust. ​ From the beginning, the company has grown steadily each year and has proven that their belief was one that was shared by their clients. While it was not without its challenges and hardships, Dermid and Donna Lee put in the tough work that is required to build any meaningful business. Now, as the company celebrates its’ 27th year in business, they have attracted a Team that shares their commitment to relationship and their desire to help clients plan for their financial future. Ready to discuss how an employee compensation plan can enhance your business? Our Group Benefits Brokers can provide a no-cost, no-obligation analysis to evaluate your group retirement savings plan and benefits needs. Please contact us using one of the methods below. O’Farrell Financial Services Inc. ​ 613.774.2456 Toll-free: 1.877.989.1997 Fax: 613.774.0371 Monday - Friday 8:30 a.m. - 4:30 p.m. benefits@ofsi.ca We have five locations in Eastern Ontario and the Ottawa Valley to serve you. Name Phone Number City / Town Email Address Prefered Method of Contact Reason for Contacting Us Preferred Office Location Who would you like to connect with? SEND CONTACT REQUEST Thanks for submitting! By providing your email address, you provide O’Farrell Financial Services Inc. with your express consent to receive Commercial Electronic Messages related to finances and/or investments that may be of interest to you. If you no longer want to receive emails of this nature, you can withdraw your consent at any time by contacting marketing@ofsi.ca . Office Locator We are regionally located across Eastern Ontario and the Ottawa Valley to serve you. O’Farrell Financial Services Inc. 40 Brock Street, Brockville, ON 613.865.8080 O’Farrell Financial Services Inc. 108 Second Street East, Unit 103, Cornwall, ON 613.935.6254 O’Farrell Financial Services Inc. 292 County Road 44, Kemptville, ON 613.258.1997 O’Farrell Financial Services Inc. 1035 O’Brien Road, Unit 14, Renfrew, ON 343.361.0212 O’Farrell Financial Services Inc. 510 St. Lawrence Street, P.O. Box 518, Winchester, ON 613.774.2456 Looking for information regarding investments and wealth planning? Visit O’Farrell Wealth & Estate Planning. O'FARRELL WEALTH & ESTATE PLANNING © 2023 | All Rights Reserved ​ We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. ​ Investments and wealth planning are provided through Assante Capital Management Ltd. (“ACM”). Mutual fund products are provided through Assante Financial Management Ltd. (“AFM”). Employee benefits and pension consulting services, mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. AFM, ACM, and/or its affiliates are not responsible for any service or product provided through O’Farrell Financial Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation (excluding Quebec).

  • O'Farrell Wealth | O'Farrell Wealth

    HOME SERVICES ADVANTAGE COMMUNITY RESOURCES ABOUT US More CONNECT WITH US Invest in your future with a personalized Wealth Plan. Anchor 1 Are you looking for a wealth plan that fits your life now and grows with you? ​ With your goals and dreams in mind, our Financial Advisors work with you to create a plan that grows your wealth and secures your future. ​ Together we find the right solution to grow your investments, and keep you protected. Your Financial Journey You have a vision of where you want to go in life — all you need now is a map! Our Financial Advisors listen to you and apply their knowledge and tools to guide you towards your financial goals. We provide you with a practical, personalized wealth plan to set you on the right path. When life puts up a roadblock, we will be here to steer you in the right direction. ​ We provide a multitude of investment options that we tailor to your specific needs. These include registered, non-registered, fully guaranteed, and non-guaranteed investment vehicles. ​ Experience something different with the O’Farrell Wealth & Estate Planning Team. ​ CONTACT US TODAY Meet the Advisors Matthew Felker Financial Advisor Assante Capital Management Ltd. Daren Givoque Financial Advisor Assante Capital Management Ltd. Keeley Patterson Financial Advisor Assante Capital Management Ltd. Vipul Arora Portfolio Manager Assante Capital Management Ltd. Hugh O'Neill Insurance Advisor Assante Estate & Insurance Services Inc. Sarah Chisholm Financial Advisor Assante Capital Management Ltd. Cynthia Batchelor Financial Advisor Assante Capital Management Ltd. Peggy Mathieson Financial Advisor Assante Capital Management Ltd. Cole Seabrook Financial Advisor Assante Capital Management Ltd. Bonnie Wilson Financial Advisor Assante Financial Management Ltd. Andrew Goetz Financial Advisor Assante Capital Management Ltd. Allison Martin Financial Advisor Assante Capital Management Ltd. MEET OUR TEAM Our Services We offer the following suite of services to meet your personal and business Wealth Planning needs: ​ Insurance Investments Retirement Planning Succession & Estate Planning Business & Tax Planning Wealth Management Discretionary Trading Mortgage Referrals * Charitable Giving ​ Visit our Services page to read more about each of our services. Read more I highly recommend Sarah Chisholm and O’Farrell Wealth for all your investment needs. I've been with them for 3 years and have had a great experience so far! I love that Sarah is always there to help me with my financial questions — knowing she is just a phone call away for any concerns I have regarding my investments is a real comfort to me. I feel very comfortable with Sarah and she is very knowledgeable. I came to O’Farrell looking for a retirement savings plan and a few TFSAs and I left feeling like I made the right decision going with them.​ Jenna Blais Contact Us Today Live the life you want today and secure the legacy you want for tomorrow. Contact the O’Farrell Team to start planning a growth strategy for your wealth that you can preserve and pass on. ​ Name Phone Number Email Address Prefered Method of Contact Reason for Contacting Us Preferred Office Location Who would you like to connect with? SEND CONTACT REQUEST Thanks for submitting! By providing your email address, you provide O’Farrell Wealth & Estate Planning with your express consent to receive Commercial Electronic Messages related to finances and/or investments that may be of interest to you. If you no longer want to receive emails of this nature, you can withdraw your consent at any time by contacting ofarrell@assante.com Meet with an O'Farrell Advisor at one of our five office locations. Feel free to contact us toll-free: 1.877.989.1997 BROCKVILLE 613.865.8080 40 Brock Street, Brockville ON CORNWALL 613.935.6254 108 Second Street East Unit 103 Cornwall ON ​ KEMPTVILLE 613.258.1997 292 County Road 44 Kemptville ON ​ RENFREW 343.361.0212 1035 O'Brien Road Unit 14 Renfrew ON ​ WINCHESTER 613.774.2456 510 St. Lawrence Street P.O. Box 518 Winchester ON Looking for information regarding employee benefits and group pension plans? Visit O’Farrell Financial Services EMPLOYEE BENEFITS & GROUP RRSP *Mortgage products and services are provided by Assante Capital Management Ltd. through its strategic partnership with Bank of Montreal. ​ We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. Important Disclosures Assante Capital Management Ltd. (“ACM”) is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. ​ Know your Advisor: IIROC Advisor Report ​ Assante Financial Management Ltd. (“AFM”) is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation. ​ ​ www.mfda.ca ​ Stocks, bonds and mutual funds are provided through ACM. Mutual fund products are provided through AFM. Only those services offered through ACM are covered by the Canadian Investor Protection Fund, and only those services offered through AFM are covered by the MFDA Investor Protection Corporation. For more information please visit http://www.assante.com/legal or contact our office for clarification. To research the background, qualifications and disciplinary information on advisors at IIROC regulated firms please generate an IIROC Advisor Report. ​ Employee benefits and pension consulting services, Mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. ​ For further Assante Wealth Management important legal and compliance disclosure, please visit www.assante.com/legal ​ For more information on our privacy policy, please visit http://www.assante.com/privacy-policy www.cipf.ca https://www.iiroc.ca/ © 2023 | All Rights Reserved

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