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The first quarter of 2024 witnessed fixed income investors recalibrating their expectations of about six to seven policy rate cuts in the United States to about three at the end of the quarter. While the adjustment was a disappointment for fixed income investors, who have been waiting for a consistent and positive contribution from the asset class for some time, the equity markets continued to cheer the prospects of finally turning the corner on policy rates and improving economic growth. The North American equity markets saw consecutive gains for the first three months of the year. The month of March was also in green, however, leading the charge were the cyclical Energy sector and Materials sector as against the Information Technology sector and Communications Services sector during the first two months. Commodity prices have increased (See Figure 1), driven by higher demand, indicating an improving global economic outlook. In the latest readings, the US Institute of Supply Management’s Manufacturing Purchasing Managers’ Index (50.3 for March 2024) and China Manufacturing Purchasing Managers’ Index (50.8 for March 2024) have both jumped above 50, corroborating the narrative that manufacturing activity is on the mend (See Figure 2). A reading above 50 indicates expanding activity and a reading below 50 indicates contracting activity. China is the world’s largest consumer of commodities and improving manufacturing in China typically has had a disproportionate impact on commodities prices. However, for the markets fixated on the policy rates trajectory, any data point that reads through as policy rate cuts might get delayed, gets discounted as bad news. Higher commodity prices also read through as return of goods inflation and thus potential delay of policy rate cuts, which has caused some jitters in the markets. The recent jump in the crude oil prices driven by: a) the decision by OPEC+ (Organization of Petroleum Exporting Countries) to extend the production cuts for the first half of 2024; b) escalation of geopolitical tensions in the middle east; and c) improving demand given the global economic acceleration, has increased the risk that headline inflation numbers might disappoint in the near-term. Figure 1: Commodity prices have started to move higher. Commodity Research Bureau BLS/US Spot All Commodities (April 2021 to April 2024) Source: Bloomberg Figure 2: Manufacturing activity is back in expansionary territory. US ISM Manufacturing PMI and China Manufacturing PMI (March 2020 to March 2024) Source: Bloomberg The economic data has been more supportive to the case of policy rate cuts in Canada where inflation declined to +2.8% in February (reported in March) from +2.9% in January (reported in February) and unemployment rate also advanced to +5.8% in February (reported in March) and again to +6.10% in March (reported in April) from +5.70% in January (reported in February). The data in the US has not been as supportive for the case of policy rate cuts. The headline inflation reaccelerated to +3.2% in February (reported in March) from +3.1% in January (reported in February) and unemployment rate advanced to +3.9% in February (reported in March) from +3.7% in January (reported in February) but declined again to +3.8% in March (reported in April). The strength in the US economic data has led the fixed income investors to reduce their expectations of rate cuts as evident from the CME Group’s Fed Funds Futures data. The probability of no rate cuts during the June meeting advanced from 0% as of 31 January 2024 to ~50.8% as of 5 April 2024 (see figure 3). Figure 3: Expectations of no rate cuts during the June meeting have increased. Target rate probabilities for June Fed meeting (31 Jan 2024 vs 5 April 2024) Source: The CME Group Sticky inflation could necessitate higher interest rates and for longer, which in turn will increase the risk of damage to the economy. Layering on the fact that the historical precedents of central banks’ ability to control inflation by hiking interest rates without triggering a recession are rare, seems to suggest that this mission looks impossible. However, we think the jury is still out on this and maintain our constructive outlook towards the global economy and risk assets. Our optimism is underpinned by our belief that central banks in the current era have learnt from the mistakes committed in the past and stand a better chance of reacting and fending off the adverse impact of any missteps. The timely resolution of regional banks crisis last March is a case in point. Furthermore, while the headline data does suggest labor market in the United States is on a strong footing, several datapoints suggest incremental weakening under the hood. This bolsters our belief that the strength in the labor market is just enough to suggest a growing economy but falls short of indicating an economy running hot and therefore inflationary. The ratio of total job openings to people looking for full time employment has been on a decline and the ‘US quits rate’, a measure of voluntary job separations initiated by the employee, has also been on a decline (see figure 4). Overall, we think the balance of economic data is consistent with the view of the Federal Reserve Chair, Jerome Powell, who recently stated that the latest data, despite somewhat stronger than expected, is in line with their expectations and does not derail the case of beginning to lower policy rates at some point during this year. Figure 4: Labor market is moving to better balance. Ratio of US job openings to unemployed looking for full time employment and the US quits rate (February 2018 to February 2024) Source: Bloomberg

In our day and age, mental health has become a prominent issue. The world continues to evolve to combat the rising struggle of mental health. Many individuals face challenges when trying to manage mental health symptoms, like anxiety and depression. A body of research has emerged in which the objective is to better understand the connection between Financial and Mental well-being. In this study, a few key findings have been uncovered: People are generally stressed, and finances are a prominent concern. Financial challenges often lead to mental health challenges. Not everyone responds to these challenges the same. We often look at stress as a way of life, but what happens when that stress rises to the point that we have trouble functioning and going about our daily tasks? The following are some recognizable examples; “How will we make ends meet with rising inflation?” “I didn’t get the wage increase at work that I was expecting.” “I received an unexpected bill, and this is a terrible time.” “My investments are way down, and I’m planning to retire next year.” “My credit card is maxed out.” These are just some of the common issues that we see people facing in their lives. These issues can negatively affect us emotionally. But what if there were recommendations to help combat the effect that our finances can have on our psyche? Here are a few ideas: Have a Plan and Budget. Create a budget and a plan for your household. Regularly review your budget and plan with your spouse or those involved in the household financial decision making. Seek Counseling. People seek counseling in this day and age for all sorts of reasons. Over the last couple of years, we have seen an increase in the services available in our local communities. Counseling can be a productive way to manage our stress and help find solutions to our current situations. Turn Down the Markets. Looking at the markets and one’s investments on a regular basis can trigger stress and cause concern. It is beneficial to schedule regular financial reviews throughout the year with your financial advisor. Worrying over daily market changes can create overall discomfort and unease. Work with a Financial Advisor. Guidance from a professional can have a lasting impact. A Financial Advisor can help you create a budget, manage your finances, and set financial goals. This can allow you to live the life you want today and secure the legacy you want for tomorrow. Self-Care. Exercise, meditation, and indulging in our interests and hobbies can help us reduce our stress levels and help us to manage our finances with greater confidence, which can help us make better financial decisions. It is important to remember that our mental health and financial wellbeing have a significant impact on one another. If we take the time to manage both, this can lead us to a healthier place mentally and a more productive place financially. Source:https://www.forbes.com/sites/forbesfinancecouncil/2023/03/14/the-connection-between-financial-well-being-and-mental-health/?sh=5db2e505a630

The month of February was a mixed bag in North America for investors from an asset class performance perspective. While equities continued their impressive upward march with the S&P 500 Index advancing by ~+5.2% and S&P TSX by ~+1.6%, the fixed income asset class bore the brunt of jump in bond yields on both sides of the border.  The bond yields jumped by ~+35-43 basis points for the 2-year to10-year tenures across the yield curve in the US after the US inflation surprised to the upside and investors factored in that perhaps the expectations of number of interest rate cuts through the year are too optimistic. The jump in bond yields was relatively less pronounced on the Canadian side where bond yields jumped by ~+5-to-22 basis points across the 2-year to 10-year tenures. Inflation in the US declined to +3.1% in January (reported in February) from +3.4% in December (reported in January) but was higher than the expected +2.9%. Inflation in Canada declined to +2.9% in January (reported in February) from +3.4% in December (reported in January and was lower than the expected +3.3%. At the beginning of the month, the Fed Funds Futures were implying rates to drop from +5.50% to +3.86% in the United States, suggesting ~6 rate cuts of 25 basis points each through the year. This was in contrast with the guidance from the Federal Reserve as indicated in the Federal Open Markets Committee’s (FOMC) dots plot, that indicated only about 3 rate cuts by the end of 2024 (See Figure 1). In other words, the expectations of the extent and speed of rate cuts baked in the Fed Funds Futures contracts implied the economy could experience a deep recession. Afterall, more rate cuts and at a faster pace would be required to support only if the economy was teetering under the weight of monetary tightening. On the contrary, the economic data had continued to suggest resilience even in the face of higher interest rates. The equity markets, on the other hand, continued to trade on expectations of a soft landing and a benign inflation scenario as the most likely outcome through the year 2024. This, put together with better-than-expected results from the corporates in general during the fourth quarter earnings season ensured that the equity markets registered healthy gains during the month, in our view. While the economic data during the month of February remained mixed, we think the fixed income markets have recalibrated expectations from bearish economic outlook more reasonably and equity markets are baking in an incrementally more bullish outlook. By the end of February 2024, the US Feds Funds Futures were showing less aggressive positioning of implied rates of ~4.48% (see Figure 1) as of December 2024 meeting (i.e. ~3 rate cuts) and many wall street strategists had increased their year-end price targets for the S&P 500 index. Figure 1: Implied rate – Fed Funds Futures and Federal Open Market Committee (FOMC) Dots median Source: Bloomberg We think the reduction in the gap of expectations baked in by the markets and guidance from the Federal Reserve without much turbulence in the capital markets was a welcome development for the investors. That said, given that the economic data remains mixed overall, and the market positioning has skewed towards bullish once again, economic datapoints hinting at either too strong or too weak an economy could end the goldilocks environment (neither too hot nor too cold) and bring about the volatility in the capital markets over the short-term. Over the medium-to-long-term, the fact that Central Banks are now looking to cut interest rates rather than increase and investors remain laser focused on the policy trajectory, makes for a strong case to remain constructive on the risk assets.

In the realm of personal finance debt is a double-edged sword. Understanding the fundamental differences between good debt and bad debt is essential for making sound financial decisions.  Debt can be a valuable tool for building wealth but can also cause stressful financial situations. In general, good debt can help individuals increase their overall net worth or generate an income stream over time. Good debt is associated with acquiring an asset that has the potential to grow in value, such as a mortgage. Taking out a mortgage to buy a home allows individuals to build equity as the property appreciates in value, making it a strategic long-term investment. Once the debt has been paid off, the owners cash outflows will decrease. This will, in turn, allow the owners to reallocate these funds elsewhere to continue to grow their net worth. In addition, it will provide them with another resource to pull equity from, if needed. Bad debt is associated with non-appreciating assets or expenses that do not contribute to one’s financial growth. Credit card debt would be a primary example of bad debt. The high interest rates on credit cards can often turn manageable debt into a financial burden, which has the potential to cause financial stress. Understanding the differences between good and bad debt is essential for making informed financial decisions. When taking on debt there are several factors to evaluate. Do the potential long-term benefits outweigh the risks involved? To manage debt efficiently, individuals should create a budget that outlines their income, expenses, and debt. This will help individuals be more aware of their spending and borrowing in the future. Approaching debt strategically can be a stepping stone to financial success and can help facilitate important life milestones. It requires a careful balance and commitment to responsible financial management. By understanding the differences between good and bad debt, individuals can take a proactive approach to adopting financial habits that will point them in the direction of financial success.

In January, the North American equity markets saw positive momentum with the S&P-500 advancing ~+1.7% and the S&P-TSX by ~+0.5%. This increase stems from the market’s expectations that the Central Banks will pivot to cure rates sometime this year.  In contrast, fixed income markets lost some of the gains made over the last couple of months as investors scaled back on their optimism.  2–10-year bond yields advanced for most of the month on both sides of the border. Source: Bloomberg The Bank of Canada and the US Federal Reserve held their policy meetings this month and decided to hold interest rates at current levels. Both banks acknowledged that they are determining at which point a reduction in interest rates maybe be feasible, however, as of now, it remains too early to start the easing cycle.  Investors’ expectations that rate cuts would start as early as March received push back from the US Fed chair, Jerome Powell, who stated that he does yet not think the Central Bank will have enough confidence on the inflation rate trajectory to start the rate cuts that soon. Investor skepticism was evident on the decreased probability of interest rates (implied by the Fed Funds Futures data) by March this year in the range of 5.25%-5.50% increased to ~85.0% as of 5th February from ~11.5% as at the end of December 2023 (See Figure 1). Figure 1. Target rate probabilities for March 2024 Source: The CME Group Better-than-expected economic data also corroborated the Central Bank’s guidance that the economy remains resilient enough to conclude the inflationary pressures. Stats to note: Inflation in Canada was in line with the expected +3.4% in December (reported in January), however, advanced from +3.1% in November (reported in December). Inflation in the US advanced to +3.4% in December (reported in January) from +3.1% in November (reported in December) and was ahead of expected +3.2%. The unemployment rate in the Canada remained flat at +5.8 % in January - against expectations of an increase to +5.9%. The unemployment rate in the US remained flat at +3.7% in January - against expectations of an increase to +3.8%. Source: Bloomberg While better-than-expected economic data is reducing the extent of rate cuts expected by markets, it is also improving the sentiment that the economy may avoid a severe economic contraction that can be typical after an interest rate hike cycle. Overall, we maintain our expectations of a constructive outcome for the year while remaining aware of the gap between markets expectations and the Central Banks’ actions. We are also considering that geopolitical tensions and elections across several key geographies across the globe could be a source of volatility.

Don’t be surprised! It may feel early in the year, but tax season is just around the corner. You may be wondering, how can I keep more of my hard-earned money in my pocket, instead of the government’s? There are many ways to reduce your taxes, there are several tax credits available to Canadians. Take into consideration some of the following options: Registered Retirement Savings Plan RRSP contributions can help to reduce your taxes owing. Make sure you have enough contribution room in order to avoid over contribution tax! Your available RRSP contribution room can be found on your Notice of Assessment. You can contribute to an RRSP until the end of the year you turn 71. The deadline to contribute for the 2023 tax year is February 29, 2024. Spousal Registered Retirement Savings Plan You can contribute to your spouse’s or common-law partner’s spousal RRSP; however, this means you must have available contribution room for this deposit as well! You can contribute to your spouse’s plan until the end of the year when they turn 71. Another important thing to keep in mind with spousal RRSPs is the 3-year attribution rule – meaning if a withdrawal is done from this account within that calendar year plus the following 2 years of the deposit, the withdrawal amount is attributed back to the contributor’s taxable income. Similar to the RRSP, the deadline to contribute for the 2023 tax year is February 29, 2024. First Home Savings Accounts The Federal Government started a new program in 2023, the First Home Savings Account. This program is designed to help individuals save for their first home. The contribution limit for 2023 is $8,000, and qualifying contributions are tax deductible, if they were made by December 31, 2023. Charitable Donations Cash donations made to an eligible charity can be claimed on your income tax. Typically, up to 75% of your net income can be claimed. There is a 15% credit for total donations up to $200; a 29% credit for total donations over $200 (that are ineligible for the 33% credit); and a 33% credit for total donations over $200, where your net income exceeds $246,752. Multigenerational Home Renovations In 2023, we saw the launch of a new tax credit, the Multigenerational Home Renovations. Eligible individuals can claim up to $50,000 in qualifying expenses for each qualifying renovation that was incurred after December 31, 2022 (but before the completion of the renovation). You can receive a tax credit of 15% of your costs; and the maximum credit is $7,500. Every person’s situation is unique, and there are other tax credits not mentioned above that may apply. We can work with you and your accountant, bookkeeper, or tax preparer to create a plan that works for you. Contact one of our Financial Advisors today to review your situation and see how we can help! Allison Martin is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

North American equity and fixed income markets rallied in December 2023, as expectations that the Central Banks stopped interest rate hikes for this cycle increased. In monetary policy meetings held during December, the Bank of Canada and the US Federal Reserve decided to keep policy rates unchanged at +5.0% and +5.5%, respectively. This was the third consecutive meeting where the outcome was to maintain interest rates. Consequently, the positive sentiment prevailed in the capital markets as investors increased their expectations that interest rate hikes are now behind us. It is noteworthy that price action ensued despite continued caution expressed by the banks on inflation. Stats to note for the month of November (reported in December): Inflation in Canada was at +3.1% (higher-than-expected +2.9%) and in the US was at +3.1% (in line-with-expected +3.1%). The core inflation was higher-than-expected in Canada (+3.5% against expected +3.4%) and was in line in the US (+4.0% against expected +4.0%). Unemployment data in Canada advanced to +5.8% from +5.7% (expected 5.8%) and declined in the US to +3.7% from +3.9% (expected +3.9%). This mixed data could not dent market enthusiasm as investors determined that while it could be bumpy in the near term, the overall trajectory of inflation remains downwards. Furthermore, if unemployment numbers do not decrease (which could raise concerns of hard landing) or upshift (could imply renewed inflationary pressures) significantly, progress on inflation should be enough to support the markets. We also note that the US Fed Funds Futures are now discounting about six rate cuts by the Federal Reserve during the year 2024 starting as early as March (see Figure 1). We believe that such a scenario could unfold if the economy contracts significantly. Given the evidence from economic data so far suggests the contrary, the positioning of the fixed income market appears to be taking a pessimistic view of the economy, which could cause a bumpy ride for the asset class, in our opinion. The dot plot after the December meeting indicates the Federal Reserve authorities expected only three rate cuts during 2024 (see figure 2). Figure 1: Fed Funds Futures - expected number of rate cuts and implied policy rates (%) (as of 29th December 2023) Source: Bloomberg Figure 2: Fed Funds Target Rate – Median, % (December 2023 meeting) Source: Bloomberg Price action in equity markets was lopsided as a handful of stocks carried most of the weight of the indices in the year 2023, resulting in a high expectation for them to deliver on the earnings front. Should earnings expectations from these mega caps prove to be high, equity markets could also be bumpy in 2024. The geopolitical risks across the globe have continued to simmer, however, they have not adversely impacted the markets. Given that 2024 is an election year in many of these geographies, uncertainty could stay high and be a source of volatility. Despite some potential bumps along the ride, we think the positives should outweigh the negatives over the course of the year. Our optimism stems from our expectations of continued easing of inflation, normalization of policy rates, and broadening of market performance through 2024. We wish our readers a very Happy New Year!

As we head into the New Year it is important to get off to a good start. We often make resolutions about getting healthy which includes eating better, exercising more and leading a more balanced lifestyle. Have you ever considered making resolutions about your financial health? In the Chinese calendar, 2024 will be the year of the Green Wooden Dragon, a symbol considered to be the most powerful in Chinese astrology, standing for energy, strength, and power. The 2024 zodiac year will be a year of prosperity. A symbol is represented only once every 60 years. Today I will share some tips and what investments mistakes to avoid in order to meet your financial resolutions for 2024. Do’s ·         Have clear investment goals. ·         Find an advisor whose goals align with yours. ·         Decide your risk tolerance. ·         Build and diversify your portfolio. ·         Monitor and rebalance your account. Don’ts ·         Let your emotions rule. ·         Chase Trends/Hot Tips. ·         Try to time the market. ·         Focus on the short term. ·         Misunderstand risk. ·         React to the media. ·         Forget about the fees. ·         Constantly watch the market/your investments. ·         Neglect to start investing. Defining your investment goals, finding the right advisor and actually getting started are the first three steps in creating a successful plan. If you are looking to get started in investing or would like to review your current investment and financial goals reach out to us today to start the conversation. Cynthia Batchelor is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

By Allison Martin, Financial Advisor of Assante Capital Management Ltd. We are halfway through December, and the holidays and New Year are fast approaching. It is easy to become preoccupied with the hustle and bustle of the Christmas season as we shop for gifts for our loved ones and get together with friends and family. Let us take the time to reflect on one of the true meanings of the Christmas season: giving. We tend to get wrapped up in giving to those closest to us - friends, family, colleagues, or teammates. It is important not to forget those in our community, those less fortunate, and those who no longer have family with them or nearby. Have your neighbour over for coffee or just pop by to say hello. There are often social get togethers, programs, or Christmas meals put on by local groups. This is an easy and meaningful way for our community to come together, enjoy each other’s company, and make new friends in what can be a difficult time for many. You could also consider donations to local organizations or charities, like food banks or service clubs that help those who may have fallen on hard times. 2023 certainly has been tough for many people in our own communities. High inflation costs and rising interest rates have made it difficult to ensure there is enough food on the table or presents under the tree. Donations do not have to be monetary; often organizations struggle with finding enough volunteers or help during these busy times. Your time is often just as valuable as financial assistance. It is also a good way for those who want to help but may not necessarily be able to financially. We are lucky to live in a community that takes care of each other. We can continue to care for and support each other by buying from local businesses. We have such a wide array of small businesses in our area, so take the time to go out and see what they can offer you and your loved ones this holiday season. Time flies by so quickly. Take the time to slow down, relax, and enjoy spending quality time with your families and friends. We wish you all a very happy holiday season and a healthy and prosperous new year! Allison Martin is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

November was nothing short of Christmas for investors who have been waiting for constructive price action. North American equity and fixed income markets both gained after the ‘Higher for Longer’ narrative in the markets was lessened by expectations of the Central banks policy rate hikes being done for this cycle, reversing the draw down of the past three months. Market participants brought forward the expectations of the first rate cut by the US Federal Reserve from June 2024 to March 2024 (See Figure 1). Incoming economic data pointing towards a softening economy put together with a benign inflation picture ignited market enthusiasm. This is even though the US Federal Reserve chairman, Jerome Powell, said that he is not confident if the policy rates are restrictive enough to bring inflation rate back to 2%. Figure 1: Earlier Policy rate cut expectations have increased. Source: Bloomberg Statistics Canada reported that headline inflation in Canada dropped to +3.1% (expected +3.14%) in October (reported in November) from +3.8% during the previous month. As per the Bureau of Labor Statistics, headline inflation in the United States fell to +3.2% (expected +3.31%) during October (reported in November) from +3.7% in the previous month. Tight labor markets, which have been a cause for concern for the Central Banks due to their capacity to fuel inflation for longer, have also showed signs of relaxing on both sides of the border. The unemployment rate in Canada advanced to +5.7% (expected +5.61%) in October (reported in November) from +5.5% in the previous month. More recent reports suggest unemployment further increased to +5.80% in Canada. The unemployment rate in the United States advanced to +3.9% (expected +3.79%) in October from +3.8% in the previous month. The constant flow of supportive economic data intensified the expectations of a rate cut sooner than expected and led to a swift decline in bond yields across the yield curve (see Figure 2 and 3). Figure 2: US Yield Curve – 31 October 2023 to 30 November 2023 Source: Bloomberg Figure 3: Canada Yield Curve – 31 October 2023 to 30 November 2023 Source: Bloomberg We like to highlight that price action in the fixed-income markets once again seems to be at odds with the message from the United States Federal Reserve Chairman, who has maintained that more evidence is required before concluding that inflation is on a trajectory to be back to their target of +2.0%. Given this backdrop, we think the current set-up is ripe for more volatility as markets once again seem to be defying the message from the Central Banks. As the adage goes – “Never Fight the Fed”. That said, we think the overall outlook for risk assets remains favourable despite the expected volatility. Our optimism stems from inflation continuing to go in the right direction and our expectations of more favourable readings in the coming months as the ‘Shelter’ component of inflation calculations continues to roll over. The labour market has begun to soften and in absence of any major uptick in unemployment, the expectations of a ‘soft landing’ could continue to outweigh the conversation on ‘hard landing’. Lastly, valuation of most companies has continued to reflect caution for the most part of the year, suggesting a large part of the markets might not be trading ahead of fundamental realities. We wish our readers a Merry Christmas and a very Happy Holiday Season.

By Sarah Chisholm, Financial Advisor of Assante Capital Management Ltd. 2023 has been a challenging year for many households. Budgets are being squeezed with high interest rates and the rising cost of living. As Christmas approaches, consider an alternative approach to gift giving. Use 2023 as an opportunity to prioritize meaning over monetary value. Do your parents really care how much you spend on them, or are they more focused on the quality of time that you spend together over the holidays? Do your friends really want gift cards, or would they prefer something unique? Here are three alternative low-cost gift giving options to consider. 1. Books 2. Photos 3. Dates Books offer an escape on long dark winter days. In Iceland there is a tradition of gifting books at Christmas time, so much so that the publishing community calls it Jolabokaflod, or the "Christmas Book Flood.” Gift a book that you have recently read and truly enjoy. Explain to the recipient what you enjoyed about the book, or why it might be of interest to them. For kids give gifts that you read as a child or books have been developed into film that you could watch together later. Books do not need to be expensive. Buy gently used books throughout the year or gift from your personal collection. Focus on the meaning and not the cover price. Photo prints are truly meaningful in this age of digital media. It is so easy to post photographs to social media, but how often do you get a physical print? Take the time to print photographs as gifts. Photos of grandchildren for grandparents and group photos for friends. Put a personal note on the back of the photograph, or have your child decorate a simple frame. Pictures hung on the wall or stuck to the fridge with a simple magnet will bring ongoing joy to the receiver. A small token to smile at and a cute grandchild to brag about to guests. Don’t bother with a card, write your greetings on the photo. Spend time together. For friends and family, call them early and explain you would like to spend time with them instead of giving a physical gift. Depending on your budget consider taking them out for lunch or a coffee date. For a more budget friendly option, have them over to your place for lunch or coffee, go for a walk together, or spend time volunteering for a cause of their choice. For loved ones far away, skip the mailed gifts and instead pick up the phone. Spending time together is priceless. For Christmas 2023, step away from the expensive gift cards and the stress of buying “things”. Pick meaningful options that don’t require a set dollar value. Give friends and family advance notice about your plan, they may also choose the same path. Imagine the relief a friend might have knowing that they don’t need to buy you a $25 gift card – that instead you would be excited for a coffee date or a suggestion for a new book to read. Sarah Chisholm is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Where can you find an asset that provides both protection and diversification for your retirement plan? Something that will provide a lifetime of protection? Consider Whole Life Insurance. Normally, we think of life insurance for our short- and medium-term needs. We use personal life insurance to cover our liabilities and provide income replacement for our family if we pass away unexpectedly. In business, we use key person coverage to protect our revenue generators and share buyout coverage for our business partners. To provide even stronger foundations, we pair life insurance with living benefits such as Disability Insurance and Critical Illness Insurance to protect ourselves in case of serious injury or disease that has major impact on our lives or our ability to work. Remember that term insurance is temporary in nature, and when the policy renews, the premiums can become exorbitant, and many people cancel the policies at renewal. What is Whole Life Insurance? Whole Life Insurance provides protection for life and is permanent. It covers the short and medium term needs above, as well as your long-term needs such as tax coverage, estate equalization, funeral costs and more. The insurance company will pay the death benefit regardless of when you pass away. The death benefit can be paid directly to your named beneficiaries which provides you a level of privacy in your wishes and allows the death benefit to by-pass probate. Whole Life Insurance Policies create asset diversification within your investment portfolio. A policy has an immediate estate enhancement value (death benefit) and grows a cash surrender value over time. How does the death benefit grow? When premiums are deposited, the insurance companies pool the life insurance premiums into a large investment account. Premiums go in, investment income grows the account and death claims come out over time. Each year, if the investment returns are higher than expected and the mortality is lower than expected, a dividend is distributed to all the policy holders. Most policies are structured so that the dividend is used to purchase additional permanent life insurance – in this way your death benefit and cash values grows over time. The cash value provides asset diversification for your retirement. The cash value can be leveraged as a tax efficient source of income for retirement. It can pair nicely with the RRSP, pension, TFSA, rental properties, business dividends and other sources of income you have built up for retirement. Protection and asset diversification are two of the many positive attributes of Whole Life Insurance. So, why doesn’t everyone have Whole Life Insurance? The simple answer is that Whole Life Insurance is typically more expensive, is a long-term investment and premiums are much higher than term insurance. Take the time to review your insurance needs and strategies with a trusted insurance advisor. Often a combination of term and whole life insurance will allow you to achieve both your short-term and long-term goals. Review your plan regularly, as your insurance needs will change over time. Sarah Chisholm. Financial Advisor Assante Capital Management Ltd. Sarah Chisholm is a Financial Advisor with Assante Capital Management Ltd. Please contact her at (613) 774 - 2456 or visit www.ofarrellwealth.com to discuss your particular circumstances prior to acting on the information above. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Insurance products and services are provided through Assante Estate and Insurance Services Inc. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.