By Cole Seabrook Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. The Canadian Government is introducing a new investment account to help young Canadians achieve their first-time house purchasing goals. Have you heard about the Tax-Free First Home Savings Account (FHSA)? The Canadian Government is planning on releasing the FHSA in 2023. The intention is to help Canadians save for the purchase of a home while providing tax benefits and tax relief when it comes time to withdraw the funds for the purchase of a home. Let’s highlight the degree of flexibility the account will bring to prospective homebuyers. Many First-time homebuyers have taken advantage of the ability to access up to $35,000 of their Registered Retirement Savings Plan (RRSP) to purchase their first home. This is a tax-free benefit that they can use to help with their down payment. This provides them with the taxable deduction when money is contributed to the RRSP and grants them access to a portion of a down payment. The one catch with this program is that once funds are taken from their RRSP to help with the down payment of a house, they must pay back the money borrowed from their RRSP within 15 years from the withdrawal date. This can sometimes create a budgeting issue. The individual has a mortgage as well as a repayment to their RRSP. In the past, there has been much debate surrounding saving for a down payment in a Tax-Free Savings Account (TFSA) as opposed to using a Registered Retirement Savings Plan. As each individual has a different financial situation, at the end of the day, it depends on many variables such as an individuals taxable income, contribution room to said account, and budget. This is where the Tax-Free Fist Home Buyers Account will benefit young individuals. The FHSA account has the benefits of both a Tax-Free Savings Account and a Registered Retirement Savings Account where contributions to the FHSA are tax deductible and the withdrawal is tax-free. The beauty of the FHSA account is that you do not have to pay back the personal loan into the FHSA and the withdrawal comes to the account holder tax free. Like TFSA’s and RRSP’s, there will be contribution limits. The initial thought is said to be $8000.00 annually with the ability to carry forward room. This will have a major impact for young individuals and couples when it comes time to save for the purchase of their first home. We are always open to questions, if you would like to learn more about the FHSA please feel free to reach out! Follow us on Facebook @OFarrellWealth or visit ofarrellwealth.com. Cole Seabrook 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 him 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 Cole Seabrook Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. When speaking with individuals regarding their financial plans, many like to focus on the wealth management portion. Although savings and investments are key components of financial planning, many individuals neglect an incredibly crucial factor - Disability and Critical Illness Insurance. As individuals, we do not like to think about the worst-case scenario, but it is a consideration that should be addressed and planned for. Should anyone become disabled or critically ill at some point during their working years, this could have a major impact on many aspects of their financial situation. It could become difficult to cover their living expenses, mortgage payments, taxes, and other bills. On top of adding pressure to their financial situation, job loss can also cause stress on family dynamics. Let us look at how the two different types of insurance can protect individuals against potential job loss due to disability or illness. Disability insurance: In the event an individual becomes disabled, a private disability plan provides a monthly tax-free income – potentially for the entire duration of time that they are unable to work, or possibly until the age of sixty-five. There are many ways to structure this type of insurance to meet an individual’s needs. Although many employers have this type of coverage in their Group Benefits plan, the coverage amount is not always adequate to maintain the employee’s standard of living. This is where a personally owned Disability Insurance policy can help to top up the coverage offered through an employer. Critical Illness insurance: Like Disability Insurance, Critical Illness insurance pays out a tax-free benefit. The difference between the two policies is that, with Critical Illness, the individual receives a lump-sum amount. The definition of each policy can vary, most covering up to twenty-five illnesses such as life-threatening cancer, heart attack, and stroke. If one becomes ill, receiving the benefit would allow an individual to stay on track with their financial plan while covering their living expenses and allowing them to focus on the road to recovery. Although no one wants to consider the “what ifs?”; imagine the comfort in knowing that in the event of a tragedy you and your family would be able to manage the financial stress with the help of an insurance policy. Insurance can play a key role in an individual’s financial plan. Your ability to earn an income is one of the most significant assets and placing insurance on that asset is of utmost importance.

By Cyndy Batchelor Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. I often get questions about retirement planning. The most frequently asked question is “do I have enough money to retire?” This question cannot be answered with simple yes or no as everyone has different spending habits, time horizons, risk and investment goals, and estate planning ideas. As we approach the New Year, I want to bring this topic to the forefront of your minds. Here are some questions that you should be considering. Q: When do I want to retire? A: Sometimes this is based on a pension (i.e. 25 or 30 years of service) and sometimes this is based on a savings goal (I need to save $1Million Dollars). Either way, you should be sitting down with your Advisor to review your plan on an annual basis. Life does not always go as planned - there are ways to ensure that your goals can be met even when life throws you a curveball. The earlier you plan, the more cost effective it is to add Critical Illness, Disability, and Life Insurance options to your overall plan. Q: What Is My Retirement Spending Goal? A: Anything you want! Don’t forget that this is individualized to you, and you need to make an honest budget. If you retire early, you may want to travel more and this can be costly. As you get older, you may have health concerns that consume your income/savings. Expect to spend about the same amount in retirement as you do while you are working – it is just going to be allocated differently. Q: What is my risk tolerance and what are my investment objectives? A: Again, you need to be comfortable with your investments, but you also need to be realistic with your expectations. A proper portfolio allocation that balances your risk aversion and return objectives is very important. It is also important that you don’t micro-manage your portfolio daily or even monthly. It is time in the market not timing the market. Your retirement is likely going to last 20-25 years – stay the course, meet with your Advisor, review your plan and investment strategy, and perform the recommended rebalancing. Q: What are my Estate Objectives? A: There are a few things to consider when we look beyond your retirement to your Estate. You might be someone who wants your last dollar to be spent the day you die, but more than likely you have an objective for your Estate – protecting your loved ones and/or donating to a charitable cause. In order to minimize your taxes in both your lifetime and at your death while ensuring your wishes are met, Estate Planning needs to be considered in your Retirement Planning. If you are looking for more information about retirement planning, contact your financial advisor.

By Sarah Chisholm Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Small and medium-sized Business Owners play a crucial role in the community. They create employment, drive tourism, grow the economy, and often support local charitable organizations. Business Owners want to grow and be profitable. Re-investing in your business might give you the best initial return – but we know that life can throw curve balls such as Covid and Recessions. When planning for retirement, Business Owners should consider the following diversification strategies: 1. Canada Pension Plan – if incorporated, have you considered drawing a portion of your income as salary and the remainder as a dividend? Pulling salary up to the yearly maximum pensionable earnings allows you to maximize your yearly CPP contributions. CPP could be used as one pillar for your retirement income. 2. Old Age Security – are you eligible? Will you be hit with the clawback? 3. Investment Accounts - Registered Retirement Savings Plans, Tax Free Savings Accounts, and other investment accounts may not be appealing if your business typically outperforms the Canadian and U.S. stock market. However, consider that these accounts could be used as a buffer for when things go wrong – short term shutdowns or a business sale not generating the proceeds expected. Spousal RRSP accounts can also provide income splitting options. 4. Critical Illness Coverage and Disability Insurance: these protection strategies can aid in your ability to generate an income while working. They can also be used to create income for later in life. For example, the return of premium option on a critical illness policy could be lined up so that you have an injection of cash right at retirement. 5. Life Insurance – should be used for risk mitigation while living, but permanent insurance should also be considered as a retirement and estate asset. The cash surrender value of a participating whole life insurance policy could be leveraged in retirement as source of income. The policy death benefit (minus any leveraged portion) could be used as an estate asset – generating cash for the corporation or estate to pay taxes, liabilities, or to create estate equalization for children not involved in the business. Consider a business that is transitioning from parent to child. How does the business redeem the parent’s shares? Do they sell active business assets or does an insurance death benefit create an influx of funds. 6. Real Estate –farmland, residential rental properties, or commercial buildings can also add diversification to your portfolio. They can create rental income for retirement or could be sold off to fund retirement living. 7. Other ventures – private equity or additional business ventures could provide additional diversification to your retirement plan. 8. Finally, as a business owner you need to take a serious look at the business(es) that you run. Can this business be sold to a third party or will it be wound down at your retirement. Are there pieces of equipment or machinery that would be sold? Do you plan on transitioning the business to a family member at a discounted value? Working with your professional team (Financial Advisor, Accountant, Lawyer, Lender, Business Valuator etc.) can help you answer some of these questions. Diversification provides flexibility in your retirement. It allows you to grow your net worth beyond your business and creates opportunity for new ventures. Every retirement and estate strategy is unique – take the time to sit with your Financial Advisor to establish goals and strategies. Bring in your entire professional team to review all the tax and legal implications and then begin implementing your diversification strategy. 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. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

The conditions were just right for a bounce back in equity markets during the month of October. Factors such as a) fourth quarter typically being strong for the markets, b) extreme market pessimism with oversold conditions, c) rising expectations of a pivot by Central Banks on the pace of rate hikes, and d) better-than-expected third-quarter results from companies in general. These factors, together, worked in favor of equity investors as the S&P 500 Index and the S&P TSX Index advanced by ~+5.0% and ~+4.8% for the month, respectively. Fixed income markets, however, did not share the same enthusiasm as bond yields advanced across the tenures with the short-end increasing faster than the long-end, pushing the yield curves deeper into inverted territory on both sides of the border. While the overarching fundamental story of the economy is still strong enough to continue to feed inflation and therefore a requirement of higher interest rates remained unchanged, the short-term technical factors were supportive of a bounce back in the markets. Historically, the fourth calendar quarter of the year has been typically the strongest (See Figure 1). Figure 1: S&P 500 Index, % price change March 2001 - September 2022 Favourable seasonality coinciding with washed-out investor sentiment provided the right backdrop for a market rally. The AAII’s (American Association of Individual Investors) US Investor Sentiment Bearish Readings index reflects bearish sentiment of individual investors and is considered a good contrarian indicator, i.e., extreme reflected pessimism generally indicates reversal in the markets. The index was near its historic highs at the start of the month (See Figure 2). Figure 2: AAII US Investor Sentiment Bearish Readings October 2005 - November 2022 During September (reported in October), the unemployment rate in Canada dropped from 5.40% to 5.20% and the unemployment rate in the US dropped to 3.5% from 3.7%. Inflation numbers at +6.9% in Canada and +8.2% in the US, were also ahead of expectations of +6.7% and +8.1%, respectively. Notwithstanding the still strong economic data indicating that conditions remain in place for inflation to stay high, investors’ optimism increased after the narrative gained momentum that Central Banks might be getting cautious of rising risks to financial stability. Early in the month, the Reserve Bank of Australia surprised investors by increasing policy rates by only 25 basis points as against the market expectations of 50 basis points. This coincided with the Bank of England’s intervention to support UK’s government bonds markets. The narrative received further boost after the Bank of Canada increased policy rates by only 50 basis points as against the market expectations of 75 basis points, citing it is trying to balance the risks of over-tightening and under-tightening. Given that markets have been fixated on policy rates trajectory year-to-date, the prospects of Central Banks nearing a pivot was supported by equity markets during the month. The FOMC (Federal Open Markets Committee) rate decision on November 2nd, however, reminded investors that it is usually Halloween that comes before Christmas. While the pivot did come as the US Fed chair, Jerome Powell, mentioned “it could be appropriate to slow the pace of increases as soon as the next meeting or the one after that”, investors were spooked as he also stated that peak policy rates might be higher than currently expected, i.e., hikes might continue to for longer even as the pace of hike slows. The markets gave up some of the gains of recent weeks on prospects of higher terminal policy rates than previously expected. In a nutshell, the fight against inflation is still on and it is not yet an all-clear that market volatility will abate soon.

By Cole Seabrook Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Insurance Advisor, Assante Estate and Insurance Services Inc. It may seem too soon to start thinking about life insurance in your 20’s and 30’s, but you could benefit over the long term by obtaining coverage early on in your life. Both your age and health are determining factors when it comes to the overall cost for coverage. When you are younger and in better health, it is likely that you will pay less. You should definitely consider putting coverage in place on yourself at a young age. Before exploring the benefits of getting life insurance at a young age, it’s important to know the different types of life insurance coverage available. The two most common types of life insurance are Term and Permanent insurance. Term insurance provides temporary coverage at a lower cost with fixed monthly payments over the course of the term. At the end of the term there is the option to renew or convert to Permanent insurance. Permanent insurance provides individuals with guaranteed lifetime coverage with the opportunity to build cash value inside the policy. Typically, Permanent insurance has higher cost, but is an asset that grows over the course of time. Both Term and Permanent insurance benefits payout tax free in the event an individual passes away to a named beneficiary. Even a small amount of insurance could help pay for your funeral expenses and/or pay any debt the individual has including student loans, personal loans etc. Now that you have a better understanding of the most common types of life insurance, lets look at the benefits of getting coverage at a young age. The cost of your life insurance is based on your age, gender at birth, lifestyle, medical history, and current health. The longer you wait to obtain coverage the more you are going to be paying solely based on your age. If you experience health complications along the way this may increase the amount you will have to pay and, in extreme cases, you may be ineligible to qualify for coverage all together. In addition to lower cost while you are younger, insurance provides individuals with financial protection if the unexpected happens, and secures the insureds ability to get insurance if they develop any health conditions later in life. There are many life events that trigger individuals to think about life insurance such as, buying a home, marriage, becoming a parent etc. In the event an individual passes away, they wouldn’t want to leave their family with these debts or headaches. Insurance can take care of this. Everyone’s insurance needs are different and dependant on their financial situation, short-term, and long-term goals. Now that you have a better understanding of the importance of obtaining life insurance if you are young or single, what’s next? Speak with your Financial Advisor to determine; the type of coverage you need (Term or Permanent), how much coverage you need and to see how life insurance fits into your financial plan. If you would like to learn more about the benefits of getting life insurance, feel free to reach out and we would be more than happy to educate you further. Cole Seabrook 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 him 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. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

By Cyndy Batchelor Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Insurance Advisor, Assante Estate and Insurance Services Inc. Many Business Owners operate their business without considering the impact of losing a key employee. While the first concern when an employee pass is always their family; Business Owners must also consider the effect that this will have on the business. A key person is anyone that is integral to the business and whose loss would drastically impact the daily operations of the business. This could be the Owner, a top Salesperson, a manager, a technical expert, or someone with specific relationships within the business. Losing a key person may have several negative impacts. The business can experience a loss of sales or revenue, there may be increased costs to replace the employee, other employees may also leave, and customers may lose trust in the business. To plan for a key employee loss, businesses may set aside funds to deal with these costs, but these funds would likely be taxed at higher corporate tax rates. There is an alternative to setting aside funds and that is through the purchase of a life insurance policy on key persons within the business. The life insurance policy is set up so that the business is the owner and the beneficiary of the policy, and the key person is the insured. On the death of the insured/key person, the business will receive a tax-free lump sum of cash which will cover any erroneous costs or lost revenue associated with their passing. In addition, corporate funded life insurance has added benefits beyond receiving loss coverage funds on the death of an employee. Private corporations are eligible to receive a credit to their capital dividend account (CDA) equal to the net death benefit proceeds of the life insurance policy less the ACB (adjusted cost basis). As such, at an appropriate time, the corporation can choose to make a payout up to the amount of the CDA account, tax-free to the shareholders. Ensuring your key team members are insured is one of many reasons why a business owner should consider incorporating life insurance as a part of their business planning. For additional information, contact your Financial Advisor. We welcome questions so please reach out! See our ad in this week’s North Dundas Times and follow us on Facebook @OFarrellWealth. Cyndy 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. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

The Bank of Canada and the US Federal Reserve both increased policy rates by 75 basis points during the month of September, bringing policy interest rates to 3.25%. Furthermore, the guidance on policy path going forward continued to indicate a firm resolve towards fighting inflation even at the cost of a recession. As inflation continues to remain stubbornly high, the need to hike policy rates even higher was evident from the Fed’s dot plot chart from September 2022 meeting. Published quarterly, the Fed’s dot plot is a chart that summarizes the views of the Federal Open Market Operations (FOMC). The FOMC committee members vote on appropriate levels of policy rates with each dot representing the vote of a committee member. The latest votes revealed that members increased their estimates of appropriate policy rates from the last quarter and now expect policy rates in the US to be ~4.50% by end of 2022 and ~4.75% in 2023 (See Figure 1), i.e., an additional 125 basis points hike for 2022 and a 25 basis points hike in 2023. Figure 1: Median Implied Fed Funds Target Rate, % Source: Bloomberg On top of the tough message delivered by the US Fed chair, Jerome Powell, during the Jackson Hole meeting held in late August, this led the financial markets to reprice the risk assets to the new reality of potentially even higher rates for a longer period. Recall that the Fed chair indicated that there will be a softening of labour market conditions, hardships on households and businesses as the committee moves “purposefully” to bring inflation back to 2%. As concerns resurfaced, the North American equity markets erased the gains made during mid-July to mid-August to make fresh lows for the year during the month. The S&P 500 Index and S&P TSX were down by ~-9.3% and ~-4.6% for the month, respectively. The fixed income asset class suffered as yields advanced across the curve and the yield curve inversion deepened with short-end yields increasing more than the long-end. The inflation number in the US was at +8.3%, ahead of the expected +8.0% but below the last month’s number of +8.5%. In Canada, the inflation number was +7.0%, below the expected +7.3% and last month’s number of +7.6%. The unemployment rate in Canada inched up to +5.4% from +4.90% last month and in the US to +3.7% from +3.5%. While the inflation numbers remained a disappointment, the rising unemployment provided some respite as it weakened the argument of a wage-price spiral feeding inflation. Looking ahead, the bad news on the economic front could prove to be good news for stock markets. Central banks’ emphasis on the goal to tame inflation by bringing aggregate demand in align with the supply put together with an extreme risk-off sentiment indicates any moderation in economic activity is likely to be viewed constructively by investors. This is because it will indicate that the policy tightening measures are working. That said, the stock market rallies on such datapoints may be short-lived until they begin to accompany a meaningful softening in inflation numbers. Given that the monetary policy affects the real economy with a lag, the impact of higher interest rates working through the economy should start to become visible in the economic data and the companies’ earnings reports in the coming months. As the incoming data gets incrementally negative, the markets will be looking for cues from the Central Banks on the timing of a potential pivot in the policy path. We continue to believe the ebb and flow of the news; inflation numbers are other datapoints that provide a read through on potential inflation numbers ahead will keep markets choppy in the short-term. Until the central banks begin to drop clues of a potential policy pivot in response to the softening inflation, we think it is prudent to stay invested defensively.

By Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. As inflation and gas prices continue to be at historic highs, individuals are turning back to budgeting as a tool to live within their means. Budgeting can be a very challenging and even disheartening experience and should be thought of as a process that needs to be reviewed consistently. Step one is to create a list of incomes and expenses. For those handy with excel, it can be a very useful tool for tracking. The income section of your budget captures your various sources of income: pay cheque, money from a side hustle, rental income etc. On the expense side, it is important to look at expenses as they come in. If possible, build your excel budget so that you can list expenses as daily, weekly, bi-weekly, monthly, quarterly, or annually and then tag those expenses to specific months. This helps you estimate the expenses you will have each month. Not every month is created equally, and knowing the breakdown is an important aspect of budgeting. Step two is to review. Tally up your total income versus your expenses. If expenses are higher than income you have two basic options. One – find ways to increase your income. Two – find ways to reduce your expenses. Step three is to budget funds for the month to include a sinking fund and an emergency fund. Regular monthly expenses should be allocated monthly. The extra lump sum expenses throughout the year should be allocated using a sinking fund. A sinking fund is an account you save into every month until major expenses arrive. For example, for 10 months of the year you could set aside 50/m so that in November and December you have a pot of $500 that can be spent on Christmas. Property taxes is another great example. You know roughly what your tax will be annually and that it comes due at certain times of the year. Take your 2021 tax bill and divide it by 12. Start setting aside this amount immediately so that when the next bill comes due you have the cash available. In addition, building an emergency fund will provide a safety net for all your regular expenses in case of an unexpected illness or layoff that impacts your pay cheque. Ideally an emergency fund should hold enough to cover three months of expenses. Step three is to revise your budget as you go forward. Update your expenses to show the impact of inflation. As credit card debt and line of credits are paid off, build in new goals such as saving for retirement or for a vacation. Celebrate when you transition from credit card debt to a flush sinking fund and emergency fund. Budgeting is not meant to be simple. It is a process of getting your cashflow in line so that you can enjoy life within your means. A trusted financial advisor can sit with you to build and review a budget. We welcome questions so please reach out! See our ad in this week’s North Dundas Times and follow us on Facebook @OFarrellWealth. 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.

By Sarah Chisholm, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Typically, as the snow begins to melt, I begin preparing lists of all the amazing things I want to do in the summer. I daydream about family adventures and personal goals to reach. However, as we move into the summer months it is easy to get pulled in multiple directions. Every weekend there is a different event or family occasion requiring your participation and the work week flies by as you also try to coordinate your schedule with daycare and summer camps. Do you ever get halfway through the summer and realize you have not checked off anything on your list? A strategy that we use in the investment world is to take small steps and then gradually grow towards bigger goals. When looking at a Wealth Plan it is easy to say “well if I saved $10,000 annually, I could meet my retirement goals”. Saving $10,000 in a year, however, especially in a lump sum, is difficult to achieve. Rather than aiming too high, start small. Incorporate a $50 biweekly or $100 biweekly until that becomes routine, and then add to that amount. Overtime you may increase your contributions to $384 biweekly and realize you are now on track to meet that bigger $10,000 per year goal. Start small, build confidence, meet your goals. For the summer I recommend: 1. Pick one family goal for the summer. Don’t worry about creating endless lists of places to visit and things to try. Pick one thing to do as a family and build that into your schedule over the next 2 weeks. Maybe it’s fishing at the local boat launch or visiting the nearest splash pad. Just work towards the one goal and then when it is complete re-assess and pick a new goal. Take small steps rather than trying to tackle a huge master plan for the summer. 2. Choose one personal goal for the summer. This could be to read a specific book, try a certain restaurant or master a certain video game. Again, reach one goal and then re-assess and bring a new target into sight. Take the time to congratulate yourself on the small success so that you can create momentum for the next. Whether on the personal side or the investment side starting with small steps will lead to greater success. Get rid of those massive lists and works towards small achievable goals. At the end of the summer, you’ll be amazed at all the family adventures and personal goals you have met. We welcome questions so please reach out and follow us on Facebook @OFarrellWealth. 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.

By Cyndy Batchelor, Financial Advisor O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd. Many of us worry about our parents and their well-being but are uncomfortable sitting down and discussing their finances and their plans about aging and end of life. This can be a difficult conversation to have, even if you have an open relationship with your parents. It may feel intrusive and insensitive, but the “money talk” is an important discussion to have. Here are some tips to on how to start the conversation. Start by being open with your parents, perhaps discussing your own finances and the decisions you have made regarding your financial future. You can also bring up difficult financial situations that may have happened with other family friends. Be sure to start the conversation in a private place. Discussing something that may be uncomfortable to them at a family gathering may make your parents feel as though they are being cornered. If there are several children who are concerned, determine who might be the best one to approach your parents to have this conversation instead of doing it altogether. Stress the importance of knowing and understanding their wishes for their future. As an example, whether that be staying in their home or entering a long-term care facility. In addition to gaining an understanding on their wishes for the future, you should all discuss their financials and determine where their wealth is kept and the contact information for those institutions. This will include their banking, investments, insurances, accountant, and any other income sources. If a safety deposit box is used, have your parents add you on so that it can be accessed in case of incapacity. Otherwise, you may not be able to access important papers when you need to. Original Wills and POAs should be kept at the lawyer and stocks certificates should be deposited into an investment account to avoid high costs and long delays when an owner passes away or becomes incapable of handling their own finances. Circling back to Wills and Power of Attorneys, all adults, especially those with dependents should have a will. Additionally, a Power of attorney for Personal Care and Property should both be drawn up in Ontario to avoid a court-appointed Guardian. Don’t forget to reach out to experts for legal and financial advice. A lawyer can advise you on elder law and estate matters and a qualified financial professional can assist you with financial planning and critical decisions with respect to making choices on investments, income, and planning. As hard of a conversation this may be, you and your parents will feel better knowing that these important issues have been addressed before they arise. We welcome questions so please reach out! Follow us on Facebook @OFarrellWealth. Cyndy 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.

Each year since 1982, the Federal Reserve Bank of Kansas City sponsors an Economic Policy Symposium in Jackson Hole, Wyoming. This event is attended by Central Bankers, Economists, Academics, and Financial Industry participants to discuss economic policies. Participants typically go on a hike after these discussions and enjoy a dinner together afterwards. This event is keenly watched by investors looking for clues on the future monetary policy path. Given that the year-to-date price action in the financial markets has been driven by narratives on inflation and interest rates, the industry participants focused primarily on comments made by the US Federal Reserve Chair, Jerome Powell. The message from Mr. Powell left little room for misinterpretation with the opening sentence being - “Today my remarks will be shorter, my focus narrower, and my message more direct.” Succinctly, Mr. Powell emphasized that though inflation has come down in July, a single month’s improvement falls “far short” of the evidence required by the committee that inflation is heading back towards its goal of 2%. The committee is moving “purposefully” to restrict economic activity enough to ensure that inflation heads back to 2%. The Fed Chair acknowledged that there will be a softening of labour market conditions, hardships on households and businesses, and indicated that the Central Bank is prepared to endure the unfortunate economic costs of reducing inflation. According to Statistics Canada’s August reports, inflation in Canada has dropped to +7.6% from +8.1%, while the unemployment rate remained at +4.9% as in the previous month. In the US, the Bureau of Labor Statistics’ August reports indicated that inflation dropped to +8.5% from +9.1% and unemployment rates dropped to +3.5% from +3.6% in the previous month. In summary, inflation is still running uncomfortably high, and unemployment is at historic lows. This backdrop, put together with the US Fed Chair indicating a softening of labour market conditions, and the advice from the Bank of Canada Governor, Tiff Macklem, urging companies to not adjust wages for inflation indicates that the wage-price spiral remains a top concern for the Central Banks. The initial reaction of financial markets on expectations of a turning inflation trajectory is now knocking against risks to economic growth as Central Banks firmly remain on the path of policy rate hikes. Investors’ expectations of a pivot after the last FOMC (Federal Open Market Committee) meeting found resistance in the subsequent unofficial remarks from the committee members and finally, a firm pushback in Mr. Powell’s speech at the Jackson Hole event. The markets reacted with initial gains on hopes of a Fed pivot, however retreated during the latter part of the month after the pushback. As per data from the CME Group (Chicago Mercantile Exchange), the probability of a 75-basis point hike implied in Fed Futures contracts increased to 74.5% on August 29th (post Jackson Hole speech) after having receded to 26% on 28th July (post FOMC July meeting) (See Figure 1). Figure 1: Target probabilities for 21 September 2022 Fed Meeting Source: CME Group As indicated in our previous updates, the Central Banks may have no choice but to induce a recession to bring back a balance between supply and demand. This message from the Central Banks is becoming forthright, and the unfortunate costs to this will be higher unemployment and reduced corporate profitability. In the coming months, volatility is likely to stay elevated as it reacts to the ebb and flow of weakening economic data, reports of corporate profitability, outlook on unemployment, and inflation trajectory. Overall, the markets may have no choice but bear with the Central Banks as they go hiking. We continue to advocate overweighting on a defensive exposure in investment portfolios to navigate the near-term challenging macroeconomic environment.