Welcome Letter

The changing of the season welcomes not only fresh weather but fresh ideas and often renewed vigour. My long tenure in wealth management illustrates that the fall is a busy time for our practice. Many people have finished their summer holidays and are jumping back into "go-mode". My psychology degree corroborates this sentiment. There is a mental drive to accomplish (insert priority here) now that the summer sun is fading and before the snow flies. Perhaps a poor analogy given our moderate climate, nonetheless akin to storing food away for winter.

We are indeed in full swing with fall festivities! On September 11th we hosted an Estate Planning Event with a focus on Trusts as a possible estate planning tool. Thank you to lawyer Shane Landreville for his partnership and presentation. See Page 4 "In the community" for upcoming events we are hosting in October/November.

I wish to draw your attention to an upcoming event featuring Dr. Thomas William Deans, Ph.D. Dr. Deans is the author of the all-time best-selling family business book, Every Family's Business, which The New York Times calls, "One of the Top 10 books business owners should read."

Having delivered more than 2,000 keynotes in 28 countries on four continents, Dr. Deans has built an international reputation as a thought leader on transitioning family wealth. If you are a business owner, please attend, if you know a business owner, please invite them!

The event takes place on Thursday, November 6, 2025, at Crown Isle Resort in The Silver Room, breakfast at 7:30 a.m. and presentation at 8:15 a.m. The event is complimentary, but space is limited, please RSVP to Andrew Cornell at 778-335-9430 or andrew.cornell@rbc.com.

I've personally read all three of Dr. Dean's books and highly recommend them. Andrew (our newest team addition) mentioned he has started reading Every Family's Business and is enjoying the content and writing style. He also shared this photo of his bedside table which displays the books I provided to him in his first week of work. I know he's a fast learner, let's hope he's a fast reader!

Another upcoming event to share with you is the Women's Entrepreneurship Day Organization (WEDO) Vancouver Island Summit, which takes place at Tigh Na Mara Seaside Spa Resort in Parksville on November 14, 2025.

I'm humbled to have been invited to participate as a panel speaker. The theme of this year's event is "Invest in Her." Tickets are available should you or someone you know wish to attend.

For my clients and their family/friends please use/share this discount code for 15% off the event's ticket price: "VI-Speaker2025."

Una was recently recognized by RBC with an internal quarterly award called "on the spot." It's essentially for her being awesome which I appreciate every day! Congrats Una! We squeezed in having new team photos taken, as the practice grows it is vital to have the right people in place in order to best serve you, our clients and to provide service and care with an uncompromising standard. Highly recommend Jacqueline Kent of VI Portraits for your photo needs!

Sincerely, Lara

Are You Overlooking the Tax-Free Opportunity?

There are few "gifts" that the government gives us, and the Tax-Free Savings Account (TFSA) is one of them. The ability to invest and grow funds tax-free over a lifetime should not be overlooked.

Yet, many high-net-worth (HNW) individuals are not taking full advantage. According to the latest 2024 statistics (for the 2022 tax year), HNW taxpayers earning over $250,000 left around 35% of their contribution room unused. While many of us gripe about high taxes, we certainly aren't doing a great job of maximizing tax-advantaged accounts. The average TFSA fair market value also falls below the cumulative contribution limit. An investor who contributed the full amount each year since the TFSA's inception in 2009 could have over $159,000, assuming a 5% annual rate of return.

Why the shortfall? Several factors might be at play. When the TFSA was introduced, it was often mistaken for a simple 'savings account,' leading some to misconstrue its long-term growth potential. Others treat it as a short-term fund, withdrawing funds instead of allowing them to grow. The opportunity cost is significant. An investor who contributes the 2025 cumulative contribution limit of $102,000 plus $7,000 annually would accumulate almost $675,000 after 25 years at a 5% annual rate of return. This could be withdrawn and used completely tax-free! Yet, this assumes that contributions and investment gains are left untouched in the TFSA, allowing for growth.

Another factor may be that some investors have taken a riskier approach with TFSA investments. This can be harmful for two reasons. If an investment realizes a substantial loss, that contribution room is lost forever. And, there is no tax relief. Unlike a non-registered account, TFSA losses cannot be claimed on an income tax return.

How about you? Are you fully maximizing your TFSA? Don't overlook the potential for significant future tax-free growth. Call for assistance.

VolUNTel - Third Annual Food Drive

Let's make a difference by supporting our community - TOGETHER!

Third annual food drive hosted by RBC Dominion Securities in collaboration with the Comox Valley Food Bank.

When: Wednesday, October 22, 2025, 11:00 a.m. - 3:00 p.m.

Please bring non-perishable goods for the food drive, or consider making a cash or credit/debit donation (tax receipts will be provided).

Drive by option available or join us for a hot dog and hot chocolate in our parking lot. We look forward to seeing you!

Location: RBC Dominion Securities, 777 Fitzgerald Ave. Courtenay, BC

Planning a Tax-Efficient Withdrawal Strategy

"A dollar's value depends on the tax trail it travels."

With our tax liabilities rising significantly over the decades (chart), tax planning continues to be an important part of wealth management. How and when you draw income can affect taxes, eligibility for government benefits and long-term financial health. Whether you're building wealth, nearing retirement or already retired, a tax-efficient withdrawal strategy can make a meaningful difference. Here is a brief look at common income sources, with ideas to help you optimize withdrawals or manage income streams more effectively:

Common Income Sources

Non-registered accounts - Tax treatment depends on the type of income: interest (fully taxable), dividends (eligible for a dividend tax credit) or capital gains (50 percent is taxable). Tax-loss harvesting can offset capital gains to reduce your overall tax bill.

Registered Retirement Savings Plan (RRSP) - Withdrawals are fully taxable and subject to withholding tax. Importantly, once funds are withdrawn, contribution room is permanently lost.

Tax Free Savings Account (TFSA) - Offers significant benefits as growth is tax-free and withdrawals are not taxed. This means withdrawals do not affect income-tested government benefits. Any amount withdrawn can be recontributed in the following calendar year.

Employment income - If you continue to work while drawing income from other sources, consider how employment income will stack with taxable withdrawals. In high-income years, deferring benefits (if possible) or adjusting withdrawals may help reduce the tax burden.

Additional Considerations for Those Nearing Retirement

Canada/Quebec Pension Plan (CPP/QPP) - CPP/QPP benefits are taxable income. Timing matters: starting early reduces benefits by 7.2% per year before age 65. Delaying increases payments by 8.4% per year after age 65, to a maximum of 42% by age 70. The total benefit received can impact income level and tax situation.

Old Age Security (OAS) - OAS is a taxable benefit starting at age 65. OAS is reduced by 15% of the excess if net income exceeds $93,454 (2025) and is fully clawed back at $151,668 (ages 65 to 74). Delaying OAS increases the benefit by up to 36% by age 70.

Registered Retirement Income Fund (RRIF) - Mandatory withdrawals begin the year after opening the RRIF, increasing taxable income. Some start RRSP withdrawals earlier to manage future tax exposure or reduce the risk of triggering the OAS clawback.

Company pension - Pension income is taxable. After age 65, the pension tax credit may help offset the tax liability. Consider timing your pension's start with other sources of income to manage the tax liability.

Income splitting - Couples can sometimes lower their combined tax burden by splitting certain types of income when one has significantly higher income. For retirees, shifting eligible pension income may reduce taxes or the OAS clawback. For those still working, coordinating taxable income (particularly after 65) may yield tax savings over time.

Tax Burden Over Time

Year End Checklist

With the arrival of cooler and shorter days, it is a reminder that there are only a few months remaining in the calendar year. Are there actions that you can take before year end to impact your financial position? Here are some starting points to consider:

• ☐ Realize capital losses to offset capital gains.
• ☐ Split income, save tax.
• ☐ Contribute to your Registered Retirement Savings Plan (RRSP).
• ☐ Make Registered Education Savings Plan (RESP) contributions.
• ☐ Don't forget the pension income tax credit.
• ☐ Convert your RRSP if you turn 71 in 2025.
• ☐ Review asset location.
• ☐ Withdraw from a Tax Free Savings Account (TFSA) before year end.
• ☐ Consider charitable donations.

If you want to discuss any of these further-or would like a detailed checklist from RBC Wealth Management-contact our office.

In the Community - Upcoming Events

Food Bank Drive

When: October 22, 2025, 11:00 a.m. - 3:00 p.m.
Where: RBC DS Courtenay Branch parking lot (777 Fitzgerald Ave.)
Open to the public

Every Family's Business with Thomas William Deans Ph.D.

When: November 6, 2025, 7:30 a.m. - 9:15 a.m.
Where: Crown Isle Resort "Silver Room" (399 Clubhouse Drive)
RSVP: Andrew at 778-335-9430 or andrew.cornell@rbc.com

Women's Business Network Spotlight Speaker

When: November 12, 2025, 5:30 p.m. - 8:30 p.m.
Where: Crown Isle Resort (399 Clubhouse Drive)
Purchase tickets here

WEDO - Invest in Her Summit

When: November 14, 2025, 10:00 a.m. to 6:00 p.m.
Where: Tigh Na Mara Seaside Spa Resort (1155 Resort Dr, Parksville)
Discount code for 15% off the event's ticket price for Lara's clients and their family/friends: VI-Speaker2025.

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof.