We wish you a Happy New Year full of health and happiness above all. The rest will come easy and we are looking forward to a bright future ahead.

Let’s start off the year strong with a few early-year housekeeping items.

• 2021 Handy Financial Planning Facts

Please click here to view a “cheat sheet” with the most common and useful financial planning facts. Save it as a PDF or print it and keep it close by.

• Contribute to your RRSP a bit earlier

We strongly encourage you to check this task off your checklist early before the RRSP season deadline. The deadline to make a contribution count towards a deduction for 2020 income is February 28 2021. Find out what your available room is and contact us to help you make the contribution. If you have significant unused RRSP contribution room we can strategize on how to use it optimally.

• Contribute to your TFSA

The Tax-Free Savings Account (TFSA) contribution limit for 2021 is $6,000. The cumulative TFSA contribution room since 2009 is now at $75,500. For the TFSA, we recommend making the contribution as early as possible. The earlier you make the contribution, the longer the investments can benefit from being sheltered in a tax-free environment and enhance growth. You can find out what your unused TFSA contribution room may be through CRA Online.

• *Business owners* Consider an IPP

If these 4 criteria’s are true for you as a business owner, contact us about the IPP before making an RRSP contribution as it may be a better option for you than an RRSP.

• You are 40 years of age or older
• You are the owner of an incorporated operating business
• You pay yourself a T4 Salary of at least $100K CAD

• We will send you a 2020 year-end portfolio update report

You will receive a consolidated 2020 year-end portfolio update report by email. By “consolidated” we are referring to a combined view all of the accounts in your household in one simple report showing you asset allocation, portfolio history, returns and market commentary.

You will also receive a separate set of documents by mail showing you figures separated by account and separated by currency. Clients have given us the feedback that those reports may be confusing which is why we also send you the consolidated view above. These reports are sent to you as a regulatory requirement.

To understand the status and progress of the portfolio overall, we recommend referring to the simpler consolidated report that will be sent by Rina, our associate.

• Let us know if there is a material change in your circumstances as soon as possible

If you are a client, we took the time to understand your circumstances before implementing your financial plan. Then, life happens and things change. If there is material change in your situation, let us know and we will determine if it warrants an adjustment to the strategy. For example if you foresee needing cash in the short-term (6 months-1 year), we may recommend a change in the asset allocation.

• Finally… Start the year by surrendering to the truth

While we have plenty of opinions, information and resources about geopolitical risks, interest rates, the economy and the markets, we will always remind you of the undeniable truth. We can make arguments and counter-arguments for any of these topics. If we agree that we cannot travel time, we agree on the undeniable truth which is that we cannot time the markets. To forecast what will cause the next bout of volatility is to predict future events which there is no evidence of yet. If there is evidence of your reasoning for a drop, most of the time, it is already priced in.

The only mindset to be a successful investor is to be an optimist and to anticipate the continuation of the constantly rising trend line of the markets. There is 100+ years of data to support optimism, despite all the terrible things the world has been through. We adhere to the timeless discipline of buying quality, profitable businesses at reasonable valuations, diversify well and rebalance so we can benefit from the incredible power of compounding returns over the long-run.

Reach out to us to help you with any of the points above and we wish you a strong start to the year.

*For RRSP and TFSA contributions, please reach out to Rina Kalsi at (514) 630-7499 or email rina.kalsi@rbc.com*

Yours truly,

Alex & The Petrov Wealth Management Group