Visit our website Have a question? Call (905) 771-5200
Assante Capital Management Ltd. February 2018

Assante Wealth Management

Having trouble viewing this email?
Click here to view the hosted version.
The McClelland Financial Group
The RRSP Deadline is March 1st - Contribute Now
The 2018 TFSA Contribution Limit is $5500 - Contribute Now

Looking For The Leading Indicator

We always hear people say to watch for leading indicators. The truth is, there is little to no evidence of any predictable leading indicator to the markets. The truth of the matter is, the markets are one of the best leading indicators to the economy, as a whole. How does this all work? I can give you some insight but understand this gives you know advantage in picking investments, other than knowing what to expect. Think of an overvalued and hot market like climbing a mountain. The higher you get, the cloudier it is and the more difficult it is to see in front of you. You won’t actually know you’ve hit the peak until you have already started your descent.

After a period of strong results, the market will start to become more volatile. Temporary drops will occur even though the underlying economy is still strong. This instability will start to scare both the consumer and business owners. Due to the uncertain times, they may put off purchases of major items until things become more settled. The postponement of these purchases can lead to a decrease in sales. Thus, creating a decrease in revenue from the companies that are supplying goods. This in turn will result in the companies’ lower profits, ultimately affecting the stock price. To compensate for this, they will start to cut expenses (the biggest one being labour). This will result in an increase in unemployment.

With all this activity happening in the market, the government is raising interest rates to cool down the economy. At the same time, inflation will also be picking up. Higher interest rates and an increase in inflation will ultimately lead to two consecutive quarters of negative GDP growth, indicating we have entered a recession.

So, how does this ever end? Here is the good news. We have been through this many times in the past. We know the effect of periodically re-balancing your portfolio will help you through this time, and give you a faster recovery. So, who announces the end of the recession and when happy times are going to start again? Usually, it comes from an announcement that some company has beat profit expectations (from all the cost cutting of lay-offs). Instantly with this news the markets start to move up. From there, hang on as we will go into the next of many bull markets.

This is what makes economics interesting and allows the smart investor to make money over time. Again, we will never know the timing for any of these things but we do know what to do. Please contact your advisor with any questions you may have. We are always available to talk.

 

Michael Connon, B.Sc, CFP®
Senior Financial Planner, Co-Branch Manager
Certification in Estate Planning and Trust Strategies

The McClelland Financial Group
of Assante Capital Management Ltd.

What Can You Expect From
Canada Pension Plan?

As a TMFG financial planner, I need to be aware of all my clients’ income sources in retirement. One that we can always count on is the Canada Pension Plan. However, most of my clients are unaware of what they will be eligible for come retirement time. Actually, most are unaware of the maximum amount that the CPP will provide. All of this information is available to the public by registering for the “My Service Canada Account” online with Service Canada.

Another question that we often receive is, when should I take the CPP early or defer it? Here is a calculator that can provide you an idea of what you can expect to receive if you opted to take it early or defer it to a later age. However, I suggest having this conversation with your financial planner, as everyone’s situation is unique and a decision should not be made without professional advice.

Carlo Cansino, FMA, FCSI, CFP
Senior Financial Advisor

The McClelland Financial Group
of Assante Capital Management Ltd.

Are You Sufficiently Insured?

Do you have a life insurance policy in place and feel that you are sufficiently insured? Have you ever thought about what would happen to you and your Retirement Plan if you became disabled or had a critical illness? Life insurance won’t help you here as it only gets paid out to your beneficiary upon death. Luckily there is such insurance to protect YOU, while at the same time ensuring your Retirement Plan is unaffected if you came across one or both of those scenarios. We like to refer to them as “Living Benefits” as they provide you with tax-free income while you are alive and recovering from a disability or critical illness. Click here to look at Manulife’s article that outlines the main features and benefits of Disability Insurance and Critical Illness insurance as they are two completely different coverages for protection in two different areas. Contact us at The McClelland Financial Group to learn more and/or to have a review of your Living Benefit needs.

Chelsey Chartren, B. Com
Financial Advisor

The McClelland Financial Group
of Assante Capital Management Ltd.

This Tax Season Let Us
Simplify and Enhance Your Life

TMFG Tax Service

Contact Gala Pazin
905-771-5200 ext. 231
[email protected]

7787 Yonge Street, Thornhill, ON, L3T 7L2
www.tmfg.ca | [email protected]
For more info please call: (905) 771-5200

RSS Twitter Facebook Youtube Linkedin

You are currently signed up to The McClelland Financial Group's newsletters.
Copyright © 2018 The McClelland Financial Group.

Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and is registered with the Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the Fund Facts and consult your Assante Advisor before investing.

Certain employees of (TMFG Tax Service) maintain a relationship with Assante Capital Management Ltd. (“Assante”) through which they sell investment products. The relationship that they have with Assante does not include tax preparation services which (TMFG Tax Service) is solely responsible. (TMFG Tax Service) is not associated in any way with Assante, and Assante has no responsibility for the tax preparation services offered by (TMFG Tax Service).

*Please note that a live recording may be conducted at our workshops. Consent will be obtained, should you be captured in the video.

**All personal information will only be used in accordance with your consent, and in compliance with Assante's Privacy Policy.


Let's keep communicating. We value our relationship with you and want to stay in touch, whether it's regarding events or newsletters. In brief, The McClelland Financial Group aims to provide you with information that is relevant to you. As you are likely aware, on July 1, 2014 Canada's Anti-Spam Legislation (CASL) came into force which requires your consent to receive electronic communications.

If we do not receive an unsubscribe email from you we will continue e-communications under the implied consent provisions under CASL. **