Welcome to 2024!

I love a New Year, mainly because it is a mental fresh slate and I always get excited about what is possible and what we have planned. Funny, but I also feel that way about September, it is that final push through to year end and is our last chance to make happen what we set out to do for the year.

This letter is always just about touching base and letting you know what’s going on in our world, both personal and business. I know it can be long winded…😊. So, hence the bold headers so you can just go to the areas of interest for you.

Markets

Coming into 2023 our expectations were that we would see a recovery and modest growth in our portfolios. We did…then we didn’t, then we did…then we didn’t…then we did! In other words, as I often say, volatility is normal.

What we and the markets were looking for (which was elusive through most of the year) was the peak of interest rates hikes so that the uncertainty surrounding them would be removed. Markets hate uncertainty, so when the central banks in Canada and the U.S. signaled in late fall that they were done (and even started talking about rate cuts in 2024), the response was dramatic. Both bond and stock markets had very strong positive results in November and December.

So, what does this mean looking forward?

Let’s step back to an explanation I use that many of you will remember. Central Banks use interest rate hikes as the braking mechanism for what they consider an overheated economy or inflation. They use interest rate cuts as the gas pedal or stimulus to pick up an economy that is in or is headed into a recession.

See below the interest rate forecast from Canada’s five major banks. Take this with a grain of salt, as these are just that “forecasts” and history tells us they are accurate… until they are not.

As you can see, the big banks don’t agree how much or when these rate cuts will happen. That being said, they all do agree the trend is down over the next couple of years and that means gas pedal down and stimulus to the economy. Interest rate movement takes 6 months to a year to sink into the economy, BUT the markets look forward to this and so react to the movement itself or as we saw in fall, to the expected movement.

Translation – we expect positive markets moving forward both in bonds and stocks. Just remember though, short term emotions will create volatility so it will definitely not be a straight line up!

Important Notes

RRSPs – If you need to still top up for 2023, the deadline is February 29th, 2024 (please don’t wait until that last week 😊) You can contribute 18% of your 2022 taxable income to a maximum of $30,780. If you are getting a head start on 2024 the maximum contribution will be $31,560.

TFSAs – This is still THE BEST tool Canada has for planning and deferring tax. Make sure you utilize it! The 2024 annual contribution amount is now $7,000 which means if you 18 or older and a Canadian Citizen in 2009 and through out you have a cumulative allowed contribution room of $95,000. If you redeemed any amounts from your TFSA in prior years, you could replace that too!

FHSA – The new First Home Savings Account finally had details filled in mid 2023 and high-level explanation is that it combines advantages of an RSP with a TFSA. With certain conditions, it will allow you to contribute $8,000 per year (with 1 year carry forward allowed) and get a tax deduction and then withdraw when needed to buy a house tax free.

Tax Filing – Deadline for personal returns is April 30th, 2024. If you require tax preparation service, we do that through our registered business (Sana Advisory Group*) for a base rate of $95 per return. The cost then goes up depending on complexity (this service is for clients only). If you would like a referral to a CPA, we are happy to do so, we happen to know a lot of great ones!

If you require more information for yourself, family or colleague, just reach out and we are happy to supply more details on any of the above.

Family Matters

It goes without saying that my immediate family means the world to me, but the Sana Family Office team is also part of my family. They are all incredibly important as well.

Josh – My business partner, friend and amazing dad/husband. He and his wife Megan along with their two kids Lyndon who is 9 and Hannah who is 7 have been loving their “new” townhouse they moved into a couple of years ago in Tsawwassen. Lyndon is an avid hockey player and Hannah just loves to have fun! Megan’s sister and husband live in Tanzania and so they are looking to make a long overdue trip to see them over Christmas this year. Josh actually hasn’t totally committed to this, so I’m making it public to shame him into taking some time off 😊.

Katie – She continues to work more and more into a senior role with us. She helps me on the business side of things as well as assisting clients in utilizing our Family Office Services. Katie will continue to oversee the administration side of our business including our tax preparation service and the Abbotsford Office. Katie and her long-time boyfriend Clayton did a little travel in 2023 but are formulating bigger plans for 2024.

Trevor – Trevor is working hard and is mentored by Josh to become a first-class advisor. We all are on a continuous path of education and learning, and Trevor definitely has a thirst for it. Along with his wife Hannah and their daughter Everlee, they welcomed Henry into their family this year! Life as would be expected is busy for them with a 3-year-old and newborn. Even so they manage still to get out for their hikes and travels.

Jolene – Is our newest member of the team who fills in that crucial role of administration support and running the Surrey Office. She is a graduate of Trinity Western was the captain of the basketball team. She and her now husband were married in September of this year, so needless to say last year was very busy for her!

And then there is me – Cara and I have been empty nesters for quite sometime now, so it is always exciting when Rhys (27) with Tracy, and Graydon (25 soon) come home to visit. Rhys is a well-established software developer, his partner Tracy works for a large engineering firm where her specialty is geo tracking and drone flying. They drag me off on an annual back country hiking trip every year along with Tracy’s dad, this year will be a canoe/hiking trip through Wells Gray National Park. The old guys still manage to keep up! Graydon is a team Marketing Team Lead for a start up in Victoria called Sepura, a composting garburator and loving the challenge. Cara of course is still running her Interior Design business and earlier in 2023 bought a horse and returned to her longtime passion of riding.

Both of our offices in Surrey and Abbotsford are growing and we really enjoy being able to offer which ever is more convenient for our clients. Add this to the incredible adoption of Zoom meetings over the last few years and there is something for everyone!

Final Words

We have been adding a lot more content in different forms, including podcasts, YouTube videos and shorts, articles and more. You can browse our website to find them or let us know you would like to have them emailed to you if you are not already receiving.

As we continue to grow, we have developed a specialization in working with Business Owners and Affluent Families with complexities. This is where we add the most value and, being my modest self…we absolutely aim to over deliver in every way!

We also have a large contingent of affluent, independent women in our client family. That leads me into letting you know that we are hosting another one of our famous “Women and Money” events on Wednesday, March 6th, where guest speaker Kaitlyn Lawson (no relation to me!) walks through the 10 things that all women should know to take control of their finances. These are always events with engaging discussions and memorable takeaways. The delicious three-course meal and free wine are the cherries on top!

Thank you for entrusting your financial well-being to our team of professionals. We are dedicated to being your most trusted advisors and are always striving to improve our depth of service to you and your family. If there is anything we can do better, please be sure to let us know.

Cheers to 2024 being a great year of experiences with friends, family and to health and prosperity!

Sincerely,

John

P.S. I just want to thank you all for thinking of us when your friends, family and colleagues at work say they need help. Your referrals are the greatest compliment we could ever receive.

The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. This material is provided for general information and the opinions expressed and information provided herein are 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 the information presented, please seek professional financial advice based on your personal circumstances. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

* Sana Advisory Group Ltd. is an independent company unrelated to Assante Capital Management Ltd. (“ACM”).  ACM does not provide income tax preparation services and does not supervise or review any income tax returns. ACM has no responsibility for the income tax preparation services provided by Sana Advisory Group Ltd.