Live Wealthy Blog

Reflecting on a Turbulent Year: Diversify, Stay Disciplined

This past year the markets fluctuated again and again. After years of low volatility, this year saw lots of volatility, especially towards the end. We’ve written about this recently, and believe it’s important to go back to our core thesis: Markets work.
Markets are Unpredictable Short-Term
The uneasy part of the market is that no one knows where it will go short term. There are many articles in the media telling you which way it’s going to go and when. That […]


Rise Above Advertisements with Misleading Claims

I’m sure many of you have seen the Questrade TV advertisements that steadily feature a blasé or disinterested Investment Advisor sitting with his informed client. The premise is that the Advisor is indifferent and charges exorbitant fees for investments. The client is there to inform the Advisor that they are moving their account, and tell them they can get their services cheaper—up to 30%—with Questrade.
On so many levels, this series of ads make me uneasy. Here are my viewpoints:

There […]


Business Owners: Tips for Year End Tax-Planning

Is it too early to think about year end? As a business owner, if you are thinking about tax-planning strategies, not at all. Now is the time to take steps in order to help minimize 2018 corporate taxes and plan ahead for 2019. Here are some helpful tips to review with your professional advisor: 
1. Consider the New Passive Income and Refundable Dividend Rules

For taxation years starting after 2018, certain passive income earned in the company, and associated companies, in […]


Maintain Optimism during Economic Headwinds

It is interesting how quickly the primary focus of many market commentators can shift as they look for things to worry about, perpetuating a pessimistic narrative about market fluctuations.
Today’s Economic Headwinds
A major change in global trade continues to dominate the news as the U.S. imposes tariffs globally. At home, Canada remained side-lined in NAFTA negotiations throughout the summer and the Trans Mountain pipeline project continued to experience setbacks. Italy’s ongoing debt issues, complicated by new political changes, as well […]


The Positives (and Perils!) of Joint Ownership

(NOTE: not applicable to Québec residents)
Joint ownership of assets has been growing in popularity with spouses, and now more frequently between parents and children. While there may be benefits, be aware of the potential pitfalls prior to transferring assets into joint ownership.
Joint ownership occurs when an asset is owned by more than one person. Generally, there are two forms of joint ownership:

joint tenancy (with the right to survivorship)—an arrangement in which the ownership of the asset passes directly to […]


Fasten Your Seat Belts for Market Turbulence—Keep Your Eyes on the Destination

To anyone who has travelled, a familiar announcement over the loudspeaker goes something like this:
“Ladies and Gentlemen, this is your Captain speaking. We are experiencing some turbulence and we ask you to remain in your seats with your seat belts fastened.”
This is an easy quote to apply to the current conditions in the stock market, and those seen in the past few weeks. I do think though, that the Captain could easily add some crucial points:

Despite the turbulence, which […]


Tax Savings: Use Capital Losses to Offset Capital Gains

Plan Ahead Before Year End
Given the extended bull market, some investors may be considering realizing gains to rebalance their portfolios. As capital gains are subject to tax, one of the more common ways to offset this tax is to use available capital losses. Here is a reminder on how losses may be an opportunity from a tax perspective.
In general, when you sell an investment you must calculate the gain or loss, which is the difference between the proceeds from […]


Looking Beyond ‘Problem Ahead’ Market Headlines

We have now entered the final quarter of 2018 and the somewhat typical, late year market volatility is upon us. More specifically, the types of market fluctuations that are often associated with October are occurring—not that I feel this will be an October like 2008.
Finding a Balanced View
Much is debated recently in financial media about the lateness of the business cycle, and the high valuations of the stock market generally, not to mention the daily published barrage of ‘end […]


Tax Free Income from a Non-Registered GIC

Recently a client asked how to get tax free income from a non-registered GIC, as their TFSA was maxed out. I mentioned that they could use the pension income credit. Here is how it works: if you or your spouse are 65 or older and do not have income from a RRIF or private pension plan, there is another alternative to take advantage of the Pension Income Tax Credit.
What is the Pension Income Tax Credit?
If you receive eligible pension […]


The Bulls and the Bears

This past August, both Canadian and U.S. equity markets boasted a new record for having one of the longest bull markets in modern financial times. What does that mean for your portfolio?

What Historic Markets Show Us
Let’s take a look back at the history of the bull and bear markets of the S&P/TSX Composite Index since 1970. There have been eight bull markets and seven bear markets. Bull markets have been longer, averaging around 63.5 months, whereas bear markets have […]