Dear Valued Client,
“The only difference between death and taxes is that death doesn’t get worse every time Congress meets.”
– “Oklahoma’s Favorite Son” Will Rogers, American actor and humorist
Aloni Goh Wealth Strategy Notes:
Equity markets continued their uptrend into the end of the year, as it became much more apparent that interest rate cuts by the Fed and the Bank of Canada will be coming in 2024. Market sentiment is now in stark contrast to the extreme fear in October. Remaining steadfast and firm in a logical investment strategy in line with your objectives has proven to be more effective than making rash financial decisions based on short-term events, emotion and hearsay from the investment media.
At this point, 2024 looks like it will be a good year for equities as well as bonds. However, volatility will likely be present from time to time and there will be difficult periods ahead, as in the case with most years. We continue to advise keeping calm amidst the maddening crowd of the financial markets and focusing on your personal investment objectives.
Further Reading:
Ah, January. Along with broken new year’s resolutions and a still-too-big waistline, the upcoming tax season is weighing on everyone. Paying taxes is generally a good thing – it means you made money, and we can all agree that making money is a good thing.
Among the other events we can look forward to in 2024, as mentioned above in our Strategy Notes, is how the central banks will navigate a “soft landing.” In non-heady financial speak, it’s a euphemism for how the central banks will bring down inflation without triggering a recession. If a recession is triggered, it’s called a “hard landing.”
Think of a soft landing like cracking an egg into a pan. When done correctly, the yolk stays intact and you can literally start your day on the “sunny side.” But, if crack the egg a little too roughly, either the yolk breaks or a part of the eggshell falls in and you’re stuck trying to pick it out with your finger – now it’s scrambled.
A soft landing is hard to accomplish. When inflation peaked above 5%, a recession followed in 1970, 1974, 1980, 1990 and 2008, though the Fed managed to stick a soft landing in 1965, 1984 and 1994-95. The Fed’s most recent numbers with slowing inflation but a strong economy suggests Jay Powell and the Fed may be able to pull this off.
Over the coming weeks, we will be contacting you to help you plan for the tax season. That includes, but not limited to:
- Making your annual TFSA contributions. The contribution limit for 2024 is $7,000, an increase from $6,500 from last year.
- Making your RRSP contributions for the 2023 tax year. The amount you can contribute to your RRSP is based on your income last year less any pension adjustment up to a maximum of $30,780 for 2023. The deadline to do so is Thursday, February 29, 2024.
- If you are turning 71 years old this year, we will need to convert your RRSP to a RRIF by December 31, 2024.
- Annual outstanding minimum withdrawals from RRIF will need to be paid out by December 31, 2024.
- More information is reflected in the Resources section of our website under ‘FAQ’: https://alonigohwealth.com/resources/
Below is a summary of the anticipated timeline for the distribution of the tax filing documents for the 2023 tax year. ‘CN Receipts’ are your RRSP contribution receipts.
As part of our on-going service, we can prepare and send your tax-related documents to you upon request.
If you would like us to forward your tax-related information directly to your accountant, please have your accountant email us. We will also require a verbal confirmation from you before we forward any documents to your accountant per industry regulations.
If you are interested in speaking with Aloni Goh Wealth Management regarding your current financial situation, or perhaps know someone who we may assist, we would be pleased to help. Referral of friends and family is the greatest compliment you could give us.
Please visit us at alonigohwealth.com or contact call us by phone 604-658-3056 or email raloni@leedejonesgable.com.
Best Regards,
Ron Aloni / Alan Goh / Jason Chen
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This commentary is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter and is provided for your information only. Every effort has been made to ensure the accuracy of its contents. The views contained herein do not necessarily constitute the views of Leede Jones Gable Inc. Leede Jones Gable Inc. is licensed as an investment dealer in every Canadian Province and Territory and is a member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund.