Managed Money Reporter Newsletter — Issue 283, January/February 2015

Editors: Carl Spiess & Allan McGlade

Featured Articles

Topping up for 2015 - RRSP, TFSA and RESP

Carl Spiess

By Carl Spiess, CFP, CIM, FMA, FCSI, MBA

This is the time of year when many of our clients' thoughts turn to savings accounts. We are pleased to advise you on the best strategy for your contributions. RRSPs, TFSAs and RESPs each have their advantages depending on your age, income tax bracket, dependents and retirement plans. We can map out a strategy showing the best account(s) in which to contribute and make suggestions on specific investments, based on your personal situation. Our recommended fund list has a great set of options, and we can also help with more specialized recommendations.

The RRSP limit for 2014 is $24,270 and the 2015 TFSA limit is $5,500. The deadline for 2014 RRSP contributions is March 2nd, 2015. (For clients who have maximized 2014 RRSP contributions, the new 2015 RRSP limit is $24,930 and the total lifetime contribution room to TFSAs for someone who has been over 18 since 2009 is $36,500.) Also, be sure to see our TFSA - RRSP comparison:

How to contribute

Every year, we see more of our clients contributing to their accounts via online banking. In fact, we now receive the majority of contributions in this way. Whether you bank with Scotia or elsewhere, you can top up your RRSP or TFSA online.

Of course, we also welcome cheques which can be dropped off at any ScotiaMcLeod office - be sure to include your account number.


2015 Outlook: Recommended Reading & Viewing

After a pretty solid 2014, (see some of the numbers), on the backs of gains in 2013 as well, it makes sense that markets might take a breather for the first part of 2015. Indeed with lower oil prices, the Bank of Canada reducing the overnight rate from 1% to .75% on January 21st (details), and the Federal Government putting off the 2015 budget until April (details), we are into a period of uncertainty. Here are some good pieces to help make sense of what is going on:

Slides: The Economics of Change
Warren Jestin - Chief Economist

Slides: FX Outlook - Divergence
Camilla Sutton - Chief FX Strategist

Slides: Market Outlook - Divergence & Discrimination
Vincent Delisle - Portfolio Strategist

Video: Market Sense
Warren Jestin - Chief Economist
(0:51 minutes)

Video: Currency Outlook 2015
Camilla Sutton - Chief FX Strategist
(1:09 minutes)

Video: 2015 Investment Landscape
Vincent Delisle - Portfolio Strategist
(2:00 minutes)

Scotiabank Economic News
And many more - Scotia produces some of the most in-depth research on the street.



Team News - Congratulations Allan!

We are pleased to note that Allan McGlade has recently been appointed a Director at ScotiaMcLeod. This recognition reflects his long term dedication to our clients. Allan has also been instrumental in developing our team's Managed Portfolio Program offering, where ScotiaMcLeod offers customized discretionary investment management for our clients.

Congratulations Allan!


Fund News - New withholding tax free US dividend fund

CI Investments Inc. has launched CI Cambridge U.S. Dividend Registered, a dividend-paying U.S. equity fund that has an exemption from the normal 15% U.S. withholding tax paid by Canadians on dividends paid by American companies (see press release). The fund received the exemption as it is only available to RRSP and RRIF account holders.

And there are a lot of other developments regarding US investment holdings. Canadian investors who hold US stocks directly in their Canadian brokerage accounts may be subject to US estate taxes if their estate is over $5.6 million. But that tax wouldn't apply if they held the US stocks within a Canadian based but US themed mutual or exchange traded fund.

New Foreign Account Tax Compliant Act (FATCA) rules will require more disclosure about US persons. Luckily, some of the larger fund companies are providing the reporting that Canadian investors with US ties require under the FATCA and Passive Foreign Investment Company (PFIC) rules.

Please contact us (or your US tax accountant) if you have questions about US investments and taxes.

More on US tax laws


Recommended Link of the Month

Do you 'Doo? I seem to check the Ontario Federation of Snowmobile Club's website every few days in January and February. The list of 30,000 km of trails available is amazing. Like canoeing, riding a Skidoo is a quintessential Canadian experience. And the new generation of 4 stroke machines have changed the sound, demographics and experience of snowmobiling from the noisy and smelly adventures of the past.

So how is this site of the month investment related? Well if you own shares of DOO, the new stock name for BRP (Bombardier Recreational Products) division that makes Skidoo and Can Am vehicles - the trail conditions may relate to the sales of their sleds. And last year with the cold and snow, BRP sold out of their 2014 inventory around mid-February according to a local dealer. Check out the site for some financial and winter fun. (Note: This is not a buy or sell recommendation. Also note that DOO is now a different company from Bombardier BBD.B, which is the air and rail mobility company. Contact us directly for advice tailored to your personal situation.)



Contact Us

T.  416.863.RRSP (7777)
F.  416.863.7479

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