December 2023
As the holiday season comes to a close, we hope you all enjoyed the holidays spent with family and friends, and that lots of lasting memories were made. Now it is time to enjoy the Winter Wonderland with warm drinks, outdoor winter activities, and wrapping yourself in warm blankets in front of the fireplace.
Around the Office:
In December, Kristin was able to attend her children’s very first Christmas Concert at school. What a joy to see these events finally coming back!
In 2024, Declan is preparing to complete our clients RRIF/LIF payments for 2024. With the TFSA contribution limit increasing to $7,000 for 2024, client TFSA top-up transactions will also be a priority in January and February. Finally, Declan will be looking to ensure all clients wishing to contribute to their RRSP for the 2023 tax year have made their contributions before February 29th, 2024, as 2024 is a leap year.
During the winter break, Declan was able to find some free time to go snowboarding. He hopes to find some more time in the next couple months between his time at the office and his courses. Declan is looking forward to completing this winter term as it marks his final Full-Time term for his degree.
As we end 2023, the new year brings resolutions. One of Keith’s personal goals is to always be learning. The "Great Wealth Transfer" is upon us. According to the Chartered Professional Accountant Association of Canada, $1 trillion is set to move from Canadian baby boomers to their Gen X and millennial heirs between now and 2026. Because of this, Keith will be completing the "Master Financial Advisor - Philanthropy" designation in 2024. This will help our office to better support you with your estate planning goals.
Reminder - Daily Office Staff Meetings - 9:30am to 10:30am
Should you call during this period, please leave us a message on our voicemail. We conduct our daily office meeting during this time and phones will not be answered. This time allows us to organize our day’s tasks, review the previous day’s work, discuss and complete client reviews and enquiries, as well as review current rates, markets and updates on the latest news.
Annual Reviews
As a reminder, every year we prepare an Annual Review for each of our clients. This is an important process to ensure we are up-to-date with the most current information, as well as ensuring your information is accurate and meeting your Financial Lifestyle needs. Preparing your review involves a detailed process that not only has us look back on the past year but also look at the upcoming year for potential needs that might arise and ensuring client files are up to date and accurate. Spending the time to go over your entire portfolio is even more important given the current situation in the world. A lot has changed for many people, and many things that may have not been thought about before have come to the forefront. To help ease some of your scheduling stress, we are currently booking Annual Reviews via virtual meeting, telephone, or in person, depending on your preference and comfort level. For those doing their Annual Reviews by Zoom/Microsoft Teams or by telephone, the reviews will be uploaded to your Client Portal and/or mailed before the scheduled meeting date.
Our office remains closed to public/walk-ins, however, we are available by telephone and in-person meetings by appointment only.
If you would like for us to wear a face covering for your in-person meeting, please notify our office before your scheduled meeting, and we will be more than happy to do so.
For clients requiring an evening appointment, some evenings have been set aside to accommodate. Please be advised that due to the high demand for evening appointments, availability maybe limited.
Client Portal, E-Signatures and KYC (Know Your Client) Form
If you haven’t done so yet, we encourage you to set up your “Client Portal” and take advantage of its many features. We can securely upload important documents to you through this portal and you can do the same for us. You will have access to certain tax receipts, statements and more. You can also make changes to your personal information, such as, email address, home address, phone number, and bank account without having to come into the office to sign off on paperwork. Please contact our office if you need assistance registering for your Client Portal.
The Electronic Signature process for electronically signing order instructions and updating your Client Information makes things easy to do – even from the comfort of your couch. Should you need assistance in using this form, please do not hesitate to contact us. Please note that our E-Signature documents now come from “Electronic Signature” and not from “E-Sign” as they did previously.
System Updates and Protection of Client Data
Our office continues to invest heavily in systems to protect your data. To protect your digital information, we use a VPN, firewall, and various other encryption methods. We also protect the physical premises by keeping the office locked at all times, keeping physical files locked up overnight and as well as an alarm system and multiple high-definition cameras throughout the building. We take your privacy very seriously, but as time moves on, it may never be 100% in protecting your data. Sometimes even the most secure data can be exposed.
Since our June 2023 letter we “Googled” recent ransomware attacks in Canada and most will be surprised. CardioComm July 25, 2023, Yamaha Canada Music July 11, 2023, Alberta Dental Service Corporation July 09, 2023, Suncor June 23, 2023, University of Waterloo May 30, 2023, Constellation Software May 04, 2023, The City of Toronto March 23, 2023, Yellow Pages Canada March 15, 2023, Indigo February 08, 2023, Sobeys November 07, 2022, Bell Canada August 08, 2022… This is just to name a few... Let us not forget GoAnywhere February 08, 2023.
Source: https://spin.ai/resources/ransomware-tracker/
Steps One Can Take to Deter Ransomware
Many clients are already aware of the fact Roman likes his IT Technology and gadgets. One question asked of him lately is “what can I do to prevent getting Ransomware?”. Well, the bad news is that eventually most of us will be “hacked”. That said, there are measures we can take to deter but most importantly restore our compromised computers. Two such measures are purchasing/subscribing to Antivirus and Backup software for starters. For Antivirus, Roman recommends Norton 360 Deluxe which protects up to 10 computers, though other Antivirus software do exist Roman has personally used this one. As to Backup software, the purpose of this is when your computer gets compromised you can restore your computer and data to a previous date prior to your computer being compromised and risk only losing some data. Acronis Cyber Protect Home Office is software Roman has used. Remember to set the backup software to back up your computer daily, encrypt your backup and store on an external hard drive, or better yet, the CLOUD. Other measures include using a “true” VPN (Virtual Private Network) as well a firewall such as Watchguard or Netgate to name a few.
Delivery of 2023 Tax Slips
- Contribution receipts for the period of March 1 to December 31, 2023 will be issued at the end of January 2024.
- Starting in February, receipts will be issued on a weekly basis for the first-60-day contributions of 2024.
- T4RSP & T4RIF for withdrawals in 2023, will be mailed out by February 29, 2024.
Enhanced CPP: A Closer Look at Income-Linked Changes
The year 2024 brings noteworthy adjustments to the Canada Pension Plan (CPP), particularly in the realm of contributions. One of the main changes relates to contributions, with an emphasis on income levels.
Unlike the previous system, where contributions were more uniform, the “Enhanced CPP” introduces tiered contribution levels. This means that as your income rises, so does your contribution to the CPP. For many Canadians, especially those in higher income brackets, this change may result in a noticeable uptick in their CPP contributions.
Prior to 2019, CPP was designed to replace 25% of your average work earnings. Under the enhanced version, it will work toward replacing 33.33% of your average work earnings. The major change is a second contribution tier above the Years Maximum Pensionable Earnings (YMPE). An employee earning higher than the YMPE will contribute 4% of their income up to the ceiling. For self-employed individuals, the contribution will be 8%.
The income-linked changes to CPP contributions also carry implications for retirement planning. Those in higher income brackets may need to revisit their financial strategies to accommodate the increased contributions and qualification amount in retirement. On the flip side, individuals with more modest incomes may find relief as their contributions remain more proportionate to their earnings.
In conclusion, the 2024 adjustments to Canada Pension Plan contributions signal a deliberate move to ensure CPP remains healthy as more of the Baby Boomer generation moves into retirement. And for those who see retirement in the distance, you can expect a higher CPP payout when you get there.
2023 Markets – A Year in Review
As we bid farewell to 2023, a year marked by economic resilience and market volatility, the global stock and bond markets experienced a rollercoaster ride. The year kicked off with optimism as the world rebounded from the challenges posed by the pandemic. Equity markets saw robust gains, fueled by strong corporate earnings and accommodative central bank policies. However, as the year progressed, concerns over inflation and interest rate hikes led to heightened volatility, testing the nerves of investors. And then November happened and we saw the rebound we had all been hoping for.
In the realm of stocks, technology continued to play a pivotal role in driving market dynamics. Meanwhile, traditional sectors such as energy and finance saw fluctuations in response to geopolitical events and policy changes. On the bond front, yields fluctuated in response to shifting economic indicators and interest rates. The delicate balance between inflationary pressures and economic growth became a key theme, shaping the fixed-income landscape.
Looking back at 2023, it becomes evident that a short-term approach to investing is not the most prudent one. Navigating the uncertainties posed by a changing economic landscape required a strategic approach. By being patient, focusing on investing for our long-term goals and using an appropriate asset allocation strategy to reduce risk, we continue to see success over time.
Patience is a person's ability to wait something out or endure something tedious, without getting riled up. Having patience means you can remain calm, even when you've been waiting forever or dealing with something painstakingly slow.
Perseverance is persistence in sticking to a plan. Steady persistence in adhering to a course of action, a belief, or a purpose; steadfastness.
Introducing the Canadian Dental Care Plan (CDCP)
The Canadian Dental Care Plan (CDCP) has been initiated to alleviate financial barriers hindering eligible Canadian residents with an annual adjusted family net income of less than $90,000 from accessing essential oral health care. The plan is particularly designed for individuals without dental insurance, aiming to address a critical gap in coverage.
Qualification Criteria: To be eligible for the CDCP, individuals must meet specific criteria. Both the applicant and their spouse or common-law partner, if applicable, must fulfill these conditions. For children under 18, eligibility is contingent upon their parents’ or guardians’ compliance with the criteria. Key eligibility requirements include:
- Lack of access to dental insurance through employment benefits, pension plans, or personal purchases.
- An adjusted family net income below $90,000.
- Canadian residency for tax purposes.
- Completion of the previous year’s tax return.
Application Schedule: The application process unfolds in phases, commencing with seniors and gradually extending to other age groups. Visit this link to see if/when you qualify:
https://www.canada.ca/en/services/benefits/dental/dental-care-plan/apply.html#when
Current Status: Starting in December 2023, seniors aged 87 and above will receive personalized letters with application codes, facilitating their enrollment in the CDCP. This process will sequentially extend to other age groups, ensuring a systematic and inclusive approach to dental care access.
The CDCP marks a significant step towards making oral health care more accessible, addressing the specific needs of Canadian residents while promoting a phased and organized enrollment process.
Estate Planning
Have you updated your Will, created a Legacy Contact, and Deputized someone for your safety deposit box?
A Legacy Contact is someone you choose to have access to the data in your Apple account after your death. Learn about the information that’s shared with your Legacy Contact and how to add one or more Legacy Contacts.
Please contact our office for more information.
Anatomy of the Grandparent Scam
It is back. It is dangerous. It is heart-breaking. It is called the Grandparent Scam. We have been educating and warning folks about this cruel scam for decades now. Although we have related the details of the scam in our articles and presentations, my personal experience with this scam was only through 3rd party reports. Until it wasn’t.
Our phone rang. My husband answered the call, listened for a few moments, and looked concerned. He handed the phone to me. The caller sounded like a young male. He was frantic and was talking very quickly. I couldn’t get a word in edgewise. He kept calling me ‘Grandma’ and was racing with clipped minute details about riding in a borrowed car with a friend. They didn’t know the car was stolen, they were pulled over by the police and are now in jail. They desperately and immediately needed money to be released. Please, please help, Grandma, I really need your help and I am so embarrassed – don’t tell anyone. “Ah, I am thinking – so here it is. I am finally experiencing first-hand the Grandparent Scam.” Part of me wanted to play it out as far as I could, in order to hear them confirm the amount of money needed and how the transfer of funds would take place. Although I was tempted to engage further, I remember being warned against playing along with scammers out of curiosity and so prepared to shut down the conversation. Before hanging up, I did ask him his name, and a perturbed voice said, “Come on, Grandma, you know who this is – how could you ask me that — it’s me – your grandson.” I told him I was reporting this call to the police and hung up.
I was struck by the precision of the performance, scripting, and acting. They were good. The Grandparent Scam is not a random act, but a finely tuned encounter designed to tug at the heartstrings and move you to their intended outcome of separating you from your money. Let’s dissect the elements that contribute to the scam’s malicious genius:
Emotional Hijack:
The scam is a masterclass in emotional manipulation, exploiting the protective instincts we hold for our loved ones. The urgency and fear seeded in the narrative are meant to overpower the logic that would otherwise flag the situation as suspicious.
A Faux Familiarity:
The repeated use of ‘Grandma’ is no accident. It’s a calculated move to forge a false bond to deepen the emotional entanglement in the fabricated crisis at hand.
Scripted to Perfection:
The scammers have their script down to a fine art. Every frantic utterance, every supposed hiccup in the story is rehearsed to perfection, aiming to build a facade of authenticity and urgency.
A Whirlwind of Disorientation:
The rapid-fire delivery and barrage of details are meant to disorient, to drive you into a state where clear thinking takes a back seat to the emotional turbulence they’ve provoked.
Veil of Secrecy:
Urging secrecy is a maneuver to isolate the individual from the voice of reason that friends or family could provide, keeping the recipient trapped in the scammer’s deceit.
Guilt, The Invisible Chain:
The feigned indignation when asked for a name is a guilt-trip laid to make the grandparents feel wrong and not loving enough, a psychological trap meant to coerce cooperation.
Vague Vocal Resemblance:
Though the voice didn’t match perfectly, scammers often bank on the emotional turmoil and the vague familiarity to gloss over such discrepancies.
Immediate Financial Plea:
The plea for immediate financial aid is a pressure tactic meant to push the individual into acting hastily, forestalling any deeper analysis of the situation at hand.
Curiosity, A Risky Enticement:
The temptation to probe further is natural, yet dangerous. Each interaction is a chance for the scammers to glean more information, to refine their deceitful art for the next target.
To think we would never fall prey to these types of scams denies the sophistication of the crafting and the execution of these calls. There is a science to the composition of every word, pause, timing and emotion. Understanding the layers of this scam is the first step towards arming ourselves and our community against such predatory antics. This scam is not just a tale of caution, but a reflection of the highly-developed skill scammers employs to exploit the caring bonds that knit our families and communities together.
Rhonda Latreille, MBA, CPCA
Founder & CEO
Age-Friendly Business®
Scams Hurt Your Body and Soul
Deceit can sow seeds of anxiety and stress, often leading to sleep disturbances and a decline in self-esteem. The emotional turmoil brought about by betrayal may strain personal relationships and erode the fundamental trust we place in others. Over time, the cumulative stress from deceit can manifest physically, potentially leading to headaches or even immune system suppression.
Fool Me Once or Twice
“If someone betrays you once, it’s their fault; if they betray you twice, it’s your fault.”
This article is reproduced with permission from Age-Friendly Business, no reproduction in part or in whole is permitted without consent.
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This newsletter was written, designed, and produced by Roman A. Groch and Keith McConkey, for the benefit of Roman A. Groch and Keith McConkey, Mutual Fund Representatives with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.