H.M. Wise Asset Management

Investment News and Links

On March 22 the Federal Government released its 2016 Budget. It contained a number of measures designed supposedly to help the middle class, but also continues the war on savers and anyone fortunate enough to be making a high income. The higher tax bracket for high-income individuals was previously announced, so was not part of this budget.

Teachers and families with children should look over the budget provisions to see what goodies were either thrown their way, or taken away.

The provision that affects my clients most heavily is probably the change in the treatment of Corporate Class Mutual Funds. Effective September 1, we can no longer make switches in a portfolio of corporate-class funds on a tax-deferred basis. This reduces, but doesn't totally eliminate the advantage of holding corporate-class funds within a non-registered account. Thankfully, T-SWP funds were left untouched, but you can bet the Finance Department has their eyes on that one too!

The budget included some provisions that could affect small business partnerships, advanced tax planning using life insurance, and a number of other previous tax-minimization strategies.

I have attached 2 budget summaries, prepared by Mackenzie Financial and Dynamic Funds. The Mackenzie summary is easier to read, while the Dynamic one gives a more in-depth analysis.

Please contact me at 587-329-1659 or email at mikewise@wiseword.ca if you'd like further information or want to follow up.

Mackenzie Financial 2016 Federal Budget Summary [125kb PDF File]

Dynamic Funds 2016 Federal Budget Summary [163kb PDF File]

I hope that you find the attached article regarding changes in the Canada Pension Plan both interesting and informative.

news article:  Increased Flexibility for Retirees [120kb PDF File]
release date:  March 2010 issue of "Mackenzie Strategy Labs"
published by:  Mackenzie Financial

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