US Election 2020

Will the Outcome of the US Election Impact the Stock Market?

What will happen to the stock market if Joe Biden wins?
What happens if Donald Trump wins?
I am going to look at these questions from a historical market perspective. I am not going to look at who might be better for the economy or who will be better for the country. This is not a political blog. I am going to look at these questions from the perspective how the market has done in relation to different presidents […]

Magazine Headlines Deter Investors

Headlines Sell Magazines—But Do They Help You Invest?

If you followed your investing strategy based on the headlines of major news publications, you would not be blamed for never investing. News headlines can be overly negative because that is what sells.
As a former trader, we used to joke that you do the opposite of whatever is on the cover of the Economist. This is not to say that much of what is written is untrue, it is just lagging by weeks or months. The markets are forward-looking, […]

Top Tips for Wealth Management in an Uncertain Economy

Top 3 Tips for Wealth Management Planning in an Uncertain Global Economy

At Precision Wealth Management we are strong believers that ‘living wealthy’ is a process. Rather than being about a short-term goal, it’s the result of years of smart, strategic wealth management planning, with financial partners you trust. It can be hard to know when to stay the course, and when to alter your wealth management planning strategies. This is even more the case when worldwide economies are in a time of higher-than-average flux.
Market volatility can be a stressful and […]

2020 Budget Summary

Summary Highlights of B.C.’s 2020-21 Budget

Finance Minister Carole James announced the 2020-21 Budget this week as a balanced budget, projecting a surplus of $203 million for the 2019-21 fiscal year. The Budget aims to keep B.C. “moving forward” with increased funding for post-secondary students, climate action, and housing supply for B.C.’s most vulnerable residents. 
I’ve summarized key points from the budget with an emphasis on changes that will affect our client’s day to day lives, as well as from a financial management perspective.
New Tax Bracket […]

Pension income splitting

RRIF’s and LIF’s Eligible for Splitting Pension Income

Clients are often surprised when I tell them that the Registered Retirement Income Fund (RRIF) and Life Income Fund (LIF) are considered pension income. This opens up a few opportunities to save on taxes and put extra cash in your pocket each year.
Rules Around Pension Splitting
Under pension rules, the CRA allows you to split up to 50% of eligible pension income with your spouse or common law partner. You must both be Canadian residents for tax purposes, and live […]

Old Age Security Clawback

Old Age Security Clawback

Many people are surprised that when they turn 65 they are not guaranteed to get all of their Old Age Security (OAS). They do not realize that OAS is income tested and if you make over a certain income in a year it will be “clawed back,” officially known as the OAS Recovery Tax.
How does the clawback work?
If you make $77,580 (2019) or higher, you get a reduction in OAS benefits by 15 cents for every dollar over that […]

Precision Wealth Management streetview

Finding the Right Financial Partner in Parksville

It’s important to take action and make sure your financial future is in order, and it’s never too early to start. But where do you begin? Everyone wants to know if they are getting what they pay for. How do you choose the right financial partner?
Financial planners have varied training, qualifications, and experience in Parksville and across Vancouver Island. Many financial planners hold designations and have passed courses in financial planning. Others are also registered with their securities regulator […]

RESP Grant BC offers

New Parents: Making RESP Contributions

I recently became a new parent at the ripe old age of 40. It has been exhausting, amazing, and overwhelming all at the same time. There are many things to consider financially for your new child, and this can feel daunting.
The first topic I will tackle in this series of blogs is the Registered Education Savings Plan (RESP).
RESP Grant BC parents should access for their child’s education
RESP’s are made up of contributions (principal) and different government grants. For example, […]

Inverted yield curve

Human Psychology, Market Timing, and the Inverted Yield Curve

Clients have asked recently about the reported inverted yield curve and what that means for their investments. Further, they have been asking if it is time to sell and go to cash. 
Many are pointing to the inverted yield curve as the predictor that a recession is around the corner. An inverted yield curve is when longer term interest rates (10 years) move lower than short term interest rates (3 month). This can be a good predictor that a recession will occur sometime […]

Patient Investor

The Patient Investor

The human brain is not equipped to be patient and stay disciplined when the market is in a tail spin. We are conditioned through millions of years of evolution to avoid pain and seek pleasure. This is why so many investors make the mistake of selling at the very worst times when the market is down. It’s moments like this that you see some of the best opportunities in the market.
How do you counteract making investment errors at […]