2024 Reminders & Updates
Good morning,
I trust that you are as optimistic for the year 2024 from an investment perspective as I am. I believe that the world has finished its cycle of raising interest rates and while we might not see meaningful rate reductions in the short term, I think lower rates are an eventual reality. That is good news for both equities and bonds!
As I write at the start of every year, here is a list of investment reminders one might consider now that January 1st has come and gone:
- TFSA contributions. This year the limit for new TFSA contributions is $7,000 which is up from $6,500 last year. Please let us know if you would like to have your TFSA topped up, either from a non-registered account or a bank account.
- RRSP contributions. We are now in the 60-day window to make RRSP contributions that will count against your 2023 taxable income. The limit for this is 18% of your 2023 income, to a maximum of $30,780.
- RRIF withdrawals. I think we should have the new minimum withdrawal amounts by the end of this week, as they usually take a day or two to be calculated. If you would like anything specific to be done with your annual withdrawal that is different than in past years, please give us a call or email.
- RESP contributions. If you are someone who makes the $2,500 RESP contribution per child to maximize the government grant, you now have that new contribution room as well.
- This year we also have the new First Time Home Buyers plans to consider as well. The limit is $8,000 per year, to a maximum of $40,000. Plans must be collapsed 15 years after they were opened so let us know if you think this would be useful for you. There is a tax deduction for contributions to the plan and any unused balance can be moved to an RRSP.
As I mentioned, please reach out if any of the above items are relevant for you and we can review things in more detail. I am also happy to report that Marta has returned to work a 4-day per week schedule as she continues her maternity leave. Between her, Shalu, Lauren and myself, we again thank you for your support and look forward to connecting with you this coming year. I remain hopeful that the strength we have seen in our portfolios over the last 2 months is a signal rather than an outlier. I look forward to what is to come and wish a healthy and prosperous 2024 to you and your loved ones.
Best regards,
George