After a tough April we saw a nice rebound in May with most equity markets up around three percent and, the bond market up about 1.8%. Earnings exceeded expectations by a slight margin and interest rates fell which supported both the bond and equity markets. 

In Canada, the returns were spread across a number of sectors including financials, energy, materials and consumer staples. 

In the U.S. the AI trade continued as the large technology companies reported excellent earnings. We are seeing a broadening out of the AI trade as investors look to some of the infrastructure needed to support the wide adoption of AI Surprisingly, utilities were the best performing sector in May as projections for the need for electricity to power the data centres resulted in a move into this sector. 
We are beginning to see analysts increase their 2025 earnings expectations modestly for the S&P 500. This is needed as the valuation for this index remains quite high by historical metrics. We are also seeing the number of stocks participating in the rally narrowing which we need to watch. 
At the moment we are entering a period between earnings seasons that can have heightened volatility so we are making careful moves in the portfolio.

 

My Financial Legacy (Feature of the Month)    
 “The idea is not to live forever, but to create something that will” Andy Warhol

You have worked hard and saved diligently your whole life. Along the way, you may have bought a house, possibly a cottage, having not only benefited from your financial assets but also your real estate. Part of designing your life solutions is running the numbers to determine how much of your net worth you need to fund your retirement income needs. 
Proper planning and saving will allow you to  have more than you need to live comfortably the rest of your life. With access capital, the question becomes, “what do you do with the extra money?” This is where legacy planning comes in. How do you structure your estate to pass on this wealth to your kids, and maybe even your grandkids, with the least amount of hassle and with the minimum amount of tax? If you don’t have children, then who will be lucky enough to benefit from an unexpected windfall and at the same time reduce CRAs slice to the minimum required? 
These are the financial considerations but our experience is that much of the heavy lifting is in the discussion around some of the softer issues. Is one child much better off than the other? Do you have a child that might struggle to accumulate an adequate nest egg over their working life? Do you give the money to them now or later? Who is going to manage the estate, and your powers of attorneys? These are just a few of the many questions we explore to make sure that any potential issues are addressed early on.

 

Over the years we have had a few different scenarios:

• A family has a child who due to mental health issues will never be able to earn enough funds to maintain their lifestyle without the help of the parents. When they are gone a trust will be set up funded by insurance funds to help maintain their independence and lifestyle when the parents are gone.

 

• A couple that does not have any heirs have created a Foundation funded by an insurance policy in honor of their mother that will fund small communities’ charities that were meaningful and important to the family.

 

• A husband in his second marriage wants to ensure that his new spouse’s lifetime income is secured should he pass away. He creates a lifetime income through an annuity upon his death.

 

T.A.G. ...on a lighter note!

It’s no secret that our team enjoys a nice meal out. Who can blame us, we live in a great city with something for everyone. Toronto Life recently released their list of BEST new restaurants in 2024, and we took the liberty of naming a few of our own:

Toronto Life Picks:
1. Mhel
2. Bar Prima
3. Takja BBQ House
4. St. Thomas Restaurant and Wine Bar
5. Savor Thai
6. DaNico
7. Aera
8. Contrada
9. The Fall Bright Tavern
10. The Rosebud
11. And/Ore
12. Porzia’s
13. MSSM
14. Conejo Negro
15. 915 Dupont
16. The Old York Tavern
17. Bar Goa
18. Daphne
19. Romi’s Bakery
20. Fish and Loaf

 

T.A.G. Picks:
 

Lisa: Taverne Bernharts for roast chicken and relaxed atmosphere  
 

Tom: Mamakas for really good Med/Greek inspired food on the Ossington strip.
 

Matt: Golden Star Drive In – classic diner, family owned – fantastic chicken tenders, burgers, fries and onion rings
 

Susy: Pearl Morissette (Jordan): Upscale, yet relaxed destination for seasonal chef's tasting menus using local Niagara ingredients with French influences.
 

Mara: Thairoomgrand – Thai is my favorite Asian food, and Thairoomgrand’s curries and soups never disappoint – my go-tos are the vegetable hot and sour soup and the Massaman curry. Paisano – Their pastas are delicious! If we’re having Italian, this is where Darryl and I are going – my go-tos are the vegetarian lasagna and the eggplant parmigiano.
 

Jenn: Kitchen 76 by Two Sisters (NOTL) – everything about this place is great – carpaccio, focaccia, tagliatelle and wine with a view(!!). El Trompo – at Kensington market – snug hole in the wall but iconic in that neighborhood. Best for summertime.
 

Maddie: Byblos – the best restaurant for mediterranean cuisine! Rasa – delicious small plates for sharing! Under the same ownership is Chop-Hop – one of my go-to lunch spots, featuring incredible chopped salads.

 

T.A.G. Reading

The Berry Pickers by Amanda Peters                
A Canadian historical fiction novel about the search for truth in the shadow of trauma. 

Tom Lake by Ann Patchett
A  beautiful and moving novel about family, love, and growing up.    

 

T.A.G. Admin

Increase to the First Time Home Buyers Plan Limit

The 2024 Federal Budget announced that first-time home-buyers plan (HBP) limit increased to $60,000, up from $35,000, effective immediately. If this is something you are considering, please reach out to Mara Draper.

 

Upcoming Webinar Reminders:
June 18: Is growth sustainable? A semi-annual outlook on investing and financial markets
June 19: Opportunities and trends in real estate