November Complete

Welcome to another edition of Talk to the Experts on 770 CHQR, I am your host, Randy Sharmin. And joining me today via Skype is Wade Kozak from the Kozak Financial Group CIBC Wood Gundy. Hello, Mr. Kozak. How are you?

I'm great, Randy. How are you doing?

I'm well, thank you. I forgot to mention your website, Kozak Financial Group.ca. And of course the phone number, which is very important for people to contact you 403-260-0568. So last time we spoke, there was this thing going on called the U.S. election that hadn't occurred. So I'm assuming a lot of things have changed. We usually like to start our talk to the experts with you about the markets and what's been going on. I'm sure that's had an effect.

It's had it's had a definite significant effect. There's no question about it, if you recall when we were here, I think it was October 24th.

Something like that.

We were we were on on the show last. But yeah, we were a little ahead of the US election. There was a lot of insecurity and concern. I feel that a lot of phone calls during honestly during the months of September and October from clients who were posing the question to me, should we be getting out of the stock market in advance of this US election? And The Gong Show, it looks like it's going to be because, you know, perhaps there's going to be a lot of volatility in the markets could get crushed, ec, etc. And as usual the advice we gave was to maintain the balance, but hold the investments that you do, knowing that those are good companies that make profit, regardless of who's president or how this turns out. And once again, it was proven that that not taking gigantic steps to try to avoid something that that you're perceiving in the future is generally the right thing to do, because post US election, the markets have just exploded around the world, quite frankly. And the month of November, 2020, there's one more day yet to go on Monday and we don't know what that holds. But to date, the month of November, 2020 is one of the best months I've ever seen in my career in the stock market.

Wow.

Pretty much across the board, the big markets around the world are up about 12 percent on that one month alone, which is honestly not a bad year. Pretty good year.

I would think so. I feel like I missed the boat.

It's now I don't think that necessarily is the case. And, you know, traditionally in November and December are both relatively good months. You know, there's no guarantee of that, of course. But they call it the Santa Claus rally for a reason. But it's nice to see the markets responding that way and having a bright spot to share with people amidst, you know, the depressing weirdness we have going on in the world right now and the the new lockdown measures that was imposed on us and, you know, not being able to share our homes with our friends, etc, and facing this over the winter months, you know, it's kind of gets me down a little bit. I don't know, but everybody else out there. But it's a nice bright spot amid all of that.

Mm hmm. Well, and going back to your point about the markets before the US election and all the speculation around that and what really happened, that just falls on the on your philosophy of just staying the course because you don't want to get into that guessing game, right?

That's right. And what we're really seeing here, which I'm kind of excited about, is a little bit of a rotation. So during the month of October, that rotation started in a fairly weak way, where on days that those stay at home stocks, the the great big technology companies that have done very well through the covid lockdown's, et cetera, which have driven a lot of the market rally that we've seen here in North America since March. Whenever those stocks were kind of weak during October and especially in November, the stocks that were very strong were those blue chip dividend payer that the typical value stocks. And we start we started seeing that rotation in October, but it really took hold in November with the announcement from Pfizer of the efficacy of their vaccine. And so here we are kind of dealing with one hand personally. Of course, we're still in lockdowns, we're trying to get the covid numbers down. There's a lot of concern about what this means for the economy over the next few months. But the markets are already looking 12 months, 18 months down the road. And so and that's why you sometimes get these weird dichotomies of unemployment numbers worse than the US. GDP is still creeping higher, but not at the same pace as it was sort of post the hard lockdown's in the spring. And yet the markets are exploding on and essentially the markets are exploding and doing very well because they're looking down at what those corporate profits might be 12 months and 18 months in the future. And that's why you have this kind of disconnect between what's happening right now, today in our real lives and what's happening in the stock market.

Hmm. Well, and what you're talking about is just part of the homework, for lack of a better word that you do for your clients so they don't have to do. You're watching this all the time. This is kind of your your forte. And so for your clients don't have to do that, right?

Yeah. You know that we're at the helm and we're we're making sure that the way the portfolios are constructed is rational, that it's not based on a bet that something's going to work out, that these portfolios are designed to get a reasonable rate of return in a pension plan like way and generate a certain amount of cash flow. That especially is useful to those retired clients who want to make a regular withdrawal. And all the pieces of all of those accounts have to work together towards that common goal of of that collection of all those investments. And then which pieces of all of those of all of those investments are best suited to put in each of the accounts for tax efficiency reasons or anything else. But, yeah, that's that's our job to sort of make sure that that plan is rational and will work.

When you say pension plan kind of way to people, kind of forget that that you are talking about people's pensions. It's not like they can go back to work after they've been retired for 10 or 15 years. Some might be able to do that. But in the real world, this is kind of like the last shot at doing it right.

I like saying that you don't get a chance to go back and try again with your retirement portfolio. Like once you reach retirement, what you save there, that's it. And so many of us don't get to choose our retirement date. The retirement date is chosen for us either by a health issue or a layoff or something like that. And so you better be ready for it. And we take that very seriously that that these accounts have to be there and have to look like a pension plan. Especially in especially this year, there's there's a tendency to want to stray from that, because when you look at the market move, like I said, in North America since the end of March, about two thirds of the run we've seen in the stock market has come from only six or eight or 10 stocks. It's been a very, very narrow rally amongst a very small number of giant cap growth names, that has driven most of the stock market rally to this point. The last time I saw a stock market rally that was this narrowly focused on just a small number of stocks in a very small number of sectors. It was 1999 just in advance of the of the dotcom crash. Now, I'm not saying that's going to happen again. You know, things don't happen the exact same way twice ever. However, I'm seeing things happen that remind me of 1999 where people are literally having to make up new methods of valuing stocks so that the prices they're trading at can make some kind of sense. And you're hearing people say things like, well, price earnings ratios don't really matter anymore in this new world because of insert argument here. But quite frankly, those arguments generally come to not whenever that's that's happened in the past. And you see stocks then that are priced for perfection. I think it was about, gosh, was it three or four weeks ago, Intel announced their earnings after the close and the earnings like they earned money. But it wasn't quite as much money as the market was expecting. And the next morning it opened down, I think 14 percent. That's the kind of thing that can happen when a stock is priced for perfection. And so those best those those growth names that have done the best since March, they're now trading at levels, in my opinion, that they better hit the top end of all of their growth targets over the next number of years or else they could be punished in the stock market a little bit. And you're seeing a lot of agreement with that opinion, with that rotation to value that we've seen during November where money has been exiting those stocks to a certain degree. And where has it been going? It's been going into those quite undervalued value, dividend paying stocks.

We're just getting underway. Chatting with Wade Kozak from the Kozak Financial Group, the website kozakfinancialgroup.ca and that important phone number 403-260-0568. If you have questions, make sure you call that number. We're going to talk a little bit about interest rates and some of the other things that you do for your clients with Wade Kozak when talked to the experts continues on 770 CHQR. We left off talking a little bit about the markets and the effect the US election had on that and some of the other things? But I wanted to get into interest rates because it seems to me that depending on what side of the interest rate you're looking at, whether you're borrowing or whether you're investing, it can be a good thing or a bad thing. Am I right on this?

You're right. I mean, what's really triggered me to talk about it today is that the Bank of Canada, just before the weekend essentially came out and did something that they don't do very often. They came out and basically said, you know what, interest rates are going to stay really low for a really long time and just kind of get used to it. Normally, they're a little more circumspect and, you know, don't give you that clear of an idea of exactly what's going to happen. But it is clear away, as they could before the weekend, they let everybody know that rates are low. And if you want to if you're going to want to make any money on with your investments that interest rates are going to be going any higher any time soon. So maybe you should do something else with it. And I think that's sort of a wake up call to a lot of people. But we've honestly been seeing this for the last number of months. And I want to highlight a difference right now. So so right now you buy a 10 year investment grade corporate bond, and I'm talking like a good corporate name like Bell Canada or Telus or Brookfield Asset Management. About the best you can do on a 10 year bond is around two point one percent. And our constant listeners will know that we've always been those people who say, here's your balanced portfolio, here's your bonds. You buy a one through 10 year ladder every year. Those bonds come due. You just go and buy the new 10 year term. Don't worry about what the interest rates are. It all comes out in the wash. You'll get the average rate over the next 10 years. But even for someone like me who's been following that mantra for a 27 career, I bulk a little bit at locking up money for ten years at a two point one percent rate, especially when, if I buy the common stock of that very same company that's issued the bond. Telus or Bell Canada. I can get a dividend yield currently that's between five and Bell Canada's around .8 % right now, so two and a half times, sometimes nearly triple the rate that I can get on income from that bond. Now, the bond is guaranteed, but it's really hard to imagine a world where if you put a hundred thousand dollars into each of those investments, one hundred thousand dollars into the bond, that one hundred thousand dollars into the common stock paying that dividend rate wait for 10 years, it's hard to imagine the world where after 10 years, that bond investment is the better performing investment. And that spread between those two different yields is as large as is larger than I've ever seen it in my entire career. And that leads me to think that those blue chip dividend paying stocks right now are actually representing pretty good value, at least better value than that bond. I don't know necessarily whether that's because the stocks are cheap or whether it's because the bonds are expensive or maybe a little bit of each. But on a on a valuation basis, I find those stocks are actually a little bit better valued. And I think an investor today could be serving themselves well by still maintaining that latter, but leaning a little bit heavier towards those dividend paying stocks for that cash flow. And the reason I say you have to maintain that bond ladder is that the bonds serve more of a purpose than just the fantastic rate of return you hopefully can get on them. They also moderate the volatility in your investment account, in your retirement plan or in your pension plan. Even in a year when interest rates are rising dramatically, those bonds won't drop in value in nearly as much as the stocks could drop in an in an ugly year in the stock market. And so it's still moderate's the volatility. It still gives you some guaranteed money maturing. And if you have to make a withdrawal that year and you have to make a choice of do I sell some stocks or do I use some of this bond that's maturing, you want to have that choice. So you need some of those bonds maturing. So you still need them. But at this rate where the valuations lie, I think maybe you don't need quite as many of them.

When you talk about a 10 year ladder, so to speak, are you talking I'm imagining that look like a ladder. When you're on the bottom rung and you're cashing out that bond, you're going to take that money that you're cashing out and buy another bond to go to the top of the ladder. Am I sort of getting the gist of what you're talking about?

That's exactly right. Lots of people out there who who invest on their own will build a GIC ladder and go to the bank and simply buy a five year GIC every year. And after five years, they have money coming due every single year in the form of that GIC and rolling it forward. And you're only ever buying a five year GIC. We do the same thing except on a 10 or possibly an 11 year bond ladder, typically where we're buying government and corporate bonds all go out to that 10 year date such that clients have money coming due every single year and have access to some of their capital in a guaranteed way every single year.

And it's not just about the interest rate, as you explain. When you say two percent, people might go, oh, my gosh, I can get a better rate somewhere else. But it's not all about that because as you mentioned, if you needed some cash flow, you're not dipping into your stocks. You have some available. And and it's sort of more of a stabilizing factor.

Exactly. It's a stabilizing factor that moderates the volatility in your pension plan, because the whole point to a pension plan is to give you comfort that you're going to be taken care of through your retirement years. Your pension plan should not be a source of stress that you're looking at it and worrying about what might happen or what will happen in the stock market. You should be able to look at your pension plan and have it give you a sense of comfort that look at this, it's going to generate this withdrawal for me every single year, regardless of what happens in the economy, regardless of what happens in the stock market, I'll be able to make that withdrawal with confidence every single year. And I would invite everybody out there who's listening that if you don't have that confidence, when you look at your investment portfolio to give us a call at 260-0568, and I'd be happy to walk through with you on the telephone right now, not necessarily in person, exactly how we might set up a portfolio for you so it looks more like a pension plan and be a source of comfort and not stress.

Is that what a lot of people start with that starting point right there is. You're just talking about the kind of go, oh, my goodness, I don't know what I'm doing here, I better make that phone call.

Yes, sometimes they usually do some sort of catalyst behind the phone call that something's occurred that's either shaken their confidence in their current advisor or they've come to realize as they start getting closer to retirement that their investment portfolio looks more like a like a series of bets. It's not uncommon to meet somebody and you look at their investment portfolio and you can almost you can almost see the exact time line that every year they made a contribution. And whatever was the flavor of the day that year, that's what ended up getting purchased. And you get this mishmash collection of all kinds of these different investments that don't really make a whole lot of sense in aggregate when you look at it all combined. And they're starting to come to realize that there isn't a cohesive, logical plan of how this is going to turn into a monthly check being deposited into their bank account in retirement. And when a person comes to that realization, suddenly our message that we have about we're all about the income, that cash flow is king. Make sure that cash is arriving to fund that withdrawal so that you're not relying on the stock market to go up to to fund your retirement withdrawals. Suddenly, that message resonates a great deal. And that leads to that phone call.

And that phone call starts by where or with this number 403-260-0568. Again, the website kozakfinancialgroup.ca. We are chatting with Wade Kozak from the Kozak Financial Group CIBC Wood Gundy. We talked a little bit about interest rates in the markets. That's just a few of the things that you offer your clients. So we'll get into some of the other things that you do. I use I made the note here about paperwork. There's lots of paperwork that goes along with the things that you do and you handle that and a lot more. So we'll continue chatting with Wade Kozak from the Kozak Financial Group CIBC Wood Gundy. Again, that phone number 403-260-0568 and talk to the experts continues on 770 CHQR after this. We talked about interest rates and the markets and some of the things that you offer your clients. Let's talk about some of the other things you do. It's not just about dollars and cents, although that's a big part of it.

It is. You know, and honestly, we kind of get caught up on that, especially when we're we're talking here on the radio and talk to the experts, because everybody's most interested in the financial management side of things, the investment selection process and all of that sort of thing. But that that amounts to about a quarter of what we do for our clients. And so there's a whole lot more we do. I mean, you mentioned paperwork and that's, you know, absolutely. Obviously, we handle all the paperwork with these things. But kind of beyond that, there are certain functions that the average client will only ever have to do once in their life. So I'm talking about rolling over an RSP into a riff or more complicated, rolling over a Lira in a locked in retirement account from a pension plan into a life income fund and the complications behind the one time unlocking opportunity you have. And so the average client out there, they only have to do this once. They don't really think about these things a lot. And they're sometimes pretty complicated. And you have choices to make, especially in the case of those those locked in plans that you only get to make once. And this is something that we do every day, right. For all kinds of clients. And we could kind of break it down in very simple terms that for your circumstance, this is the absolute best way to handle it. And here's why. And the clients then get the benefit of our decades and decades of experience, of doing this over and over again and knowing the ins and outs of all of this paperwork and how to get it done. Naomi on our team is probably going to shoot daggers at me on Monday for talking about this. But it's it's also difficult sometimes to deal with transfer agents if anybody out there who's listening has ever dealt with a perhaps a parent who passed away and they had some stock certificates sitting in the safety deposit box, and then they were left with the job of having the name changed on those stock certificates from mom or dad into their estate or to a beneficiary. They'll know the absolute difficult, near impossible process it is to go and deal with the transfer agents who are not very customer service friendly because that's not their job. And it's it's not infrequently that our clients will come to us after having tried to handle this process and say, like, look, I just can't get this done. And at least we understand the process that has to happen and, and know exactly how to sort of deal with that transfer agent to get those processes done, which are very difficult even for us to deal with the transfer agent. But these are those are just two examples of the administrative side of what we do for our clients. That can be a little bit daunting if if you're doing it yourself or don't have a very, very good understanding and good knowledge of all this. And it's really handy to have somebody who can walk you through it and give you all the benefit of the experience that we've had over decades of doing this over and over and over again.

Mm hmm. So if someone does have a financial advisor now, and they're not really happy with them, how do they make that leap? I can't imagine calling you up saying, you know, Hey, Wade, I heard you on the radio, but I have a financial advisor. Or does that happen more often than not?

It does it typically there's some there's some kind of a an event, right, whether it's a loss of trust or something happens that causes that person to say, you know what, I'm not happy here. I want to make this move. And then it's then it's an interview process where they generally sit down with with two or three or four different potential people to deal with and see who has the best fit with them. And, you know, I'm used to I used to sort of those those meetings where we are describing our process and how it might work for them. It's you know, but it's a fairly painless interview process. And and from there, the account transfer process also can be quite simple. It's just simply a matter of opening up accounts at the new advisor's office. In this case, it would be with us at CIBC, Wood Gundy, and we would open up the RSP, the TFSAs, the joint non registered accounts, perhaps a corporate account, whatever accounts we needed to, to kind of mirror their existing accounts and then transfer everything across in kind. Those securities would come across as the existing securities there are, typically the the institution you're transferring from charges use some sort of transfer fee, which we offer to cover. So it actually doesn't cost anything to go and move those accounts across. And then once all of those assets assets are across, then we sit down again and discuss and agree on a plan to how are we going to set these accounts up and to be that pension plan that those clients now want to set up.

When you're talking about this administrative work, is that just part of the whole package?

It is. And it's just, you know, that that account administration that we provide, which I just gave two examples of, that amounts to about another quarter of what we do. So that and the financial management, the management of the assets and the and the investments makes up about a half of what we do. We've spent a lot of time talking on the talk and the experts show here about some of the tax efficiency processes that we help our clients through. And that's probably another 20 percent of what we do for our clients is looking at their circumstances and determining is it possible we can save you twenty thousand dollars a year on taxes with a spousal loan? Is it possible that there are ways we can structure your accounts that make them far more tax efficient?Are you taking full advantage for a retired person of the particular tax bracket you're in without bumping you into a clawback position so that we can, in the most efficient way possible, gradually drain your RRSP through your retirement? Like all of that math, and that's there's a big part of that happening right now, this time of year, making sure those RSP withdrawals are done, et cetera. That makes up about 20 percent of what we do. And we then I guess we do we do spend a lot of time talking about that here, here on the show as well.

When I when I mentioned the full package, though, what I was kind of getting at is you're not nickel and diming your your clients like you're not selling people after you do all the the administrative things and those extras. Right.

That's all inclusive of of the of what we charge our clients to deal with us. I would say on a on an average million dollar balanced portfolio, our average client is probably paying us somewhere between one and 1.1% to go and run those assets. That's a number that I can look anybody in the eye and not feel embarrassed about on a million dollar account. If if you're being charged more than that per year, I think you probably should examine exactly what value you're getting for that number. And if you're unhappy with that value, by all means, give us a call at 403-260-0568.

Mm hmm. And there's also the non-monetary part of retirement that we have talked about. Previously on Talk to the Experts with you. We only have about a minute in this segment, so maybe we can sort of introduce what that is all about and then, you know, carry on in the next segment about it.

Sure. So anybody who's good at math and has been following along, we've added up the 25% of the time spent in financial management. 25% in the account administration and about 20% of our time spent on the tax efficiency of how these accounts are structured. There's about 30% less left that in a category that we call counseling. And so we'll get into that after the break.

Sounds good. He is Wade Kozak from the Kozak Financial Group CIBC Wood Gundy. Their website, kozakfinancialgroup.ca or give them a call. 403-260-0568 and we'll chat with Wade after this on talk to the experts on 770 CHQR. We left off with the cliffhanger about counseling, which I think I call the non-monetary side of looking after your clients in retirement, because there's so many things, I think anyway, that people come to that have nothing to do with investments. It's just everyday living in retirement. Right.

And and just circumstances that can be weird so that that client counseling part that makes up about 30% of what we do for our clients, I think adds a lot of value to the services we provide. So I'm thinking about clients who are retired. They're looking at their financial plan. They're looking at how this is going to work. They've never been retired before. And so their experience is fairly limited as to how this is going to work out. Maybe they have friends who've retired and they can they can ask their friends for anecdotal kind of advice and how things have gone. But over over the last 27 years, we've helped countless clients across this threshold. And I have clients today who are still retired, who were retired when I when I started in this business twenty seven years ago, quite frankly. And so we've seen those clients through every possible stage of retirement. And we can give them the wisdom that, you know, when those early years of retirement, the expenses can be a little bit higher because you're checking off those bucket list of things you want to do. But then in general, it tends to trend down to some kind of nominal line that maybe you were expecting to spend in retirement. And then at some point, even that level of retirement activity and travelers curtailed, sometimes due to a health issue or sometimes due to a health issue of a parent that keeps it closer to home. Or this past year, global pandemic has kept us closer to home. And and we can give clients kind of a clearer picture of exactly what each of these stages of retirement might look like and give them some comfort that they're not going to run out of money over that time frame because we have so much experience of seeing people through every single one of these stages. Another example that I would put into that counseling category is it's not uncommon that I'll get a call from a client who now has adult children and wants to help one of them out with the house down payment. And we can walk them through the various ways of doing that and the pros and cons pitfalls that we've seen happen that people have fallen into and perhaps some better ways of doing that so as not to expose a significant chunk of assets to loss through a divorce or something like that. And we can give people some pretty good advice through all of the experiences we've had of how to structure this in a fair way and in a way that protects everybody involved. Another example of the counseling side is honestly, just the other day I was talking to a couple who were clients who suddenly were thrust into dealing with mom and dad's money because one of them had passed and the remaining parent really wasn't up to handling it themselves and basically finding kind of a bit of a mess. And and I could point out some pitfalls of the way that they're that the remaining parents sort of had things set up. In this particular case, the parent had made their principal residence and an open investment account joint with two of the children, but not with the third child, not because the third child was supposed to be excluded just because they weren't handy when all of this was done and it was done out of an interest in avoiding probate in the province they reside. But I could point out to the to the clients that, you know, without some clear direction to those other two siblings, this could end up in a very uneven distribution of assets upon that final parent's death. And forget the financial side, all of the angst and family disharmony that might cause and that I've seen happen over the years. And we could give them some advice on perhaps better ways of achieving the same goal, but still having the estate outcome that the parent wanted. And those are those are just a few examples of things that sort of fit into that client counseling side. And even from the point of view and I think we've talked about this in the radio, too, is that it's not uncommon. We'll deal with we'll deal with a young adult child of an existing client. And sometimes the tendency there is to think this person is young. They have a long time horizon, they should be taking lots of risk, but we have the experience to know that what a 21 year old who's still living at home with a chunk of money they have probably has a shorter time horizon than their than their 55 year old parents, because they're probably going to want this money back out inside of five or seven years for a house down payment or some other large, large capital purchase. And honestly, that's exactly what I've seen happen almost every single time to to those young adults who have money and perhaps they don't have that time horizon that they think they do. And we can we can offer our wisdom and our advice of all of these circumstances, not because we're we're brilliant, but because we've seen them all before. And we have those years of experience of seeing some of these circumstances again and again and again and again. And we can help you walk through the best way of handling some of these.

How often do you meet with your clients or your.

Well, over this past year, meeting in person has been has been rare, but it has been I think the last time I met you in person, Randy, was back in February or March. But we have we have kind of a hard and fast rule for every client that we want to do a six month review. So at least every six months, our our clients are having a right now a telephone or a Microsoft teams meeting scheduled where we review the portfolio, we review the goals, we make sure the asset allocation is on target. We make sure there haven't been any questions that have come up that have been unanswered. And then in between those six month reviews, there's there's usually significant points of contact also whether it be when a tax free savings account contribution is made or making sure that the contributions are made or double checking the notices of assessment to make sure that the the tax brackets had been used up the way we want to. But in our computer, it's kind of like even if everything else fails, it's going to be at minimum, those two six month reviews to go and review with the client.

And of course, if your clients have questions, obviously they can call you at any time and and ask those questions.

Of course. Yeah. And like everybody else in Canada and the world, our work circumstances have changed a little bit right now. We have about half of us working from home in any given day and about half of us in the office. There are some things that have to be done in the office for security purposes. And so we do need some people there. But I have to say, like even when we're in the office, we aren't kind of schmoozing around with each other too much, where we're staying in our offices and trying to be separated from each other as much as possible. And the reason we're doing that half and half is so that if one half of us for some reason comes in close contact and we aren't able to be in the office, the other half of us can step in and be there. And let's hope that doesn't happen and we have to test that.

We still have a couple of minutes here. But let's look ahead to December. And of course, whenever we look at December, I always think it's getting close to tax time or you should start thinking about it, right?

Absolutely. Like this. You don't want to wait till tax time, which, you know, which is kind of march to think about taxes, because there are certain things that you have to do now before the end of the year that can significantly affect your taxes. So I want to point out that right now there is some there is some speculation and expectation that we see a capital gains inclusion rate increase announced from CRA, this this expectation and this fear, I tend to get phone calls about it every year, this time of year of, well, what if the government does this? But this year, I think there was like perhaps a higher likelihood since the government might have to do something to fund the firehose of money they've been spraying around. And that and it increased in the capital gains inclusion rate would be something that is probably more politically palatable than anything else. And so it's probably the first. Well, they're going to go to. So you want to be careful like triggering gains just because of that, especially if it's in a security that you might not want to sell anyways for the next five or seven or ten years. Maybe you don't want to trigger the gains and pay a bunch of tax now on a gain that you have no intention of triggering over the next five or seven or ten years anyways. So keep that in mind. But that's something we want to think about right now. You also want to look at this time of year, the capital gains you already have triggered for the year and determine whether or not you want to if you have any losses in the account, take losses to offset that gain and perhaps not pay as much tax in 2020. Another deadline that's coming up is the education plan contribution deadline, unlike registered retirement savings plans where they give you those first sixty days into the next year to make that contribution, RESP contributions have to be made by the end of the calendar year. So if you haven't done that yet and collected your grant money, now is perhaps the time to go and do it. And especially for retired people, now's the time to do a quick and dirty on your taxes for 2020. How much income are you going to have to show from your various pensions, from your riff withdrawals from your investment income? And should you be taking out a larger riff withdrawal to use up the bottom tax brackets? Could that be something that it's in your best interest to do? Because that has to be done before the end of the calendar year.

I always learn so much when I chat with you, sir. He is Wade Kozak from the Kozak Financial Group CIBC Wood Gundy. If you have questions 403-260-0568 is the phone number or you check out their website, kozakfinancialgroup.ca. Pleasure chatting with you, Wade.

Good to be here. And we look forward to chatting with you again next time.

And you've been listening to talk to the experts on 770 CHQR.