Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

It turns out that the 74% of our December poll respondents who answered no to our question “Do you think that Canada is headed towards strong economic recovery in 2021?” were right: Canada is not yet poised for a strong economic recovery.  We’ll report on some of their reasons why, but also take note of new economic data.

Are you training new and returning staff working in independent tax filing firms? Perhaps you are  a CPA in public practice, a financial advisor, public trustee, legal or financial assistant, municipal officer, payroll or software company serving individuals and business owners with tax compliance?  Then don’t miss Knowledge Bureau’s acclaimed Advanced T1 Tax Update 2021 for 2020 T1 Returns.  Here’s what’s new in our innovative offerings this year:

With the dramatic increase in online transactions and digital solutions, and the challenges and opportunities presented by the pandemic, clients require more frequent professional communications, improved collaboration between their financial professionals and more efficient processes in building wealth with all family stakeholders in a highly complex tax and investment environment. Differentiate yourself as a Real Wealth Manager™ to help with high value professional skills. Consider the following:

This year, the tax season will again be different, particularly with new rules stemming from pandemic benefits and tax credits and the complexity they have created for tax filers. And, lots has  changed at the CRA,  too. That’s why there is a great  opportunity for professionals and new entrants to the tax preparation market to improve their credentials during the continued lockdowns.  

It is the time of year for us to reflect on how lucky we are, despite the incredible challenges of 2020.  We are mindful of our good health and the privilege to continue to serve, while others have suffered the terrible losses that have come with the reality of the pandemic. For these reasons, we will be making a donation to our local food bank and our local animal shelter and we hope that you will consider doing the same.

A new Statistics Canada Report, the “2019 Survey of Financial Security” was released on December 22 and provides some important insights to what Canadians need to do to build financial security, especially when recovering from these uncertain times. What secrets were revealed? Here’s a hint: it relates to the holding of specific assets that drive wealth accumulation.