Is the Middle Class Paying More in Taxes?

First off I will start with BENCHMARKS so investors can have an idea of what their year to date returns should be (approximately). Look for your fixed income target allocation ( F ) and move across to the far column to see the benchmark return.


September 26th, 2017

*fixed income is TD Bond Fund

*Equity is ½ XIU and ½ XAW

Recent studies have shown that ‘tax breaks’ for the middle class are not providing a reduction in total taxes. For those that visited me to have their taxes done you may have already heard me saying this. With the abolishment of many tax credits I believe most ‘middle class’ are paying more tax.

Another ‘urban myth’ is getting some scrutiny and that is that home ownership is a way to secure your retirement. My personal view is that home ownership in combination with building a ‘personal pension’ (contributing to pension plan or RRSP) for decades is the key to secure your retirement.

The long term average (40+ years) for home appreciation is closer to the inflation rate than the average return seen over the last 10+ years as interest rates fell to historical lows. Now interest rates seem to be grinding higher which may cause home prices to grind lower or at least move higher in a normal fashion.

Most clients have been ‘hurt’ by the significant rise in the CDN$ versus the US$ (US$ has been weak against most currencies) but the last 2 weeks have seen a small pullback in the CDN$ versus the US$.

I encourage clients to arrange a meeting to review both their long term plans as well as their portfolio. Quarterly revises are ideal though reviews can take place over the phone as well. The retirement and investment landscapes are changing at too fast a pace for reviews to be annual (in my opinion).


The information and opinions contained herein have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Argosy nor its affiliates accepts any liability whatsoever for any loss arising from any use of this report or its contents. This report is not, and is not to be construed as, an offer to sell or solicitation of an offer to buy any securities and/or commodity futures contracts. The securities mentioned in this report may not be suitable for all investors nor eligible for sale in some jurisdictions. This research and all the information, opinions, and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without the prior express consent of Argosy.

‘historical analysis does not reflect future returns’

#benchmarks #RetirementPlanning #Retirement #realestate #returnoninvestment #middleclass

Featured Posts
Recent Posts
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square