DM – Q1 Portfolio Commentary
Market Review – After many months of virtually unprecedented tranquility in equity markets, the serene backdrop that investors had been enjoying came to a jarring halt in the opening quarter of 2018. Though attempting to assign specific causes to interim market moves is ordinarily a dubious endeavour, in this case the catalysts for flux were fairly identifiable.
The quarter’s first significant stock price decline began at the start of February, when 10-year Treasury yields in the US made their way up toward 3% and investors began to consider the bond/equity tradeoff for the first time in many months.
Click here to read more: DM-Portfolio-Commentary-Q1-18
The Healthcare Conversation You Need To Have Now
I came across this article in Forbes magazine and thought it was worth sharing. This is relevant to anyone with aging parents – it puts protection in place for them and gives you peace of mind.
Private Corporations Dodge a Bullet with the 2018 Federal Budget
The Liberal Government’s Federal Budget was delivered by Finance Minister, Bill Morneau, on February 27, 2018. There had been much concern and speculation about the direction the budget would take with respect to the taxation of private corporations. This was due to a release of the Department of Finance in July 2017 which contained private corporation tax proposals which addressed areas of concern to the government involving, among other things, business owners holding passive investments inside of their corporation. There was speculation that if these proposals were implemented the effective tax rate on investment income earned by a private corporation and distributed to its shareholders could increase astronomically. Thankfully, the concerns voiced by business and professional groups following the July proposals were effective in moderating the government’s actions.
Cardinal Update – March 2018
FEDERAL BUDGET 2018 – TAXING PASSIVE INCOME – The federal government released a consultation paper last summer targeting tax planning strategies using private corporations. This proposal was met with strong criticism from the business community and resulted in some awkward town hall meetings for Finance Minister Bill Morneau. Five months after the close of the consultation period, we are being presented with a federal budget far less dramatic than originally feared. But there are still some material changes that we need to understand. One of the more impactful changes involves passive income earned within a Canadian Controlled Private Corporation (CCPC). Passive income is earned on corporate investments separate from active business operations.
Click here to read more: Cardinal Update – March 2018
