– by Susan Dafoe, Investment Advisor, National Bank Financial Wealth Management –
Well, the RRSP season is over and if you haven’t already filed your income tax, you’re probably about to. If you are lucky enough to get a refund, what are you going to do with the money?
If you have a mortgage, the most prudent thing to do is put that refund against your mortgage. If you are lucky enough to have a mortgage-free home, you could top up your Tax Free Savings Account (TFSA). If you have contributed every year, you should now be at $31,000 in TFSA contributions. And if you are all caught up on your TFSA, you could make an early RRSP contribution if you have the room. And, once all of that is looked after, then maybe that new car …
It is early enough in the year, and many investors will have a review with their investment advisor; this lets them know where they ended the last calendar year, and what they could expect going forward in the new year. This will accomplish a few things. Are your objectives being met? Is your account getting too one-sided in any one investment or sector? Are you comfortable with the makeup of your investment account? Your portfolio should be tailor made for you and your family.
There has been a lot in the media lately about fees. Do you know exactly what you are paying and what you are paying for? Do you have a fee-based account, or do you “pay as you go?” This is also known as paying per each transaction. Whatever way you choose, the individual you work with usually has a team of experts at their disposal if they don’t have the designation themselves. Whether it is the Financial Planner, Wealth Manager or the Insurance Expert, they are all there to assist your financial advisor and having access to that expertise is usually part of the fee package.
Finally, please make sure you are working with a licensed financial advisor who puts your needs before their own. This individual will help you make important and sometimes hard decisions. They will help you stay calm through an investment crisis, and advise you not to make emotional decisions, based on what you read in the paper or hear on the television.
National Bank Financial Wealth Management is an indirect wholly-owned subsidiary of National Bank of Canada which is a public company listed on the Toronto Stock Exchange (NA:TSX). This information contained herein has been prepared by Susan Dafoe, an Investment Advisor with National Bank Financial. The information comes from sources deemed to be reliable, but not guaranteed by us and may be incomplete. The opinions expressed herein are those of Susan Dafoe, and not those of NBF. The present document may not be reproduced either wholly or in part. It must not be distributed or published or be mentioned in any way whatsoever. No mention of the information, opinions and conclusions it contains may be made without the express written pre-approval of National Bank Financial for each instance.
