iA Securities & HollisWealth* are now iA Private Wealth

We are excited to introduce our new company name, iA Private Wealth. The new name is designed to better reflect the essence of what our advisors do – provide holistic wealth management solutions tailored to the unique needs and goals of investors across Canada.

Please take a few moments to browse our newly redesigned and updated website to learn about the many benefits of working with an iA Private Wealth Investment Advisor.

*Refers solely to the Investment Industry Regulatory Organization of Canada licensed advisors within HollisWealth.

Your Wealth, Our Passion

Building, growing and preserving wealth takes planning and a comprehensive, holistic vision. When you work with an iA Private Wealth Investment Advisor, you have a trusted partner who is fully dedicated to your success at every stage of your lifelong financial journey.

Holistic planning for every facet of your life

We believe comprehensive personal wealth planning, supported by unbiased advice, collaboration and transparency, is the key to meeting your needs and helping you achieve your goals. Our advisors focus on six main priorities to create a plan that’s tailored to you:

Investing

A proven wealth management philosophy is one that takes emotion out of the equation and relies on a disciplined, long-term approach. Your objectives, risk tolerance, return expectations and time horizon will be the key factors your Investment Advisor takes into account in designing a plan that can help meet your retirement and other goals.

Saving & borrowing

Your Investment Advisor will help you set and achieve saving goals aligned with your needs and objectives, and develop a borrowing and debt management strategy for your unique circumstances.

Education planning

Whether you’re looking to fund a child’s education or returning to school to upgrade your credentials, your Investment Advisor can help you understand your options and maximize the value of a Registered Education Savings Plan (RESP).

Tax planning

Your Investment Advisor will conduct a thorough assessment of your circumstances to determine the most tax-efficient way of building your portfolio.

Risk management

Your Investment Advisor will develop a risk management plan that addresses the full range of factors that could affect your financial well‑being.

Will & estate planning

To plan for the preservation and transfer of your assets, your Investment Advisor can help you keep an eye on the horizon by understanding your situation and wishes, including tax-efficient legacy planning.

Latest insights

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Debt Avalanche or Snowball?

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By iA Private Wealth, January 10, 2021

It might sound like an issue specifically for winter, but deciding whether to follow the “avalanche” or “snowball” approach to tackling debt is relevant at any time of year.

If you’ve accumulated debt – something that’s more likely once the bills arrive after the holidays – trying to reduce it can seem intimidating. Where do you start? How do you limit the amount of interest you have to pay?

The avalanche and snowball approaches are proven ways to pay off consumer debt. Before we consider how each strategy works and which one may better suit your circumstances, let’s see what these strategies have in common.

For each method, make a list of all your consumer-related debts and commit to making the minimum payment, except for one. The debt balance that you’ve singled out is what you’ll target to eliminate first. Once that balance is cleared, proceed to the next balance on your list, and so on.

With that in mind, here’s how the avalanche and snowball approaches differ.

Debt avalanche: Start by making a big impact

Organize your list of debts by the interest rate that’s being charged, from highest to lowest. The primary objective of the debt avalanche method is to minimize the overall interest you pay. After making the minimum payments on all debt balances except the one with the highest interest rate, put as much money as possible toward reducing the balance on this highest-rate debt (while ensuring you still have enough to live on and can maintain an emergency fund for unexpected, urgent expenses).

As you retire that highest-rate debt, set your sights on the debt with the next highest rate, and apply the same approach of paying down as much as you can each month, until that debt is retired. As you work through your list of balances – always targeting the one with the highest rate – you’ll reduce your debt and save on interest charges.

The debt avalanche strategy may help you get out of debt sooner, but it requires consistent discipline and a steady flow of discretionary cash to put towards your balances.

Debt snowball: Get momentum on your side

Organize your list of debts by the balance owing, from the lowest-dollar balance to the highest. As with the debt avalanche approach, ensure you have sufficient money to live on and to sustain an emergency fund. After making the minimum payment on all balances, your first target will be the smallest balance on your list. Each month, apply discretionary cash to eventually pay off this smallest balance, and then do the same for your next-smallest debt.

The snowball approach focuses on systematically eliminating the number of balances outstanding. It may be good for people who enjoy the sense of achievement that comes from seeing fewer bills arrive in their mailbox or inbox. A series of small wins could help people stay motivated to repay their debts.

With the snowball method you’ll likely end up paying more interest and will take more time to eliminate your debt, but you’ll see tangible progress sooner.

Be proactive with your debt

The avalanche and snowball methods have their merits and drawbacks, but each can put you on track to eliminate debt faster. While it’s important to stay disciplined with the strategy you choose, it’s also crucial to manage future debt obligations.

Being mindful of how much money you spend – and what you spend it on – can help you evaluate your spending habits and avoid impulsive, unnecessary expenses. These expenses can quickly increase your debt balances again and potentially unwind the work you’ve done with the avalanche or snowball method. Stay focused on debt management and you’ll be in a stronger financial position over the long haul.

An iA Private Wealth Investment Advisor can help get your budget back on track for a successful 2022. Contact one today.

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Lower Your Tax Bill with Tax-Loss Selling

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By Grant White, December 03, 2021

As we approach year-end, it’s very important to think carefully about your investment portfolio from a     tax-efficiency perspective. If you have mutual funds, ETFs, stocks or bonds in a non-registered account, that means looking into whether there’s an opportunity to benefit from a strategy known as tax-loss selling.

How it works

No matter how rigorous and thorough we are when making investment decisions, some of our ideas won’t turn out as planned. But there’s a silver lining: when you sell a non-registered investment at a loss, you can use that loss to help offset any capital gains tax you owe for the current year or future years. You can also apply the loss retroactively to capital gains realized in the previous three years.

Tax-loss selling may be right for you if:

  • Holdings within your non-registered account have appreciated exceptionally well for the year and you’d like to reallocate some of your gains to other opportunities.
  • You realized gains on non-registered investments to fund a major purchase this year or within the last three years.
  • You have paper losses on investments that are unlikely to recover meaningfully or for a significant amount of time.

When tax-loss selling, it’s important to be mindful of the “superficial loss” rule, which says that once you crystalize a loss on a security, you can’t rebuy that security within 30 days if you want to retain the ability to use the loss to offset capital gains tax. The rule also specifies that if you bought the security within the 30 days prior to the sell date, you cannot use the loss to cut your capital gains tax.

The superficial loss rule also applies to what the Canada Revenue Agency refers to as “affiliated persons,” which include your spouse or common-law partner, or a corporation that you or your spouse or common-law partner controls. This means, for example, that if you sell a stock at a loss to lower your capital gains tax and your spouse buys the same stock a week later, you’re no longer able to use the loss to reduce the tax you owe.

Let’s look at a simple example to illustrate the benefits of tax-loss selling.

Case study

Lynn invested $10,000 in each of TD Bank and Peloton at the start of the year, both within her non-registered account. Year to date (as of November 23, 2021), TD has shot up 33% to $13,300, while Peloton went the other way, dropping 71.7%.

Lynn still believes in the future of Peloton but thinks it’s time to take some profits on TD, so she sells half of her position. This triggers a capital gain of $1,650, 50% of which, or $825, is subject to tax at Lynn’s marginal rate. Since she’s in the top tax bracket, that works out to a $412.50 tax bill.

The alternative is for Lynn to harvest the loss on her Peloton shares to eliminate the tax liability on her TD gains and then rebuy Peloton after the 30-day superficial loss period. To eliminate her taxable gain, she sells just over 23% of her Peloton shares ($7,170 × 23% = $1,649.10). The capital loss of $1649.10 is then used against the gain from her TD shares and leaves her with 77% of her total shares.

The right advice

The idea behind tax-loss selling may seem straightforward, but for most investors with a well-diversified portfolio, deciding when to use this strategy – and with which holdings – typically requires professional-level judgment.

For example, you may have multiple holdings that stand out as candidates for profit-taking, but in the absence of in-depth analysis it may not be clear which ones still have meaningful upside potential and which ones are likely running out of gas and therefore worth selling off.

Thinking through considerations like this and crafting a strategy that optimizes both your portfolio’s performance potential and your tax situation is best left to an experienced advisor with intimate knowledge of your investments as well as your short- and long-term goals.

Grant White, CIM®, CFP® is a Portfolio Manager & Investment Advisor with Endeavour Wealth Management | iA Private Wealth in Winnipeg, Manitoba. He can be reached at (204) 515-3440 or grant.white@endeavourwealth.ca

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Spend Wisely During the Holidays

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By iA Private Wealth, December 06, 2021

Most people look forward to the holiday season because it’s a time to shift focus from work to family and friends. Whether the holiday gatherings are in-person, virtual or a combination, it’s nice to reconnect with loved ones in a festive setting.

It’s also traditionally a time to exchange gifts, which most children – and children at heart! – anticipate well in advance of the season. If managing your bills after the holidays is a regular challenge, there are ways to keep costs reasonable while still joining in the fun.

A budget is your spending roadmap

First, create a budget for your holiday spending. Although few people enjoy going through the process of listing what gifts they plan to buy and how much money is assigned to each gift, having a budget is a practical way to keep spending under control.

If your budget starts looking tight relative to the money available, consider how to cut discretionary costs as a way to compensate. For example, if you usually buy coffee, use ride-sharing services for nearby trips or treat yourself to restaurant meals, you can brew your own beverages, walk or use public transit, and cook more often. You might even find you’re able to sustain these spending adjustments permanently! Once you’ve set a realistic budget, do everything in your power to stay within it.

Resist the temptation to overextend on credit

If you promptly pay your bills every month, credit cards are a good way to make purchases without fronting the cash. However, many people find it easy to spend using credit and then are shocked once the bloated card statements arrive.

The budget you create will cover your holiday spending, whether you use cash, credit cards or debit cards. It’s tempting to shop without keeping in mind that you’ll have to pay for your purchases at some point, and with credit cards the interest charges will add up quickly, which means more debt and more time required to pay it off. Debit cards may be preferable since you need enough money in your account to cover your expenses, so you won’t risk building more debt.

Be creative with gift giving

Many people enjoy creating their own gifts, and the recipient often treasures these homemade presents because they know how much thought and effort went into them. Think about what each person really wants or needs, and then consider if it’s something you can make. Not only does the process let you flex your creative muscles, but you’ll also save money. Buying gifts this holiday season could be more expensive than usual since higher inflation has raised costs significantly.

If you’re looking for other budget-conscious ideas, how about the gift of time? The busy people on your list may appreciate offers like free babysitting, being invited for a nice meal or relaxing at your place with popcorn and a movie. “Experience gifts” are also gaining popularity, so consider things like organizing a family hike somewhere fun that ends with hot chocolate and sweet treats, or taking a short trip with plenty of low-cost (or no-cost) activities booked.

Remember others in need

It’s easy to get caught up in the holidays and lose sight of less-fortunate people who may not be in a position to enjoy the season. Consider taking some time from your hectic schedule to volunteer at vital places like a shelter or food bank, or participate in a holiday gift-giving initiative. You may also wish to donate money or small items to organizations that provide presents for children and families in need. You’ll feel good about helping out and your efforts will reflect the true spirit of the season.

A trusted Investment Advisor can help you create a manageable and practical budget this holiday season. Find an advisor near you.

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A career at iA Private Wealth

Looking for a rewarding career in financial services? We have a wide range of opportunities for talented, committed professionals, and offer attractive compensation and benefits.

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Investment Advisor opportunities

More and more advisors are looking to iA Private Wealth as the partner of choice for building and growing an independently owned and operated business with an unwavering focus on client success.

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