Insights

By iA Private Wealth, July 10, 2025

James Gauthier and his research team walk through the highlights of last month’s market and economic data.

Read the report (PDF)

By iA Private Wealth, July 4^th, 2025

Tune in weekly for insight and perspective on the macro and market landscape with iA Investment Management chief strategist and senior economist Sébastien Mc Mahon.

Watch Sébastien’s previous weekly updates on YouTube.

It’s tax season, and no matter how many times you’ve gone through the ritual of preparing your income tax return, our refresher will help get you organized and on track for what will hopefully be a smooth and painless experience.

Reference materials

It may help to have last year’s return handy as a guide to figuring out which slips and forms you may require for this year’s return, and which lines must be completed on those forms. Of course, circumstances can change but knowing what you needed last time is a good starting point for gathering info.

Similarly, last year’s CRA Notice of Assessment could help. Each notice contains valuable info, such as your RRSP deduction limit for the next tax year, the amount of unused net capital losses that can be applied to reduce future taxable capital gains, and the correction of mistakes you might have made on your return. Finally, note any tax installments you paid over the year as well as any relevant correspondence you received from the CRA.

Here’s a checklist to help gather your tax slips, forms and other required info that’ll be used when completing your income tax return.

Federal tax slips

• T3: Investment income (allocations, distributions) received during the tax year
• T4: Employment income (also includes CPP/EI premiums paid, income tax deducted, pension adjustment amount, charitable donations made through payroll, etc.)
• T4A: Pension, retirement, annuity and other income received
• T4A(OAS): Old Age Security pension benefits
• T4A(P): Canada Pension Plan benefits
• T4E: Employment Insurance benefits
• T4RIF: Income received from a RRIF
• T4RSP: Income received from an RRSP
• T5: Investment income (e.g., interest earned from bank accounts and GICs; corporate-class mutual fund distributions)
• T2202: Tuition and related fees (or a TL11 form if you studied outside of Canada)
• T5013: Statement of Partnership Income

Receipts/documentation

• RRSP receipts for contributions made in previous calendar year, up to first 60 days of current year
• Investment-related expenses, including loans used for investing purposes
• Child care and/or adoption expenses
• Child support, alimony/spousal support payments
• Medical expenses
• Moving expenses
• Charitable donations, political contributions
• Professional or union dues not on your T4 slip
• Digital news subscription fees
• Business income and related expenses
• Rental income and related expenses
• Investment counsel fees and carrying charges
• Documents pertaining to the sale of real estate 

Work-from-home expenses

Regarding the deduction for home office expenses that was introduced during COVID-19, be sure to follow the new rules.  According to the CRA, eligible employees who worked from home in 2024 must continue to use the detailed method to claim home office expenses.Remember that the temporary flat rate method, valid during the 2020 to 2022 tax years, no longer applies. Visit the Government of Canada website to learn more about eligible expenses and other important information concerning work-from-home expenses.

Capital gains inclusion rate

The 2024 Federal Budget proposed to raise the capital gains inclusion rate for corporations and trusts to 66.67% from 50%. For individual taxpayers, it proposed the same increase on the portion of capital gains realized in the year that exceed $250,000 (for capital gains realized on or after June 25, 2024).

There has been much uncertainty regarding this proposed increase, leaving many Canadians unsure of what to do. While some have proceeded with their transactions assuming the rate increase would apply for tax year 2024, others have waited for more definitive direction from the federal government. On January 31, 2025, it was announced that the timing of the capital gains inclusion rate increase will be deferred from June 25, 2024 to January 1, 2026. This may be welcome news, but it’s still recommended to consult with your Investment Advisor and tax professional to determine how best to proceed given your unique circumstances.

Our checklist is a basic compilation of common slips, receipts and other documents you may need while completing your income tax return, but it isn’t exhaustive. Not all items will apply to you, and you might need additional information to file your return. We recommend consulting a qualified professional to help ensure you complete your return accurately and fully, claiming all deductions and credits for which you’re eligible.

As the new year begins, it's a perfect time to reassess your personal finances. This annual review can help you understand your financial health, set new goals, and make necessary adjustments to ensure you're on track to meet your wealth planning objectives. Here’s a guide to help you get started and understand how an investment advisor can be instrumental in this process.

1. Review Your Financial Situation
   Start by taking a comprehensive look at your current situation, including:
• Income and expenses: List all sources of income and track your monthly expenses. Categorize your spending to identify areas where you can cut back.
• Debt: Make a list of all your debts, including credit cards, student loans, and mortgages. Note the interest rates and minimum payments for each.
• Savings and investments: Review your savings accounts, retirement funds, and any other investments. Assess their performance and determine if they align with your goals.
• Net worth: Calculate your net worth by subtracting your total liabilities from your total assets. This gives you a snapshot of your financial health.
2. Set Financial Goals
   Once you have a clear picture of your finances, set measurable, achievable, relevant, and time-bound goals. These might include:
• Short-term goals: Building an emergency fund, paying off high-interest debt, or saving for a vacation.
• Medium-term goals: Saving for a down payment on a house, funding education, or purchasing a car.
• Long-term goals: Retirement planning, investing for future wealth, or estate planning.
3. Create a Budget
   A budget is a crucial tool for managing your finances. It helps you allocate your income towards expenses, savings, and debt repayment. Use the 50/30/20 rule as a guideline:
• 50% for needs: Essentials like housing, utilities, groceries, and transportation.
• 30% for needs: Non-essential expenses like dining out, entertainment, and hobbies.
• 20% for savings and debt repayment: Building your emergency fund, retirement savings, and paying off debt.
4. Monitor and Adjust
   Regularly monitor your budget and financial progress. Life changes, such as a new job, marriage, or the birth of a child, can impact your finances. Be prepared to adjust your budget and goals as needed.

How an Investment Advisor Can Help
An advisor can provide valuable guidance and support in managing your finances by way of:

• Professional advice
  Investment advisors have the experience and training to help you make informed decisions. They can provide insights into investment opportunities, tax strategies, and retirement planning. Their knowledge can help you navigate complex financial situations and avoid common pitfalls.
• Personalized Plan
  An advisor can create a plan tailored to your unique goals and circumstances. This plan will outline specific steps to achieve your objectives, such as saving for retirement, buying a home, or funding your children’s education.
• Accountability and Discipline
  Working with an advisor can help you stay accountable to your financial goals. They can provide regular check-ins and updates, ensuring you remain on track. This accountability can be especially helpful in maintaining discipline with your spending and saving habits.
• Stress Reduction
  Managing finances can be stressful, especially when dealing with debt or planning for the future. An advisor can alleviate some of this stress by providing clarity and direction. They can help you prioritize your goals and develop a clear action plan.
• Long-Term Relationship
  Building a long-term relationship with an advisor can be beneficial as your financial needs evolve. They can adjust your wealth plan as your life circumstances change, ensuring your strategy remains aligned with your goals.

Starting the new year with a reassessment of your personal finances is a proactive step towards achieving financial stability and success. By reviewing your financial situation, setting goals, creating a budget, and monitoring your progress, you can take control of your financial future. Enlisting the help of an iA Private Wealth advisor can provide skillful guidance, personalized planning, and the support needed to stay on track. Make this year the year you take charge of your finances and work towards a secure and prosperous future.

By iA Private Wealth, November 15, 2024

Having a child is an exciting time in life. Before the baby arrives, it’s useful to think about your finances, since raising a child can be both incredibly rewarding and very expensive.

While each family is different and costs will vary, the average Canadian family spends almost $300,000 to raise a child from birth to age 17¹. Accordingly, expect to budget roughly $17,000 a year (while also accounting for the impact of inflation) until your child turns 18 – and then the potential for post-secondary education will add to this cost. Aside from expenses related to food, clothing, personal care, toys, activities, etc., your daycare/babysitting costs largely depend on where you live and how many hours of supervised care your child will require.

Funding your family addition

Clearly, the more money you can put away, the better your financial situation will be when the baby enters the picture. You don’t have to do it all on your own, however. Family and friends might be able to help with gifts, babysitting and hand-me-downs, plus you may qualify for government support.

Parents who take time off work to look after their newborn or newly adopted child may receive up to 55% of their earnings in standard Employment Insurance (EI) benefits, to a current weekly maximum of $668. As the chart below illustrates, parents can share the benefits. The eligible period for benefits may last from 55 to 69 weeks (although ‘extended’ benefits beyond 55 weeks provide less support).

Maternity benefits can be followed by parental benefits. You can apply for both at once.

Source: Government of Canada

Canada Child Benefit (CCB)

In addition to EI benefits, your family may qualify for the CCB. Payments are based on your adjusted family net income (AFNI) for the previous tax year, and are indexed to inflation. As an example, for the 2024 benefit period (July 2024 to June 2025), let’s say your family’s 2023 AFNI is below $36,502. You would qualify for the maximum regular CCB of $7,787 per year for children under six years old, and $6,570 annually for children between six and 17 years old. The maximum benefit gradually decreases for AFNIs above $36,502.²

Certain provinces and territories also offer financial assistance to help with child-rearing costs. For example, the Ontario Child Benefit (OCB) pays lower-income families up to $140 per month for each child under the age of 18, for the period from July 2024 to June 2025. If the AFNI exceeds $25,646, OCB may provide a partial benefit.³

Registered Education Savings Plan (RESP)

The cost of post-secondary education continues to rise. It’s good to consider an RESP, which is a savings and investing program designed to cover some of these costs. Currently, the lifetime RESP contribution limit is $50,000 per student (beneficiary). You may invest in many types of securities, from mutual funds and stocks to bonds and GICs, and the investment growth compounds – tax deferred – until the RESP beneficiary begins withdrawing assets.

As an incentive to save, the federal government offers the Canadian Education Savings Grant (CESG) that matches up to 20% of your contributions, to an annual maximum of $500 and a lifetime limit of $7,200.

Each province and territory has some form of student grant or loan, so it’s worthwhile to look into programs available in your area. Talk to your Investment Advisor for more details about how RESP contributions and withdrawals work, as well as questions you may have about EI, CCB or CESG.

Other things to consider

• Review your insurance coverage when preparing to have children. You may want to upgrade your life, disability and critical illness insurance plans to reflect your family addition(s). Also, if you’re covered under a group insurance plan, your children may qualify for certain medical and dental care needs.
• Update your will as your family grows, so you can include your children as estate beneficiaries. You may also use your will to make physical and financial care arrangements for your children in the event they’re still minors when you (or both parents) pass away.

An iA Private Wealth Investment Advisor can help you optimize your wealth plan for your growing family. Find one near you.

¹https://globalnews.ca/news/10001146/canada-family-spending-children-statcan/

²https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-we-calculate-your-ccb.html

³https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-we-calculate-your-ccb.html

By iA Private Wealth, October 1, 2024

Building wealth is essential when trying to reach important financial goals, be it funding a child’s education, buying a home or enjoying a comfortable and meaningful retirement. Working with an investment advisor is often a good way to save more money, achieve greater tax efficiency and grow long-term wealth through investing.

However, investing for the future can be highly complex and typically requires specialized skills, experience and discipline to succeed. The same applies to retirement and estate planning, which is why many people seek out professional advice. If you’re working with an investment advisor (or considering it), you should understand how advisors are compensated. The topic of fees can be complicated, but we’ll stick to the basics.

There are three main forms of advisor compensation: a commission-based model, a fee-based model or by salary.

Commission-based. Advisors working in this structure receive compensation when their clients buy or sell an investment (e.g., mutual funds, exchange-traded funds or stocks). The commission they earn may depend on the investment type, the dollar value of a trade or other variables. Advisors may also receive ongoing compensation from fund companies in relation to the funds their clients hold (more on that later).

Fee-based. Advisors working in this structure earn a fee that’s based on the value of assets they manage on a client’s behalf. Even if a client makes many trades and frequently uses certain advisory services, the fee charged remains a prearranged percentage (e.g., 1%) of the value of assets being managed. Sometimes the fee percentage declines as a client’s assets increase.

Salary. An advisor working for a bank or credit union will often earn an annual salary plus a performance-based bonus. Salaried advisors provide value to clients but may not hold the same industry licencing as commission- or fee-based advisors, which may narrow the range of services they can offer.

Management expense ratio (MER)

If you invest in mutual funds, segregated funds or exchange-traded funds, you’ve likely heard about MERs. They’re calculated as a percentage (e.g., 2%) of fund assets and are deducted from the value of your investment. MERs are used to compensate fund managers and dealers, and to pay related taxes.

Fund manager. This is the firm that operates the fund you invest in. They set the fund’s strategy and objectives, and employ portfolio managers who decide what (and when) to buy and sell, in order to help enhance fund returns and manage risk. They also handle administrative duties like recordkeeping, as well as legal, accounting, audit and custodial services. For these important duties, fund managers earn a portion of the MER.

Dealer. This is the firm where your advisor is registered. Dealers maintain account records, produce and deliver account statements, and provide the technology for online account access. Dealers also ensure their investment advisors meet all regulatory requirements. Part of a dealer’s MER allocation (also called a “trailer fee”) typically goes to the advisors responsible for client-oriented tasks like planning, portfolio construction and monitoring, and trade execution.

Taxes. A portion of the MER is used to cover federal and provincial taxes charged on fees and services related to the fund manager and dealer.

Client Relationship Model 2 (CRM2)

In 2009, CRM1 was introduced as a way to standardize written disclosure requirements for dealers industrywide, to help clients understand key relationship issues like the way dealers determine product suitability, how they address compensation matters and potential conflicts of interest, what dispute resolution process they follow, etc.

Building upon CRM1 and implemented in 2017, CRM2 obliges dealers to provide clients with a personalized annual report that summarizes charges and compensation related to a client’s account. This report is designed to be transparent and is written in straightforward language. For a better understanding of fees (e.g., what you pay and where the fees go), check your personalized annual report.

In the years to come, CRM3 will take effect and provide even fuller investment fund disclosure. For instance, annual total-cost reporting requirements will disclose all embedded costs of owning funds, including MERs and TERs (i.e., trading expense ratios), to offer investors greater clarity regarding the expenses incurred as part of the investing process.

Good advisors earn their compensation by providing significant value to clients. To learn more about the costs of investing and the benefits of professional advice, speak with an iA Private Wealth Investment Advisor.

By iA Private Wealth, September 10, 2024

People who are getting married will typically create a wedding checklist to ensure everything’s taken care of. Venue and catering? Check. Invitations sent? Check. Outfits and decor selected? Check. Prenuptial agreement – wait, how did that get on the list?

Leading up to the exciting day, it’s easy to overlook the reality that marriages could end in divorce. Without a prenuptial agreement (also called a prenup or marriage agreement) in place, it could lead to disputes over financial and other assets. A prenup is a written, legally binding document that a couple signs before they marry. In the event of divorce, a prenup determines the rights of entitlement (e.g., how assets are divided). Understandably, people often hesitate to sign a prenup. They feel it assumes the relationship is headed for divorce or treats marriage as nothing more than a business arrangement. That’s not necessarily the case.

Think of it as a form of insurance. When you buy home insurance, you’re not assuming your house will burn down. When you buy disability insurance, you’re not assuming you’ll suffer a major accident. You just want peace of mind knowing that you’re protected if something bad happens.

Benefits of a prenup

A prenup encourages open communication before marriage regarding important life issues. You will disclose financial circumstances (good and bad), major goals, approach to childrearing, etc. You’ll also learn what’s important to your partner and what needs and concerns they may have.

Here are 10 compelling reasons to sign a prenup:

1. You want to protect your existing assets (e.g., a home, investments, insurance policies, jewelry or other possessions with monetary/sentimental value) and future inheritances.
2. There’s a significant imbalance in the value of assets each person brings to the marriage. Without a prenup, the combined assets could end up being split evenly (more or less), failing to reflect the notable financial imbalance.
3. You own or have an ownership stake in a business (especially a family business) or real estate holdings.
4. You expect to receive a large inheritance or financial gift from a family member, and you want to stipulate how that money will be used.
5. One partner plans to be a stay-at-home parent who deserves financial recognition for their childrearing commitments, even if they might not be earning income during those years.
6. One partner (or both) is carrying a large amount of debt into the relationship.
7. You want to uphold an existing estate plan so your assets are distributed according to your wishes when you die.
8. One partner (or both) is already divorced and/or has children who may be receiving financial support.
9. A prenup can make divorce less contentious, facilitate a smoother settlement (which may mean lower legal fees) and ensure a fair distribution of assets.
10. Divorce is a common cause of financial hardship and bankruptcy, potentially jeopardizing long-term financial health and stability.

In Canada, the laws regarding prenuptial agreements vary by region, so be aware of the parameters and limitations that apply to your province or territory of residence.

Postnuptial (postnup) and cohabitation agreements

Like a prenup, a postnup agreement is legally binding and stipulates how a couple’s assets are distributed in the event of divorce. But as its name suggests, a postnup is signed after getting married. Courts often consider a postnup carefully to ensure validity of the reasons why the couple made this arrangement after they had exchanged vows.

Cohabitation agreements differ slightly. Without a prenup, a divorcing couple typically splits their assets equitably. This default action doesn’t apply to common-law couples with no cohabitation agreement. For example, you’re not automatically entitled to 50% of the shared home, even if you’ve been making 50% of the mortgage payments and covering 50% of home maintenance costs.

Keep all receipts and other documentation regarding home-related expenses, and ensure your name also appears on the title of the home. Alternatively, a cohabitation agreement may clearly (and legally) articulate how you deal with financial issues when together, and what happens to your assets should the relationship end.

If you’re engaged or thinking about living with your partner, or if you’re already married, contact an iA Private Wealth Investment Advisor who can work with your legal counsel to create a prenup or postnup that’s fair and protects your assets.

By iA Private Wealth, July 8, 2024

As the old saying goes, the only certainties in life are death and taxes. Given this reality, it’s beneficial to have an up-to-date estate plan that reflects your wishes for potential care needs and distributing your assets to loved ones, while also minimizing your estate’s tax liability to help facilitate an effective transfer of wealth.

While creating a comprehensive estate plan is important, it’s equally important to communicate your plan to family members – as well as your specific expectations of them. Why? Here are three common reasons:

1. Gain clarity. If you don’t share key details of your estate plan with family, they won’t know your wishes or how they’ll be impacted. It’s better to gather your loved ones now to explain elements of your estate plan and why you made certain decisions (e.g., your choice of estate executor).
   
   Failing to discuss your plan could cause confusion or uncertainty down the road, at a time when family is already grieving. As well, by communicating your wishes and values, and allowing loved ones to ask questions, everyone will be equally informed about your plan and desired legacy. This alignment may help avoid family conflict, disagreements or perhaps even legal action later.
   
   

2. Get organized. People have different levels of complexity in their life, but it’s safe to say almost everyone has a number of accounts, passwords, assorted bills and documents, etc. that would be challenging to identify or track down without a formal estate plan that provides the required direction.
   
   You don’t want your family to scramble when their emotions are already frayed, searching for information and paperwork needed to make critical decisions. Since your financial institutions, advisor, lawyer, accountant, etc. will likely require certain info – including your will and powers of attorney – it’s valuable to prepare trusted family members to protect your privacy and share specific info on an as-needed basis. Some people may ask their estate planning lawyer to securely store their “master list” of vital information.
   
   

3. Undertake wealth planning. Not only does your estate plan cover important aspects of your financial affairs, but it also affects your heirs and their financial life. An open discussion allows you to explain how you’ve decided to allocate your assets. This could be the first detailed exposure your family has regarding the extent of your wealth. Empowered by having an idea of what their inheritance might be, they can begin thinking about incorporating it into their existing wealth plan (or it could encourage them to get started with wealth planning).
   
   If you own a business, communicating your estate plan also lets loved ones know whether you intend for the business to be sold or for family members to take over. If you’re part of a blended family, have dependent children or ones with special needs, an estate plan can address these complexities upfront. Talking about your plans now should help your heirs be more financially prepared so they can handle their inheritance responsibly.

Obviously, communicating estate plans can be uncomfortable given the sensitive subject matter, but doing so may offer meaningful financial and personal benefits to you and your family. It’s good to talk about your estate now instead of waiting for a time of crisis when people tend not to think clearly or logically. If you’d like some professional support, your advisor, lawyer or accountant have the relevant experience to help you hold a constructive, honest conversation that may offer you peace of mind and position your heirs well for the future.

By iA Private Wealth, June 17, 2024

Be Wary of Free Advice

These days, many people are focusing more on their finances, and with good reason. Rising costs, increased job insecurity and the prospect of funding decades of retirement living are just some of the factors that might keep you up at night. How can you make ends meet while also saving for the future?

If ever there was a time for financial advice, this is it. However, the challenge is knowing where to turn for such advice. Who’s credible? Who can you trust?

Let’s face it, free advice isn’t hard to find. Thanks to the internet, you have immediate access to a world of information on a litany of financial topics. There’s also the media, both traditional and social, inundating you with articles, blog posts and videos. Add to that your friends, family and maybe even your hairdresser, and it’s clear that anybody and everybody can have an opinion on what you should do with your money. Free financial advice is everywhere. But what about its quality?

As the saying goes, you get what you pay for. There’s a lot of questionable advice floating through cyberspace. Some of it is well intentioned but misguided or non-specific, while other times scammers are actually trying to lure unsuspecting people and exploit them for financial gain.

You might also encounter breezy narratives and vague rules of thumb, like “own gold” or “buy and hold.” On their surface, simple stories offer certainty in an uncertain world. Despite their innate appeal, these simplified perspectives can prove dangerous to your financial health. Follow them blindly at your own risk. Whether inaccurate, oversimplified or too generic to apply to individual circumstances, this type of “advice” positions money management as being easy. Of course, if it were easy to succeed financially, everyone would be wealthy, right?

In reality, financial decision-making is complex. What you do (or don’t do) as it relates to your finances can hugely impact your present and future well being. If you have a family or own a business, the complexity increases. Good wealth planning isn’t about churning out sound bites or video clips. It involves looking closely at your whole financial picture and how all the pieces connect, then developing coordinated, personalized strategies that fulfill your unique needs. It’s also about having a trusted coach by your side to help you get through the inevitable bad days when you’re liable to succumb to emotion and make poor decisions about your money.

That’s why so many people choose to work with an investment advisor. Advisors have the education, ongoing training and real-world experience to address your current financial goals and prepare you for the unexpected, while also building your wealth for the future. Although their advice isn’t free, you will get your money’s worth. According to a November 2022 report published by the Investment Funds Institute of Canada, advised investors have significantly more assets after 15 years than their non-advised counterparts.¹ The report also noted the 2022 Canadian Pollara Investor Survey that found 92% of mutual fund and ETF investors were satisfied with their advisor.²

Contact us to explore the potential benefits of working with a professional advisor. Together, we can create a wealth plan that’s designed to meet your specific circumstances and objectives – now and for years to come. 

¹ https://www.ific.ca/wp-content/uploads/2022/11/Financial-Advice-in-Canada-Whitepaper-November-2022.pdf?id=27821&lang=en_CA
² https://www.pollara.com/wp-content/uploads/2022/10/IFIC_2022_MF_ETF_Investor_Study.pdf