Tag Archives: economic recovery

Rethinking your RRSP in the new normal

Rethinking your RRSP in the new normal

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Rethinking your RRSP in the new normal

Everyone’s retirement vision and plan to get there is different – especially now – and TD Financial has some advice for how to adjust in these unprecedented times.

Some Canadians have the option of participating in an employer-led retirement savings plan, while others may not have access to this option or prefer to choose an alternate way of saving for the future.

Photo: iStockPhoto.com
Photo: iStockPhoto.com

Regardless of your personal situation, the economic fallout of the COVID-19 public health emergency has caused many Canadians to rethink their retirement plans and assess if they’re still on track to meet their goals.

TD Financial Advisor Mohamad Hannouf offers some tips for those who may be rethinking their retirement plans:

Honest assessment

It’s important to truly understand your current situation, current needs and concerns for the future. Many consumers want to know they are on the right track, and they are wondering whether they should be buying or selling.

Careful approach

One of the first things to consider is how financial markets perform long-term. Review your financial plan on a regular basis, such as once a year or whenever you have a major life event, such as buying a home or losing your job. But if your long-term goals – such as saving for retirement – haven’t changed, be careful with adjusting your plans.

Avoid common mistakes

If you attempt to predict the ups and downs of the market, and you find yourself buying and selling at the wrong times, you could find yourself missing out on long-term growth.

A pre-authorized payment plan allows you to make regular contributions towards your RSP, so you don’t need to think about the best time to buy.

Staying focused on long-term investment goals is critical, as the best times for investment growth come after a downturn. Those who sell during a down market could miss out on returns during the recovery.


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Our economic recovery will be led by building and development

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Our economic recovery will be led by building and development

The COVID-19 pandemic has had a devastating impact on Canada, Ontario and the Greater Toronto Area, and my heart goes out to residents of the GTA who have been affected or lost loved ones to this terrible virus.

Millions of people were let go from their jobs and the economy has all but ground to a halt. As governments at all levels begin to look at recovery, they will need to focus on the GTA. Our region is the heart of Canada’s economy, accounting for 20 per cent of Canada’s GDP and 50 per cent of Ontario’s GDP.

The residential and commercial building and development industry, and the professional renovations industry, are major contributors to economic activity in the region. Collectively, they employ more than 360,000 people in the GTA, paying $22 billion in wages and generating $42 billion in investment value annually. Our industry is well-positioned to play a significant role in the recovery of our region, Ontario, and Canada. Working with our colleagues at both the Ontario and Canadian Home Builders’ Associations, we have put together a roadmap for simple changes that can have a big impact.

Our industry submitted a report to the Ontario Jobs and Recovery Committee that includes 19 recommendations to all three levels of government to get our economy back on track. These recommendations will create an immediate and significant impact to consumers and businesses, and will involve little to no new money from government. Proposed measures include suspending the Canadian mortgage stress test, transferring mortgage tenancy to the date of occupancy for new condominiums, eliminating security deposits for the Ontario land transfer tax on affiliated transfers, and freezing municipal increases to property tax reassessments and development charges. Many people have lost their jobs in all sectors of the economy.

Many projects have been delayed, constraining consumer and industrial/commercial liquidity. Government coffers are also not bottomless, which is why they need to focus on liquidity and freeing up funds that would otherwise be stuck in such things as municipal agreements (refundable deposits paid by developers) and replacing them with surety bonds. These changes can be transitory until such time as we can all fully adjust to the new normal, or when a vaccine for the coronavirus is widely available.

Other suggestions include reinstating home improvement tax credits for homeowners to support ageing-in-place improvements or energy retrofits. In the past, these programs have paid for themselves, since they cut out the black and grey renovation market.

I encourage you to read the full report at bild.ca and support us as we work toward recovery in the GTA, Ontario and Canada through residential and commercial construction and professional renovation.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD).

bild.ca

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