G.Hughes Wealth & Risk Managment Group Ltd.

While this holiday season is unlike any other, the team at G. Hughes Wealth & Risk Management Group Ltd would like to wish you a happy holiday season, as well as a beautiful New Year! Take advantage of this time to disconnect, but also to reconnect with your family. May 2021 bring you health, happiness, and success!

Navigating 2021 will require Canadians to continue to build that decentralized futureand rebuild some of the centralized models that remain a powerful driver of innovation, efficiency and diversity. Whatever shape and speed the recovery takes, the Canadian economy will continue to blend past and present, physical and digital, further dispersing economic activity and potentially ushering in a new era of decentralization. The convenienceand for some, the opportunityof the distributed economy is extraordinary. But so too are the consequences.

In an annual letter to CEOs earlier this year, BlackRock Chairman and CEO Larry Fink said climate change has become a defining factor in companies’ long-term prospects But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.

When you decide to invest your money, the options can seem endless. Among the choices are usually RRSPs and TFSAs.

Housel’s book is filled with these sorts of lessons. Some lessons caution us against certain behaviors, other lessons encourage us to embrace beneficial habits. The beauty of these lessons is that they are accessible to anyone: they are not the sole domain of high-income earners or those with elite education degrees. Reading this book won’t give you a profound knowledge about investment instruments, asset allocation, or tax-advantaged strategies; it will, however, improve your relationship with money and your attitude regarding personal finance. It isn’t difficult, Housel assures us, financial wealth just requires discipline, patience, and a handful of constructive behaviors. https://mentalpivot.com/book-notes-the-psychology-of-money/

If you have an RRSP and you turned 71 in the year, you effectively have three choices. The first is to simply cash in your RRSP and include the entire fair market value of the plan in your income. This rarely makes sense, unless the amount in your RRSP is relatively small and your tax rate is zero (or close to zero) in the year of collapse. (You could always put the funds back into a TFSA.) The second option is buy a registered annuity from a life insurance company, which can provide a steady, guaranteed flow of retirement income. The third, and, by far the most popular option, is to convert your RRSP to a RRIF.