Blog

Category Archives: Frank’s Update

Frank Mueller

BC Training & Education Savings Grant – Who Says Nothing in Life is Free?

In 2013, the Government of British Columbia introduced the BC Training & Education Savings Grant. This grant is a great way to help build your child’s RESP, as it will receive a one-time grant of $1,200.

According to the BC Training and Education Savings Grant’s info website, the following 3 conditions must be met in order to qualify for the $1,200 one-time grant:

  1. The child must be born in 2006 or later
  2. You and the child must be residents of British Columbia
  3. The child is the beneficiary of a Registered Education Savings Plan (RESP) with a participating financial institution

The earliest you can apply to receive the grant is on the child’s 6th birthday, and the latest you can apply is the day before the child’s 9th birthday.

If your child meets these 3 conditions, they are eligible to apply for and receive the one-time grant of $1,200. We have been reviewing all of our client RESP accounts, and looking for accounts with beneficiaries that meet the above criteria. If you have an RESP account with us, and would like to find out if your child qualifies for this one-time grant, please do not hesitate to contact us.

Frank Mueller

Weekly Update – April 8, 2016

TSX REBOUNDS FRIDAY ON STRONG JOBS NUMBERS, OIL SURGE

The S&P/TSX Composite closed the week at 13,396.73, down 0.3% for the week. At a 2.9% gain year-to-date, Toronto’s main index continues to trail only New Zealand’s index – the world’s best 2016 performer.

While down much of the week, a Friday surge, spurred by encouraging jobs numbers and a 6.6% jump in oil, helped the TSX to cut its losses for the week.

Strong Canadian jobs numbers for March posted a stronger-than-expected increase. A potential knock-on effect of this news could be felt on April 13th, if the Bank of Canada decides not to cut rates again. Before the jobs numbers were released, there was speculation of a rate cut happening again with hopes of further economy stimulation.

Oil enjoyed a healthy jump to finish the week, as data from the Energy Information Administration showed a decreasing U.S. production for the 10th time in 11 weeks, as well as decreased crude stockpiles. West Texas Intermediate May futures closed at $39.72USD per barrel, almost a 50% increase from the February lows, while Brent June futures closed at $41.92USD per barrel. A meeting of oil-producing countries, scheduled for April 17th in Doha, is highly anticipated, as an agreement to freeze output would buoy oil’s price further. John Kilduff, partner at New York energy-focused Hedge Fund Again Capital LLC, stated “We’re still hemmed in a range below $40. Breaking through would be very bullish for the market”.

However, many analysts aren’t believers in an extended oil rally, citing Iran’s goal of winning market share, as well as the world total supply surplus as the main reasons not to believe the hype. Without Iran being on board with a supply cut, other producers cutting supply would only lead to a loss in market share to Iran.

 

Blog Posts

To Buy Or Not To Buy, That Is The Question

How To Take The Bite Out At Tax Time

We Are Not Burger King, And That’s A Good Thing

 

SOURCES: Globe Investor

Frank Mueller

Weekly Update – April 1, 2016

TSX FINISHES MARCH UP 4.9% DESPITE LOSSES TO END THE WEEK

The S&P/TSX Composite closed the week at 13,440.44, and as March came to a close, the TSX enjoyed its strongest monthly advance since October of 2011 by posting a 4.9% gain. At a 2.7% gain year-to-date, Toronto’s main index remains behind only New Zealand’s index as the world’s best 2016 performer.

The Thursday and Friday TSX losses were led, as usual, by drops in crude oil and resources such as gold.

Oil fell below $37USD per barrel, wiping out much of it’s gains year-to-date. Comments by Saudi Arabia’s deputy crown prince, Mohammed bin Salman, were a major reason for the drop, as he stated Saudi Arabia won’t freeze output unless other major oil producers do so. Meanwhile, world-wide oil production continues at between 1-2 million barrels per day of surplus. As weather warms with the change to Spring, demand could wane. Add all these factors together, and further drops in oil’s valuation is a very real possibility.

Strong US jobs numbers for March – our southerly neighbour added 215,000 jobs – paced expectations by about 10,000, improving the overall outlook about the US economy. Adding to the positive US news was speculation about a sooner-than-expected rate hike by the Federal Reserve.

Naturally, US jobs and Fed rate hike news weighed on gold, and the metal was down by 1% before settling at $1,223.50USD at market close. For the first quarter of 2016, gold has surged to a 16% increase in price. This represents the strongest quarterly rise in decades.

TAX TIME HAS COME AGAIN

Usually, the deadline for individuals not self-employed is April 30th. However, in years – such as 2016 – where April 30th falls on a weekend or holiday, the CRA considers your return to be filed on time if they receive the return/payment on the next business day. The 2016 exception date is Monday, May 2nd.

Self-employed persons must still pay any balances outstanding on/before May 2nd, but they can file their return on or before June 15th.

If you are the executor of the estate for a deceased person who died in 2015, you might have to file a 2015 tax return for that person.

Some helpful links:

T4011 Preparing Returns for Deceased Persons 2015

What To Do Following A Death

When Do You Have To Pay Your 2016 Instalments?

 

Sources: Globe Advisor, Canada Revenue Agency Website

 

Frank Mueller

Weekly Update March 4, 2016

TSX RALLIES: FINISHES THE WEEK IN THE BLACK YEAR-TO-DATE

The S&P/TSX Composite eclipsed the 13,000 mark this week, and doing so, it dug its way out of the hole it had climbed into during January and February. The TSX is now in the black year-to-date. The TSX joins the New Zealand stock index as the only indexes world-wide with positive numbers year-to-date. At the closing bell, the TSX settled at 13,212.50.

The extended TSX rally and the strengthening Loonie have been fueled, unsurprisingly, by the continuing oil rally. Brent crude futures finished at $38.72 per barrel, and West Texas Intermediate futures closed at $35.92, both up more than 10% on the week, and both well above their 2016 lows of a month ago. The rally, however, is curious in that it is occurring in the face of record oil stockpiles.

Oil wasn’t the only driver of the TSX this week. Commodity prices have also enjoyed an increase, led by Gold. Gold is now in a bull market, as investors have flocked to the precious metal all year in hopes of finding safe haven. Gold finished the week at $1,262.60 per ounce.

The Loonie also enjoyed a strong week, buoyed by oil and resources. The Loonie finished the week just north of 75 cents against the Greenback, its highest level since mid-December, and around 10% higher than its late-January low of 68 cents.

U.S. jobs numbers data came back better than expected this week, offering some optimism south of the 49th parallel. Sentiment on the state of the U.S. economy were improved with this jobs report, at least in the short-term. The jobs news added to the rosy picture after reports major car manufacturers and construction industry stabilization was released earlier in the week.

Also earlier this week, China cut their reserve ratio requirement, freeing up an estimated $100-billion which can be used for lending purposes. This announcement was another piece of pleasantly surprising news, and had a positive effect on the markets.

 

BLOG LINKS

Cases When Keeping Tax Records Longer Than Six Years Is Smart

 

North America

The TSX closed at 13213, up 415 points or 3.24% over the past week. YTD the TSX is up 1.73%.

The DOW closed at 17007, up 367 points or 2.21% over the past week. YTD the DOW is down -2.40%.

The S&P closed at 2000, up 52 points or 2.67% over the past week. YTD the S&P is down -2.15%.

The Nasdaq closed at 4717, up 126 points or 2.74% over the past week. YTD the Nasdaq is down -5.79%.

Gold closed at 1262, up -4.00 points or 3.10% over the past week. YTD gold is up 19.17%.

Oil closed at 35.98, up 3.00 points or 9.10% over the past week. YTD oil is down -2.89%.

The USD/CAD closed at 1.332716, down -0.0192 points or -1.42% over the past week. YTD the USD/CAD is down -3.68%.

 

Europe/Asia

The MSCI closed at 1598, up 44 points or 2.83% over the past week. YTD the MSCI is down -3.91%.

The Euro Stoxx 50 closed at 3037, up 108 points or 3.69% over the past week. YTD the Euro Stoxx 50 is down -7.07%.

The FTSE closed at 6199, up 103 points or 1.69% over the past week. YTD the FTSE is down -0.69%.

The CAC closed at 4457, up 142 points or 3.29% over the past week. YTD the CAC is down -3.88%.

DAX closed at 9824, up 311.00 points or 3.27% over the past week. YTD DAX is down -8.55%.

Nikkei closed at 17015, up 827.00 points or 5.11% over the past week. YTD Nikkei is down -10.61%.

The Shanghai closed at 2874, up 107.00 points or 3.87% over the past week. YTD the Shanghai is down -18.79%.

 

Sources: Globe Advisor, Yahoo! Finance, Dynamic Funds