Financial Advisor-Alphonse Destro BA, BEd

Making money is a bad investment goal. You saying, "I just want to make as much money as possible" is a BAD INVESTMENT GOAL! Making money is part of investing, but all great financial plans and investment strategies begin with the end in mind. You have to be laser clear on what you're trying to accomplish!

Any interest, dividends, or capital gains earned on investments in a TFSA are NOT TAXABLE either while held in the account or when withdrawn.

To put that in perspective, if your $100,000 TFSA grew to be $1,000,000…that would be $900,000 worth of tax free gains!!

Use the account to its fullest potential by actually investing it in the market and putting your hard earned money to work!

Reach out today, I’m here to help!

•

•

•

•

•

•

Most COMMON and COSTLY investing mistakes by novice/beginner investors: 🤕

1. Not following a real financial plan
2. Using wrong type of investment accts
3. Treating investment accts like back up bank accts
4. Not understanding risk
5. Jumping in and out of the market
6. Thinking 12 months is a long-term time horizon
7. Not having a system in place to pay themselves first
8. Chasing returns instead of the consistency of returns
9. Investing in things they don’t understand

•

•

•

•

•

•

3 things that all investors (MUST DO) if they want a shot at getting wealthy:

1. Delay Gratification- take a pass on that desired purchase and invest the money for your future instead.

2. Structure with Contributions- set up an automated PAC on all of your investment accounts.

3. Taking a Suitable Amount of Risk- You have to be willing to take some risk with your longer-term investments.

Disclosure: *As long as the above aligns with your investment objective, risk tolerance, time horizon and overall financial goals/needs.*

Paying off high interest debt vs. investing.

Which should you do? 🤔

The Debt Snowball Method. Have you heard of it?

The debt snowball method is a debt reduction strategy where you pay off your debt in order of smallest to largest, gaining momentum as you knock out each remaining balance.

Here’s how it works:

Step 1: List your debts from smallest to largest regardless of interest rate.

Step 2: Make minimum payments on all your debts except the smallest.

Step 3: Pay as much as possible on your smallest debt.

Step 4: Repeat until each debt is paid in full.

Now, before you start arguing about the interest rates, hear me out. If your largest debt has the largest interest rate, it’s going to be a long time before you start to see a dent in that crazy balance of yours. But when you stick to the plan (without worrying about interest rates), you’re going to be jumping up and down when you pay off that smallest debt super quick! That excitement is what’s going to motivate you to keep working hard...all the way to that debt-free finish line.

Just like the snowball gaining speed on its way down the hill, you can power through paying off debt. Watch your momentum and success grow as you go, one debt at a time!

Your 2023 TFSA dollar limit is $6,500. 🚨

If you have never contributed to a TFSA and were 18 years of age in 2009 or earlier, you have $88,000 of TFSA contribution room available. If not, you take the year you turned 18 and add up the cumulative room from that year and each year after.

All growth, capital gains, dividends, income earned within the TFSA is tax-free. TFSA contribution room does not disappear if you fail to contribute in any given year; it rolls over into the next year.

The biggest gift the Canadian government can give to its taxpayers, the ability to save money 100% tax-free. Put this money to work and take advantage of it‼️

You don’t buy life insurance because YOU are going to die, but because those you LOVE are going to LIVE!

Please INSURE YOURSELF. Never think that life insurance is an additional expense, rather treat it as a protection and savings for YOU and FOR YOUR FAMILY.

With over 20 insurance companies to choose from, let’s find the right insurance solution for you.

HOW I'VE CHANGED MY LIFE IN THE PAST 7 MONTHS...YOU CAN CHANGE YOURS TOO!

-Cut out bread
-Cut out sugar
-1 hour of running each day

-TRT (Testerone Replacement therapy)
-Vitamin D (10,000IU)
-Vitamin B & C
-Magnesium L-Threonate
-Probiotic
-Saffron
-Fish oil

LIFE CHANGING DIFFERENCE AND IMPROVEMENT WITH MY OVERALL ENERGY, MOTIVATION, MEMORY, CONCENTRATION, LIBIDO, DIGESTIVE ISSUES, ANXIETY & DEPRESSION.

YOU CAN MAKE THE CHANGE....BELIEVE IN YOURSELF....ALL IT TAKES IS DISCIPLINE & CONSISTENCY! I PROMISE YOU IT'S WORTH IT. HEALTH IS WEALTH!

Feel free to reach out if you have any questions about my journey, I'm here to help you!

*RRSP CONTRIBUTION DEADLINE- MARCH 1, 2023*

The RRSP contribution limit for 2023 is 18% of your previous year's income, subject to a maximum contribution of $30,780.

You can carry forward the RRSP contribution room that you are unable to use in any particular year.

When you put money into an RRSP, it can help you save for retirement, reduce your taxable income for the year, and may produce a tax refund.

Any investment income earned within the RRSP can grow tax-deferred as long as the money remains within the RRSP, until it's withdrawn.

Feel free to reach out if you have any questions or concerns about your RRSP!

Should I just sell now and get back in when things get better?

When the stock market is in turmoil, many investors are tempted to go to cash and wait for the dust to settle before getting back in. It can be nerve-wracking to watch your portfolio consistently drop during bear market periods. After all, nobody likes losing money; that goes against the whole purpose of investing. However, pulling your money out of the stock market during down periods can often do more harm than good in the long term.

Simply holding your investments and waiting it out is often the best way to survive periods of volatility without losing money. During market downturns, your portfolio could lose value in the short term. However, you don't actually lose anything unless you sell. By holding your investments until prices eventually recover, you can ride out the storm without losing anything.

When you maintain a long-term outlook, market downturns and crashes aren't as intimidating. Even the most severe crashes are only temporary, and the market will recover eventually. By keeping your focus on the future and holding your investments despite volatility, you can ensure you're doing everything possible to keep your money safe!

As long as your RRSP isn’t a locked-in plan, you can take money out of your RRSP any time.

However, any amount you withdraw will be included as income for tax purposes. You’ll also pay withholding tax on the amount you withdraw (based on the amount of the withdrawal). You’ll also lose the contribution room you originally used to make your RRSP contribution.

For these reasons, and the fact you may be losing out on positive effect of compounding on your investment returns, taking money out of your RRSP before retirement can really impact your savings.

FOCUS ON WHAT MATTERS. BUILDING YOUR PORTFOLIOS PRINCIPAL!

The compounding will take care of itself later on, if you take care of building the base early on in your investing journey!

10% rate of return on $100 is $10.
10% rate of return on $1,000 is $100.
10% rate of return on $10,000 is $1,000.
10% rate of return on $100,000 is $10,000.
10% rate of return on $1,000,000 is $100,000.

“The first rule of compounding: Never interrupt it unnecessarily.”- Charlie Munger

3 things your advisor should be discussing with you BEFORE putting your hard earned money to work:

1. Investment objective
2. Time horizon
3. Risk tolerance

Here’s the devastating financial consequence of missing the 10 best trading days in each decade since 1930....it’s a shocker! Timing the market is a sucker’s game.

What is an unregistered account? An unregistered account is a type of investment account that is subject to tax when income is earned on investments held in the account. An unregistered account is sometimes called a “taxable” or “open” account.

Unregistered accounts have many benefits:

1. Unlike Registered Retired Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs), unregistered accounts have no contribution limits, so you can save as much as you want without any penalty. There are also no withdrawal limits.

2. Anyone over the age of 18 can open an unregistered account. There is no age limit on an unregistered account, unlike a RRSP, which must be matured into a Registered Retirement Income Fund at age 71. So, this could be a good option if you’re over, or planning on using this account over, the age of 71.

3. An unregistered account can be useful if you’ve reached your contribution limit on an RRSP or a TFSA.

You always need to position your investments according to the stage of the investment journey you’re in right now.

There’s 3 stages in your journey as an investor:

1. Accumulation stage
2. Preparation stage
3. Distribution stage

Losses and drawdowns in the stock market affect you differently depending on which stage of the journey you are currently in!

When does the stock market bottom during a recession?

The stock market is forward-looking and has an uncanny ability to bottom while the data continues to sour. It stops going down while GDP, employment, and earnings deteriorate. The market has better long-term vision than we do, which is one of the trickiest parts of a bear market. Everything in your gut will tell you to sell. It will tell you that things are going to get worse. And it’s probably right. Things will get worse! But the market will have already looked past it.

The value of advice increases over time! Research demonstrates…the longer that people have advice the more it pays off!

This weird unusual year continues. When in doubt, focus on how the market has performed over the long term. The S&P 500 has only been down -20% or more 15 times since 1926. 3/4 of the time the S&P 500 goes up year over year. 56% of the time since 1926 the S&P 500 is up +10% or more. 12% of the time it’s down -10% or more. This is one of those 12% years. It happens but it’s rare. Always remember there’s a lot more green than red in the long term!

Bear Markets always end. Every single time. As stocks go down future expected returns go up. That being said, past performance doesn’t guarantee future results. The Stock Market works in cycles just like we have different seasons (fall, winter, spring, summer). There’s bull markets and bear markets. Focus on what you can control! Stay disciplined and on course to meet your long-term goals.

Lump sum vs. DCA (Dollar-Cost averaging) what investing strategy wins? Investing $10,000 lump sum now or $833.33/month for the next year?

There is no one perfect way to invest cash every time. Dollar-cost averaging can help reduce the impact of short-term price swings, but there’s only so much you can do to plan for a market crash. One of the downsides to dollar-cost averaging is the opportunity cost of holding onto extra cash. Especially if you plan to invest cash over a longer period, you’ll likely miss out on dividends and income during this period.

The market tends to go up more than it goes down. So the lump-sum will win (return wise) in the long run. But if putting all your money in the market at once seems too stressful—don’t! Dollar-cost averaging can help individuals sleep at night and avoid making fear-driven decisions about whether to invest at all.

The stock market is no place to invest for quick returns. While dollar-cost averaging can help reduce the short-term impact of price swings on your performance, consider focusing on the long-term goals you’re investing for instead. Time in the market is better than timing the market over the long-term, and history shows that the longer you stay invested in the stock market, the better your chances of making money. Investing in extreme market conditions is difficult, and dollar-cost averaging helps investors stick to their plan when they have capital to put to work.

Bear Market Talk. Lots of headwinds for stocks right now (rising rates, war, inflation, lowered earnings estimates, hawkish fed, possible recession underway). It’s always darkest before the dawn. FOCUS on what you CAN control:

1. Following 3 D’s of Investing (Dollar-Cost Averaging, Diversification, Discipline)
2. Having an emergency fund
3. Your ideal asset allocation
4. Stay invested and always stay the course
5. Continue investing 15-20% of your income
6. When in doubt head back to the books- “Unshakeable” by Tony Robbins a must read during these tumultuous times

This too shall pass. Tough times don’t last but tough people do! Don’t hesitate to reach out if you need any advice or guidance to navigate through this bear market!

What does "pay yourself first" mean? Paying yourself first simply means that you make it a habit to put money into your investment and savings account first— as soon as you get paid, and before you have time to spend it on other things. By making it your first priority, you make sure it gets done!

A PAC (pre-authorized contribution plan) allows you to pay yourself first because you can direct money into your savings and investments automatically. PAC's can help with setting cash aside if you, like many of us, don't think you have the will power or organizational ability to tackle it each time a paycheque hits your account. ✅

Need some budgeting tips? Have you heard of the 50/30/20 budgeting rule? The 50/30/20 rule is an easy budgeting tool that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your after-tax income into three spending categories: 50% for needs (ie. mortgage/rent, groceries), 30% for wants (ie. vacations, electronics) and 20% for investments/savings or paying off debt.

3 Things NOT to do during this current Bear Market:

1. Don't panic sell (cash out) or go to money market funds. Timing the market is a fool's game.

2. Don't stop or pause your investment contributions. DCA (Dollar-Cost Averaging) works even better during a down market.

3. Don't be too short sighted. Lengthen your time horizon and stay focused on your long-term plan! 💪