From the Editor: The End Game

Q1 | March 2020

Laptop, notebook, Tablet and coffee on work desk

Dianne C. White CPA, CA, CFP, TEP

March 31, 2020

Image used with permission: iStock/PRImageFactory


Print & Share

Print

From the Editor: The End Game

Q1 | March 2020

Drastic times call for drastic measures, as we currently try to flatten the curve of COVID-19 cases in hopes of alleviating the future strain on hospitals. So here we are, in a two-week suspension of all non-essential services, with governments across the country urging everyone to stay home, avoid contact with others and only go out if absolutely necessary.

There has already been a marked, unprecedented impact on economic activity. Canada and the U.S. will surely slide into a steep recession this year. We continue to monitor the long-term, fundamental outlook for all of our holdings. We are following the news and learning about the virus, government responses and the economic implications. At this point, it is unclear how this will play out over the next few months. There is a lot of uncertainty about our society’s health and the economy. However, we do know the end game and that is: this too shall pass.

In the meantime, it is important to focus on what we can control. As investment managers we focus on our investment philosophy and process. We continue to assess our holdings, and look for opportunities to make additional investments when the time is right. As individuals, we can cut back on our spending (not hard with so many businesses closed) and heed the advice of governments and doctors to stay home and distance ourselves socially. We can also make sure we support those most vulnerable in our society. Many of us have aging parents and know people with health issues. Give them a call, arrange for groceries to be delivered and, most importantly, encourage them to stay home and stay healthy.

For those that do not receive our email blasts, we want to reassure you that Nexus and our custodian, RBC Investor Services, are considered essential businesses. We will continue to operate as we have been. While most of our team is working from home, we do have a few people physically in the office in order to send and receive mail and otherwise deal with the physical documents that remain part of our business.

You should also be aware that the Federal Government has announced several tax-related changes to help Canadians manage through the disruption of COVID-19. The CRA has extended the tax filing deadline from April 30th to June 1st this year for salaried employees. For self-employed individuals, the filing deadline remains the same at June 15th. The deadline to pay any tax owing for the 2019 tax year has been extended from April 30th to Sept 1st, 2020. For trusts, the filing deadline has been extended from March 31st to May 1st this year. Tax filing deadlines for corporations and partnerships remain unchanged.

The Government will also allow those with Registered Retirement Income Funds (“RRIFs”) and similar vehicles to take out 25% less than the normal required minimum withdrawal for 2020. Reducing your RRIF withdrawal isn’t for everyone, and will depend on your own financial circumstances. We are working out implementation details with RBC and will be in touch with clients. This may be attractive for those clients who want to reduce their 2020 taxable income, or simply lower withdrawals from their portfolio.

In this issue of Nexus Notes you will find an article on what it means to be an equity investor during times of market disruption, and why it’s important to take the long view. We also have an article about why the tax planning portion of your financial plan should map out tax strategies well in advance of the crush of tax time. Finally, to you and your families, try and make the most of your stay-at-home time and stay healthy!

More Like This...

See another CRM2 blog post that may be of interest to you.

No posts found.

More Like This...

See another Foundations & Endowments blog post that may be of interest to you.

That Giving Feeling

Topic:
Foundations & Endowments, Tax Planning
Excerpt:
Summer is now a distant memory. In fact, a radio announcer declared only 77 days until Christmas. Ugh. It is usually in the last quarter of the year

More Like This...

See another Human Interest blog post that may be of interest to you.

What a World!

Topic:
Human Interest
Excerpt:
You don’t need to read a blog from your most trusted investment advisor to realize that 2020 might go down as one of the most notable and difficult

More Like This...

See another Inside Nexus blog post that may be of interest to you.

Swimming Naked

Topic:
Inside Nexus
Excerpt:
Warren Buffett has a wonderful line. “Only when the tide goes out do you discover who's been swimming naked.”

More Like This...

See another Investments blog post that may be of interest to you.

It’s a Topsy-Turvy Year: Investing During COVID

Topic:
Investments
Excerpt:
This year has been plenty weird. For starters, it feels like January was about five years ago… if you can remember it at all. Putting aside the health

More Like This...

See another Pearls of Wisdom blog post that may be of interest to you.

“Work, Work, Work, Work, Work, Work”

Topic:
Pearls of Wisdom
Excerpt:
This has been a busy year. I’ve had lots happening on the home front (a wedding!) and lots going on at the office (too long to list!) Managing work

More Like This...

See another Tax Planning blog post that may be of interest to you.

The (U.S.) Taxman Cometh

Topic:
Tax Planning
Excerpt:
Like the medical patient who expects to endure a fair bit of poking, probing and prodding from the doctor, clients of financial providers have had to

More Like This...

See another Wealth Planning blog post that may be of interest to you.

Estate Planning: Questions from our Virtual Chat

Topic:
Wealth Planning
Excerpt:
Helping clients with their estate planning is something we do here at Nexus. However, we are often involved in identifying the best tools for the

On a Side Note…

See another CRM2 Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Foundations & Endowments Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Human Interest Nexus Notes Quarterly article that may be of interest to you.

It’s About Time

Topic:
Human Interest
Excerpt:
Over the last 25 years, we have written frequently about time. In fact, in 2010, our annual client presentation carried the same title as this article

On a Side Note…

See another Inside Nexus Nexus Notes Quarterly article that may be of interest to you.

A Virtual Nexus Welcome

Topic:
Inside Nexus
Excerpt:
We are excited to welcome Preethi Khatri Chetri to Nexus.

On a Side Note…

See another Investments Nexus Notes Quarterly article that may be of interest to you.

Uncertainty… Who Needs It? Apparently, We Do.

Topic:
Investments
Excerpt:
It is not exactly a revelation to say that uncertainty contributes to stress. In “normal” times – take 2019, for example – three common sources of

On a Side Note…

See another Pearls of Wisdom Nexus Notes Quarterly article that may be of interest to you.

China’s Larger Role in the World; Immortality in a Test Tube

Topic:
Pearls of Wisdom
Excerpt:
Reading is one of the principal occupations in our profession. As we digest a wide range of material, interesting ideas and surprising facts – some

On a Side Note…

See another Tax Planning Nexus Notes Quarterly article that may be of interest to you.

The (U.S.) Taxman Cometh

Topic:
Tax Planning
Excerpt:
Like the medical patient who expects to endure a fair bit of poking, probing and prodding from the doctor, clients of financial providers have had to

On a Side Note…

See another Wealth Planning Nexus Notes Quarterly article that may be of interest to you.

From the Editor: Happy New *Planning* Year

Topic:
Wealth Planning
Excerpt:
As the weather cools and the leaves begin to change colour, it seems to me that fall is the more natural start of a new year compared to the start of