In my last email, I was blunt about the tough quarter we had to end 2018. It was a significant pull back and not a fun way to end the year. Today, I'm excited to report that we had a fantastic start to 2019! Starting in the last week of December, we witnessed an extremely good turn around. Both Canadian and US Stock Markets appreciated throughout January at a rapid pace. This spectacular run offset much of the losses of 2018 so it was a very welcome start to the new year. To take a deeper look at the numbers, the Toronto Stock Exchange was at a level of 13,780 on Dec. 24, 2018. By the end of January 31st, the level skyrocketed to just under 15,541. This represents an increase of 12.78% and shows why it's so important to stay invested over the long term.
As we are in the thick of RRSP Season, I'll use this opportunity to remind everyone that it's important to get your RRSP Contributions in by March 1st, 2019. We're busy making our way around town doing reviews and getting these RRSP Contributions in. Let us know if you'd like me to add you to the route! The 2018 RRSP Contribution Limit is $26,230 and the Tax Free Savings Account Limit has been bumped up to $6,000.
Now that we're getting close to Income Tax Time, please make sure you are setting aside RRSP Contribution Receipts, Investment Statements and Interest Statements for Investment Loans for the upcoming tax season. For anyone with an Investment Loan, it is important to make sure that you are reporting the interest that you paid throughout the year. This interest can be Tax Deductible so it's important to make note of it.
Here's hoping that 2019 will be an easier year than the last!!
Bryce A. Borden