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Monday March 1 is the 2009 RRSP deadline. If you have contribution room and the desire to invest to save taxes for 2009, please contact our office NOW.
For a simple transaction you can make an electronic payment into your existing DundeeWealth RRSP account and we can send you a PDF form by email to sign and return - even if you are on the other side of the world.
At the same time it is the deadline for venture capital funds eligible for the Ontario and Federal tax credits. Starting in 2010 Ontario is reducing the credits from 15% to 10 so 2009 in the last year you can obtain maximum credits for this type of investment. While Vengrowth closed its remaining funds to new money, Dave identified the Dynamic Venture Opportunities Fund as a very interesting alternative because it is so old, very mature and only holds 9% of its assets in private equity. Over the past five years it has moved almost in lock-step with the MSCI World Index, a benchmark for the world's largest companies. This is an opportunity to invest in a fund that holds large Canadian companies while still receving the 30% tax credits up front.
Tax preparation time is coming. (click here for more details)Soon after the RRSP deadline passes most tax information has been distributed to investors and taxpayers. When you believe you have all your information ready to go, please remove excess copies, envelopes and other surplus papers then organize it in the following sequence:
1. Income slips (T4, T3, T5 T4A etc.)
2. Deductions (RRSP, child care, interest expense, pension contributions)
3. Credits (child fitness, charitable donations, medical expenses, political donations, tuition fees)
4. Anything else
Money manager report: on February 11 Dave met with Dana Love and Heather Hunter, co-managers of the Trimark Select Growth Fund and Trimark Fund. They reported that as the stress relief bounce occurred in 2009 from March 9 through the fall, in many cases the strongest, lowest risk companies did not perform as well as the weaker ones. Since the fall, their funds have been relatively stronger. The 28 businesses owned in these funds were carefully chosen after lengthy and deep research and have been reporting strong earnings, low debt levels and expanding market share. They are gaining over their weaker competitors and reinvesting their income to expand future gains. As the so-called economic stimulus is withdrawn, the strengths of these businesses will become more evident while those relying on stimulus and debt will weaken. With some of the greatest business franchises in history bought over the last two years and still at historically low prices, the managers believe the funds are primed to do very well in the years ahead. See disclaimer here.
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