Episode 69: 2024 Year- End Tax Planning

2024 Year- End Tax Planning

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle will be reviewing Year-End Tax Planning strategies highlighting the 2024 Federal Budget proposed changes on Capital Gains Tax. 

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:  

You’re listening to Capital Topics, episode #69! 

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.  

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital. 

In our podcast today we will review Year- End Tax Planning strategies highlighting the 2024 Federal Budget proposed changes on Capital Gains Tax. 

Enjoy! 

2) 2024 YEAR-END TAX PLANNING:

François Doyon La Rochelle: 

Well, it’s that time of the year again to cover Year-end Tax Planning Strategies for Investors in Capital Market Securities. Our regular Listeners know this is an annual tradition on our Podcast to cover this topic at year-end.  But this year the big tax planning challenge is that there is a lot of uncertainty surrounding capital gains tax rules.  Most of our Listeners know that the 2024 Federal Budget introduced major changes with the New Capital Gains Tax rules. At the Personal tax level, The Capital Gains inclusion rate was increased from 50% taxable to 66 2/3% for gains realized over $250,000.  The new rules for capital gains realized in corporations or a Trust are even harsher whereby all realized gains will be taxed at the higher 66 2/3% inclusion rate. These new rules completely upend the planning for investors with assets in their corporations and for estates.  To make matters more complicated, the New Capital Gains Tax Legislation is delayed, and some are speculating it may not be passed before year-end.   There is a lot to discuss, and as usual careful planning will be required. So, James, where would you like to start?…Read More

Links:

- CIBC – Just leave it! Corporate Versus personal capital gains investing by Jamie Golombek – CIBC Private Wealth

- Episode 58: Year-End Tax Planning and Update on Canada’s Major Pension Plans by James Parkyn & François Doyon La Rochelle – Team Parkyn-Doyon La Rochelle – PWL Capital

- Episode 52: The New Tax-Free First Home Savings Account (FHSA) and Review of the Credit Suisse Global Investment Returns Yearbook 2023 - Summary Edition by James Parkyn & François Doyon La Rochelle – Team Parkyn-Doyon La Rochelle – PWL Capital

Episode 68: Proof That Investor Behavior Has a Negative Impact on Their Performance

Proof That Investor Behavior Has a Negative Impact on Their Performance

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle will be reviewing the Morningstar U.S Mind the Gap 2024 report. 

This report highlights how investor mistiming the market had an impact on their performance. 

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:  

You’re listening to Capital Topics, episode #68! 

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.  

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital. 

In our podcast today we will review the Morningstar U.S. Mind the Gap 2024 report which highlights how investor mistiming the market has an impact on their performance.   

Enjoy! 

2) PROOF THAT INVESTOR BEHAVIOR HAS A NEGATIVE IMPACT ON THEIR PERFORMANCE:

François Doyon La Rochelle: 

For our topic today, we will look at the results of the latest Mind the Gap report from Morningstar. This report analyzes the difference between the returns reported by U.S. mutual funds and exchange-traded funds compared to the returns obtained by investors. The latest report, released on August 15th, covers the 10 years ending on December 31, 2023. 

James Parkyn:  

Francois, I think our listeners will find this topic very useful. We alluded to it at the end of our podcast #63. In that podcast, we covered the performance results of actively managed funds against their respective passive counterparts, and we touched upon the spectacular growth in the market share of passive funds. …Read More

Links:

- Mind the Gap 2024: A Report on Investor Returns in the US | Morningstar by Morningstar 

- Episode 63: Active vs Passive 2023 management results & 2024 federal budget review — Capital Topics by James Parkyn & François Doyon La Rochelle – Team Parkyn-Doyon La Rochelle – PWL Capital 

Episode 67: Why owning individual stocks in a portfolio has a high probability of a negative outcome

Why owning individual stocks in a portfolio has a high probability of a negative outcome

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle will be reviewing a paper published in July 2024 by professor Hendrik Bessembinder titles “Which U.S. Stocks Generated the Highest Long-Term Returns?”. 

His findings in this research paper make the case that owning individual stocks in a portfolio has a high probability of a negative outcome. 

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:  

You’re listening to Capital Topics, episode #67! 

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.  

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital. 

In our podcast today we will review the findings from a research report from Dr. Hendrik Bessembinder published in July 2024 entitled “Which U.S. Stocks Generated the Highest Long-Term Returns?”  

Enjoy! 

2) WHY OWNING INDIVIDUAL SOCKS IN A PORTFOLIO HAS A HIGH PROBABILITY OF A NEGATIVE OUTCOME  :

François Doyon La Rochelle: 

We are back after a short summer break, I hope our listeners also enjoyed some time off. I will start this off.  We believe our listeners will find Today’s topic very insightful.  The mantra about stocks is that in the long run, you will make money despite the volatility in the short term.  What gets lost in translation about this fundamental investing belief is that it only really applies to buying the market.  Our regular Listeners know we preach broad market ETFs as optimal for most individual investors.  So, it was interesting to see research that strongly supports this investing strategy.  This summer an academic financial economist we follow, Dr. Hendrik Bessembinder - a professor at Arizona State University’s W.P. Carey School of Business - published a paper that makes the case that owning individual stocks in a portfolio has a high probability of a negative outcome.  James, why don’t you report on Professor Bessembinder’s findings?  …Read More

Links:

- Which U.S Stocks Generated the Highest Long-Term Returns? by Hendrik Bessembinder at Department of Finance, W.P. Carey School of Business – Arizona State University 

Episode 66: Mid-Year Capital Markets Review

Mid-Year Capital Markets Review

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle will be reviewing the performance of capital markets for the first half of 2024. It is a subject they cover twice yearly to help their listeners better understand and evaluate their portfolios’ performance. 

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:  You’re listening to Capital Topics, episode #66! 

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.  

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital. 

Our topic for today will be the review of performance of capital markets for the first half of 2024. 

Enjoy! 

2) 2024 MID-YEAR CAPITAL MARKETS REVIEW  :

François Doyon La Rochelle: 

Before we start, we thought of rewarding our regular listeners with a prize. All of you are eligible, we will have more details at the end of today’s podcast.  

Now, I will start to cover today’s topic which is the mid-year review of the global capital markets performance for the first half of 2024. Our regular listeners know that we cover this topic twice yearly to help them better understand and evaluate their portfolios’ performance. 

James Parkyn:  

Yes, and François since we will be going over a lot of data points from our market statistics report, I would like to remind our listeners that the report can be found on our Capital Topics website page in the resources section, or it is available on our team’s page on the PWL Capital website. …Read More

Links:

- Team Parkyn-Doyon La Rochelle Model Portfolios - June 30, 2024 - PWL Capital by Raymond Kerzérho at PWL Capital 

- Market Statistics - Parkyn Doyon La Rochelle - June 2024 - PWL Capital by Raymond Kerzérho at PWL Capital 

- Email for Tennis tickets giveaway: capitaltopics@pwlcapital.com 

Episode 65:How to Invest When Markets Are Making New All-Time Highs and the Review of the UBS Global Investment Returns Yearbook 2024

How to Invest When Markets Are Making New All-Time Highs and the Review of the UBS Global Investment Returns Yearbook 2024

By JAMES PARKYN & FRANÇOIS DOYON LA ROCHELLE

In this Episode, James Parkyn & François Doyon La Rochelle start by discussing what investors should be doing when markets are making new all-time highs. 

For their second topic, they review the 25th edition of the UBS Global Investment Returns Yearbook 2024 Summary Edition. 

DISCOVER THE PEACE OF MIND OF KNOWING YOUR INVESTMENTS AND WEALTH ARE IN GOOD HANDS BY CONTACTING PWL CAPITAL'S PARKYN-DOYON LA ROCHELLE TEAM IN MONTREAL TODAY.

Read The Script:

1)   INTRODUCTION:

François Doyon La Rochelle:  You’re listening to Capital Topics, episode #65! 

This is a monthly podcast about passive asset management and financial and tax planning ideas for the long-term investor.  

Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital. 

In this episode, we will discuss the following points: 

  • In first topic, we discuss what investors should be doing when markets are making new all-time highs. 

  • And next, in our second topic, we Review the UBS Global Investment Returns Yearbook for 2024  

Enjoy! 

2) UPDATE ON THE PERFORMANCE OF THE MAGNIFICENT SEVEN  :

François Doyon La Rochelle: 

In our first topic today, we will try to help our listeners deal with the anxiety brought on by the fact that markets are reaching new record highs.  The headlines in the financial media are often alarming when this happens, suggesting that the markets have nowhere to go from here but down. Such headlines negatively impact investors’ emotional behaviors, influencing their decision-making process. 

James Parkyn:  

Indeed, François, this type of market often triggers questions from clients. On the one hand, clients are happy that the markets are up but on the other hand, they wonder if they should be selling assets to avoid the inevitable upcoming downturn. Also, when markets are making new highs, it is emotionally more difficult for investors to take the plunge and deploy new funds. These are typical investor behavioral challenges when markets are setting new highs, that often lead to mistakes that reduce their long-term returns. …Read More

Links:

- Investing at all-time highs by RBC Global Asset Management 

- Global Investment Returns Yearbook 2024 | UBS Globalguide by UBS Investment Bank 

- Episode #52 : The New Tax-Free First Home Savings Account FHSA — Capital Topics by James Parkyn & François Doyon La Rochelle 

- Episode 38: Review of the Credit Suisse 2022 Global Investment Returns Yearbook — Capital Topics by James Parkyn & François Doyon La Rochelle