Canadian Money Saver Jan 2023

Why Are You Saving In Car Buying Tips For FOR TOP
An RRSP? Canadians U.S DIVI

Julie Petrera Page 15 Richard Morrison Page 9 . CO DEN
MP D Y
CANADIAN JANUARY 2023
CANADIANMONEYSAVER.CA
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IES DS
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P
age
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Independent Financial Advice For Everyday Use - Since 1981 SAVER
WHAT’S
NEW IN
TAX Brian Quinlan
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Ryan Modesto, Richard Morrison, Caroline Nalbantoglu,
Brian Quinlan, Wynn Quon, Rino Racanelli, Barkha Rani,
JANUARY 2023 Colin Ritchie, Norm Rothery, Rita Silvan, Allan Small,
Barbara Stewart, Kornel Szrejber, Brian Tang, Becky Wong.
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What’s New In Tax Brian Quinlan 6
ADVERTISING: Canadian MoneySaver does not endorse or
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Car Buying Tips For Canadians: Do Your Research First Richard Morrison 9 by Canadian MoneySaver. The advertising of products
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The Three Stages Of Family Financial And Estate Planning
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Excerpt: GST/HST Credit: A Complete Guide Advisorsavvy 28 cannot represent that it is accurate or complete. The views
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any opinion expressed constitutes a solicitation by us for the
purchase or sale of any securities or commodities. Canadian
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REGULAR FEATURES Sharing With You 4 Canadian MoneySaver, its publisher or writers cannot be held
responsible for errors or omissions.
Dividend & Company News 5 Shareholders of The Canadian Money Saver Inc, editors
Model ETF Portfolio 5 and contributors may at times have positions in mentioned
investments/securities.
Annuities Offer Income For Life 8
Copyright © 2023. All rights reserved.
Money Digest 20 No reproduction, transmission or publication of any of the
contents of Canadian MoneySaver is permitted without the
Top Dividend Yields For U.S. Companies 27 express prior consent of the copyright owner. To obtain
Ask The Experts 29 permission to use any part of Canadian MoneySaver,
contact Lana Sanichar.
Portfolio Confidential 30 ® – Canadian MoneySaver is a Registered Canadian Trade
Insights From Sector ETFs 32 Mark of The Canadian Money Saver Inc.
Printed in Canada. ISSN: 0713-3286
TSX 60 - Constituents listed by Dividend Yield 34
We acknowledge the financial support of the
Canadian DRIPs 35 Government of Canada.
Top Funds 36 Canada Post Publication No. 40035485
Canadian ETFs 38 JANUARY 2023 Volume 42, Number 4

Sharing With You
I
n case you hadn’t heard, the Tax Free Savings Account (TFSA) limit for 2023 has been
raised to $6,500, from $6,000 last year. That’s due to inflation, so there is at least one
benefit from the inflation problem that wrecked a lot of stocks last year.
We would strongly advise everyone to utilize their TFSA as much as possible. If you can’t
fund the maximum, put in what you can. Tax-free compounding is a wonderful thing.
Anyone over 18 can set up a TFSA and fund it with $6,500 in 2023. Someone who turned
18 in 2022 can put in $12,500 this year. The current lifetime contribution limit is now $88,000,
assuming you have contributed the maximum since the TFSA’s inception in 2009.
TFSA withdrawals can be made any time, tax-free. All withdrawals can be put back into
account in the year after the withdrawal.
If you have children, and the means, we think the following is a good idea, to help your
childrens’ futures: Once they turn 18, tell them you will fund all, or half, of their TFSA
contribution every year. But, once they take ANY money out, that gift program stops. Sure, it
is a bit of a bribe....but it will help show your kids that time is the most important factor when
investing.
Peter
Peter Hodson, CFA
4 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | JANUARY 2023

MoneySaver DIVIDEND& COMPANY NEWS
In this column we list recent news, events, dividend income news and any other relevant information
for MoneySavers. News items are those received after our last publication date.
Please go to https://www.5iresearch.ca/dividend-updates for a more comprehensive list of dividend updates.
■ Altagas (ALA) raises dividend by 6%. ■ Alimentation Couche-Tard (ATD) raises dividend by 27%.
■ TD Bank (TD) raises dividend by 7.9%. ■ Olympia Financial (OLY) raises dividend by 29.6%.
■ CIBC (CM) raises dividend by 2.4%. ■ Corby Spirit and Wine (CSW.A) lowers dividend by 8.3%.
■ National Bank (NA) raises dividend by 5.4%. ■ Alvopetro Energy (ALV) raises dividend by 50%.
■ Royal Bank (RY) raises dividend by 3.1%. ■ Interrent REIT (IIP.UN) raises distribution by 5.3%.
■ Enbridge (ENB) raises dividend 3.2%.
Canadian MoneySaver MODEL ETF PORTFOLIO

# OF % OF
ETF SYMBOL CATEGORY PRICE TOTAL
UNITS PORTFOLIO
iShares 1-5 Year Laddered Corporate Bond CBO Fixed Income 17.28 506 8,743.68 4.7%
iShares DEX Universe Bond XBB Fixed Income 28.23 280 7,904.40 4.3%
iShares S&P/TSX Canadian Preferreds CPD Fixed Income 11.05 738 8,154.90 4.4%
iShares S&P/TSX Capped Composite XIC Equity: Canada 32.71 740 24,205.40 13.1%
iShares S&P/TSX Cdn. Div Aristocrats CDZ Equity: Canada Div. 30.50 613 18,696.50 10.1%
iShares U.S. High Yield Bond Index ETF XHY Fixed Income 16.25 350 5,687.50 3.1%
Vanguard FTSE Emerging Markets Index VEE Equity: Emerging 32.93 285 9,385.05 5.1%
Vanguard FTSE Developed Europe All Cap VE Equity: Interntional 29.81 304 9,062.24 4.9%
SPDR S&P 500 SPY Equity: U.S. 406.91 41 22,469.08 12.2%
Vanguard US Dividend Appreciation Index VGG Equity: U.S. Div. 72.79 217 15,795.43 8.6%
iShares Russell 2000 Growth IWO Equity: U.S. Growth 231.03 45 14,001.80 7.6%
BMO Covered Call Utilities ZWU Equity: N.A. Div 11.77 604 7,109.08 3.9%
Vanguard Information Technology Index VGT Equity: U.S 347.21 27 12,625.81 6.8%
Consumer Discretionary Select Sector SPDR XLY Equity: U.S 145.96 60 11,794.74 6.4%
Cash Cash Cash 8,710.36 4.7%
Total Portfolio 184,345.97
Exchange Rate 1.35 $ Gain/(Loss): 84,345.97

Inception value: 100,000.00 % Gain/(Loss): 84.35%
Inception date: October 18, 2013 % Annualized: 6.93%
Prices are at market close on December 4, 2022.

Individual prices are in USD$. Portfolio values, $Gain/(Loss), % Gain/(Loss), % Annualized all reflect USD$ values are converted to CAD$
Returns include foreign exchange gains/losses
Current notes: Added a 4.0% position of SPY and a 2.0% position of VGT, trimmed a 4.0% position of XIC, and switched VIG with VGG as of Dec 03, 2021 market close.
Other notes: Keep in mind all investors are different. This portfolio is designed as a guide in setting up your own personal portfolio. Unique considerations and
adjustments need to be made to reflect your personal situation. Please perform your own due diligence before making investment decisions. For use by Canadian
MoneySaver subscribers only. Not for redistribution.
Analysts do not own a financial or other interest in any of the above securities. Past performance is not an indicator of future performance.
Not for redistribution. Please direct portfolio questions to moneyinfo@canadianmoneysaver.ca.
Canadian MoneySaver | https://www.canadianmoneysaver.ca | JANUARY 2023 | 5

Tax Update
What’s New In Tax
Brian Quinlan
H
ere is a summary of recent income tax—and utilities, insurance, property tax). When the loan is
some non-income tax—changes. repaid by December 31, 2023 (previously December
31, 2022) up to a maximum of $20,000 will be
forgiven. The forgiven portion is taxable. Where the
Individuals loan is not repaid by the end of 2023, it becomes a
three-year term loan with interest at five per cent.
■ Tax rates and tax brackets. There were no
changes to federal personal tax rates in 2022. The Corporations
2022 tax brackets increased by 2.4% to account for
inflation. The tax brackets are increased by 6.3% for ■ Tax rates. With respect to a Canadian-controlled
2023. The government announced it was committed private corporation (CCPC), the federal corporate
to a new alternative minimum tax regime for high- tax rates remain unchanged at nine per cent on the
income Canadians. Details to come as part of the first $500,000 of business income earned, 15% on
2023 budget. the excess, 38 1/3% on dividends and 38 2/3% on
■ Basic personal tax credit. The maximum interest and taxable capital gains.
threshold for the basic personal tax credit in 2022
is $14,398. This can be claimed when income is
■ Accelerated capital cost allowance (CCA or
$155,625 or less. When income is above $221,708, tax depreciation). Tax changes were announced
the threshold drops to $12,719. Where income is in 2022 to permit CCPCs to immediately expense
between $155,625 and $221,708, the threshold (100% CCA) up to $1,500,000 of certain asset
amount will be in the range of $12,719 and $14,398. purchases.
The maximum threshold is $15,000 for 2023.
■ Tax credits. Proposal has been announced for a
clean technology investment tax credit (up to 30%)
COVID-19 Relief and a clean hydrogen investment tax credit (up to
■ Still working at home due to COVID-19? 40%). The credits are to be available from the day
Under the simplified rule for claiming home office of the 2023 budget.
expenses, the tax deduction is $2/day up to the limit
of $500 for 2022—the same as in 2021. Employees ■ Offshore corporations. Tax changes were
are to complete tax form T777S as part of their tax announced to remove a tax advantage of earning
return. investment income (including capital gains) though
a corporation that operates under a jurisdiction of a
■ Canada Emergency Business Account foreign country.
(CEBA). The CEBA is an interest-free loan of up to
$60,000 from the federal government to assist with ■ Share buybacks. In 2024, public companies are to
non-deferrable business expenses (e.g., payroll, rent, face a two per cent tax on share buybacks.

Saving And Retirement related senior or adult with disabilities may be eligible
for this tax credit. This tax credit is calculated as 15%
■ Tax-Free Savings Account (TFSA). The of eligible expenses up to $50,000 incurred after
annual contribution limit for 2023 is $6,500, up 2022. The maximum credit is $7,500.
from $6,000 in 2022. As of January 1, 2023, the ■ Canada Housing Benefit. This is a program to
cumulative TFSA contribution limit is $88,000 for assist lower-income renters. A one-time tax-free
an individual that was at least 18 when TFSAs were payment of $500 is to come to individuals with
introduced in 2009. income below $20,000 and to families with income
below $35,000. To qualify, the rent paid must be
■ Registered Retirement Savings Plan (RRSP).
at least 30% of the income. Applications became
The maximum RRSP contribution limit is $29,210
available in December 2022.
for 2022 (achieved when 2021 earned income was
at least $162,278) and $30,780 for 2023 (achieved ■ Flipping. Flipping is the purchase of real estate with
when 2022 earned income is at least $171,000). the intent of reselling at a profit after a short period
Where an individual is a member of a Registered of time. Beginning in 2023, profits from the sales of
Pension Plan (RPP), the RRSP contribution limit is residential property held for less than 12 months will
reduced by the prior year’s pension adjustment (PA). be taxed as business income and not as a capital gain.
The deadline to contribute to an RRSP and claim a This means that 100% of the profit will be taxed—
2022 tax deduction is March 1, 2023. versus 50% being taxed if a capital gain—and the
profit cannot be sheltered from tax by the principal
■ Old Age Security (OAS). In July 2022, those aged residence exemption. There are exclusions to this rule
75 and over received a 10% increase in their OAS
where a sale is due to a life event (e.g., an expanding
payments. The income threshold for OAS repayment
family, marriage breakdown, illness, disability, death
(“clawback”) to begin is $81,761 for 2022. The
and taking a new job).
repayment is 15 cents of OAS received for every $1
of income in excess of the threshold. ■ Underused Housing Tax. As of January 1, 2022,
there was a one per cent tax on the value of vacant
Housing or underused residential properties owned by any
non-resident, non-Canadian. Each year, the owner is
■ First Home Savings Account (FHSA). As of required to file a return for each residential property
2023, those over 18 and planning to purchase their under this rule.
first home can open an FHSA. The FHSA allows
for annual tax-deductible contributions of $8,000 ■ Foreign Home Buyer Ban. A two-year ban on
and a lifetime maximum contribution of $40,000. non-Canadians purchasing Canadian residential
The income and growth of FHSA investments are real estate began at the beginning of 2023. There
are some exemptions to the rules. The full details are
not subject to tax, and withdrawals from the FHSA
still to be released.
are not taxed if used to purchase a home. Tax-free
transfers from an RRSP to an FHSA are permitted,
but here, the individual would not be entitled to a
Medical
tax deduction. The FHSA is separate from the RRSP ■ Canada Dental Benefit. Beginning last October,
Home Buyers’ Plan (HBP). The HBP and FHSA dental expenses incurred will be reimbursed by the
cannot be used together to purchase the same home. federal government up to $650 per year for a child
under 12. The $650 is based on the family not having
■ First-Time Home Buyers’ Tax Credit (HBTC). dental insurance and earning less than $70,000.
The maximum base for the HBTC calculation has Families with income between $70,000 and $90,000
increased to $10,000 (from $5,000) to result in a tax are entitled to lower amounts. The program is to be
credit of up to $1,500 for home buyers. expanded in 2023 for seniors and individuals with
disabilities. In 2025, the plan is to include all families
■ Multigenerational Home Renovation Tax with income below $90,000.
Credit. Renovations that create a secondary dwelling
with a private entrance, kitchen and bathroom for a ■ Reproduction. Medical expenses eligible for a tax
credit now include payments made for the health care
Annuities Offer of a surrogate and payments made to fertility clinics
and donor banks for sperm and ova.
Income For Life Other
Prescribed Annuity Rates: ■ Luxury tax. This new tax’s implementation was
$100,000 10-year Guarantee deferred from January 1, 2022, to September 1, 2022.
The tax applies to cars over $100,000 and boats over
1. Male Single Life Prescribed Annuity $250,000. The tax is 20% of the price in excess of
ages 65, 70, 75 and 80 the threshold or 10% of the price, whichever is less.
Male age Annual Annual Taxable ■ Capital gains exemption. The exemption on the
at purchase income Amount sale of shares of a qualified small business corporation
increased to $971,190 for 2023. The exemption
65 $6,676 $1,745 remains at $1,000,000 for sales of eligible farm and
fishing properties.
70 $7,429 $1,533
75 $8,356 $1,355 ■ Interest in government student loans. Interest
is being permanently eliminated on the federal
80 $9,486 $1,373
portion of Canada Student Loans and Canada
Apprentice Loans.
2. Female Single Life Prescribed Annuity
ages 65, 70, 75 and 80 ■ GST/HST. Eligible individuals received a one-time
additional GST credit in November 2022. This
Female age Annual Annual Taxable payment doubled the GST/HST credit entitlement
at purchase income Amount amount for the six-month period beginning July
2022.
65 $6,471 $2,137
70 $7,138 $1,812 ■ Canada Worker Benefit. It is planned this
program will be converted to payments to eligible
75 $7,829 $1,356
individuals rather than a tax credit claimed on a
80 $8,952 $1,201 personal tax return.
■ Reporting by trusts. Beginning with the 2023

3. Joint Life Prescribed Annuity trust tax returns, certain trusts will be required to
Male/Female ages 65, 70, 75 and 80.
disclose information on the beneficiaries, trustees
Joint age Annual Annual Taxable and settlors of the trust on the trust tax return. As a
at purchase income Amount result of the enhanced reporting rules, some trusts
will be required to file a tax return when there was no
65 $5,975 $2,155
previous requirement to do so. The implementation
70 $6,548 $1,960 of the new reporting rules has been deferred twice.
75 $7,194 $1,581 ■ Charity disbursement quota. The minimum a
80 $8,327 $1,434 charity must spend out of its capital is 3.5%. The
quota increased to five per cent on January 1, 2023,
Annuity income values were obtained from highly rated on capital in excess of $1,000,000. The rate remains
Canadian insurers and are for illustration purposes only. at 3.5% for the first $1,000,000 of capital.
Annuity rates change daily. Income and tax rate will
depend when the annuity contract is issued.
Brian J. Quinlan, CPA, CA, CFP, TEP
Rino Racanelli, independent annuity advisor
Allay LLP ( formerly Campbell Lawless LLP)
racanelli@sympatico.ca
www.bestannuityrates.ca
Chartered Professional Accountants
bjq@allayllp.ca

Sector Focus
Car Buying Tips

For Canadians:
Do Your Research First
Richard Morrison
F
or those interested in buying a new car, winter company suggests Canadians who want its general advice
is a good time to buy. That’s the good news. simply key in the ZIP code of the U.S. city nearest them.
The bad news is that microchip shortages
have reduced the supply of new vehicles and Consumers feel uncomfortable when buying a car,
rising interest rates have made auto loans more expensive, whether new or used and car salespeople are viewed as
whether you’re buying new or used.New motor vehicle untrustworthy. Thanks to the internet and specifically
sales are, not surprisingly, highest in the spring and sites such as DealerRater.com, today’s auto dealers must
lowest in the winter, with 2022 being a particularly tread carefully lest they get a bad review.
miserable year for sales, figures from Statistics Canada In Ontario, for example, dealers and salespeople
show. Even if interest rates weren’t rising and consumers must be registered with the The Ontario Motor Vehicle
were clamouring for new vehicles, dealers don’t have Industry Council (OMVIC), a not-for-profit corporation
many of them to sell. Persistent bottlenecks have made that administers the Motor Vehicle Dealers Act on behalf
semiconductors hard to find, slowing the manufacture of the Ontario Government through the Ministry of
of a variety of items including cars and trucks. This past Government and Consumer Services. OMVIC’s site
autumn, several automakers lowered their production includes detailed, unbiased advice about buying a car
targets because of tight chip supply and ongoing Covid from a dealer, privately or online, discipline decisions
issues. against salespeople and dealerships, safety recalls and even
how to attend in-person car buying seminars. Other such
The combination of Covid, supply chain issues and provincial agencies include the Vehicle Sales Authority
a chip shortage has drastically changed the auto market (VSA) of British Columbia and the Alberta Motor Vehicle
since 2020, said Ronald Montoya, senior consumer advice Industry Council.
editor at Edmunds.com.
All industry groups warn against buying used vehicles
“Where there were once markdowns, there are now from “curbsiders” who pretend to be selling their own
markups. It is not uncommon to pay over MSRP, and car but in fact are unlicensed dealers who often peddle
discounts are rare,” Mr. Montoya said in an update to his defective cars sold as is, with no warranty or buyer
Edmunds article on how to negotiate car prices. “This protection. If, for example, the “private” seller has
seller’s market means that shoppers don’t have much multiple vehicles for sale and appears to be operating a
leverage in terms of negotiation. These days, if you don’t business, or is selling a car at a bargain price that is not
like the price you’re being offered, salespeople know that registered in his or her name, if he or she resists requests
there will likely be someone else who will pay that price.” for a CarFax report or an inspection by a mechanic,
or uses a yellow mechanic’s license plate (or red/white
Rising interest rates are expected to make cars more
dealer’s plate) to drive the vehicle, you are likely dealing
expensive throughout 2023, Mr. Montoya said in a recent with a curbsider.
article, advising consumers to wait until 2024, when lower
rates should allow car purchasers to refinance at a lower Should an advertisement for a specific vehicle catch
rate. Edmunds.com’s car buying advice pages, such as its your eye, bring a printout of the ad with you when
new car listings, are available only in the U.S., but the visiting a dealership. The dealer’s advertised price should

include all fees and charges they will collect, excluding address, email address and phone number so the site can
HST and licensing. sell your name to salespeople, who will contact you.
Sites such as CarCostCanada (carcostcanada.com) Car Help Canada (carhelpcanada.com) offers phone
and Unhaggle (unhaggle.com) allow you to see the dealer consultations with expert negotiators, vehicle and dealer
invoice price, or the price that the dealer has paid to the recommendations and member discounts on services,
manufacturer for the new car. Once you see the dealer with fees for a one-year membership ranging from for
price for the specific version of the vehicle you want, you $65 to $90.
add in some mandatory fees, a sales tax and a reasonable
profit margin, then tell the salesperson that’s the most For Canadians shopping for a used car online, Finder.
you’ll pay. At least, that’s the way it worked when there com is an aggregator that offers detailed descriptions of
were enough cars around to be sold. Canadian used car sites (finder.com/ca/car-loans/used-
car-sites). Finder.com also offers links to online dealers
If you decide to finance your vehicle, remember that that let customers shop, finance and get their vehicle
you won’t be allowed to sell it until it’s paid off. Until then, delivered. These sites include Clutch, Canada Drives
it technically belongs to the bank or finance company. and Cardoor. As well, Finder.com lists online automotive
Negative equity or being “under water” on a loan means marketplaces that allow shoppers to compare new and
that you owe more on a car than what it’s worth. Short used cars from many dealers and private sellers but don’t
term loans mean the vehicle may be paid off while it’s directly offer financing or deliveries. Such sites include
still in good condition, but purchasers who spread their AutoTrader, Canadian Black Book and Carpages.ca.
payments out over many years may find they still owe Finally the site lists private marketplaces such as Kijiji and
$10,000, $20,000 or $30,000 on a vehicle that’s worth Facebook Marketplace and Go Auto, an online network
much less. When such a car is traded in, the balance of in-person dealerships that forms a category in itself.
owing gets added to the cost of the replacement vehicle. In
extreme cases, a purchaser may end up making payments The Finder.com site says AutoTrader was its top
on a car that’s in the scrapyard. selection. As of mid-October, Autotrader.ca listed 298,584
cars, trucks and SUVs for sale in Canada. AutoTrader’s
Regardless of when, where and what you buy, safety tips page (autotrader.ca/FraudProtectionTips)
remember that in any transaction, knowledge is power. warns potential buyers and sellers about common frauds
Don’t rush your purchase and be prepared to spend several and scams.
hours researching potential vehicles, prices and dealers.
Fortunately, the internet has an assortment of online In Canada, expensive vehicles have become even more
resources that will allow potential car purchasers to know expensive. On September 1 the federal government began
which vehicle suits them best, and once a specific model imposing a luxury tax on vehicles worth $100,000 or
is chosen, exactly what they should be paying for the year, more. The tax is equal to the lesser of 10% of the vehicle’s
make and model of that vehicle. cost, or 20% of the amount above $100,000. In the case
of a $150,000 vehicle, for example, the tax would be the
As a general rule, “free” car buying advice sites are lesser of: 10% of the price ($15,000) and 20% of the
financed through advertising, or by steering their users amount over $100,000, (20% x $50,000) or $10,000.
toward selected car dealerships who have paid for access
to sales leads – visitor names and email addresses – while Electric Vehicles
those that charge a fee have no such connections.
As gasoline prices rose, registration of zero-emission
Among ad-supported sites are Vehicle Market Research vehicles in Canada climbed in the first half of this year,
Canada (vmrcanada.com), which includes a variety of rising to almost 30,000 by the end of June from 21,000
resources including detailed advice on buying used or at the end of 2021, Statistics Canada figures show. In the
new vehicles, reliability rankings, used car evaluations United States, sales of electrified vehicles were up 12.6%
and links to a variety of sites showing crash test results in the second quarter from the same quarter of 2021,
and recalls. Kelley Blue Book’s Canadian site (kbb.ca) figures from Kelley Blue Book show.
is also ad-driven but requires users to input their postal
code. Like many other sites, Canadian Black Book Demand for electric vehicles is climbing while supply
(canadianblackbook.com) requires you to enter your is even more constrained than traditional cars. Along with
the microchip shortage that affects all manufacturing,

electric cars need batteries made from minerals such as momentum of the slowing vehicle to add back power
graphite, nickel, cobalt and lithium in quantities that to the battery. Until the electricians installed a 240-volt
existing mines are having trouble supplying. home charging station two weeks later, I had to rely on
public chargers, which are few, far between, unreliable and
My EV Purchase access is sometimes restricted to the adjacent building’s
employees. EV owners who find a charging station that’s
When gasoline prices in Toronto soared in early June working and doesn’t have a lineup should still bring a
I began shopping for a fully electric vehicle. Reasoning book as even the fastest take much longer than filling up
that a used EV may have outdated technology, I held out at a gas station. If you don’t have a home charger, stick
for the newest possible model. Dealers had none in stock with gasoline powered vehicles.
and were unsure when they would get one “but if you
put down a deposit we’ll call you next year.” Selling Your Car
After two months of research using the sites above I Selling a car is, if you can imagine it, even more
decided on a 2023 Chevy Bolt EUV, among the cheapest stressful than buying one. Should you post an ad online,
EVs with an MSRP of $42,858. In early September a you will be inundated with responses from total strangers,
local GM dealership said it would be getting one by the sometimes from far away. These folks seem eager to buy
end of the month. your vehicle immediately but before they buy, they want
you to send them a vehicle history report on your car.
Last year, GM recalled and repaired a flaw in 133,351 What they don’t tell you is that hey are actually employed
Bolts in Canada and the U.S. after reports of battery fires by these companies and have no intention of buying any
in about a dozen vehicles. Despite the 0.009% chance of cars, only in tricking you into buying their reports. For
a fire, in September 2021 GM asked Bolt owners to park more details, visit scam-detector.com/article/car-history-
their Bolts outdoors and at least 50 feet away from other report-scam.
vehicles, just in case. At the dealership, the salesman said
the battery fire problem had been fixed. He did not smile
when I asked if the new Bolts came with fire extinguishers.
I took delivery of my Bolt Oct. 21. The car is peppy Richard Morrison, CIM, is a former editor and investment
and nearly silent, with “one pedal driving” that uses the columnist at the Financial Post. richarddmorrison@yahoo.ca
You could play connect the dots...
Or you could
advertise your
business here!
CONTACT US TODAY AT

Family Wealth Planning
The Three Stages

Of Family Financial And
Estate Planning For Disability
Ed Arbuckle
P
lanning to financially support a loved one incomes, it’s a big burden. But you might be surprised
with a disability is a three-stage process. The how extended family members will pitch in to help.
first stage gets the most attention but stages
two and three are often ignored or delayed Tax credits are a great source of financial assistance,
unnecessarily. starting with the disability tax credit (DTC) of about
$2,000 a year. Once you qualify for the DTC, it opens
So, what are these three planning stages; the door to many other short and longer-term benefits,
such as the Registered Disability Savings Plan (RDSP),
■ Paying day-to-day expenses, the attendant care tax credit and the availability of certain
■ Accumulating disability capital today that will be trusts for your estate planning.
needed by your loved one as they get older, The Income Tax Act provisions can be helpful for two
■ Estate and Will planning for the transfer of wealth reasons:
on your death to your loved one with maximum 1. Many tax credits can be shared within families and
flexibility, tax benefits and control by family
caregivers. 2. If tax benefits have been overlooked, tax rules
allow retroactively claiming those benefits up to
It’s a tough act to maximize resources for your loved previous 10 years.
one and take advantage of all the financial help that is
available. And you want to do this in such a way as to get Social assistance is a significant help in paying current
as much flexibility as possible as needs change so funds bills and eventually may even give your loved one a
can be moved to meet new circumstances or to pass to feeling of independence as they get older. It’s organized
other family members when no longer needed to support provincially, so the rules vary across the country.
disability.
Social assistance benefits are usually constrained by the
assets and income of the person with a disability, so it
Paying Day-To-Day Expenses takes some planning to avoid a clawback of the benefits.
Funds to pay daily living expenses can usually come On the other hand, this limitation perhaps should be put
from four sources: on the back burner if it significantly limits your loved
one’s lifestyle through more generous family support.
■ Parental and family support,
Social assistance not only provides monthly non-
■ Tax credits and other tax benefits, taxable income, but it can also provide drug and other
health-related benefits. In Ontario, we also have what
■ Social assistance, is called the Passport program that provides generous
■ Community outreach programs. financial assistance to allow your loved one to get involved
in the community and can provide caregivers financial
For some families, parental and family financial assistance to pay for an alternate care provider so they
support is not an issue, but for many families with lower can get some respite.

And finally, there is community support both from Here are the overarching issues that you need to
municipal governments and from not-for-profits that consider in your estate planning:
lower the cost of such things as transportation passes,
therapies, and social activities to reduce the extra cost ■ Avoid loss of control of disability capital to the
of disability. public guardian.
Be financially fair to other beneficiaries of your

Accumulating Disability Capital ■
estate.
I use the phrase “disability capital” to describe the
■ Use legal structures that can be controlled by
funds that you will be setting aside now for the future
family caregivers.
for your loved one to pay their expenses at mid-life and
beyond. The cost of housing and, in some cases, the cost ■ Leave guidance to family caregivers about your
of attendant care will probably be the largest component wishes on the level of financial support you wish
of these future costs. Other expenses might include for your loved one through a letter of wishes.
therapies, transportation, recreation and so on.
■ Use legal structures that allow the eventual transfer
Finding ways to set aside disability capital is of disability capital to other family members when
complicated, but perhaps the very best way is to have no longer needed to support disability.
family contribute to an RDSP. In my opinion that
funding should be maximized by early contributions ■ Minimize tax rates.
to take advantage of tax-free compounding within the
The use of trusts and particularly a qualified disability
plan. Examples that I have worked on indicate that trust, ranks high in meeting the above objectives. Also, the
accumulating $500,000 in an RDSP is possible with the transfer of Registered Retirement Income Fund (RRIF)
right planning. balances on death can pass to an RDSP or to a Lifetime
Benefit trust for an infirm beneficiary that purchase an
The government will contribute $90,000 to such plans,
annuity are great ideas.
but $70,000 of that amount will depend on contributions
to the plan. You can contribute up to $200,000. But you The Henson trust to retain social assistance gets a lot of
only need $30,000 of aggregate annual contributions to attention, but in my opinion, it’s sometimes overstated.
get the $70,000, which means that families can contribute There are other more important uses for trusts that should
up to $130,000 at any time and not affect government rank higher such as family asset control and the ability
support. So, contribute as much as you can afford as soon to move trust assets to other family members without a
as you can. Aunts, uncles, and other family may want to serious tax liability when the trust is no longer needed.
participate too, either directly or in their Wills. The purchase of an annuity for basic income needs can
also work well in some situations.
The only issue that I see is that after the planholder
dies, the RDSP would fall under the control of the Public But despite these tax benefits of trusts, tax credits
Guardian if your loved one has an intellectual disability. and others, I am concerned that many of them are not
Then you would be faced with applying for personal available for loved ones with an intellectual disability
because they can’t legally sign the documents. Then, an
guardianship. You should have carefully thought-out,
expensive guardianship application may be required.
clearly written letter of wishes to provide guidance
in decision-making for planholders and other estate
managers.
Summary
You are not going to accomplish all of this without
Estate And Will Planning some hard work and professional advice. Don’t get overly
involved in the shiny techniques but focus on the bigger
Estate and will planning that transfers disability picture to guide you to where you want to go. You will
capital to a loved one through your Will is perhaps the need to draw on help from a myriad of sources to help
most important part of the three stages. It certainly is you through this.
the most complex and misunderstood and consequently
gets neglected. The complexity of these difficult financial and estate

planning issues is why I wrote The Family Guide to Ed Arbuckle is a Chartered Accountant who has taken a
Disability and Personal Finances. special interest in helping clients plan their finances to support
the cost of disability for a loved one. He recently wrote a book
The chart below from chapter 10 of my book might covering the many aspects of such planning called The Family
give you a helpful overview of the major components of Guide to disability and Personal Finances. Ed has extensive
financial planning for disability. involvement in personal taxation and vast experience in
community involvement in healthcare.
jea@personalwealthstrategies.net
Figure 1.10 Disability - The Ten Most Important Components of Financial Planning
Or you could
advertise your
business here!
CONTACT US TODAY AT

Economics
Why Are You Saving In

An RRSP?
Julie Petrera
What Is An RRSP? other government programs like Old Age Security;

and
A Registered Retirement Savings Plan (RRSP) is a
type of registered account that millions of Canadians ■ RRSPs mature on December 31 of the year the
contribute billions of dollars to every single year. The RRSP holder turns 71.
was created in 1957, making the
RRSP itself 65 years old, the To summarize, you get a
average age of a retiree in Canada. deduction when money goes in
and pay tax on it when it comes
While both RRSPs
High Level: out. So, is this account type right
and TFSAs could be for you? That depends—but first,
■ RRSPs can be held by what is an RRSP not?
anyone under age 72 in valuable inputs in the
Canada with employment
or business income; roadmap, neither is What Isn’t An
a retirement plan in
RRSP?
■ Contributions to an
RRSP are tax-deductible An RRSP is not a retirement
at the contributor’s
and of itself, and the plan. A plan of any kind is
marginal tax rate (MTR) decision of which to defined as an organized method
in the year of deduction, of achieving an end goal. So
meaning they lower the contribute should start how, then, does an account type
taxpayer’s taxable income
that year; with your “Why?” become an organized method?
And what is the end goal? That’s
■ Money deposited in the where the question comes in:
plan can be invested in “WHY are you saving in an
a variety of investments; RRSP?”
■ Investments grow within the plan on a tax- What Is A Retirement Plan

deferred basis, and no tax is paid on gains until
withdrawal; A retirement plan is a clear path to the end goal. The
goal is retirement. But to organize a plan for this goal, you
■ Withdrawals from the plan are taxable as income
have to determine when and where you want to retire,
at the taxpayer’s MTR in the year they are
who you want to retire with, what you want to be doing
withdrawn;
in retirement, and what you want to be outsourcing. The
■ Withdrawals from an RRSP go into the “income answers to these questions can be used to determine how
test” which is used to determine eligibility for much your retirement is going to cost.

Once you know the cost, you need to determine ■ Anyone over 18 can open a TFSA;
where the money to cover those costs will come from.
It could include earned or passive income (like wages, ■ Contributions are not tax-deductible;
commission, rent or investment returns, Canada
■ Money deposited in the plan can be invested in a
Pension Plan (CPP) benefits, Old Age Security (OAS),
variety of investments (similar to RRSPs);
the Guaranteed Income Supplement (GIS), employer-
sponsored pension plans benefits, and withdrawals from ■ Investments grow within the plan on a tax-free
your RRSP (which, at that time, if it’s after age 71—could basis;
be a RRIF or an annuity).
■ Withdrawals are tax-free; and, therefore, do not go
With an RRSP being just one component, you should into the income test used to determine eligibility
be able to answer all the other questions first to know why for other government programs; and
you’re contributing to it.
■ Funds withdrawn from the plan can be re-
If you’re able to determine the cost of your retirement contributed the following calendar year.
and the income you already plan to collect toward it, the
RRSP can be used to save for the shortfall. Step one is TFSAs are very flexible and forgiving and might be
to understand if a shortfall exists and, if so, what’s the suitable for those of you that can’t articulate when and
size of the shortfall. And then you need to determine if where you want to retire, who you want to retire with,
an RRSP is the right account type in which to save for what you want to be doing in retirement, and what you
that shortfall. want to be outsourcing.
Why Do Millions Of Canadians

Contribute Billions Of Dollars To RRSP Or TFSA?
RRSPs? It depends—but not on any factor that can be
articulated in an article. It depends on your personal
That’s the million (or billion) dollar question. Many situation. It depends on when and where you want to
people contribute to RRSPs “today” to reduce their retire, who you want to retire with, what you want to be
taxable income this year. They want to reduce the income doing in retirement, and what you want to be outsource.
tax payable immediately. But if your goal is to save tax, It depends on how much your unique retirement is going
and you contribute more than you’ll need in retirement, to cost and how much income you plan to collect to fund
or you plan to earn income in retirement—you could end it from other sources. It depends if there is a shortfall,
up paying MORE tax upon withdrawal than you’ll save and if it is, it depends whether you prefer tax deferral or
today. Simply making contributions today could have the saving tax altogether, how highly you value flexibility,
opposite result you’re looking to achieve by contributing and how important an immediate tax refund is to you.
to an RRSP in the first place. Once you can answer these questions, you can build a
plan: an organized method of achieving an end goal. And
while both RRSPs and TFSAs could be valuable inputs
in the roadmap, neither is a retirement plan in and of
The RRSP’s Competitor itself, and the decision of which to contribute should
start with your “Why?”.
Thirteen years ago, a younger, more flexible account
type emerged; the Tax-Free Savings Account (TFSA).
While this account doesn’t have the words “retirement” Julie Petrera, MBA, CFP, CIM is a certified financial planner.
or “plan” in it, it can be used to save for retirement or any Twitter: @petrerajulie
other planning goal between now and then.
High level:
Family Law
Can I Lower My Child Support

If The Kids Are With Me More?
Steven Benmor
T
his question is more common than you think. Oftentimes, that is what occurred before separation.
If both parents earn $100,000 per year and However, there are many cases where the children
the children live with one parent, then the were left mainly with one parent [often the mother] after
other parent pays child support of $1,471 per month separation. In these instances, the other parent [usually
(after tax). If the children live with both parents, then the father] must negotiate, mediate, or litigate their wish
no child support is paid. to have the children in their care half the time.
If parent A earns $100,000 per year and parent B earns Concurrently with these societal changes came the
$50,000 per year, and the children live with parent B, introduction of the Child Support Guidelines in 1997,
then parent A pays child support of $1,471 per month. which included section 9 that stated:
If the children live with both parents, parent A pays child
If each spouse exercises not less than 40% of parenting time
support of $716 per month (about 50%).
with a child over the course of a year, the amount of the child
You see the dilemma. support order must be determined by taking into account:
Some parents [often fathers] have an uphill battle to (a) the amounts set out in the applicable tables for each
have their children live with them half of the time after of the spouses;
separation.
(b) the increased costs of shared parenting time arrangements;
Not many generations ago, it was customary for and
children to reside with their mother after separation and (c) the conditions, means, needs and other circumstances of
visit with their father on weekends. each spouse and of any child for whom support is sought.
That societal norm has radically changed. This legislation single-handedly became the driver of
many court applications for shared parenting of children.
It is more common now than ever before for fathers Some have posited that such applications for shared
and mothers to equally share the parenting time of parenting were solely driven by that parent’s financially
their children after their separation. The reason for this motivated objective of paying less child support.
is mainly the result of changes in the modern family
Family Court Judges have been listening to such
structure, employment of women in the workforce and a
arguments for over 20 years and have been forced to
movement toward equality of spousal roles in the family
distinguish between those cases where the request for
home.
shared parenting is genuine and serves the best interests
Mothers and fathers are now almost equal contributors of the children versus those whose motivation is strictly
to the family cost of living and, so, therefore, with both financial.
parents working full-time and the children in daycare or In this recent decision in the Ontario Superior Court
at school, it leaves the children in the care of both parents of Justice, the Judge was able to form an opinion that the
almost equally. So, it is not surprising to see that children father’s request for shared parenting of the children was
remain in a shared parenting regime following separation. driven by his desire to pay less child support.

In Brownson v. Brownson, 2022 ONSC 5882 time has a financial impact on the parties. It allows for a
(CanLII) [CASE LINK BELOW], Justice Kurz had variation from the Guideline table amounts when each
strong words for the father who was asking to change his parent has the child/ren in their care for 40% or more of the
parenting time with their two children, aged 10 and 6, time. It is often argued that a father wants shared parenting
from alternating weekends from Friday to Monday and in order to reduce support. But of course, the converse of that
Thursday overnights to a pure 50/50 shared parenting argument is that the request for added time is being opposed
regime. for financial reasons.
The father argued that the children should be in his
50/50 shared parenting care because: [36] Here, there is at least some reason to find that the
mother’s argument is credible. As set out above, the father’s
1. He was always an involved parent; request for equal, shared parenting time, made two years
after separation, was made in the context of his request for
2. He has a flexible work schedule;
financial relief, sale of the home and set-off child support.
3. The mother previously agreed that if he moved
out of the home, they could later revert to a 50/50 [37] Perhaps even more to the point is the father’s conduct
parenting arrangement, but she later reneged; regarding child support after the home was sold. Rather than
simply pay table support based on his income, he unilaterally
4. The children should benefit from both parents’ imposed a s. 9 calculation on the mother, even though there
love and affection; was no shared-parenting arrangement at the time. He then
5. His new home is closer to the children’s school essentially imputed an income to the mother, which he used
than that of the mother. to set off his support obligations to $343 per month. With an
income of $76,222 in 2021, he should have paid $1,157
The mother argued that the children should not be in per month. By paying less than 30% of his obligation, he
a 50/50 shared parenting regime because: underpaid table support by $814 per month.
1. The children’s primary caregiver has always been
[38] Even if there were a set off, there is insufficient
their mother;
evidence before the court to accept the father’s position
2. During the marriage, the father was rarely home; regarding the mother’s income. That is the case whether he
seeks to base her income for support purposes on her gross
3. The status quo is in the children’s best interests; income (which is unlikely to be appropriate because her
4. The court should not interfere with the status income comes from a legitimate business) or his unilateral
quo absent clear evidence that a change is in the determination of her net income. The latter is based on his
children’s best interests; own decision about which business deductions are proper.
5. The father is not even utilizing all of his current [39] If s. 9 applied to the determination of the father’s
parenting time but rather often offloads the support obligations, and 2021 tax return’s income figure of
children to his parents or girlfriend. $36,000 per year were used, the father would be required
to pay $1,157 per month, set off by a notional obligation by
6. Although the father purchased a home near the
children’s school, he has yet to move into the home the mother of $546 per month, leading to a set-off payable
because he is renovating it. by the father of $611.
Above and beyond all those arguments, the mother [40] In other words, and in the vernacular, no matter
forcefully argued that the father’s motivation for his how you slice it, the father deliberately underpaid support
request for a 50/50 shared parenting regime was purely after the matrimonial home sold. And to mix metaphors,
financial. he showed his cards by improperly adopting a set-off support
figure at a time that he knew that s. 9 did not apply.
When the Judge heard this last argument, he stated:
[35] One of the unintended features of s. 9 of the Child [41] The father is represented by a very seasoned and
Support Guidelines (“CSG”), which is discussed in greater capable lawyer. He must be presumed to know what he was
detail below, is the fact that the determination of parenting doing when he chose to underpay support in that manner.

[42] It is open to the court in the circumstances to find CASE LINK:
that his parenting request has a financial motivation and I
so find. That finding is not determinative, but it also cannot https://www.canlii.org/en/on/onsc/
be ignored. doc/2022/2022onsc5882/2022onsc5882.html
Had this father not made his desire to pay less child
support so apparent, the Judge may have arrived at a
different conclusion.
Steven Benmor is certified as a specialist in family law by the
As is evident from this case, any parent seeking a Law Society of Upper Canada and also serves as a private
50/50 shared parenting regime should never create the divorce mediator and arbitrator for high net worth families.
appearance that it is in any way motivated by a financial Steve can be reached at steve@benmor.com.
objective of paying less child support.
MoneyTip
Allow Siblings To Act As RDSP Holders,

Report Recommends
The Canada Revenue Agency’s (CRA) disability advisory allow qualified family members to open, manage and
committee (DAC) is calling on the federal government contribute to an RDSP on behalf of a person with a
to allow siblings to act as RDSP planholders for persons mental disability.
with mental disabilities.
Absent the temporary rules, only a legal guardian or
The recommendation is one of 10 the DAC made in its “some other legally authorized person” can become
2022 annual report, released Friday. the planholder for an adult beneficiary with a mental
disability. Those rules are set to expire in December
Currently, the list of people defined as “qualified family 2023.
members” in the Income Tax Act includes parents,
spouses and common-law partners of an adult person The committee also urged the federal government to
who is eligible to be a beneficiary of an RDSP, but whose allow a person with a mental disability to appoint a
“contractual competency” is in doubt. representative to manage their tax affairs without
having to appoint a guardian, and to encourage the
Adding siblings to the list “would be a prudent creation of a “national minimum-standard legislative
succession-planning measure, as siblings of persons framework” for supported decision-making laws, which
with mental disabilities are statistically expected to are under provincial and territorial jurisdiction.
outlive their parents,” the report said. “Also, it could act
as means of relieving an ailing parent of a person with The committee also recommended the federal
a mental disability from having to continue to manage government allow an inter vivos trust (i.e., one created
their RDSP.” during a settlor’s lifetime) established for the benefit of
a person who qualified for the disability tax credit (DTC)
In addition, “the RDSP may be jeopardized when a be eligible for the principal residence exemption on a
planholder of the RDSP, such as a parent, passes away qualifying property held by the trust.
and there is no other qualifying family member. Should
this happen, the person would need to have a guardian Other recommendations in the report addressed the
appointed or leave their RDSP unmanaged indefinitely.” rules governing eligibility for the DTC, as well as those
governing reviews and appeals when DTC applications
The report also called on the government to make are denied.
permanent rules introduced temporarily in 2012 that
Source: Advisor.ca

This column offers excerpts from published and
online sources to provide other viewpoints.
LONG TERM COMPOUNDERS

Beta vs. Quality peaked in Mar/21, had a rally in gave a rare whipsaw during the summer rally,
the summer that failed and has made new lows. breaking > 90% then quickly collapsing back down
However, the momentum low was struck in the < 20% - there are no silver bullets.
summer and long-term momentum measures are However, we now have longer-term breadth
now deeply depressed (2-year ROC = -13.3%) measures such as the S&P % > 200-day expanding,
suggesting that a turn back up in favour of beta is hitting 63% recently, well above the summer rally
likely as the rubber band is stretched to the highs of 51%. In a similar vein, the average stock
downside. continues to out-perform market cap weighted
We also track an ETF pair: Beta vs. Low Vol indices (RSP:SPY). This tends to happen at major
(SPHB:SPLV), which has been acting better, with market lows, including the Covid-low, 2009, and
the lows in June holding thus far. 2003.
Beta vs. Quality tends to track Global Equities, In simple terms, more and more stocks are
leading at market tops giving a heads up of trouble reversing from downtrends to uptrends so we
– the last peak Mar/21 vs. equities peak Nov/21. should focus our time on identifying leadership -
The two are typically coincident at bottoms. stocks breaking out of bases (preferably along
Currently, Beta vs. Quality has made new lows but with strong quant rankings) - rather than making
Global Equities have rallied well off the recent bold market calls.
lows, creating a divergence. Compounders fit in the Quality bucket.
The ratio of Beta vs. Quality also tracks leading Specifically, we screen for Large Caps (> 15bp)
economic indicators such as the US PMI, which is that have a high ten-year median ROE. We use >
still falling, representing a key risk. For the bulls, 11% as the cut off (an homage to spinal tap) vs.
we note that Financial Conditions have started to the avg in Canada of just 3.4%. We also want a
improve (tighter credit spreads, weaker US$, lower high TTM ROE > the avg of 5.7%, then screen for
rates) which could cause a positive feedback loop, stocks that have strong / improving momentum.
resulting in a turn in the PMI.
Industrials: FTT CNR CP TFII STN
As an aside, these charts relate to our 10-step
check list for a market bottom that we have been Tech: GIB.a CSU
tracking. We recently checked off step #4, the
Discretionary: ATZ QSR MG
retest phase in Oct, when the market made new
lows but fewer stocks made new lows compared to Staples: WN MRU
June and momentum indicators improved. We
can now check off step #5 with the recent Financials: IAG SLF NA RI
breadth thrusts. The S&P % > 50-day has once
again broken > 90%. Admittedly, this indicator Source: Cormark Securities

Contributor BIO
GETTING TO KNOW
Chris White CFA
Chris White is a CFA charterholder

and is an Investment Analyst with 5i Research. school of thought. Hold for the long-term, ignore
Chris has held several analytical roles within the noise, be patient when others are losing their
the Insurance and Banking sectors, including patience, and actively seek opportunities when
Corporate Finance, Corporate Development, and others are fearful.
Commercial Banking. An avid cryptocurrency
In his spare time, Chris enjoys running, hiking,
and NFT enthusiast and self-taught Python
canoeing, cooking, and spending time with his
programmer, Chris thoroughly enjoys the
analytical process from start to finish. Chris holds wife and newborn son. Chris has had a passion
a Bachelor of Arts degree from Wilfrid Laurier for the financial markets for years and enjoys
University. thinking about the macro picture at large,
analyzing companies’ financials, and talking
Chris’ investment philosophy is that investing
about the investing landscape.
is about assessing which technologies and
companies will have more importance in the
future than they do today. Finding good quality Chris White, CFA
companies that operate in those industries and Investment Analyst,
invest in them. Don’t be afraid to stand out or 5i Research Inc., ETF & Fund Update
have investment ideas outside of the mainstream Independent Investment Research
ISS AN EP
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Parenting For The Future
Helping The Next Generation

Get Into The Housing Market
Giles Jordan
A
s a father of a young and growing family in BC, We’ll outline the most common solutions and
I know all too well the struggles my generation ways parents, and grandparents can help their kids
is facing when trying to get into the current and grandkids, including gifting a down payment and
high-priced and fast-moving real estate environment. sourcing the gift, co-signing, acting as a guarantor, multi-
family living, and early estate planning, which all have
A recent article noted Vancouver as the third most different pros and cons and will suit different people’s
expensive city to live in the world and the most expensive needs.
in the whole of North America when comparing income
levels to the property prices. To put that in perspective, 1. Gifted Down Payment
that’s behind the likes of New York, Paris, London and
Dubai, which is quite the shocking statistic. With rising prices and living costs, often a big difficulty
for first-time buyers is saving the down payment needed
So, it’s no wonder many younger generations who are to purchase a property.
yet to get into the market feel like they are swimming
against the tide. Fortunately, in Canada, you can purchase with as little
as a five per cent down payment, or even 0% if borrowing
I have personal experience with this. When we were a down payment in some cases (if you qualify for the extra
looking for our first property big enough for a growing borrowing costs).
family, prices felt very high, and being able to save for
In reality, the time it takes to save even five per cent is
a down payment, and qualify for a mortgage was very
often so long that the market has increased beyond what
difficult to do.
you originally thought you’d need.
Fortunately, we were one of the lucky ones, who were
The result is that it’s becoming more and more
able to purchase a townhome just before the pandemic,
common for first-time buyers to have a portion of their
when prices rose even more dramatically, and just as down payment gifted by family.
importantly, we were fortunate enough to have help from
family to get us there. A gifted down payment is when a person giving the gift
(“giftor” ) signs a letter stating that they are gifting funds
As the saying goes, necessity is the mother of invention. to help with a down payment when buying a property.
So more and more often, people need to find creative The reason they need to sign this document is that if the
solutions to get into the property market and achieve the funds are borrowed, the lender will need to factor the
goal of homeownership. As licensed mortgage brokers, repayment terms into the borrower’s debt service ratios,
we’re always finding creative ways to help people make which most often will make it much more difficult to
their real estate dreams a reality. qualify for the mortgage.
In this article, we will list some of these creative ways Many families, parents or grandparents will gift
that parents and grandparents can help their children and funds for the down payment and sign the letter, which
relatives get into the property market and realize their legally will confirm there is no obligation for the gifts
dreams of home ownership. to be returned. However, between them, there may be

an informal arrangement behind the scenes to pay the segment back into a mortgage segment at a lower rate,
funds back in years to come, or buyers may plan on so you can pay it back over time.
paying them back themselves anyway (even though they
are not obligated). This is a great option if you’re planning for the future
but don’t need the funds right away. You’ll be able to
The key thing is that whoever gives the gift knows they access however much you want to borrow to gift as a
will need to sign a document explicitly stating there is no down payment, as and when they are needed.
expectation for the gift to be repaid, and they legally will
have no recourse to get the funds back. Reverse mortgages: This is another way to access
funds to use as a gifted down payment. More on
Now we know what a gifted down payment is and reverse mortgages and how they work is discussed
how it works in practice. How can you source a gift if towards the end of this article.
you don’t have significant savings or investments sitting
there ready to go? 2. Act As A Co-Signer
There are a few ways to do this, and all of them involve Lending criteria have become stricter over the years, so
releasing existing equity in your property. These three a co-signer can be a useful way to qualify for a mortgage
most common ways are listed below, and we will review that otherwise wouldn’t be possible, and it is becoming an
them in turn: increasingly common way for parents, and grandparents
to help their kids get into the housing market.
1) Refinancing to release equity,
So, what is a co-signer?
2) Using a secured line of credit,
A co-signer is somebody who will be added to the
3) Reverse mortgages. title and the mortgage with the owners and be equally
Refinancing: A refinance is replacing your existing responsible for the mortgage. The benefit of this is that
mortgage with a brand new one. With the rise in real even if that person isn’t living in the property, you can
estate prices, those who are already in the market have use their income to help qualify.
built significant equity that, if they qualify, can be Let’s say, for example, a young couple, Jack & Jill, have
accessed via a refinance. found a townhome that they love. Jack is working with
For example, let’s say your mortgage is $300K, and a full-time income. However, Jill recently graduated and
your property is worth $1 million. You’re able to borrow is now a self-employed physiotherapist.
up to 80% of the property value through a refinance. As Jill is self-employed, she’d need two years’ worth
Therefore (assuming you’d qualify income-wise), you of income before it can be used with most conventional
would be able to refinance and replace your existing lenders. Therefore, even though they’d have the income
mortgage with one up to $800K, releasing potential extra to service the mortgage finance companies expect, on
equity of $500K. paper, the couple wouldn’t have sufficient income for
It’s been common for people to do this type of thing what many lenders would require to qualify.
and release funds for all sorts of reasons, including the This is just one example of how buyers may not
purchase of a rental/investment property, consolidating quite qualify for the mortgage size they need. In today’s
high-interest debt, buying a vehicle and investing. Or, high-priced environment, this is becoming increasingly
as relevant for this article, to help a family with a down common, so help is often needed.
payment on a property.
Fortunately, Jill’s father, Dave, is mortgage free and
Home Equity Line of Credit (HELOC): Another has good levels of income coming in. So, he offers to
option is to use a secured line of credit to gift the co-sign for Jack and Jill to help them qualify. All three
funds to the family. There are various mortgages that would be on the application and on the mortgage and
have these segments and options to borrow against the title for the property.
equity in your home. The benefit of this is that you
have access to the funds as/when you need them and The key thing to bear in mind if you’re considering
only pay interest once you use them. There are even co-signing is that you will be responsible for the mortgage
mortgage products that allow you to port the HELOC should the buyers not make their payments, and this

mortgage will also now need to be factored in should you to get. However, has a good income and has saved a good
wish to take out any further financing; the co-signer will down payment amount.
need to qualify for both mortgages.
If we were able to stretch our budget to $1.5 million for
That’s why most commonly, this arrangement is a a house with a suite, my wife and I could be responsible
short/medium-term solution to help buyers get into a for two-thirds, and brother-in-law one-third. Our total
property before they’re able to qualify on their own. real estate cost would be $1 million. His would be $500K.
In our example, once Jill has her two years, she and Jack By pooling resources, we can get much more for our
can refinance and qualify on their own, taking Dave off money. We will be able to make the jump into the single-
the title, so he no longer has the obligation. This solution family home market with a lower mortgage, and he will be
is great between able to build equity in a property with more outside space.
Families usually only occur in these types of situations Down the line, when he has enough, and we do as
as there is a high level of trust between all parties. well, having built equity ourselves, we can buy him out,
giving him the return on his investment from being in
3. Act As A Guarantor the market and some nice equity to make the leap into
a place of his own.
A guarantor is another solution like a co-signer but
slightly different. A guarantor is someone who isn’t on You can quickly see that by pooling resources, you
title. However, they are there to guarantee that mortgage can make leaps into property brackets that wouldn’t be
payments will be made if the borrowers get approved. possible on your own, and for less cost. This has been a
common practice for large families with many generations
The most common situation when a guarantor is used
living together under one roof.
is when credit is weak or too low, rather than income. If
more income is needed, lenders would often require the Having multiple different full-time income earners and
other person to be a co-signer and be on title. resources for the down payment can make a significant
However, a guarantor can be a useful solution for difference in affordability.
clients who perhaps have low or non-existent credit due We’ve recently had clients who are sisters who
to various issues. purchased 20 acres in the interior of BC together when
on their own, they would never have been able to afford
4. Multi-Family Living this size of land. Long-term, they will be able to build
Multi-family living has been commonplace throughout their own houses with plenty of space for both families.
the Lower Mainland for a while and is becoming The reason multi-family living works is that properties
increasingly popular amongst buyers who can’t quite “twice” the size aren’t always twice as much. So, by being
qualify for what they want or need on their own. able to stretch your budget and have family members,
I’ll use a personal example to demonstrate why multi- or even close friends, purchase with you, this can be a
family living can be such a great solution, as we are in a great solution.
situation where we are considering multi-family living
to make the next jump from a townhome to a single- 5. Early Estate Planning
family home.
Early estate planning can also be a way to help younger
If we wanted to get into a single-family home with generations get on the property ladder while having the
square footage above our townhome, the minimum benefit of allowing parents/grandparents to enjoy and
price in today’s market would be $1.3 million or higher see where their family wealth has been utilized while
in our area. This would mean needing a million-dollar they are still alive.
mortgage. Which, even if we did qualify, is something
we’re not comfortable with. The simplest way is to review your Will, and if there are
any large amounts of funds, you plan to leave to younger
A possible solution that’s been discussed has been generations, distribute these earlier. This will have the
purchasing with my brother-in-law. He is not yet in the benefit of helping now, so they will see the long-term
real estate market and feels priced out with what he’s able benefits (i.e. by buying into a rising market earlier), and

you’ll be able to see the results and have input on how payments like a regular mortgage. The reverse mortgage
the funds will be used. is only paid back when you move out of your home, sell
it or the last borrower passes away.
What if you don’t have significant savings or
investments, personal or corporate, but own your Therefore, if you had plans to leave your property to
own property and want to use equity to help younger your family in your Will, it could be a way to help them
generations? How can you do this without overburdening gain access to some of these funds earlier.
yourself with mortgage payments, or if you no longer have
high-income levels to qualify for a mortgage to release It is important to note these mortgages are designed for
those funds? older clientele, so you must be 55+ and own your home
to explore this option.
Reverse Mortgages
Summary
Often, people’s biggest asset is their home. Reverse
mortgages can be a way to access the equity in your This article has outlined some of the creative solutions
home, even if you have low income and challenged that parents, and grandparents can use to help younger
credit. Although reverse mortgages have got a negative generations with their real estate aspirations. In times
reputation over the years, they can be a great solution for when prices are higher than ever, more and more
people with significant equity in their homes that want frequently, these types of creative solutions are the best
to access them. So how does a reverse mortgage work? way to help combat the rising costs of living in Canada.
Reverse mortgages work as you receive payments

from the mortgage company, either frequently (e.g. once Giles Jordan, Licensed Mortgage Broker & Lead Underwriter
a month) or in a lump sum. You don’t need to make The Morrison Mortgage Team
Or you could
advertise your
business here!
CONTACT US TODAY AT

TOP US DIVIDENDS - $2B MARKET CAP MINIMUM Includes special dividends and prior to any recent cuts
over the last 12-month period.
Market Cap Proj 12M Price:D-1
Ticker Name P/E
($) Dvd Yld (%) ($)
VZ US Equity VERIZON COMMUNICATIONS INC 16.10B 6.81 38.34 7.42
PM US Equity PHILIP MORRIS INTERNATIONAL 15.15B 5.19 97.79 17.37
T US Equity AT&T INC 13.54B 5.84 19.01 6.42
INTC US Equity INTEL CORP 11.92B 5.05 28.90 15.20
MO US Equity ALTRIA GROUP INC 8.21B 8.21 45.82 9.66
VWO US Equity VANGUARD FTSE EMERGING MARKE 6.99B 5.37 39.45 –
PXD US Equity PIONEER NATURAL RESOURCES CO 5.720B 9.49 240.78 8.30
EPD US Equity ENTERPRISE PRODUCTS PARTNERS 5.38B 7.68 24.73 10.22
STLA US Equity STELLANTIS NV 4.76B 7.38 15.21 3.10
DVN US Equity DEVON ENERGY CORP 4.41B 8.00 67.50 8.41
KMI US Equity KINDER MORGAN INC 4.24B 5.88 18.88 17.22
SPG US Equity SIMON PROPERTY GROUP INC 3.84B 6.13 117.46 19.71
ET US Equity ENERGY TRANSFER LP 3.83B 8.54 12.41 9.51
DOW US Equity DOW INC 3.56B 5.53 50.65 6.28
MPLX US Equity MPLX LP 3.38B 9.19 33.74 9.96
CQP US Equity CHENIERE ENERGY PARTNERS LP 2.97B 6.95 61.54 12.38
OKE US Equity ONEOK INC 2.90B 5.76 64.91 18.11
LYB US Equity LYONDELLBASELL INDU-CL A 2.76B 5.61 84.84 5.62
FANG US Equity DIAMONDBACK ENERGY INC 2.58B 6.16 146.74 6.56
CTRA US Equity COTERRA ENERGY INC 2.21B 9.69 28.07 6.24
VTIP US Equity VANGUARD SHORT-TERM TIPS 2.05B 7.59 47.64 –
IEP US Equity ICAHN ENTERPRISES LP 1.70B 15.83 50.55 –
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EMB US Equity ISHARES JP MORGAN USD EMERGI 1.46B 5.36 85.46 –
EFV US Equity ISHARES MSCI EAFE VALUE ETF 1.45B 6.01 45.87 –
CHK US Equity CHESAPEAKE ENERGY CORP 1.33B 12.73 99.30 7.52
GLPI US Equity GAMING AND LEISURE PROPERTIE 1.32B 5.47 51.57 22.92
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STX US Equity SEAGATE TECHNOLOGY HOLDINGS 1.06B 5.44 51.45 9.23
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JEPI US Equity JPMORGAN EQUITY PREMIUM INCO 0.87B 12.96 56.15 –
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PAA US Equity PLAINS ALL AMER PIPELINE LP 0.86B 7.01 12.41 10.50
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MPW US Equity MEDICAL PROPERTIES TRUST INC 0.77B 8.94 12.98 11.72
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TX US Equity TERNIUM SA-SPONSORED ADR 0.62B 5.81 31.00 2.23
JNK US Equity SPDR BLOOMBERG HIGH YIELD BO 0.59B 6.06 91.41 –
SRC US Equity SPIRIT REALTY CAPITAL INC 0.56B 6.52 40.70 26.53

Excerpted from Advisorsavvy Blog
GST/HST Credit: A Complete Guide

Source: Advisorsavvy
We Canadians are a lucky bunch. We have access to a the combined amounts on line 23600 for
variety of government resources and benefits. Moreover, each person are calculated to get the family
Canada’s tax system is designed to redistribute wealth net income.
across the nation. One of the most common tax benefits ■ The number of children under 19 years of age that
available? The GST/HST tax credit. you have registered for the Canada Child Benefit
and the GST/HST credit.
Administered by the Canada Revenue Agency (CRA),
this benefit supports low to moderate-income families. In Here are the maximum amounts you could receive
this article, we look at how to enroll, payment amounts, for payment periods between July 2022 and June 2023:
and corresponding provincial/territorial programs. ■ Single individuals: $467.
What is the GST/HST credit? ■ Married or common-law partners: $612.

■ $161 for each child below the age of 19.
As mentioned above, the GST/HST credit is a federal
tax benefit. It’s available to individuals and families with To support those most impacted by inflation, the
low to modest incomes. government is proposing to double the GST credit for
6 months. This proposal has not gone through yet, but
The purpose of the GST/HST tax credit is to help stay tuned to see if your benefit could double.
taxpayers offset the sales tax they pay. The benefit is paid
quarterly. Can the credit be recalculated?
GST/HST credit payments are predetermined by the
Related Reading: Guide To Tax Credits — How To CRA. For this reason, the calculation is straightforward
Get A Bigger Tax Refund and publicly posted online. Your payment may change
if the following factors arise:
What is the difference between
■ You or your spouse/common-law partner’s tax
GST and HST?
return was reassessed resulting in a different net
Both GST and HST are sales taxes. This means it’s income.
charged on the sale of most goods and services sold in ■ Your eligible child turns 19.
Canada. GST stands for ‘goods sales tax,’ while HST
■ Your marital status changes.
stands for ‘harmonized sales tax.’ In many provinces
and territories, GST has been ‘harmonized’ with the ■ The number of eligible children in your care
provincial or territorial sales tax which is known as HST. changes.
In other words, GST is the provincial level sales tax ■ A recipient passes away.
whereas HST is the federal level sales tax.
■ You stop or start sharing custody of a child.
How is the GST/HST credit calculated? If you suspect you received the incorrect amount
for your GST/HST credit, be sure to consult the
As mentioned, the credit is calculated and paid to CRA resources first. Consequently, most amounts are
beneficiaries automatically. Calculation of the CRA GST/ predetermined by the CRA and cannot be recalculated.
HST tax credit is based on the following factors:
Check out the GST/HST payment chart and/or use
■ Your household net income. the child and family benefits calculator. If you did receive
• If you’re single, this is the amount reported on the incorrect amount, reach out to the CRA to have the
line 23600 of your income tax return error fixed.
• If you have a common-law partner or spouse, Continued on page 33

You must accompany your inquiry with your Membership
Number (ID) and e-mail to have your question reviewed.
Inquiries are responded to directly and the Q&A may be
published here later.
Q: I am an incorporated small business owner with one evaluated versus the costs to you and your corporation
employee…me. I take a regular salary from the business of continuing CPP contributions. You mentioned in
and generally breakeven. your question the savings of approximately $7000, this
is based on the maximum salary paid. So the simple
I understand that after age 65 I can discontinue
answer to your question # 2 is: yes. You may also
submitting CPP deductions on my salary. This leads me
consider paying yourself less in salary, therefore the
to a couple questions:
CPP contributions (employee & employer) would not
■ Any comment on whether discontinuing CPP be to the maximum level.
payments is a good idea?
If you elect to discontinue contributions to CPP, this
■ Would doing this save BOTH my personal employee means your employer will also cease its contribution.
CPP contribution as well as the employer CPP The result will be more funds available to invest
contribution? This would save me about $7,000 per within the corporation; i.e. new equipment, buying
year ( 2 x $3,500). investments, etc. or distributing more money to
you. Another consideration is if you continue CPP
A: Thank you for your question. contributions in the hope of getting the post-
Ahhh, the famous questions surrounding Canada retirement benefits and on the first day of collecting
Pension Plan (CPP) contributions and benefits. Here CPP you “get hit by a bus”, your additional contributions
you’re only asking about contributions to CPP. will not have benefited you.
I have limited information as to your situation relating As you can see there are financial and tax implications,
to your finances, marital status, etc., therefore my but you must also consider what you would like to
answer will be general in nature. do and that is specific to each individual. To answer
question #1: it may be a good idea for some, but not
When a Canadian taxpayer reaches 65 years old, for others, simply based on their personal preference.
contributing to CPP becomes optional from then until
age 70. Discontinuing contributions is done by filing The timing as to when to start collecting CPP is a
Election form CPT30. Any contribution past 65 years different decision to CPP contribution continuation or
old will give you CPP post-retirement benefits. not.
Let us look at both scenarios. The comments above are based on the Income Tax Act
as of November 2022 and changes to the ITA would
If you continue contributing to CPP, this means have an impact on my comments.
you’ll have contributed more to CPP and potentially
giving you more benefits when you start collecting
CPP. Continuation of CPP contributions will have J. SYLVAIN BOYER, CPA, CA
a cost to the employee (you) and to the employer BOYER & BOYER, CPA
(your corporation). $3,754.45 is the maximum CPP PARTNER FINANCIAL AND TAX STRATEGIES,
contributions to both parties for a yearly salary limit PLANNING AND EXECUTION
of $66,600 in 2023. The future benefits need to be WEBSITE: WWW.BOYER-BOYER.COM

Real world confidential portfolio discussions
Portfolio Confidential
Barbara Stewart
insurance representative who uses insurance as one of
M y husband and I have an Insured

Retirement Plan (IRP) account that is
bleeding us. I hope there is some way we can
many financial planning tools (within a broader wealth
management firm) to shed some light on IRP accounts
and when they are appropriate for investors.
work around this to minimize the losses. Also, I Ian Calvert’s core business activity is not selling insurance
can’t recall why we opened this type of account products. He does provide insurance solutions when used
in the first place. Your comments will be most as a tax planning and risk management tool to achieve
welcome. a family’s estate goals. As part of his overall role as Vice
President & Principal, Wealth Planning at HighView
Financial Group, Ian also acts as a “servicing advisor” to
Insurance Coverage and Benefits: many policies issued by other insurance representatives
who have failed to service their clients in the later years
Single Life Yearly Renewable Term $500,000 of the policy or have left the industry altogether. He
Ten-Year Renewable Term Rider $500,000 regularly reviews previously sold IRP accounts as part
of his financial planning services for his clients but does
Investment Account: Allocation
not receive any direct compensation for his advice and
of each deposit: recommendations for policies previously sold by other
American Equity Index 30% insurance representatives.
U.S. Technology Index 70% What is an IRP account, and why would this type of
account be appropriate for an investor?
I am normally sceptical about any type of insurance

account or fund because I am keenly aware that the
insurance industry is set up to incent brokers and financial
Ian: An IRP is not necessarily an investment product…it
is more of a concept or strategy. To execute this concept, you
need to have a permanent policy that also builds up a cash
advisors to sell products rather than offer advice.
value in the policy. There are two types of insurance products
In doing my research on IRP accounts, I found out that, designed this way: a Whole Life Policy and a Universal Life
indeed, there is a big problem with those brokers, financial Policy. Within both policies, you are paying premiums to
salespeople, and insurance agents: cover a death benefit, plus you are building up a cash value
a) they get paid very well to sell IRPs and, more or an investment account within the policy.
importantly, The main reason to build up cash reserves in an insurance
b) they get paid the majority of the commission upfront retirement plan is that this account is tax-exempt. It remains
in the first year. one of the few places to accumulate tax-exempt assets in
Canada. In a participating Whole Life Policy, you receive a
This leads to a lot of mis-selling and a lack of proper dividend payment every year from the insurance company
planning! An insurance rep will want to be quick to close that can be used to buy more insurance and build a cash value
a sale, but there is no incentive whatsoever for them to within the policy. In a Universal Life Policy, you can build
continue to offer advice or service in the later years of a tax-exempt investment account with additional deposits
the policy. within limits. An IRP makes sense for someone who has
With this in mind, I did some research to find a licensed already maxed out their Registered Retirement Savings Plan

(RRSP) and Tax-Free Savings Account (TFSA) contribution Be curious!
limits but still has either a sizeable non-registered investment Cathy Hwang, a Principal at Zumaya Equity in Taipei,
account or they have built up additional assets in a corporate says, “Be fundamentally curious about the world,
account. especially if you are in the business of investing. Whether
An IRP is a long-term strategy—you need to have enough it’s about travelling to interesting places, interacting with
years ahead to get the cash value large enough to borrow different types of people, seeking out new experiences, or
against it. It does not make sense to take out a loan against being disciplined about reading diverse publications. You
the policy or collapse the policy in the early years because the need to have a wide lens for information flow.”
cash value is too small or if there is a surrender charge, and Focus on business karma!
you would forgo a lot of the premiums you have paid for the
Aline Reichenberg Gustafsson is the Editor in Chief
first couple of years. I do see a lot of mis-selling with IRP
of sustainability platform NordSIP.com in Stockholm.
products due to the attractive upfront compensation in the
She believes in creating her own karma: “Often, I meet
first year for insurance representatives. An IRP should only someone interesting and highly competent, but we
be sold when there has been a needs analysis in the context of don’t see any immediate and concrete opportunity to
an overall financial plan – it is critically important that the collaborate. These ‘unusable’ contacts still make it onto
investor has the ability to fund the policy for the long term. my mental matchmaking list because I don’t want our
An IRP account shouldn’t be the first place to go for interaction to go to waste. Why do I care about this?
investors looking to invest in a tax-efficient way…it is most First, I (selfishly) enjoy being the source of successful
appropriate when investors are running out of other options: introductions. Second, I am paying forward to those
tax shelters such as RRSPs or TFSA accounts. If the cash flow past introductions that have benefited me throughout
analysis clearly shows that the investor can afford to make my career. Last, but not least, I know that the more I
the premium payments for the long term, an IRP can help help people, the stronger our relationship will be. They
them achieve significant tax benefits. will remember me, talk about me, and generate a positive
buzz around me and my business.”
How can I minimize the losses inside my IRP account?
Have a positive mindset!
In good news, if you are uncomfortable with the volatility
of your current holdings in your Universal Life Account, Cristina Arceo is a Vice President at China Banking
you can make changes without incurring any tax Corporation Treasury Group in Manila who thinks that
implications. Your IRP holdings are quite aggressive—I’m “Just like life, markets have their ups and downs—I don’t
not surprised that you have experienced intense volatility, let it get to me. I think trading is a perfect job because
given the environment we are in. It is unclear how you although there is lots of stress, you can learn to have the
decided on this asset mix and whether you received proper discipline to assess the current situation and cut your
financial advice, and what investment options you have losses if necessary and move forward. I don’t stay in a bad
situation in trading…or in life.”
within the policy.
M y daughter will graduate this spring with

a Bachelor of Commerce degree. She isn’t
yet sure exactly what she wants to do when she
Do you have questions about your own investment portfolio?
I have recently set up The Rich Thinking® Financial Advice

graduates other than be a successful “woman in Hotline. This will be a win/win: you get a free 30-minute
finance.” Do you have any tips for her?
confidential Zoom chat offering an independent, unbiased
perspective on your financial situation with no sales pitch! In
exchange, I get to use the anonymized data that will come from
Y es! I interviewed 50 accomplished women from
around the world for my 2020 Rich Thinking®
research paper Top Tips for Business Success. I’ll share
these conversations to make my Rich Thinking research even
better. Email me tobook your Zoom discussion:

insights from three women in the finance industry about
what they think are the key ingredients to their success: barbara@barbarastewart.ca

INSIGHTS FROM ETFs
2023:
WHAT TO LOOK OUT FOR
BARKHA RANI cfa | INVESTMENT ANALYST | 5i RESEARCH
2022 What a year it was. After two years of

lockdowns and abnormal lifestyles, we
played “catch up” across many areas this year. Metaphorically,
which screens the broad S&P/TSX Composite Index for
large-cap Canadian companies that have increased
cash dividends every year for at least five consecutive
government stimulus and pandemic derivatives have also been years. CDZ has a trailing twelve-month yield of 3.69%,
catching up in the name of inflation and rising living costs. much lower than a high dividend ETF such as VDY
Exponentially rising inflation forced major central FTSE Canadian High Dividend Yield Index ETF (VDY) at
banks around the world to shift to hawkish tightening 4.17%. The top five holdings include Slate Grocery Real
monetary policies. North America, which has for the Estate Investment Trusts (REIT), Pembina Pipeline Corp,
past decade seen very low-interest rates (close to zero Keyera Corp, Enbridge Inc, and Fiera Capital.
for most of the decade), is going through a regime shift Vanguard Dividend Appreciation Index Fund
with rising interest rates. As such, we saw relatively (VIG) tracks the S&P U.S. Dividend Growers Index,
higher pressure on equities, bonds, and many asset which screens for companies that have increased their
classes. dividend payments for at least ten consecutive years.
Over the past decade, VIG has returned nearly 12.51%
The S&P500 is off by 15% this year, while the S&P/
annualized and offers a trailing twelve-month yield
TSX Composite Index has managed to end the year
of 1.81%.
at a relatively better -3.5% return year-to-date. The
Toronto Stock Exchange (TSX) was supported by the
commodities and energy sectors. Despite the slump BROAD-MARKET FUNDS
and likely after the tax loss harvesting season, now is a These funds include some of the largest companies
smart time to strengthen a portfolio with good-quality within regional or sector focus, and given this year’s
broad-based Exchange-Traded Funds (ETFs) that trade turmoil, this would be a good chance to add these
at a relative discount and decent valuations. Below we ETFs to your portfolios due to their relative safety and
highlight some ETFs: diversification.
SPDR S&P500 ETF Trust (SPY) was the first ETF
DIVIDEND ARISTOCRATS introduced in the U.S. in 1993. The ETF replicates the
Dividend aristocrats are defined as companies that index, tracking the stock performance of 500 large
consistently pay and grow their dividends over time. companies listed on the stock exchanges in the U.S. It
The willingness and ability to pay a portion of their is one of the most followed equity indices and is often
profits back to shareholders consistently make them referred to as “market return” for the U.S. Over the past
quality picks. The term does not necessarily equate to ten years, the fund has returned 13.21% annually and,
high dividend payers, given that the dividend can and on a trailing basis, yields 1.51%.
might be unsustainable, but rather with such ETFs, there
iShares Core S&P/TSX Capped Composite Index ETF
is a greater likelihood of consistent dividend increases
(XIC) aims to reflect exposure to the entire Canadian
in the future.
market by tracking the index with the same name.
iShares S&P/TSX Canadian Dividend Aristocrats With a capped weight of 10% on all the constituents,
Index ETF (CDZ) tracks the index with the same name, the benchmark, S&P/TSX Capped Composite Index,

covers approximately 95% of the Canadian equities zero-COVID policy, soft landing, and recession. The
market. Given the fund’s (and benchmark’s) relatively above-mentioned ETFs tend to perform relatively
overweight exposure to financials and energy sectors, better than others due to their broad-based nature,
the ETF boosts a solid trailing yield of 2.85% for a broad diversification, and holdings (largest companies).
index-based ETF. XIC has returned nearly 8.49% each If your risk tolerance is low and you have no major
year for the past ten years. The top five holdings include preference for a select factor or sector, we think these
Royal Bank of Canada, Enbridge Inc, Canadian National ETFs fit the bill and can reduce a portfolio’s overall
Railway, and Canadian Pacific Railway. volatility.
This has been a difficult year for many, and major Disclosure: Authors, directors, partners and/or officers
headlines are already lined up for 2023, including of 5i Research have a financial or other interest in XIT
hawkish central banks, rising interest rates, China’s and ZRE.
Continued from page 28
Who is eligible for the GST/HST credit? If you’re eligible but not receiving the payments, it’s
likely because you aren’t up to date on your tax returns.
To receive your payment, you must meet the following In short, file your tax returns within the appropriate tax
GST/HST credit eligibility: season, and you should receive your payments. To speed
up the process, register for direct deposit with the CRA.
■ Be a Canadian resident for income tax purposes.
■ Are 19 years of age or older. When are GST/HST credit payments

made?
■ You have (or had) a common-law partner or
spouse. The combined federal and provincial/territorial
payments arrive quarterly. If you don’t receive your
■ You are (or were) a parent and live (or lived) with payment on this date, the CRA advises you to wait
your child (parents with shared custody of children 10 business days before reaching out about a missed
may be eligible for half of the GST/HST credit payment.
for those children).
In the year you turn 19, your first payment will occur
What is the maximum income for the on the payment date that comes directly after your
birthday.
GST/HST credit?
The GST/HST credit is designed for low to moderate- Takeaways
income families. As a result, there is a maximum income The GST/HST tax credit helps low to moderate-
for eligibility. For single individuals, the maximum is income families by reimbursing them for sales taxes they
$49,166 before tax. For married or common-law couples pay. If you’re eligible, be sure to file your personal taxes
with four children, the maximum combined net income every year — automatically enrolling you for the benefit.
is $64,946 before tax.
You can check the details of your benefit by logging
How to apply for the GST/HST credit into CRA MyAccount or using the MyBenefits CRA
mobile app.
For both the federal and provincial/territorial levels,
you do not need to apply separately for the GST/HST Finally, feel free to reach out to the CRA at 1-800-
credit. The CRA automatically enrolls you in the program 387-1193 if you have any questions about the GST/
when they assess your annual personal tax return. As long HST credit.
as your reported net income meets the requirements for Caitlian Devon CPA, Editor Advisorsavvy
the GST/HST credit, you will receive the payment. advisorsavvy.com

TSX 60 - Constituents listed by Dividend Yield DATE AS OF DECEMBER 3, 2022
Name RIC Annualized Dividend Yield Dividend 5-Year Latest Dividend Latest Dividend
Dividends ($) (%) Growth Rate (%) Pay Date Ex-Date
Algonquin Power & Utilities Corp AQN.TO 0.98 9.43 10.57 13-Jan-2023 29-Dec-2022
Canadian Imperial Bank of Commerce CM.TO 4.59 7.69 5.18 27-Jan-2023 23-Dec-2022
Enbridge Inc ENB.TO 3.55 6.49 7.35 01-Mar-2023 14-Feb-2023
TC Energy Corp TRP.TO 3.60 6.19 8.09 31-Jan-2023 29-Dec-2022
Bank of Nova Scotia BNS.TO 4.12 5.98 10.79 27-Jan-2023 03-Jan-2023
Power Corporation of Canada POW.TO 1.98 5.81 7.02 01-Feb-2023 29-Dec-2022
BCE Inc BCE.TO 3.68 5.78 5.10 16-Jan-2023 14-Dec-2022
Manulife Financial Corp MFC.TO 1.32 5.41 9.93 19-Dec-2022 21-Nov-2022
Pembina Pipeline Corp PPL.TO 2.61 5.39 4.71 15-Dec-2022 24-Nov-2022
Emera Inc EMA.TO 2.76 5.27 4.66 15-Nov-2022 31-Oct-2022
Telus Corp T.TO 1.40 4.91 6.49 03-Jan-2023 08-Dec-2022
Suncor Energy Inc SU.TO 2.08 4.84 7.99 23-Dec-2022 01-Dec-2022
Sun Life Financial Inc SLF.TO 2.88 4.53 9.60 30-Dec-2022 22-Nov-2022
Canadian Tire Corporation Ltd CTCa.TO 6.90 4.44 17.61 01-Mar-2023 30-Jan-2023
Bank of Montreal BMO.TO 5.72 4.26 4.24 28-Feb-2023 27-Jan-2023
Canadian Natural Resources Ltd CNQ.TO 3.40 4.21 23.03 05-Jan-2023 15-Dec-2022
Fortis Inc FTS.TO 2.26 4.18 5.95 01-Mar-2023 14-Feb-2023
Toronto-Dominion Bank TD.TO 3.84 4.16 8.66 31-Jan-2023 05-Jan-2023
Brookfield Infrastructure Partners LP BIP_u.TO 1.94 4.11 4.42 30-Dec-2022 29-Nov-2022
National Bank of Canada NA.TO 3.88 4.05 1.16 01-Feb-2023 22-Dec-2022
Royal Bank of Canada RY.TO 5.28 3.93 6.51 24-Feb-2023 25-Jan-2023
Canadian Apartment Properties Real Estate CAR_u.TO 1.45 3.34 2.65 15-Dec-2022 29-Nov-2022
Investment Trust
Restaurant Brands International Inc QSR.TO 2.92 3.32 22.59 04-Jan-2023 20-Dec-2022
Open Text Corp OTEX.TO 1.31 3.31 14.22 22-Dec-2022 01-Dec-2022
Rogers Communications Inc RCIb.TO 2.00 3.21 0.82 03-Jan-2023 08-Dec-2022
Shaw Communications Inc SJRb.TO 1.19 3.20 0.00 30-Aug-2022 12-Aug-2022
Agnico Eagle Mines Ltd AEM.TO 2.16 3.08 33.11 15-Jun-2022 31-May-2022
Hydro One Ltd H.TO 1.12 2.96 4.90 30-Dec-2022 13-Dec-2022
Magna International Inc MG.TO 2.43 2.91 11.87 02-Dec-2022 17-Nov-2022
Kinross Gold Corp K.TO 0.16 2.75 -- 15-Dec-2022 30-Nov-2022
Nutrien Ltd NTR.TO 2.59 2.47 -- 13-Jan-2023 29-Dec-2022
Barrick Gold Corp ABX.TO 0.54 2.38 37.39 15-Dec-2022 29-Nov-2022
Imperial Oil Ltd IMO.TO 1.76 2.34 15.78 01-Jan-2023 01-Dec-2022
Gildan Activewear Inc GIL.TO 0.91 2.27 14.12 19-Dec-2022 22-Nov-2022
Saputo Inc SAP.TO 0.72 2.16 4.10 16-Dec-2022 05-Dec-2022
Intact Financial Corp IFC.TO 4.00 1.95 9.34 30-Dec-2022 14-Dec-2022
Canadian National Railway Co CNR.TO 2.93 1.70 12.17 29-Dec-2022 07-Dec-2022
Cenovus Energy Inc CVE.TO 0.42 1.56 (0.76) 30-Dec-2022 14-Dec-2022
George Weston Ltd WN.TO 2.64 1.55 7.08 01-Jan-2023 14-Dec-2022
CCL Industries Inc CCLb.TO 0.96 1.54 15.85 29-Dec-2022 14-Dec-2022
Wheaton Precious Metals Corp WPM.TO 0.81 1.50 14.25 01-Dec-2022 18-Nov-2022
Thomson Reuters Corp TRI.TO 2.40 1.49 4.77 15-Dec-2022 16-Nov-2022
Metro Inc MRU.TO 1.10 1.42 11.10 08-Nov-2022 20-Oct-2022
Loblaw Companies Ltd L.TO 1.62 1.32 8.11 30-Dec-2022 14-Dec-2022
Tourmaline Oil Corp TOU.TO 1.00 1.26 -- 18-Nov-2022 08-Nov-2022
Brookfield Asset Management Inc BAMa.TO 0.76 1.20 8.45 30-Dec-2022 29-Nov-2022
Teck Resources Ltd TECKb.TO 0.50 0.98 18.48 30-Dec-2022 14-Dec-2022
Alimentation Couche Tard ATD.TO -- 0.89 18.98 16-Dec-2021 01-Dec-2021
Franco-Nevada Corp FNV.TO 1.73 0.88 8.54 22-Dec-2022 07-Dec-2022
Waste Connections Inc WCN.TO 1.38 0.69 15.47 01-Dec-2022 15-Nov-2022
Canadian Pacific Railway Ltd CP.TO 0.76 0.69 11.68 30-Jan-2023 29-Dec-2022
FirstService Corp FSV.TO 1.09 0.63 12.10 06-Jan-2023 29-Dec-2022
First Quantum Minerals Ltd FM.TO 0.17 0.51 -- 20-Sep-2022 26-Aug-2022
Cameco Corp CCO.TO 0.12 0.37 (21.40) 15-Dec-2022 29-Nov-2022
SNC-Lavalin Group Inc SNC.TO 0.08 0.33 (40.71) 02-Dec-2022 17-Nov-2022
Dollarama Inc DOL.TO 0.22 0.26 8.57 04-Nov-2022 06-Oct-2022
Constellation Software Inc CSU.TO 5.40 0.25 1.38 11-Jan-2023 19-Dec-2022
Shopify Inc SHOP.TO -- -- -- -- --
CGI Inc GIBa.TO -- -- -- -- --
CAE Inc CAE.TO -- -- -- -- --
Source: Thomson Reuters, Google Finance * Due to pace of changes to dividends, yield may not reflect rates in real-time.

Canadian MoneySaver SUGGESTED CANADIAN DIVIDEND REINVESTMENT PLANS (DRIPs)
52-Week Closing Div Yield EPS P/E Payout 5-Yr Dividend
TSX Companies Symbol Price Ratio % Growth
High Low
Agnico Eagle Mines AEM 84.66 $48.88 $68.47 $2.17 3.18% $3.07 22.3 70.8% 33.3%
Algonquin Power AQN 20.185 $9.86 $10.05 $0.98 9.78% $0.89 11.3 110.6% 10.8%
BCE Inc BCE 74.09 $55.66 $64.01 $3.68 5.75% $3.40 18.9 108.4% 5.1%
Bk of Montreal BMO 154.47 $113.73 $133.01 $5.72 4.30% $13.82 9.6 41.4% 4.2%
Bk of Nova Scotia BNS 95 $63.19 $67.95 $4.12 6.06% $8.32 8.2 49.5% 10.8%
Canadian Tire CTC.A 196.75 $143.30 $151.67 $6.90 4.55% $17.40 8.7 39.7% 17.6%
Cdn Imperial Bk (CIBC) CM 83.75 $55.35 $58.82 $3.40 5.78% $6.92 8.5 49.2% 5.2%
Constellation Software CSU 2385.80 $1,783.98 $2,109.02 $5.44 0.26% $71.57 29.5 7.6% 6.1%
Emera EMA 65.23 $48.63 $52.64 $2.76 5.24% $2.98 17.7 92.6% 4.7%
Exchange Income Corp EIF 51.56 $37.79 $48.08 $2.52 5.24% $3.01 15.97 83.7% 2.6%
Fortis FTS 65.26 $48.45 $54.28 $2.26 4.16% $2.76 19.64 81.8% 6.0%
Hydro One H 38.18 $30.52 $38.02 $1.12 2.94% $1.70 22.33 65.7% N/A
Imperial Oil IMO 79.83 $41.04 $72.62 $1.76 2.42% $11.08 6.55 15.9% 15.8%
Manulife MFC 28.09 $20.81 $24.21 $1.32 5.45% $3.03 7.98 43.5% 9.9%
National Bank NA 104.83 $82.16 $94.43 $3.88 4.11% $9.62 9.82 40.3% 1.2%
Royal Bank RY 149.595 $116.75 $133.68 $5.28 3.95% $11.74 11.38 45.0% 6.5%
Sun Life Financial SLF 74.22 $52.97 $63.50 $2.88 4.54% $6.16 10.31 46.8% 9.6%
Suncor Energy SU 53.62 $28.77 $42.23 $2.08 4.93% $8.37 5.04 24.8% 8.0%
Superior Plus SPB 13.94 $9.44 $9.89 $0.72 7.28% -$0.42 -23.45 -170.7% 0.0%
TD Bank TD 109.08 $77.27 $91.32 $3.84 4.20% $9.04 10.10 42.5% 8.7%
Telus T 34.65 $26.30 $29.04 $1.40 4.84% $1.25 23.17 112.1% 6.5%
TransCanada Corp TRP 74.44 $54.60 $57.74 $3.60 6.23% $4.28 13.49 84.1% 7.5%
WSP Global WSP 186.43 $130.65 $161.69 $1.50 0.93% $5.49 29.45 27.3% 0.0%

CHART NOTES - Prices as of December 05, 2022. Source: TD Waterhouse/Bloomberg LP. Stock prices change daily. Check for current prices. These Canadian companies listed on the TSX are our recommended
companies a DRIP. With the DRIP, you can reinvest all your dividends to purchase additional shares at no cost. Some DRIPS offer a discount so that additional shares are bought at a discount to the average
market price. Some dividends are paid in US dollars and we have adjusted numbers and ratios according to recent exchange rates.
Div. 5yr gr: We have added the five-year dividend growth rate to our chart, information obtained from Bloomberg LP.
Earnings are forward earnings estimates.
Yield = Dividend divided by current price. Payout ratio = dividend divided by earnings per share (EPS). The dividend payout ratio is simply calculated by dividing the company’s dividend by its forward
(estimated) earnings. If a company with a low payment ratio experiences an earnings decline, it may continue to pay the same dividend. Or, at least, it may weather the downturn without cutting the dividend.
A high dividend payout ratio of 100% indicates that the dividend payout is equal or above the company’s earnings. Therefore, one should be very vigilant and place the stock on your “watch” list.
Calculation for interest equivalent of dividend yield for eligible shares: (100 - marginal rate for dividends) divided by (100 - marginal tax rate on regular income). For example, an Ontario taxpayer with
ordinary income of $65,514 uses: (100 – 11.72) divided by (100 – 31.15) is approximately 1.2822. Therefore, a stock with a Canadian dividend yield of 5.0% has an equivalent interest return of 5.0 x 1.2822,
which is approximately 6.41%.
CANADIAN MONEYSAVER SUGGESTED CANADIAN DIVIDEND REINVESTMENT PLANS (DRIPS)

TOP FUNDS RANKED BY FIVE-YEAR RETURN AS OF DECEMBER 6, 2022
Fund Name 1 Month 3 Month 6 Month YTD Return 1 Year Return 3 Year Return 5 Year Return 10 Year Return 15 Year Yield 12 MER Mgmt Fee Total Assets
Return Return Return (mth-end) (mth-end) (mth-end) (mth-end) (mth-end) Return Mo
(mth-end) (mth-end) (mth-end) (mth-end) ($Mil)
NORTH AMERICAN EQUITY

Stone Growth T8A 3.65 8.10 8.19 -5.94 -2.20 11.18 11.05 10.61 9.18 3.08 2.00 31.85 1774.16
Fidelity North American Equity Cl S5 2.54 3.75 1.13 -9.69 -7.83 9.99 10.38 - 0.45 2.23 1.85 212.34 516.21
ABC American-Value 5.46 -0.52 -3.20 -21.16 -20.19 6.97 7.80 6.98 0.00 - 2.00 48.46 2204.05
TD North American Dividend - D 3.91 7.70 5.03 -2.78 1.11 7.31 7.66 - 0.55 1.49 1.05 3182.49 5700.00
ABC Fully-Managed 5.06 0.25 -2.77 -16.04 -13.63 7.68 7.60 6.87 0.00 - 2.00 60.55 881.60
BMO Women in Leadership D 3.93 2.50 3.04 -12.71 -10.82 6.22 6.96 - 0.00 0.66 0.50 125.23 2241.77
TD North American Dividend - T 3.83 7.42 4.51 -3.57 0.25 6.50 6.88 - 0.05 2.20 1.70 3182.49 1721.00
BMO North American Dividend F 5.71 5.81 0.21 -3.73 1.96 8.08 6.66 - - 0.89 0.50 334.28 755.50
ABC Fundamental-Value 5.11 0.43 -2.89 -18.88 -17.72 5.87 6.65 4.08 0.00 - 2.00 149.99 207.34
CI North American Dividend A 5.07 1.61 -0.26 -14.46 -10.15 4.50 5.79 7.20 0.00 2.24 1.85 646.26 767.37
BMO North American Dividend Advisor 4.24 7.93 5.69 0.82 5.62 6.75 5.77 10.68 0.00 2.56 2.00 451.90 1828.80
Caldwell North American 0.80 6.14 5.07 -2.78 3.52 7.61 5.10 7.56 0.00 2.74 2.00 45.63 905.60
Yorkville Enhanced Protection Class A 2.08 5.49 -1.75 -10.77 -9.29 2.59 2.40 5.72 0.69 2.60 2.25 121.38 572.94
Purpose Best Ideas A 4.32 -1.04 -1.14 -36.38 -35.38 -4.61 0.15 - 0.00 1.84 1.65 23.19 1002.42
Barometer Disc Leadership Tact Inc&Gr A 0.33 -0.01 -10.14 -9.60 -8.27 -0.05 -0.71 - 6.28 2.74 1.95 31.85 282.65
Purpose Global Innovators Series A -2.13 -10.30 -9.59 -38.07 -41.33 -2.83 -2.23 4.45 0.00 2.31 1.75 23.21 30.69
BMO SIA Focused North American Eq D 2.31 1.33 -3.89 0.12 -0.68 7.31 - - 0.00 1.19 0.95 270.07 2702.30
Mulvihill Premium Yield Class A 2.04 3.85 -3.34 -6.50 -5.65 - - - 0.00 2.85 2.00 - 5035.90
VPI Total Equity Pool Series A 6.31 7.97 6.35 -0.29 4.46 - - - 0.00 2.25 1.80 39.92 899.06
Mackenzie Bluewater NA Eq A 7.00 7.28 8.93 - - - - - - 2.53 2.00 12.06 86.38
CANADIAN FIXED INCOME BALANCED

CIBC Balanced Index Premium 4.32 4.43 1.41 -5.42 -3.32 4.39 4.94 6.41 - 5.13 0.44 0.75 2522.36

Mackenzie Income J 1.04 2.37 1.38 1.38 6.65 5.54 4.91 - - 1.76 - 1.15 1514.30
CIBC Balanced Index 4.25 4.23 1.03 -6.07 -4.05 3.59 4.13 5.56 4.42 4.36 1.21 1.00 2522.36
HSBC Monthly Income Premium 2.69 2.39 -0.60 -0.75 1.55 4.49 3.86 4.63 - 2.30 0.90 0.75 1535.09
Mackenzie Income PWX 4.11 2.76 0.70 -6.94 -4.80 2.18 3.65 - - 3.09 - - 1514.30

HSBC Monthly Income Investor 2.64 2.25 -0.87 -1.25 0.99 3.92 3.29 4.06 3.79 1.77 1.44 1.25 1535.09
Compass Conservative Balanced Portfolio 3.33 2.37 0.29 -8.86 -7.31 3.14 3.25 5.10 5.09 1.65 1.58 1.50 5945.48
Compass Conservative Portfolio 2.57 1.37 -0.17 -8.52 -7.17 2.88 3.16 4.15 4.56 2.17 1.28 1.20 2005.26
FDP Balanced Income Portfolio A 4.12 3.53 1.34 -6.64 -4.28 2.05 3.15 4.23 - 1.41 1.34 0.95 162.18
RBC Managed Payout Solution-Enhanced A 3.84 2.70 -0.40 -6.81 -4.52 2.66 3.12 4.22 4.02 6.36 1.83 1.59 2413.54
Leith Wheeler Income Advantage Series B 3.20 1.83 -0.39 -5.10 -3.23 3.49 3.02 4.59 - 1.33 0.85 1.00 63.35
FÉRIQUE Moderate Portfolio 3.35 2.56 0.16 -5.06 -3.15 1.87 2.64 3.59 - 1.82 0.93 0.65 197.87
Axiom Balanced Income Portfolio Elite 4.06 2.85 0.40 -9.05 -7.07 1.30 2.50 4.44 3.99 1.70 1.42 1.48 96.11
Canoe Enhanced Income A 3.90 3.33 0.79 -3.56 -1.48 2.19 2.46 3.12 - 4.14 1.98 1.60 352.18
Fidelity Income Allocation Series S8 2.81 1.86 0.37 -6.11 -3.89 1.42 2.46 4.14 4.93 1.98 1.73 1.40 2144.71
RBC Managed Payout Solution A 3.51 2.21 -0.37 -7.27 -5.34 1.65 2.42 3.39 3.60 5.29 1.63 1.40 2862.00
Mackenzie Income D 4.02 2.50 0.19 -7.86 -5.84 0.93 2.36 - - 2.02 1.29 1.00 1514.30
NBI Jarislowsky Fraser Select Income E 3.54 2.37 1.81 -7.28 -5.00 1.54 2.34 4.00 - 2.14 0.84 0.65 167.47
TD Managed Income ETF D 3.74 2.48 0.49 -8.42 -6.68 0.76 2.24 - - 2.46 0.78 0.30 14.98
BMO Monthly Dividend Ltd Classic 0.54 -3.84 -8.29 -9.11 -6.99 5.68 2.18 2.96 3.41 5.41 1.13 1.00 156.51
TOP FUNDS
OP FUNDS RANKED BY FIVE-YEAR RETURN AS OF DECEMBER 6, 2022
Fund Name 1 Month 3 Month 6 Month YTD Return 1 Year Return 3 Year Return 5 Year Return 10 Year Return 15 Year Yield 12 MER Mgmt Fee Total Assets
Return Return Return (mth-end) (mth-end) (mth-end) (mth-end) (mth-end) Return Mo
(mth-end) (mth-end) (mth-end) (mth-end) ($Mil)
TOP DO - IT- YOURSELF FUNDS

Hillsdale Cdn Micro Cap Eq Fd Srs Z CA$ 5.85 -0.66 -6.83 5.42 4.99 30.85 16.78 - - 0.00 - - 81.10
Mackenzie US All Cap Growth D 3.64 -3.42 4.88 -22.45 -20.21 8.70 11.75 - - 0.01 1.59 1.25 793.99
Mackenzie Global Resource II D 5.87 0.43 -6.90 12.29 17.87 21.02 11.68 - - 0.91 1.64 1.25 27.94
TD NASDAQ Index - e 3.88 -11.97 -5.35 -30.69 -28.67 10.96 11.67 15.48 10.86 0.00 0.50 0.45 644.56
Desjardins SocieTerra American Equity A 5.21 -0.81 8.21 -16.42 -11.79 10.94 11.65 - - 0.00 2.27 1.72 956.39
RBC U.S. Mid-Cap Growth Equity Fund D 6.40 1.65 8.19 -14.35 -9.64 9.41 11.32 14.12 8.77 0.00 1.21 1.00 1457.33
Mawer US Equity A 6.57 -0.27 7.74 -13.54 -8.71 8.46 11.24 15.49 10.71 0.00 1.13 1.00 4557.03
Westbridge Capital Partners Income M 0.68 2.03 4.11 6.87 11.54 11.56 11.21 - - 11.01 - 1.25 87.47
RBC Global Technology Fund D 3.70 -7.10 0.18 -30.00 -26.87 9.10 11.11 17.52 11.19 0.00 1.27 1.00 588.20
TD US Index e 6.42 0.05 5.63 -13.15 -8.82 10.69 10.89 15.54 10.39 0.95 0.33 0.30 2805.35
TD Health Sciences - D 6.18 6.07 9.76 -7.41 -7.46 12.08 10.89 - - 0.00 1.99 1.25 1993.50
Mackenzie Bluewater US Gr D 4.97 -2.96 -1.38 -20.74 -16.69 8.47 10.61 - - 0.71 1.60 1.25 646.45
PH&N U.S. Equity Fund D 6.84 0.43 5.74 -10.82 -5.64 10.68 10.56 13.76 8.67 0.00 1.03 0.85 1449.56
TD U.S. Dividend Growth Fund-D 7.47 2.33 1.50 -9.86 -3.95 10.21 10.52 - - 0.18 1.49 0.80 6501.67
Mackenzie Global Resource II D 7.37 -5.63 -12.18 4.14 7.07 19.62 10.46 - - - 1.64 1.25 20.48
Epoch US Large-Cap Value - D 10.49 5.90 3.93 0.90 6.25 11.92 10.38 - - 0.39 1.54 1.10 1636.09
PH&N U.S. Growth Fund D 6.77 -0.08 6.14 -15.20 -10.61 10.47 10.35 14.08 9.25 0.00 1.02 0.85 192.90
RBC Global Energy Fund D 17.39 16.36 6.98 56.44 52.52 21.81 10.19 5.85 1.69 1.16 1.26 1.00 304.73
RBC U.S. Mid-Cap Growth Equity Fund D 7.88 -4.46 1.73 -20.50 -17.91 8.19 10.11 10.64 6.16 - 1.21 1.00 1074.96
RBC U.S. Equity Fund D 6.58 1.23 6.09 -11.55 -6.19 10.30 9.99 13.28 7.87 0.13 1.06 0.85 2962.67
CHART NOTES
For information on the category definitions, please visit http://www.cifsc.org/en/index.php. Front load funds (Frnt) charge a fee to investors when units are
purchased; deferred load funds (Def) charge a fee when units are redeemed. Front loads may be reduced (in per cent terms) as the size of the investment increases;

deferred loads may decrease as the time elapsed between purchase and redemption lengthens. Some funds have either a front load or a deferred load (FnDf). Others
have no load fee (None). Deferred sales charges also known as a back-end load, these deferred charges typically go down each year you hold the fund, until eventually
they reach zero. Deferred sales charges give investors an incentive to buy and hold, as well as a way to avoid some sales charges. n Year Return - The average annual
compound (annualized) rate of return the fund has performed over the last “n” years. It assumes reinvestment of any dividend or interest income. 1 Year Return (Yr
ending DecYY) - An annual return is the fund or portfolio return, for any 12-month period, including reinvested distributions. Tax Efficiency - Calculated by dividing
the fund’s tax-adjusted return (pre-liquidation) by its pre-tax return, and can only be calculated when both pre-tax returns and tax-adjusted returns are positive.
Distribution Frequency - The interval at which regular capital or income dividends are distributed to fund unitholders. Year end Quartiles - The quartiles (1 to 4) give
the individual fund its position relative to all others in the fund type category. For example, if the fund’s quartile value is “1” for the Dec 2010 yearend, this means
the fund’s rate of return for the 12 months ending Dec 31, 2010 is in the top 25% of all funds in its fund type category.
Source - Morningstar PalTrak, Morningstar Canada, (800) 531-4725, http://www.morningstar.ca.
TOP FUNDS

TOP EXCHANGE TRADED FUNDS RANKED BY FIVE-YEAR RETURNS AS OF DECEMBER 6, 2022 Specialty ETFs
Fund Name Ticker Mkt Tot Return Mkt Tot Ret Mkt Tot Ret Mkt Tot Ret Mkt Tot Ret Mkt Tot Ret Mkt Tot Return
YTD 1 Mo 3 Mo 12 Mo 3 Yr 5 Yr Since Incept
(Current) (%) (Current) (%) (Current) (%) (Current) (%) (Current) (%) (Current) (%) (Current) (%)
Horizons Natural Gas ETF HUN 76.13 10.54 -22.56 64.20 39.69 25.36 -5.58
iShares S&P/TSX Capped Info Tech ETF XIT -32.43 7.50 10.42 -34.74 7.27 17.16 5.78
FT AlphaDEX US Technology Sector ETF FHQ -25.29 2.21 0.20 -22.76 10.87 14.02 -
iShares Global Agriculture ETF Comm COW 22.02 0.78 6.81 30.56 22.84 13.89 10.36
Dynamic Active Global Dividend ETF DXG -15.21 0.09 6.96 -14.46 8.63 13.39 -
Horizons NASDAQ-100® ETF HXQ.U -29.57 0.37 -6.46 -28.54 11.35 12.79 -
iShares S&P/TSX Global Base Metals ETF XBM 8.37 20.94 19.86 16.35 26.16 12.68 2.97
Harvest Tech Achievers Gr&Inc ETF USD HTA.U -29.86 2.90 -8.80 -28.09 11.75 12.57 -
Dynamic Active U.S. Dividend ETF DXU -12.03 -1.28 6.44 -12.33 8.22 12.37 -
BMO MSCI USA High Quality ETF ZUQ -14.08 6.10 5.96 -11.38 9.63 12.17 14.08
Harvest Tech Achievers Gr&Inc ETF HTA -27.17 7.33 0.24 -25.72 11.91 12.11 -
Horizons Crude Oil ETF HUC 26.79 3.11 -1.97 41.11 19.18 12.10 0.21
Vanguard US Dividend Appreciation ETF VGG -0.73 5.29 10.29 4.54 10.69 11.88 14.00
BMO MSCI India ESG Leaders ETF ZID 1.74 5.70 7.33 6.02 14.01 11.83 9.34
CY-
Evolve Cyber Security ETF UnHdg -30.49 -6.61 -11.17 -32.38 4.55 11.57 -
BR.B
BMO Low Volatility US Equity ETF (CAD) ZLU 9.87 3.42 7.51 18.28 10.53 11.47 -
Evolve Global Healthcare Enh YldETFUnHdg LIFE.B 2.55 5.37 14.04 9.11 10.49 11.37 -
Vanguard US Total Market ETF VUN -9.41 3.80 5.38 -6.99 10.05 10.71 14.22
Franklin US Large Cap Mltfct Index ETF FLUS -4.42 2.92 7.48 0.92 9.02 10.66 -
CI Mstar Canada Mom ETF Comm WXM 3.08 3.01 0.31 7.12 9.15 10.59 -
RBC Quant US Equity Leaders ETF (CAD) RUE -8.52 2.46 5.37 -5.45 11.57 10.52 11.47
Purpose Diversified Real Asset ETF PRA 18.58 5.63 6.85 25.88 16.36 10.40 5.53
Invesco FTSE RAFI US ETF II CAD PXS -0.48 2.20 4.81 5.41 11.53 10.30 -
iShares Global Healthcare ETF CADH XHC -1.65 4.12 9.45 5.71 9.86 10.11 12.73
FT AlphaDEX US Health Care Sector ETF FHH -9.23 3.28 7.52 -4.65 9.22 10.10 -
BMO Equal Weight Utilities ETF ZUT -4.86 -0.44 -12.95 -0.56 8.80 9.82 8.29
Horizons S&P/TSX Capped Energy ETF HXE 62.86 -0.93 9.62 69.43 29.82 9.81 -
BMO MSCI All Country World High Qual ETF ZGQ -15.63 6.51 5.67 -13.95 8.46 9.79 11.79
iShares US Fundamental ETF Comm CLU.C -1.26 1.76 6.19 1.94 10.73 9.76 14.61
iShares S&P/TSX Capped Cnsmr Stpls ETF XST 10.82 5.82 6.02 19.82 9.76 9.76 14.07
iShares S&P/TSX Capped Energy ETF XEG 62.47 -0.89 9.53 69.37 29.72 9.60 6.45
iShares Global Infrastructure ETF Comm CIF 10.30 3.42 2.02 14.57 11.16 9.39 6.75
Harvest Healthcare Leaders Inc ETF HHL 3.05 5.07 12.19 12.79 11.85 9.23 6.64
Horizons Active Cdn Dividend ETF Comm HAL 9.34 4.91 4.48 13.45 8.66 9.22 -
Vanguard FTSE Canada ETF VCE 0.10 5.73 7.79 3.32 10.31 8.96 8.54
Invesco Global Shareholder Yield ETF CAD PSY -1.94 6.51 7.29 0.11 10.24 8.89 -
BMO MSCI Europe Hi Qual Hdgd to CAD ETF ZEQ -8.14 8.51 8.03 -3.96 7.60 8.85 9.19
BMO Equal Weight Oil & Gas ETF ZEO 50.20 2.85 7.17 53.67 23.98 8.83 2.90
iShares Global Water ETF Comm CWW -14.21 5.91 8.60 -10.75 8.91 8.80 7.71
iShares Canadian Growth ETF XCG -5.39 6.52 6.87 -3.91 7.44 8.65 6.25
©2022 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary
information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified
by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for
informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except
as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this
information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a
prospectus, or equivalent,and disclosure statement.

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