7 things investors should know about the evolving conflict with Iran

We are sending an update based on 7 things investors should know about the evolving conflict wtith Iran (from our friends at Fidelity Investments). Investor uncertainty increased in the days following the U.S. and Israeli military campaign against Iran, which began on February 28.

So far …

• Market volatility does not reflect a change in urgency, mindset or decision-making. The market in recent days has had an orderly tone to it—not one of panic.
• Historically, negative market reactions based on geopolitics have tended to be short-lived. A recent Fidelity analysis concluded that a broad, aggregated set of geopolitical shocks from Pearl Harbor through the 2022 Russia–Ukraine invasion resulted in an average equity return over the following 12 months of about 8% (roughly the same as equities’ long-run annual average.)1
• On Wednesday, the U.S. said the Navy may escort oil tankers through the Strait of Hormuz, if needed. In addition, the administration said it would insure tankers through the International Development Finance Corporation. U.S. crude fell on this news (near $74), down from about $78 on March

A key factor remains the expected duration of the conflict. Market behavior suggests investors are pricing in a potentially more prolonged period of uncertainty.

In a recent discussion, Fidelity’s Jacob Weinstein, Senior Vice President of Fidelity’s Asset Allocation Research Team (AART), pointed to seven things to keep in mind as the scenario in Iran unfolds—and the potential impacts on the investment landscape.

1. We’re in a world of heightened geopolitical risk.

It’s unclear how the conflict might eventually involve other major military and economic powers regionally and globally, especially if—as conventional thinking holds—Iran aims to prolong the duration of the fighting. For the moment, China—a close economic and security partner of Iran—and other major world players seem to be taking a wait-and-see approach. What does seem likely, Weinstein says, is that unexpected geopolitical events are more likely in the current environment.

2. Higher energy prices could have follow-on impacts.

Fluctuating energy prices could impact consumer confidence and spending—especially if the conflict proves lengthy. However, oil has less sway on consumer spending than in the past. As of early 2026, energy spending comprises around 3% of a typical U.S. consumer’s basket of goods consumption, down from a peak of more than 10% in the early 1970s. So far, energy prices have not risen enough to tilt the economy into a recession, Weinstein believes. Businesses may have to pay higher input prices for energy. That could get passed along to consumers. It’s something to watch, but Weinstein says it’s not yet a significant economic threat.

3. This is not Venezuela.

Unlike Venezuela, Iran is a regional power, a bigger economy, a major energy producer, and a country with a significant military force. It also has proxy forces, including Hezbollah and the Houthis, on its side. Therefore, Weinstein sees a wide range of possible outcomes and risks, potentially over a longer period.

4. Keep an eye on inflation—and growth.

A prolonged conflict could keep energy prices higher for longer, putting more upward pressure on inflation. If rates continue to move higher as a result, Weinstein says he’ll be watching the reaction of the U.S. Federal Reserve. One potentially contrarian development to watch: If the Fed and other central banks were to become more concerned about the impact of the conflict on economic growth vs. inflation, it could increase the potential for monetary accommodation.

5. The business cycle stays the same—for now.

Nothing has changed in terms of the U.S. business cycle, which remains in the mid-cycle phase, according to AART’s research. As of early March, Weinstein sees a low recession risk and believes it would take a more significant shock to oil markets to change the current expansionary state of the business cycle. This is not something the Asset Allocation Research team anticipates as its base case.

6. Focus on fundamentals.

Geopolitical risks have increased. Yet Weinstein notes this has happened amid a strong overall trend for corporate earnings, which has moved beyond large cap growth companies to include value stocks, small caps, and other asset classes—a so-called broadening trade.

7. Think diversification.

Weinstein notes that for longer-term investors, lower prices equal more attractive entry points. This could open opportunities for dip-buying and diversification from U.S. equities. AART also has been encouraging clients to think about hedging in a new era of geopolitical risk. Considerations include diversification into commodities and precious metals.

———-
1 Past performance is no guarantee of future results. Analysis, conducted by Fidelity Investments on 3/2/26, calculated the 12-month forward return of the S&P 500 after the start of 11 historical geopolitical events: Pearl Harbor attack (12/1941), Korean conflict (6/1950), Cuban Missile Crisis (10/1962), Vietnam (8/1964), Six-Day War (6/1967), oil embargo (10/1973), Iraq invades Kuwait (8/1990), Gulf War (1/1991), September 11 attack (9/2001), Iraq War (3/2003), Russia-Ukraine invasion (2/2022). The average return 12 months after these events equaled 8% (using monthly data).

Authors: Jacob Weinstein, CFA® Senior Vice President, Asset Allocation Research
Jacob Weinstein is a senior vice president in the Asset Allocation Research team (AART) at Fidelity Investments. In this role, Mr. Weinstein is a member of the Asset Allocation Research Team, which conducts fundamental and quantitative research to develop asset allocation recommendations for Fidelity’s portfolio managers and investment teams. AART generates insights on macroeconomic, policy, and financial market trends and their implications for strategic and active asset allocation.

Michael Scarsciotti, CFA®, CFP Senior Vice President, Head of Investment Specialists
Michael Scarsciotti is a senior vice president and head of Investment Specialists for FI Analytics & Commercialization at Fidelity Institutional®. In this role, Mr. Scarsciotti leads a team of investment and product consultants specializing in equity, fixed income, ETF, alternatives, and capital markets analysis. They are responsible for collaborating with Fidelity’s investment management, product development, and distribution channels to deliver investment consulting and solutions to FI clients nationally, policy, and financial market trends and their implications for strategic and active asset allocation.

Geopolitics vs. Markets

As global headlines intensify, it is important to separate emotion from sound financial decision‑making becomes even more critical. What can make the difference? Context. History consistently shows that markets have endured–and recovered from–periods of extreme uncertainty. When investors start leaning on the dangerous phrase “this time it’s different,” grounding the conversation in historical perspective is essential. Ben Carlson’s (A Wealth of Common Sense blog) chart above offers a helpful framework for viewing today’s armed conflict relative to past geopolitical shocks.

Source: Geopolitics vs. Markets – A Wealth of Common Sense, FactSet Research Systems Inc., Standard & Poor’s

How DLD’s Investment Approach Helps you Stay Resilient through Volatility:

• Navigating through any kind of economic uncertainty requires a strategic and balanced approach. Risks persists as history has shown, as recently as 2022 and 2020, when there is volatility, there are always opportunities to protect and grow through diversification and strategic positioning.
• Your portfolios are diversified across several asset classes – not tied to one industry or country.
• Active management and U.S equities: Though volatility is anticipated, artificial intelligence-driven and technology sectors appear to be on track to continue to perform – elevated valuations in these sectors highlight the importance of selective exposure and active management (this can be done both with active and passive investment strategies). Portfolios are set up to be as resilient as possible based on economic conditions while ensuring that they remain aligned with your long-term financial goals.
• Global diversification: Non-U.S equities and alternative investments present value for investors willing to look beyond North America – regions like India, Taiwan and South Korea are well positioned to benefit from the shifting trade dynamics and tech advances.
• Fixed income opportunities: With interest rates expected to moderate, high-quality fixed income securities could offer stability and income in an uncertain environment.

At the end of the day, while geopolitical events are concerning, a well-constructed comprehensive financial plan protects you from overreacting to short-term market shifts.

What can you do in the meantime?

• Is my financial plan prepared for market volatility? If you’re not sure, we cover this in your Momentum Analysis Meeting and more specifically, your portfolio is reviewed to account for economic shifts.
• Are my financial decisions based on emotion or logic? Fear can lead to unintended consequences – staying the course is often the best strategy.
• Do I have enough flexibility to adapt? Revisit your cash-flow and cash contingencies to ensure you can handle short-term price increases.

Market volatility is frustrating – remember that it is not new and is not permanent. We will continue to keep you informed, prepared and be proactive with your financial plan.

Please do not hesitate to reach out if you have any questions and wish to discuss further. While we are still in the early days of this situation, DLD is committed to releasing more information as we learn more.

Thank you,
Dave, Kelly, Ryan, Aaron, and Ian

E&OE

Many Canadians see $500,000 as the ideal term insurance coverage, according to a recent study from insurer PolicyMe Corp., but advisors say that amount won’t meet the mark, especially in dense urban centres. The study, released last week, examined the habits of 18,000 Canadians nationwide who purchased term life insurance.

In small cities and towns, depending on a person’s liabilities and situation, $500,000 might be adequate, says Kelly Ho, partner and certified financial planner (CFP) at DLD Financial Group in Vancouver. But with larger mortgages and expenses in cities such as Toronto and Vancouver, $500,000 won’t go as far as clients may think, she says. “I see clients [in those cities] taking out at least $1-million and upward of $3-million in term policies,” she says.

Andy Kovacs, CFP for Moments of Truth Insurance Services Corp. at Sun Life Financial Distributors (Canada) Inc. in Markham, Ont., says one of his clients recently died, and the surviving spouse used $500,000 from the term insurance policy just to clear the mortgage. Other immediate expenses included a car loan, child care, and burial and funeral expenses.

Income replacement matters

Lynn Wang, CFP and insurance advisor at iA Private Wealth Insurance Inc. in Toronto, says many prospects are price-conscious, focused on the premium they’re paying. “They want to make sure the money they’re spending is worthwhile, and they will also compare different policies,” she says. Ms. Wang starts discussions with planning questions, such as what clients need the insurance for and how long they need it. Mr. Kovacs says some clients concentrate on a minimum amount to pay off the highest level of debt, usually the mortgage. But he says advisors may need to underscore income replacement with clients – the loss of family income should the primary breadwinner die, for example. “The income replacement piece is so valuable to make sure the family can maintain the standard of living,” he says. “Do you want your family to have to move because they can’t afford the neighbourhood?” While every client situation is different, Mr. Kovacs says he generally recommends 20 times annual income to account for income replacement. “A 5 per cent payout on the benefit will replace income in perpetuity,” he says.

Term length of policy

To keep the right amount of insurance affordable, he may start with a cheaper 10-year term policy instead of 20 or 30 years. “It helps them get their foot in the door and they have the needed coverage,” Mr. Kovacs says. “As their lives evolve, we can always change the policy.” The study found Canadians under the age of 44 are more likely to pick a 30-year policy. Mr. Kovacs says he sees more families opting for 30-year terms in anticipation of leaving their adult kids money for things such as a house down payment. He notes that more kids may live with their parents for longer.

Ms. Ho of DLD Financial Group is also seeing an uptick in 30-year term policies. She says some clients simply like the idea of automation when it comes to their premiums. “People just want to set it and forget it,” she says. “Having a baseline amount that’s set for the long-term gives the family a lot of comfort.” She also works with clients on customizing a solution. While she says clients know about 10-, 20- or 30-year policies, they may not realize they could get a term specific to them, such as 27 years. “A few carriers can provide whatever term you wish and people don’t know that,” Ms. Ho says.

Mental health is featured on more applications

The PolicyMe study also found that mental health is the most common ailment reported by Canadians between the ages of 18 and 29 who are providing medical data on their insurance applications, at 37.1 per cent. Only 3.8 per cent of Canadians over 60 listed mental health as an ailment.

It’s not a concern with getting approved for insurance, Ms. Ho says. While insurance companies may ask for doctors’ reports, Ms. Ho finds insurers just want to know that clients are dealing with the condition. “They care if the issue is getting worse,” she says. “They don’t like the uncertainty and want to know if the condition is stable.” If it’s an evolving situation, the insurer may put conditions and modify the premium to a higher amount either temporarily or permanently, Ms. Ho adds.

DEANNE GAGE –  THE GLOBE AND MAIL
PUBLISHED MARCH 2, 2026

RRSP Contribution Deadline for 2025 taxes – March 2, 2026

We are now just about 5 weeks away from the RRSP contribution deadline of March 02, 2026 for the 2025 tax year. Below are some quick refreshers on RRSPs:

RRSP contribution eligibility:

– Anyone who has earned income and filed a tax return can contribute until Dec 31 of the year they turn age 71
– Spousal RRSPs can be used until Dec 31 of the year the spouse turns age 71

Should you be using or topping up your RRSPs?

If you’re not sure, please get in touch ASAP to further discuss your specific situation by booking a short, 20-minute virtual meeting in your advisor’s calendar.

Contribution limits and where you find your limit:

The annual RRSP contribution limit is the lower of 18% of your earned income from the previous year or the maximum annual contribution limit coupled with unused contribution room from past years. RRSP contribution room can be carried forward to subsequent years if you don’t maximize your room this year. There is also a one-time $2000 lifetime over-contribution allowance but note that this amount is not tax deductible.

> View chart indicating the maximums on past years
> For your personal contribution limit, please check your most recent Notice of Assessment from CRA

The power of Dollar-cost averaging:

We are huge advocates of automating your long-term savings contributions as it’s one of the best ways for forced savings. Dollar-cost averaging means you buy more units when the prices are low and less units when prices are high.

Spousal RRSP:

This strategy makes sense for spouses where one spouse earns more than the other spouse. This allows for the higher-income spouse to deduct the contribution on their taxes and for the lower-income spouse to own the RRSP. This is a great way to be proactive about future income splitting.

RRSP Contribution Calculator:

A common question we often get is “How much of a ‘refund’ will I receive based on a certain dollar value?” Here is a calculator that will help calculate the approximate tax savings from the RRSP contribution.

First Time Home Buyer’s Plan (FHP) and Lifelong Learning Plan (LLP)

If you have taken advantage of one or both of these programs, please remember to contribute and allocate the specified amount as noted on your notice of assessment when you file your taxes. Otherwise, the repayment amount will be added to your income. For example, if you took out funds in 2019 to purchase your first home, your first repayment is due for the 2021 tax year and you have 15 years to repay what you took out.

**RRSP withdrawals taken from January 01, 2022 to December 31, 2025 will have a 5 year grace period before repayment is required.**

For the lifelong learning plan, you also have a 2 year grace period before repayment begins except you have 10 years to repay the amount you took out.

VERY IMPORTANT- You will not receive a further tax deduction on repayments since you already received the tax deduction the first time around.

RRSP to FHSA

The First Home Savings Account (FHSA) was introduced in 2023. The contribution limit is $8000/year up to a maximum of $40,000. If you’re short on funds to contribute to the FHSA – a tax-sheltered transfer can be done from your RRSP to your FHSA. Please note that there is no tax deduction on the FHSA if a RRSP transfer is done.

Please do not hesitate to contact us if you have any questions about RRSPs or whether it makes more sense to consider TFSAs or FHSAs for your situation. If you know you will be topping up your RRSPs for the 2025 tax year, please get in touch with us BEFORE March 02, 2026.

E&OE

5 Questions into 2026 from Fidelity Investments

• The impact of AI will likely shape market direction in 2026, but it’s too early to say if it’s a true transformation or a temporary mania.
• Fidelity’s approach is to remain moderately overweight equities, favoring growth managers who can capitalize on AI trends, while controlling risk through selective short positions.
• Diversification is maintained, with investments in regions and sectors less dependent on AI, plus fixed income and alternatives for stability.
• Ongoing close collaboration with equity analysts ensures readiness to adjust positions if the earnings outlook changes.

Exhibit #1 – Will AI indeed usher in a new era for earnings?

U.S. corporate profits as a % of GDP, including projection to 2030*

*2025-2030 projected using discounted cash flow model based on current market valuations.

Source: Bureau of Economic Analysis, Haver Analytics, FMR Co calculations. As of Jun. 30, 2025, Jul. 1, 2025 to Dec. 31, 2030 based on FMR Co calculations

• Political risks—especially threats to Federal Reserve independence—could undermine the dollar’s global status.
• Fidelity has eliminated its long-standing overweight to the U.S. dollar, diversified into other currencies (euro, yen), and increased gold holdings as a hedge.
• Direct holdings of U.S. Treasuries have been reduced, with a shift toward more attractive opportunities globally, including renewed focus on Canada.

Exhibit #2 – Goodbye Greenback

Fidelity Global Balanced Portfolio vs. benchmark relative USD$ exposure, positive values reflect an overweight allocation

Source: Fidelity Investments, Bloomberg. As of Nov. 28, 2025

• Canada’s fundamentals are improving: GDP growth rebounded, unemployment fell, and business optimism is rising.
• The Federal Budget’s focus on investment and productivity is a positive step, though execution risks remain.
• Fidelity has closed its underweight position in Canadian assets, capturing recent outperformance, and will consider further allocation based on ongoing economic trends.

Exhibit #3 – This needs to go up if Canada is to thrive

Cumulative % increase in total real gross fixed capital formation

Source: OECD, Haver Analytics. As of Dec. 31, 2024

• Traditional stock/bond portfolios have become less efficient due to increased correlation, especially with inflation uncertainty.
• Fidelity has added both liquid and illiquid alternatives to client portfolios, including specialized long/short stock selection strategies and Canadian commercial real estate.
• The team’s research agenda for 2026 continues constantly evaluating new alternative strategies to enhance diversification and long-term returns.

Exhibit #4 – Stocks and bonds now moving together

Correlation between S&P 500 and U.S. Treasury Bond Index

Source: Bloomberg, rolling 40-month correlation of S&P 500 and Bloomberg U.S. Treasury Index. As of Nov. 2025

• Geopolitical risks are unpredictable, but Fidelity’s disciplined asset allocation process focuses on policy impacts, not politics.
• Risk management remains a priority, with gold held as a hedge against geopolitical uncertainty.
• Team is prepared to adjust portfolio positioning quickly and decisively if conditions warrant.

1. AI’s market impact is uncertain, but Fidelity remains cautiously optimistic. The team is moderately overweight equities, focusing on growth managers who can benefit from AI trends, while maintaining diversification and readiness to adjust if the earnings outlook changes–stock prices follow earnings.
2. Political and currency risks in the U.S. have prompted a shift in strategy. Fidelity has reduced exposure to USD$ and Treasuries, diversified into other currencies and gold, and is seeking more attractive opportunities globally, including Canada.
3. Canada’s improving fundamentals and policy focus support a constructive outlook. Recent economic data and the Federal Budget aimed at investment and productivity have led Fidelity to close its underweight in Canadian assets, with further allocation dependent on ongoing trends.

Source: Fidelity Investments

Value of an Advisor – More than a Guide

A trusted advisor helps navigate the complexities of wealth, paving the way for generations to come. This simple and handy formula helps you understand the value of working with an advisor.

Source: Russell Investments

YouTube Video Feature: Most Canadians miss this costly tax drag on investments

Most Canadians believe market volatility is the biggest risk to their non-registered investments. In reality, the real threat is much quieter – annual tax drag that steadily erodes after-tax returns, even when markets perform well. Once RRSPs and TFSAs are maximized, every additional dollar invested becomes exposed to ongoing taxation. Over time, the tax drag can quietly reduce long-term wealth by six figures without any obvious mistake being made.

Corporate class investing is one of the few strategies designed to address this problem, but the advanced benefits are rarely explained clearly. When structured properly, corporate class funds can help defer tax, improve compounding efficiency, manage retirement income and reduce exposure to OAS clawbacks. This is especially true for high-income investors and business owners with retained earnings.

This discussion walks through how tax deferral impacts compounding, how corporate class functions inside a corporation, common misconceptions and how this structure can help control taxable income throughout retirement. If you care about after-tax results and not just headline returns, understanding how your non-registered investments are structured is critical.

E&OE

DLD in the Media

• Money-Savvy Pig: How a simple system is teaching my kids financial wisdom – Financial Advice for All – Advocis
• True or False: You’ll save more when you earn more – Neo Financial
• Small monthly changes can add up over the year to help boost savings – The Canadian Press

Please do not hesitate to contact us if you have any questions or if there’s anything we can do to help. Thank you for your time and from all of us at DLD.

Warmest regards,
Dave, Kelly, Ryan, Aaron and Ian

E&OE

Couples usually plan to have one child at a time, but in-vitro fertilization (IVF) is becoming increasingly common among urban clients aged 35 and up, which raises the likelihood of twins and triplets.

Kelly Ho, a partner at DLD Financial in Vancouver, has several clients with twins and large families. While first-time parents who have multiples don’t typically choose to have more children afterward, those who already have one child and want more may end up with multiples on their second attempt.

“I have a few sets of twins within my clientele,” Ho said. “In one case it was IVF, so they knew there was going to be a chance that they were going to have twins.”

When clients find out they’re joining the minivan mafia, experts recommend balancing childcare spending with retirement needs, reassessing insurance coverage and considering the long-term implications of having one parent stay home.

Childcare vs. retirement

Couples may plan to have children, but they don’t always have a specific “diaper fund,” said Scott Sather, president and financial planner at Awaken Wealth Management in Regina. Once clients know how many children they’re expecting, planning should include reallocating budgets and reprioritizing goals. Children’s expenses and retirement savings often become competing priorities with limited cash flow, said Gabriel Leclerc, a financial advisor with Edward Jones in Arnprior, Ont., who at one point had four children at home. If a client has a matching pension or group retirement savings plan, those should be prioritized first, since employer matches are “use it or lose it,” Leclerc said. RESP grant money, by contrast, can be caught up later.

It’s also important to look at longer-term needs, Ho said. The first five years of childcare costs are typically the most expensive, often reaching thousands of dollars per month for daycare or nannies—especially for families with three children. Costs usually decrease once children begin primary school. During those early years, it may make sense for clients to focus more on building an emergency fund through a TFSA rather than maximizing retirement savings, said Sather, who has two children and two grandchildren. This provides flexibility when expenses are unpredictable. As “living gifts” become more common among older clients, grandparents may want to contribute directly to grandchildren’s RESPs, Leclerc said.

“I do family meetings with our clients and the other generations on how to best utilize those gifts so that the grandparents feel the funds haven’t just been used to buy a car or go to Disney, but for something substantial that they feel good about.” Grandparents can also be a valuable childcare resource in the early years, helping reduce financial strain—especially since it can be difficult to find a nanny willing to care for twins or triplets, Sather added.

Insurance needs

Some immediate costs don’t scale proportionally with the number of children. For example, clients may need to upgrade to a larger home or purchase a new family vehicle. As financial commitments increase, Ho reviews clients’ insurance needs to ensure the surviving spouse could support the children and service debt if one parent dies.

In addition, insurance premiums are lowest when a child is just 15 days old, so parents may consider purchasing a whole life policy for a child as a tax-sheltered savings vehicle, Ho said. In most cases, parents can later transfer insurance policies to their children tax-free, and the accumulated savings may eventually be sufficient to offset premiums.

To work or not to work?

Several provinces offer $10-a-day daycare, but spaces are extremely limited – getting multiple children into the program can feel like winning the lottery, Ho said. Without subsidized care, daycare costs in Vancouver can exceed $1,000 per month per child, even after provincial fee reductions.

Beyond whether a second income covers childcare costs, clients should consider the long-term earnings impact of stepping away from a career, Leclerc said. Career progression, Canada Pension Plan benefits and pension eligibility are all affected by years of service. “Even if the net benefit of going to work today is small, you’re still giving up some future income,” Leclerc said. “Are you continuing to contribute to the pension plan while on parental leave? And how do you plan on buying back pension years after returning to work?”

From a tax perspective, advisors can illustrate the net impact of giving up one income using financial planning software. Parents may qualify for additional tax credits and can deduct daycare costs against the lower-income earner, Leclerc noted. Sather’s family didn’t even reach a 10% savings rate during the early years of raising two young children—but financial trade-offs aren’t the whole story.

“Do I look back now and say, ‘Darn, I wish we would’ve put more money into the savings account?’ Nah man, it doesn’t matter,” Sather said. “There’s some grace that needs to be given. If you’re working 35 or 40 hours a week, that’s time someone else is spending with your child instead of you. That has to be part of the equation.”

JONATHAN GOT, ADVISOR.CA
PUBLISHED JAN 22, 2026

OTTAWA — Saving more in 2026 is a common new year’s resolution, but with budgets tight and inflation driving the cost of groceries and everyday necessities higher, it’s easier said than done. Financial planning experts say it takes a careful review of where you’re spending to find ways to save, but making small monthly changes can add up over the year. Kelly Ho, a certified financial planner at DLD Financial Group, says you should start by identifying your fixed costs such as rent, mortgage, utilities or car payments followed by figuring out how much you make.

“Sometimes when I ask clients, ‘What is your income?’ Not everyone can give me a straight answer,” she says. From there, she says, take a look at the rest of your spending and see how it compares with your budget to see where the differences are. If you pay by credit or debit card, your monthly statement will help show where the money is going. “It’s just a matter of really understanding how much money is coming in and how much is going out,” Ho says.

Subscriptions can be a stealthy way to lose track of costs. The cost of subscriptions for not just shows and music, but other services can pile up over time. With apps offering easy sign-ups and free trial periods, it can add up before you realize, unless you keep careful track of your spending. “Everything costs money and sometimes in the spur of the moment, we’ll subscribe with the intent of unsubscribing at some point. But again, life gets busy, so therefore we leave it on and we’re wondering why our credit card bill is so high every month,” Ho says.

Ho says finding savings of $10 a month here and there can quickly add up if you are cancelling more than one subscription or service you don’t need or use. “You multiply that by 12 months, multiply that over several years, plus, you know, potential investment growth. That’s a lot money on the table,” she said.

Ho says travel is another area where your budget may not match reality. “Every single individual I’ve spoken to has underestimated the cost of travel,” she says. “I don’t know if many people actually keep track of what they’re spending when they’re there at their destination.”

An extra round of drinks, a pricey souvenir or an extra excursion while on vacation can add up to blow past a planned budget. “I encourage people to be more intentional about saving for travel as opposed to simply lumping travel in with everyday costs,” Ho says.

Becky Western-Macfadyen, manager of financial coaching at non-profit credit counselling agency Credit Canada, says when reviewing spending on things like wireless plans that can include all sorts of bells and whistles, it is important to understand what you need. “You want to make sure you’re paying for what you actually will use in your plan,” she said.

Western-Macfadyen also says deleting apps like food delivery services from your phone might make it less convenient, but stopping regular spending on takeout or at least making it a little harder will add up. She said the payoff of having a little savings put aside for an emergency can even help you save in the future by avoiding taking on debt. But, she acknowledged that changing spending habits can be hard and sometimes the reality is you can’t find areas to cut. “If someone looks at their budget and thinks there’s nowhere to cut, that doesn’t mean they’ve failed,” she said.

“It means the budget is just telling you the truth. It’s information. And savings comes from understanding your cash flow and sustainable change. So you want to just tell yourself the truth so you can make decisions based on that.”

CRAIG WONG, THE CANADIAN PRESS
PUBLISHED JAN 8, 2026

For this week’s Reality Cheque, we’re looking at paying off debt versus padding your savings—and which one a financial therapist says is harder to tackle. If you’re realistic and disciplined about your needs—and can resist some of those impulse buys—growing your income can mean growing your savings.

Zola McAdie worked for years as a musician and at a grocery store. A savings account was far from his mind. “I made a lot of decisions in my life that were with the intention of saving money,” he says, but his objective was reducing costs and stretching paycheques. Not putting savings away for a rainy day or to meet a goal.

But after taking a software development bootcamp and getting a job in the field, his income doubled. As he grew more experienced, his salary pushed into six figures. Although he’s socked away about $300,000 over time, between a registered retirement savings plan (RRSP), savings and investments, McAdie’s not entirely convinced the adage “when you earn more, you save more,” is true—even if he’s lived it.

Is it a myth that you’ll save more when you earn more?

McAdie’s savings ramped up while taking on extra work during the height of the pandemic. “More than having a natural inclination for saving, I don’t always have a natural inclination for spending large amounts,” he says. “My income started to outpace my natural spending habits.”

Technically, he thinks saving more when earning more is not a myth, but that practically it’s tougher to achieve these days.

Certified financial planner Kelly Ho, a partner at DLD Financial in Vancouver, offers a degree of guarded optimism. Saving more as you earn more “should be a reality,” she says. Previous generations took it for granted that as they rose through career ranks, they could put their extra earnings into retirement savings, investments or an emergency fund.

But with Canadians of all income levels feeling the squeeze, saving can feel like a relic of time gone by. The good news is that many Canadians can still achieve some savings goals—getting there just may require more patience and planning than before.

Lifestyle creep, or “where did my savings go?”

“Lifestyle creep” is the biggest factor in why people can’t save more as they earn more, says Ho. Think of it as the “treat yourself” mentality run amok. There’s a difference between budgeting for splurges and deciding that more income and fewer budget constraints means you can and should spend more on material comforts and impulse purchases.

“Sometimes savings gets put on the back burner as a result, and then people wonder, ‘How is it that I’m making so much more money, but I’m unable to save?’ ” It’s because instead of budgeting for higher savings as salary bumps up, the level stays the same—for some, it remains zero. (One way to save more is the “pay yourself first” method: commit to putting away a percentage of salary increases or bonuses before you have the chance to spend.)

The biggest lifestyle creep culprits, in Ho’s view, are living arrangements. With one-bedroom apartments in cities like Toronto and Vancouver often renting for $2,000-plus a month, she says people need to think twice about upgrading their digs just because they’re earning more. Some of her clients, even those who earn more than average Canadians do, have taken in roommates or cook at home more in order to meet their financial goals—but they don’t view these measures as a forever decision.

“This is where they’re at now, but the future is looking brighter, as long as they have a solid plan in place,” she says.

Be realistic about your income and savings, not delusional

In Ho’s view sometimes people need a reality check. Some savings and financial goals are delusional, she says. “It’s a very strong word,” she says. “But sometimes someone needs to tell them a goal is not possible or it’s going to take longer than they imagine.”

This sort of clarity can come from speaking with licensed financial experts, who will take a holistic view of your finances and cash flow. Ho, a certified financial planner, also looks at a client’s expectations and the lifestyle they want to live.

One factor is whether a person is single or has a partner. Single-person households are viewed by some people as costing less to run, but Ho thinks this is also a myth. “Typically, it costs more because you are on your own and on the hook for everything.” There’s even a name for it: the single’s tax. McAdie knows this first hand. When a relationship ended he moved out of a shared, rent-controlled co-op apartment into his own place. His new rent? About four times as much as he had been paying, even before other expenses.

Ho says she often offers “very conservative” advice to single clients to make sure they’re able to meet their goals. It may seem like tough love, but it’s necessary. Sometimes, based on where and how clients want to live, she has advised getting a second part-time job or looking for a higher-earning primary one. It seems obvious, but it’s not.

“Sometimes people do need that wake up call,” she says. “We’re not magic, and we can’t make numbers appear.”

ROB CSERNYIK – NEO FINANCIAL/THE GET
PUBLISHED DEC 4, 2025

2025 Federal Budget Analysis

On November 4, 2025, Finance Minister François-Philippe Champagne presented Budget 2025, “Building a Strong Canada,” outlining investments to boost growth while ensuring fiscal responsibility. Click for a summary!

Source: Mackenzie Investments

Most Canadians Overlook This Smart Investment Strategy

If you’ve maxed out your RRSP and TFSA and now find yourself with a large non-registered investment account, you might be unknowingly handing a huge chunk of your returns to the CRA every single year. This video, we walk you through one of the most overlooked tax strategies in Canada – corporate class investing.

We break down how interest, foreign income, and capital gains are taxed in a traditional non-registered account and how corporate class funds can help you defer tax, reduce distributions, and generate tax-efficient retirement income using tools like Tax-Smart CashFlow (T-Class). Whether you are a high net worth individual, a retiree trying to avoid OAS clawbacks, or a business owner looking to grow inside your corporation, this strategy could be a game changer.

After watching the video, it should help you understand:

• How corporate class funds work
• Who can benefit the most
• How to create a personal paycheque that’s CRA-efficient
• Why this structure helps maximize compounding and control

If you’ve built up significant non-registered wealth, or holding excess cash in your corporation, corporate class investing could help you reduce taxes and structure your portfolio more efficiently.

Executive Health Plan (Shared-ownership Critical Illness Insurance)

The Executive Health Plan (EHP) allows you to own a critical illness policy jointly with your corporation. Your corporation will receive a lump-sum benefit if you are diagnosed with a covered critical illness. If you remain healthy, you will get back up to 100% of the premiums paid by both you and your family.

In the event of a covered critical illness, your company can use the non-taxable lump-sum benefit to:

• maintain the company’s financial integrity
• Limit its financial losses by hiring qualified replacement personnel
• repay debts, thereby reassuring its creditors, suppliers and customers
• buy back your shares, or the share of another shareholder who is ill or wishes to retire
• help you get back on your feet by paying you a portion of this amount

Contact us to see if this solution applies to your situation!

Source: Desjardins Insurance

DLD in the Community

Peninsula Gives – DLD was proud to participate in the annual Peninsula Gives fundraiser benefiting Children’s Hospital where over 80% of the funds raised went directly to the beneficiary!

Advocis National Board – (The largest voluntary professional membership association of financial advisors in Canada) – This year, Kelly was elected to the Advocis National Board and she attended her first in-person meeting in Toronto. She is now on the Governance and Nominations committee within the board where she, along with her fellow board members are tasked with updating the governance

DLD in the Media

• Talking about Money is Hard – CBC Radio
• How lifestyle creep unsettles savings plans for high earners – The Globe and Mail
• Buy now, pay later services are getting popular – Global News
• The pros and cons of using life insurance to fund education costs – The Globe and Mail
• Younger Canadians rethink retirement as working less – not giving up work entirely – Survey – Yahoo Finance 

Please do not hesitate to contact us if you have any questions or if there’s anything we can do to help.

Thank you for your time and from all of us at DLD.

Warmest regards,
Dave, Kelly, Ryan, Aaron, Brandon and Ian

E&OE

It All Started with a Piggy Bank

Years ago, when setting up RESPs for clients’ newborns, I wanted to give them a gift that was both meaningful and useful. I wanted to give them something that could spark a conversation about money early on. That’s when I discovered the Money-Savvy Pig, a four-compartment piggy bank designed to teach kids how to allocate money with intention. Since then, it’s become my signature new-baby gift.

When I became a parent myself, I couldn’t wait to introduce my own children to the concept. I wanted to give them a tool that would help them think critically about money. Specifically, I wanted them to know how to use it, give it, and grow it, rather than simply saving it.

How the Money-Savvy Pig Works

The premise is simple. Whenever my children receive money, we sit down and divide it into four categories: Save, Spend, Donate, and Invest.

– Save: This covers short-term goals like a toy or experience they’re working toward.
– Spend: Funds they can use freely, giving them space to make choices and sometimes, small mistakes while learning.
– Donate: The most rewarding category. Each holiday season, we empty that section and the kids choose which charities to support. It’s a wonderful way to nurture compassion.
– Invest: This represents their post-secondary savings. It opens up early conversations about how investments grow (and sometimes fluctuate) over time.

Lessons Learned Along the Way

I began this system when my kids turned three, but around age five or six, the lessons began to take root. My goal was to raise children who understood the value of money. I wanted children who wouldn’t melt down on the floor of a toy store because a parent said no.

When we shop together, I share how much things cost—groceries, clothing, meals out. We talk about sales, value, and patience. They’ve learned that using a credit card doesn’t mean the money is endless; it’s simply a different way to pay. The total has to come from somewhere, and that somewhere is their own “piggy bank.”

These small, regular conversations help them see money as a tool. Over time, I’ve watched them become more intentional and confident with their financial decisions.

Why It Works for Busy Parents

As parents, our time is stretched thin. This system offers a simple way to teach foundational money skills without adding more to our plates. By starting with cash, children can physically see and feel their money, which strengthens the learning process. Once they understand the basics, it’s much easier to introduce debit and credit cards when they are older.

I also make a point of being transparent about the cost of my kids’ extracurricular activities. It helps them appreciate the opportunities they have and understand that experiences come with real-world value.

Financial literacy doesn’t have to be complicated. It just takes repetition and intention. Starting early builds healthy money habits that last a lifetime.

Raising a Generation of Financially Savvy Kids

In a world increasingly defined by tap payments and online transactions, teaching the basics of money management has never been more important. When kids handle cash, they develop a tangible connection to money. They understand that money is finite and must be earned.

Ultimately, empowering children with financial awareness is about more than managing dollars and cents. It’s about helping them build confidence, make choices with purpose, and use their resources to do good in the world. And truly, there’s no greater investment than that.

————-

About the Author

Kelly Ho, CFP, CCS, is a Certified Financial Planner and Certified Cash Flow Specialist with two decades of experience serving her community through financial planning and promoting financial literacy to Canadians. As a Partner at DLD Financial Group Ltd. in Vancouver, Kelly specializes in personalized financial strategies for professionals and business owners, earning a reputation for trust, leadership, and a genuine passion for helping others.

Her expertise is widely recognized, with frequent media appearances in outlets such as The Globe and Mail, Financial Post, CTV, and CBC Radio, and she is a sought-after speaker and writer on financial literacy, diversity, and industry best practices. Kelly believes that access to credible financial advice shouldn’t be a luxury – it’s a necessity for everyone so by promoting financial literacy through various channels, she hopes to empower more individuals to take control of their finances through getting proper advice from a professional.

Kelly’s commitment to professional excellence is further demonstrated by her consistent qualification for the Million Dollar Round Table and her service on advisory councils for industry improvement. Most recently, Kelly is now serving as a Director on the Advocis National TFAAC Board of Directors.

KELLY HO – FINANCIAL ADVICE FOR ALL 
PUBLISHED NOV 16, 2025

For many younger Canadians, retirement doesn’t mean stopping work — just slowing down.

New findings from FP Canada’s Money and Milestones survey suggest a generational shift in how Canadians picture life after work. While half of Canadians are saving for retirement, more than a quarter (26 per cent) are saving for a version of retirement where they “work less,” compared to over a third (35 per cent) who are saving for retirement where they don’t work at all. Among those aged 18 to 34, the share saving for semi-retirement and full retirement is nearly identical (21 per cent versus 20 per cent), a sign that younger Canadians are preparing for a more flexible, non-traditional version of retirement.

Unlike many baby boomers who choose to continue working for social reasons or personal fulfilment, younger Canadians appear to be motivated more by financial pressure and uncertainty about their long-term security.

“Some do it because they realize that it’s probably unrealistic to have a full retirement due to their current financial situation,” said Kelly Ho, certified financial planner at DLD Financial Group.

“They’re feeling pessimistic about their own trajectory,” she added, noting that housing and the labour environment are markedly different from the ones their parents experienced in young adulthood.

Longer life expectancy is also a factor, Ho says. Retirement could stretch from age 60 or 65 to as late as 90 or 95 — a whole other working lifetime. The thought of having enough money to fund that is scary, she notes. Canadians can feel particularly triggered when they hit their 40s, realizing that their working journey could be 20 years or less away.

Canadians should track where their money is going and how much they can reasonably set aside. They should also check whether they’re taking advantage of any retirement savings plans offered through an employer. Saving can create an “illusion of choice,” Ho says. It appears optional because no one is making you do it. Here’s where seeking the advice of a financial planner or adopting an automated savings system can help. Younger Canadians may also aim for semi-retirement, but health issues can disrupt even the best-laid plans. “If your health doesn’t allow you to do so, then it’s not an option,” Ho said.

Still, those who have a very intentional retirement, where they have a long-term routine and a sense of purpose, go on to live healthier lives than those who go into retirement shock, Ho says. As a result, semi-retirement can create a longer, more prosperous life, regardless of whether it’s done out of financial necessity. When picturing the traditional idea of retirement, you may think of a lucky person blowing out the candles on a cake, getting a gold watch as a parting gift and heading off to the golf course. Although, for many, that’s not what retirement looks like — it’s also not what a growing number of future retirees prefer.

Vanguard recently published an article titled “Retirement is changing – Are you prepared?” which addresses how people are changing their mindset about retirement (1). Vanguard’s analysis points to a shift toward phased retirement. While the survey is British, Canadian trends are similar: more older adults are working for pay and retiring later.

So, what is the big change Vanguard is talking about? Retirees no longer want to quit working cold turkey. They want to retire gradually for a mix of financial and social reasons. Unfortunately, while this may be the dream for many, it’s not always the reality. According to a 2024 study from Manulife, 47% of Canadian retirees ended their careers earlier than they had planned (2). Future workers must be prepared in case it turns out their ideal vision for retirement ends up being just an illusion. In 2023, 15% of those 65 or older were in the labour force — a record — showing rising later-life work, but not everyone can phase out on their terms.

Workers hope retirement will be a more gradual process

The Vanguard report revealed how a majority of future retirees are not interested in just completely stopping work on a set date, with only 24% intending to adopt the cliff-edge view of retirement, working one day and then being retired the next.

Instead, most professionals either plan to scale back hours slowly at their existing job (27%), “mostly” stop work on a set date (21%), or switch to a different job (14%). The reasons cited include: not feeling ready to completely retire, to top up their income and social reasons.

This finding is very similar to that reported by the Government of Canada’s Survey of Older Workers (3), which said that 47% of retirees would work part time during retirement if they’re able to. In 2023, Vanier Institute study, 15.0% of those 65 or older were in the labour force — a record — showing rising later-life work, but not everyone can phase out on their terms (4).

These plans for part-time work mean that life could look very different for tomorrow’s seniors — but it’s also worth noting that making your financial plans based around this dream could lead to problems.

Retirees must be prepared: Just in case a phased-in retirement isn’t a reality

Vanguard has an important warning for those who plan to retire gradually — it’s not always going to happen. It found that of those who had already retired, only 38% retired gradually, much lower than the 62% of non-retired people who plan to retire gradually. According to the Labour Force Survey of 2023, a record high 15% of adults aged 65 and older in Canada participated in the labour market (5).

This makes it very important to prepare for the reality that you may not be able to retire gradually as planned and be mindful of the following:

– Aim to be financially independent by 65 — earlier if you want options — since health or employment shocks can force an earlier exit.
– Considering your health status and job skills when deciding whether a phased-in retirement is likely to be possible.
– Ottawa highlights ‘age-friendly workplaces’ as key to keeping experienced workers (6). Ask about flexible hours, remote options and pension-with-pay policies.
– Taking good care of your health with exercise and regular preventative care to maximize the chances you’ll be healthy enough to phase into retirement gradually
– Setting realistic expectations for your retirement, which likely means working until 70 is probably not in the cards

How to prepare

With the BoC at 2.50% as of September 2025, pre- and post-retirees need to contend with lower-than-expected savings rates. This means lower GIC and high-interest savings account (HISA) saving rates as interest rates drift lower from the recent highs of 2024. To keep up, be sure to revisit your cash-flow ladder and annuity timing. Most experts agree that these lower rates will require retirees to consider a one-to-three year cash (or GIC) buffer as a smooth way to ease into retirement.

Good options include higher paying HISA accounts. For instance, the Simplii Financial HISA account pays 4.5% for new deposits for the first five months. Open a no-fee Simplii Chequing account and you could easily transfer money and and from your HISA to your chequing to pay bills. New accountholders can get $300 cash back and a $50 Skip the Dishes gift card by opening an account before October 31, 2025. Terms and conditions apply.

Plans vs reality

Surveys say Canadians plan to retire around 64, but the average actual retirement age is around 65 — and a sizeable minority exit earlier due to health or job loss. Still, retirement doesn’t have to look like it once did — you can try to set yourself up for the gradual retirement so many dream of but find a way to pivot if those plans do not come into fruition.

LEAH GOLOB – YAHOO FINANCE CANADA
PUBLISHED OCT 24, 2025

Families who expect to max out contributions to a registered education savings plan (RESP) early in a child’s life might consider life insurance as another option to help save for their education.

Parents can buy a whole life insurance policy for the child and pay the premiums, which are usually quite low for kids. (Advisors note that premiums are generally higher for males compared with females, regardless of age, because of actuarial calculations related to risk.) Some policies also enable clients to make additional payments, within limits.

The policy’s cash value can be invested and grow on a tax-deferred basis. Then, when the child is 18 or older, policy ownership may be transferred to the child without incurring any tax consequences. Regardless of who owns the policy, the accumulated cash value can be withdrawn or used as leverage for a policy loan or bank loan to cover post-secondary education expenses. Each choice has different tax implications.

A significant benefit of insurance is that, unlike an RESP, no part of it is limited to paying for qualifying education expenses. That means the cash value can help pay for a wedding or down payment on a home if the money isn’t needed for education.

Not a replacement for an RESP

Kelly Ho, partner with DLD Financial Group Ltd. in Vancouver, says the insurance option is best suited for clients who have the financial means and flexibility, and understand it’s not a set-and-forget investment strategy.

“It’s a very long-term strategy that can be very advantageous,” she says, adding it’s “by no means a replacement for the RESP, which is by default the go-to plan for post-secondary savings.”

She says conversations about using life insurance for education expenses often start when parents have extra funds available or receive gifts for children from other family members, such as grandparents.

Ms. Ho says parents like that they own the whole life policy for as long as they choose, versus an in-trust account, of which their children take full control when they reach the age of majority.

When Ms. Ho uses the life insurance strategy, she looks carefully at the policy’s terms and conditions, including plan limitations, maximum contributions, flexibility to accommodate life changes, and what happens if parents can’t afford to contribute to the policy at some point in the future.

“There are some plan designs where there’s a definite end date,” she says, such as 10 or 20 years. “There are also policies [with] characteristics in the contract where if you fund it for a certain number of years, there’s a high likelihood that the policy can continue self-funding for the duration of its life – but it’s not guaranteed.”

Sorting through these details is crucial when advisors consider using life insurance to fund educational costs. Ms. Ho also says that, as children get older, they should be taught to understand the value of their policy, why it was set up, what it can be used for, and why they may or may not want to continue funding it.

Ms. Ho says parents who want to have more than one child should also consider whether they want to use the same life insurance strategy for each one.

Andrew Feindel, portfolio manager and senior wealth advisor with Richardson Wealth Ltd. in Toronto, has used life insurance for a handful of clients who already have whole life insurance on their first child and wanted to buy an equivalent policy for the second.

Despite being a believer in the value of whole life insurance and owning a policy himself, he doesn’t have whole life policies on his own children and generally doesn’t recommend it.

He says the death benefit usually ends up providing a very strong rate of return, but there are often better options available if the primary goal is to grow investments.

“I always call it an A+ investment on your estate and a B investment in your lifetime,” Mr. Feindel says.

Even after 20 years – roughly the point at which a child would need to access money to pay for post-secondary education – the growth of the cash value will likely translate into a very modest rate of return.

Considerations for cash value withdrawals

Parents also need to consider the cost of getting the money out of a whole life policy. Cash value withdrawals are taxed in the hands of parents as long as they own the policy, and they may decrease or eliminate the death benefit. A policy loan or bank loan that uses the policy as collateral protects the death benefit, but incurs interest charges. Importantly, if the client doesn’t repay the loan, they could end up with a cost amounting to decades of compound interest, Mr. Feindel warns.

Another option is to arrange for annual dividends to be paid out of the policy, but as he points out, “unless you have a very big whole life policy, that likely is not going to give enough to pay for tuition.”

Chris Warner, wealth advisor with Nicola Wealth Management Ltd. in Victoria, also says that funding education shouldn’t be the primary reason for buying whole life insurance – but it can be a nice side benefit.

He suggests, as an example, an affluent family that contributes $50,000 a year to a whole life policy insuring the life of a newborn. By the time the child is 18, this for‑illustration‑purposes‑only policy may have a death benefit of roughly $2‑million and a cash value of roughly $500,000. However, he says, what if the child only needs $50,000 to top up education savings in an RESP? Withdrawing that amount may decrease the death benefit to, say, $1.7‑million, but then it will continue to grow.

“We’ve taken money out, but it’s not impacting the primary need, which is building up [the death benefit] and tax sheltering … and ancillary benefits such as the ability to leverage [the policy] and creditor protection,” Mr. Warner says.

In general, though, when clients are looking to save for a child’s education, he recommends maxing out the RESP first, then maxing out the parents’ tax‑free savings accounts, investing within a non‑registered investment account, or (if parents accept giving up control the moment the child reaches the age of majority) investing within an in‑trust account.

“Insurance can provide some interesting side benefits outside of just life coverage, but insurance is almost never the best savings vehicle for unspecified expenses (at least as measured by IRR [internal rate of return]),” Mr. Warner says.

ALISO MACALPINE –  THE GLOBE AND MAIL
PUBLISHED SEPTEMBER 22, 2025