With the end of 2020, we closed the door on a year that tested more than most. It was a year of challenges, both socially and economically, as a global pandemic became the highest profile healthcare crisis in recent memory. The vaccine fueled optimism at the end of the year took a back seat last week when the long-sewn seeds of unrest sprouted in a historic event. The recent riots in the US capitol has highlighted the growing tensions south of our border.
The Georgia run-off elections have given a razor-edge majority to the Democrats who will be potentially able to pass significant policy adjustments in the coming years. For the past few years the previous government, both legislative and executive, has been somewhat paralyzed compounding the issues faced by Americans. Direct stimulus has been slow to approve and even slower to be distributed. The pandemic rages through the country and many cities are now experiencing their ‘New York Moment’.
The country remains deeply divided and we expect that tensions will remain high well into President-elect Biden’s first term. The lawmakers of Washington face a tough decision. If they try to punish Trump they risk derailing their policy goals for the foreseeable future (he will invariably fight with every fibre of his being). If they try to move forwards without doing so, they set a dangerous precedent for what you can get away with as a populist leader. America’s rifts will not be simply healed on January 20th, a symptom of the war of information that has been waged for years. The Blue Wave has a lot of doubt and anger to wash away.
With social media starting to take a stance on moderating calls for violence and extremism, we may be turning a new leaf. If we view 2020 as the great reset, 2021 will be the new beginning. The beginning of a new economic cycle, the reinvigoration of truth and integrity into politics, the beginning of the end of a pandemic that has locked the world at home for far too long. Looking forward to the new year and the new administration, we have high hopes that the United States of America can be united once again.
TFSA Reminder: Your contribution limits have increased by $6,000
A Tax-Free Savings Account (TFSA) is a flexible savings vehicle that allows Canadians to save for short and long term goals while earning tax free investment income and growth. All income and withdrawals from a TFSA are generally tax free. A TFSA should be used in conjunction with your existing savings plans like Registered Retirement Savings Plans (RRSP), Registered Education Savings Plans (RESP), Registered Disability Savings Plans (RDSP) as well as your non-registered savings.
For 2021, Canadian residents over the age of majority have an additional $6,000 in contribution room. Please contact us should you have any questions or wish to make a contribution.
For more information, see the TFSA page in our Resources.
The Power of Giving
For many Canadians from coast to coast 2020 was a year of giving back. It was a year that saw us tip generously at restaurants, wait patiently in lines, and cheer daily at 7pm in recognition of the frontline healthcare workers keeping us safe. We realized so much of what we had taken for granted: socializing with friends, travelling freely, and for a short while in March, even toilet paper. The spark of humanity is how we respond to adversity. In a year when many charities and nonprofits needed us the most, we responded with vigor.
Individually, as a team and as a firm, we donated to dozens of causes, many of which are featured in the graphic above. Individually, we donated over $20,000 to these charities in 2020. The Vancouver Richardson Wealth office participated in the Partners in Community campaign earlier in the year, raising nearly $15,000 in donations with an additional $100,000 in donation matching from our firm. Most recently, Richardson Wealth announced a $125,000 contribution to the Food Banks of Canada.
Charitable giving is just part of your philanthropic legacy. Many people make donations of both time and money to foundations and charities throughout the year. Whatever the cause that is close to your heart, if you would like to find out more about ways you can help the charities to you care about, please let us know and we would be happy to advise you on how to maximize your philanthropic legacy. Whether you'd like to set up a foundation, donate some securities, or design a lasting legacy in your estate plan, we are here to help.
For more information on charitable giving, please see our philanthropy section of our webpage.
Tax Deadlines and Important Dates
Over the course of the year there are several tax deadlines that may be applicable to you. Where a deadline falls on a weekend or a holiday recognized by the Canada Revenue Agency (“CRA”), the deadline is generally extended to the next business day.
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Chernick & Associates Wealth Management Group
Richardson Wealth Limited
Guinness Tower
1055 West Hastings Street, Suite 2200
Vancouver, BC V6E 2E9
Tel.: 604.640.0400
Toll Free: 1.866.640.0400