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Every day, Canadians across the country are targeted by scam artists. With tax season in progress, scammers may try contacting you, pretending to be your financial service provider or even the CRA.

How to protect yourself from scams
Cyber security is essential in protecting personal and financial information from fraud and scams. Below are key steps to protect your wealth and stay safe:

1. Use strong, unique passwords. Enable multi-factor authentication (MFA) where applicable.
2. Be cautious with links and attachments
   • Never click an unverified link or download an unknown attachment
   • Check for spelling and grammar errors: Phishing emails often have minor mistakes.
3. Verify emails and web addresses
   • Look for small differences in URLS
   • Check the senders email address
4. Confirm who’s contacting you
   • Confirm full phone number – don’t trust caller ID alone
   • Verify identity by contacting your financial services provider directly using their official contact information

AI makes fraud even harder to identify
As advancements in Artificial Intelligence (AI) have made scams more sophisticated, the risk of fraud has increased, and additional steps must be taken to recognize scams. The following are examples of AI-generated scams:

• Voice cloning: Scammers can mimic the voices of loved ones over the phone claiming they need financial help.
• Deepfake videos and images: Scammers can create realistic videos or images to impersonate family members or coworkers.
  You can protect yourself from these AI generated scams by implementing these additional tips:
• Create a safe word or phrase that only close family members know which can be used to verify emergencies
• Be skeptical of urgent requests
• Verify unexpected calls or messages by calling a contact back using a known number to confirm

How to identify CRA scams
It is important to know when to be suspicious and how to recognize a scam. The CRA website outlines how you can protect yourself against fraud. The CRA may contact you by phone, automated message, letter, or email. The CRA will NOT:

• Send you refunds by e-transfer or text message
• Demand or pressure immediate payments by e-transfer, Cryptocurrency, prepaid credit cards, gift cards
• Threaten to deport or arrest you
• Use aggressive or threatening language
• Set-up an in person meeting in a public location to collect a payment
• Charge a fee to speak with a call centre agent
• Ask for personal or financial information in a voicemail or email

If you are unsure or suspicious:

• Do not click any buttons, links, or reply to the message
• Do not provide any personal or financial information
• Hang up and contact the CRA directly for any tax-related manners.

There is no need to stress or worry about scams, however it is important to stay vigilant, recognize the signs and know how to respond if you are ever contacted by a potential scammer.

For further details contact a Rothenberg Wealth Management advisor.

Information in this article was taken from the Canada Revenue Agency’s website: https://www.canada.ca/en/revenue-agency/corporate/scams-fraud/recognize-scam.html

It’s that time of year again, and you might be asking yourself, “Should I contribute to my Registered Retirement Savings Plan (RRSP) or my Tax-Free Savings Account (TFSA)?”  Ideally, contributing to both is the best strategy, but if you’re forced with making a decision between the two, this article can help guide you.

Here are a few important elements to consider when deciding between RRSPs and TFSAs:

First consider your marginal tax bracket.

Start by looking at your marginal tax rate. If you’re in a higher tax bracket, contributing to an RRSP can lower your taxable income and offer a substantial tax break. In contrast, TFSA contributions don’t provide an immediate tax deduction since they are made with after-tax dollars. However, the growth within the TFSA is entirely tax-free, and withdrawals won’t be taxed either.

The second factor to consider is the contribution limit.

Contribution limits are also important to keep in mind. For TFSAs, the contribution limit is $7,000, with a cumulative total of $102,000 if you’ve been a Canadian resident since 2009 and were 18 years old at that time. That’s a significant opportunity for tax-free growth over time.

For RRSPs, the contribution limit is 18% of the earned income you reported in the previous year, up to $32,490. If you don’t use your full contribution room in any given year, it carries forward, allowing you to contribute more in the future.

Third factor and an important one, are the withdrawals.

Withdrawals are another important consideration. RRSPs are designed specifically for retirement savings, and any amount you withdraw is subject to income tax. Contributions can be made up to the age of 71, at which point you must convert your RRSP into a Registered Retirement Income Fund (RRIF).

On the other hand, TFSA withdrawals are completely tax-free. Plus, when you withdraw from a TFSA, the amount is added back to your contribution room in the following year, so you can re-contribute it later. TFSA accounts also don’t have an age limit, and there’s no need to convert it to a different account type.

Conclusion

Both RRSPs and TFSAs offer excellent opportunities for tax-free growth, but they serve different purposes in your wealth-building strategy.

RRSPs are ideal for long-term retirement savings, particularly if you’re in a higher tax bracket now. TFSAs, however, offer more flexibility and are great for both short- and long-term goals, whether you’re saving for a major purchase or looking for another option to grow your retirement savings.

The right choice depends on your personal financial situation—your income, goals, and timeline. There’s no one-size-fits-all answer, but by understanding these key differences, you’ll be in a better position to make the best decision for your financial future.

For further details contact a Rothenberg Wealth Management advisor.

In this article, we share some insights on what to expect in 2025.

Broadening Equity Market Returns

Equity markets delivered strong returns in 2024, driven by the earnings growth of a few players—the Magnificent 7, which includes Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, NVIDIA and Tesla. The rest of the market is expected to catch up in 2025 and deliver more balanced and diverse growth within and across sectors.

Policy Uncertainty

Economic uncertainty will be a defining theme in 2025:

• With Prime Minister Justin Trudeau stepping down, the fate of important policy proposals, such as the planned increase to capital gains tax, is now unclear. The upcoming leadership transition will play a key role in shaping Canada’s future economic policies.
• Trump’s proposed 25% tariffs on all Canadian exports, if implemented, could disrupt cross-border supply chains and have widespread economic ramifications, both for Canada and globally.

Interest Rates

After five consecutive interest rate cuts in 2024, Canadians can expect continued rate reductions in 2025 as the Bank of Canada seeks to stimulate economic growth. Lower rates should improve borrowing conditions, benefiting both consumers and businesses by lowering financing costs and stimulating demand.

Continued Growth of Private Markets

With many unknowns, asset classes that are uncorrelated to market fluctuations will continue to demonstrate value to investors as sources of risk-adjusted returns. In particular, lower interest rates and healthy economic activity are expected to be positive for private equity.

Conclusion

As 2025 unfolds, staying informed will be crucial to navigating an uncertain environment, capitalizing on emerging opportunities and turning potential challenges into avenues for growth.

If you would like to discuss investment opportunities and how to position your portfolio for the year ahead, contact us today and start a conversation.

The S&P 500 has experienced a remarkable surge in 2024, delivering one of its strongest performances since 1928. While past performance often fuels optimism, the critical question for investors looking at the year ahead is whether this bullish trend can sustain itself for the broader equities market.

Looking back on 2024

Year-ahead-forecasts in December 2023 about what 2024 would bring for investors were dismal, even after a year of more than 20% returns for the S&P 500. Perhaps what played a part in the pessimistic outlook for 2024 was the political uncertainty and heightened emotions of an election year.

However, historical data suggests that such concerns are often overblown. The S&P 500 has not only shown resilience but posted a noticeable positive performance in 83% of election years. Any post-election losses tend to be retraced by end of year. In fact, the index generously retraces its losses, typically trading higher into the year-end and into the new year, up to two months following a U.S. election.

As of Dec. 13, the S&P 500 is up 27%. If it finishes up over 20%, this will represent a spectacular two-year run for the S&P 500.

Heading into 2025

Looking ahead, forecasts suggest growth potential of the S&P 500 at 9% by the end of 2025. While the outlook remains positive, the bull market could face challenges in mid-2025. Risks such as a potential economic slowdown, tightening monetary policy or geopolitical uncertainty could lead to a market pullback. And with the S&P at an all-time high currently, investors may be nervous that a market correction is on the horizon.

What does this mean for the broader equities market?

The S&P 500 is a widely used benchmark for tracking trends in the broader equities market due to its breadth and diversity. For this same reason, it provides a simplified view of market performance at best, obscuring trends within specific sectors of the economy.

Market movements are complex and driven by a combination of factors, including but not limited to domestic and foreign policies, interest rates, geopolitical events and corporate earnings. These elements often interact in ways that make it difficult to isolate the impact of any single variable—such as an election cycle.

Recently, stocks have rallied amid expectations that tax cuts, deregulation and increased government spending will spur economic growth but the long-term impact of policies such as tariffs, foreign relations and fiscal spending remains uncertain.

The complex and unpredictable nature of financial markets means that growth may not be as consistent as projected, especially if key assumptions about policy or global conditions fail to materialize.

3 Investor Takeaways for 2025

1. Time in the market vs. timing the market

Investors should look at staying invested in the market for the long term and consider high-quality stocks. Investing in solid, well-managed companies provides a stable foundation for long-term growth, even during market dips or economic uncertainty.

2. Strategic portfolio rebalancing 

Strategic portfolio rebalancing can help investors to adjust sector exposure based on changing market conditions. This helps capture opportunities in sectors with favorable valuations or strong growth potential.

3. Diversification beyond equities

Investing in other asset classes beyond equities, such as fixed income or alternative investments, may help improve risk-adjusted returns and provide a hedge against market fluctuations. This approach can potentially reduce volatility and better align a portfolio with an investor’s risk tolerance and long-term objectives.

This is an important time to connect with a wealth management professional to ensure your investments are aligned with your financial objectives and that you’re on track to reach your wealth goals. Reach out to us today—we are here to assist you in making informed investment decisions and navigating the complexities of the current market landscape with confidence and clarity, ensuring you’re well-positioned to seize tomorrow’s opportunities.