Watching your kids grow up and become independent is pretty exciting stuff. But let's face it, getting them ready to handle their finances as adults? That's a whole different ball game. With the cost of living always on the rise, it's becoming common for kids to stick around at home longer, or even boomerang back home after tasting a bit of the real world. And let's not kid ourselves, this financial juggle can hit every household differently. So, if you're a parent or caregiver guiding your adult kid through the financial jungle, here are some tips to consider. Just like in their younger days, you can offer them the love and support they need to stand strong on their own two financial feet. Now, let's talk about the good and the not-so-good when younger adults move back home: The Upside: Everyone chips in with household chores and whatnot, making life a bit easier for everyone. Living together can stave off loneliness and make taking care of family easier. Your kids can learn the ropes of independence bit by bit, all while having the safety net of home. Pooling resources can ease the financial squeeze for everyone. The Downsides: Supporting adult kids can strain your own finances and put a dent in your retirement savings. More people means more expenses, from utility bills to groceries. In Canada, about a third of young adults are bunking up with mom and dad, especially in pricey cities like Vancouver. Now, let's talk survival tactics when you've got adult kids under your roof: Lay down some ground rules. Everyone pitches in, and it's important to have an open chat about who does what. Have some grown-up talks about money. Show them the household budget and figure out how they can chip in. Think about asking them to pony up some rent. Even if you don't need the cash, sock it away for them for when they eventually move out. Transition from provider to coach. Guide them instead of just handing over cash. Set a loose timeline. It's good for both you and them to have a plan in place for when they'll fly the coop. Listen to their ideas. Encourage them to come up with a plan for their independence, and then work through it together. Now, about those multigenerational households. They're becoming more common, and there's a lot to gain from having everyone under one roof. Grandparents get company, parents get extra hands with the kids, and the kids get to bond with their elders. Bottom line? Living with family has its perks and pitfalls. If you're guiding your adult child, help them build their money skills, share the load at home, and be their coach, not just their piggy bank. And remember, it's all about finding that balance and listening to each other along the way. Source: https://www.getsmarteraboutmoney.ca/learning-path/life-events/how-to-help-your-adult-children-build-financial-independence/

With spring upon us, you may be feeling a touch healthier and more active. If so, you can likely attribute this to your NEAT naturally increasing with the nicer weather. What does NEAT actually mean? NEAT stands for “Non-Exercise Activity Thermogenesis.” It’s your key to burning more calories without even thinking about them. NEAT represents the calories you burn by moving throughout the day, when you’re not at the gym. Activities that contribute to your NEAT are going to the office, shopping, cooking, walking the dog, housework, gardening and many other daily movements that you do without the goal of intentionally training. The percentage of total calories burned through NEAT varies between about 15% and 30% depending on your lifestyle. Here is a rough idea of what portion of total calorie consumption NEAT represents.

Equities Tumble, Higher Mortgage Rates, and Long-Term Treasury Yield Increases It's been a rough month for stocks following three straight months of gains. The S&P 500 fell 4.1% in its first monthly decline of 2024, the NASDAQ sank 4.4%, and the Dow Jones Industrial Average tumbled 4.9%. Emerging Markets was the only index on our chart (below) to post a positive gain in April. The Russell 2000 was the worst performer in April, plummeting 7%. Only the Utilities sector was positive in April. Of the remaining ten sectors , Real Estate was the worst-performing sector, sinking 8.5%, followed by Technology and Health Care which fell 5.8% and 5.0%, respectively.

So, you’re in a relationship, and that means you're sharing more than just your time and space—you're sharing your money too. Handling finances together can be a bit of a maze, but there are some good ways to navigate it as a team. Keep in mind, though, every relationship has its own quirks, so it’s important to figure out what works best for both of you. Whether you’re just starting to dive into money talks or looking to spruce up your financial game plan, here are some practical tips you might find helpful. Why Talk About Money in a Relationship? Money talk isn’t exactly pillow talk for everyone, but it’s pretty crucial when you’re in a partnership. How you and your partner view money can have a big impact on your relationship. Your money mindsets influence everything from daily spending decisions to bigger financial goals. Plus, if you two see money differently, it can stir up some tension or even full-blown arguments. Chatting about money means being upfront and honest with each other. You’ll want to share your spending habits, values, and attitudes toward money. Understanding each other's financial quirks lays down a solid foundation for your relationship. It helps you set joint financial goals and avoid any uncomfortable surprises, like finding out your partner’s drowning in debt. Starting the Money Conversation Okay, but how do you actually kick off the money talk? Sometimes it’s easier to slip money into the convo when it comes up naturally. Here are a few low-key conversation starters you could try: Did you get an allowance when you were a kid? What was your first part-time job, and how old were you? Any money-saving tips you learned from your parents? Who taught you about budgeting? And hey, money chats don’t always have to be scheduled events. You could bring it up when you’re divvying up the restaurant bill, picking out a gift for a friend, or even just strolling through the grocery store. Need some help to start talking about money as a couple? Try this Love and Money Quiz! Setting Financial Goals Together Once you’ve dipped your toes into the money talk pool, it’s time to think about your financial future as a duo. Setting joint financial goals can set you up for success down the road. There are short-term goals, like saving up for a vacation, and long-term ones, like planning for retirement or buying a home. How to Manage Money as a Couple Alright, let’s get down to the nitty-gritty. When it comes to managing your moolah together, there are a few ways to go about it: Joint Accounts: Pool your funds into shared accounts for household expenses. It's straightforward, but disagreements over spending can crop up. Separate Accounts: Keep your money separate but divvy up the bills. This keeps things fair but may require more communication. Hybrid Approach: Combine joint and separate accounts to maintain some independence while sharing financial responsibilities. Each approach has its perks and pitfalls, so it’s about finding what clicks for you both. Regular Money Check-Ins Keep your financial boat afloat by scheduling regular money dates. Crack open a bottle of wine, whip up a nice dinner, and dive into your finances together. Review expenses, tweak your budget, and track progress toward your goals. And remember, it's a team effort, so both of you should be involved. Legal Matters Lastly, when you merge your financial lives, there are some legal bits to sort out too. Have a will, update it as needed, and make sure your life insurance and financial accounts have the right beneficiaries listed. In a nutshell, managing money together isn’t always smooth sailing but with some open communication and teamwork, you can navigate it together. Start those money chats early, set joint goals, figure out your money management style, and keep the conversation flowing. As long as you’re both honest and upfront about money matters, you’ll be on the right track. Learn about your own behavioral biases and how they may impact your investment decisions. Source: https://www.getsmarteraboutmoney.ca/learning-path/life-events/how-to-help-your-adult-children-build-financial-independence/

This commentary is compliments of Manulife Investments - 2024 starts with a bang! Global markets stormed out of the gate in the first three months of 2024. The combination of a resilient consumer base and lower inflation levels created a positive backdrop for investors. The S&P 500 Index, the S&P/TSX Composite Index, and the MSCI World Index were up 10.2%, 5.8% and 8.4%, respectively, in Q1. The euphoria, however, didn't extend to the fixed-income space—Canadian and U.S. bonds (measured by the FTSE Canada Universe Bond Index and Bloomberg U.S. Aggregate Bond Index) were down 1.2% and 0.8%. In our view, equities are priced for the best case scenario, with markets expecting to avoid a recession, on the belief that we’ll see a gradual decline in inflation, and that central banks will soon start cutting interest rates. In such an environment, any headline surprises that state otherwise may create potentially choppy markets in the near term. How do stocks and bonds perform when the government begins to cut rates? Investors have been waiting in anticipation for the U.S. Federal Reserve (Fed) to start cutting interest rates. They believe that lower interest rates will help drive the markets even higher. That said, history suggests things may not be quite as simple. We looked at the previous nine easing cycles, dating back to 1970. In the first chart, we’ve indicated (in red) periods that we believe to mark the beginning of an easing cycle. These are easily identifiable in recent easing cycles; however, those in the early 1980s aren’t and require subjective interpretation.

Calling all high achievers! Maybe fun isn’t the first place your head goes to when thinking of high performance. We’re talking to you- the hard worker, the busy parent, the dedicated athlete, the responsible sibling. We’ve got compelling, scientific evidence proving how important it is for you to incorporate fun and play into your life! You’ll also find some practical suggestions for incorporating more fun into your daily routine. Research indicates that happy individuals tend to be healthier physically, have lower inflammatory markers, and may even have improved productivity at work. Happiness has also been linked to better mitochondrial health and is a key factor in sustainable high performance. A recent study on twins suggests that 35% to 50% of your happiness is genetically predetermined. That means there's still a significant portion of happiness that's within our control. Interestingly, humans typically aren’t the best at knowing exactly what makes them happy. Dr. Gillian Mandich, who studies the science of happiness, says that it’s not the big shiny moments that matter, but rather the small moments over time that determine how happy we are. It is recommended to dedicate at least two hours per day to fun. Engaging in playful activities, such as games or sports not only increases happiness, but it’s also important for your brain. A study found that juvenile rats that engaged in “rough and tumble” play had higher activation in certain areas of the brain compared with control rats. They also had greater brain-derived neurotrophic factor (BDNF) gene expression, suggesting that play is important for neurodevelopment. Humor is another way to sprinkle small bursts of joy throughout the day. Laugh therapy is currently being used to treat depression and anxiety, as well as stress-related disease. Research shows that laughter actually supresses cortisol, and boosts dopamine and serotonin hormone levels. Playfulness isn't just beneficial for personal wellbeing; it can also have positive effects in professional and practical settings. Play has been shown to reduce stress, increase productivity and job satisfaction, and improve overall work quality and team cohesion. Play can also serve as an effective coping mechanism for stress, allowing you to mobilize cognitive resources and build resilience in the face of challenges. Contrary to the belief that play is only for children, research demonstrates its importance for health and wellbeing across all age groups, adults being the most prone to high stress levels. Remember that striving for constant happiness can be counterproductive. Happiness is a result, not a pursuit. Accepting the ups and downs of life and focusing on creating joyful moments, when possible, can lead to a more sustainable sense of wellbeing. In summary, incorporating more fun, play, and happiness into our lives can lead to numerous benefits, including improved physical health, enhanced productivity, and greater overall wellbeing. It's essential to prioritize these elements and recognize their significance for both personal and professional fulfillment. If you’ve been all work, no play lately- this is your sign to get out there and have some FUN! Source: https://drgregwells.com/blog/your-brain-on-play-the-science-of-how-fun-can-fuel-wellbeing References: Dfarhud, D., M. Malmir, and M. Khanahmadi. “Happiness & health: The biological factors—systematic review article.” Iranian Journal of Public Health 43, no. 11 (November 2014): 1468–1477. Panagi, L., L. Poole, R.A. Hackett, and A. Steptoe. “Happiness and inflammatory responses to acute stress in people with type 2 diabetes.” Annals of Behavioral Medicine 53, no. 4 (March 20, 2019): 309–320. Salas-Vallina, A., M. Pozo-Hidalgo, and P.R. Gil-Monte. “Are happy workers more productive? The mediating role of service-skill use.” Frontiers in Psychology 11 (March 27, 2020): 456. Picard, M., A.A. Prather, E. Puterman, A. Cuillerier, M. Coccia, K. Aschbacher, Y. Burelle, and E.S. Epel. “A mitochondrial health index sensitive to mood and caregiving stress.” Biological Psychiatry 84, no. 1 (July 1, 2018): 9–17. Chick, G., C. Yarnal, and A. Purrington. “Play and mate preference: Testing the signal theory of adult playfulness.” American Journal of Play 4, no. 4 (2012): 407–440. Wallace, J. “Why it’s good for grown-ups to go play.” Health and Sci- ence. Washington Post (May 20, 2017). https://www.washingtonpost . com/national/health-science/why-its-good-for-grown-ups-to-go- play/2017/05/19/99810292-fd1f-11e6-8ebe-6e0dbe4f2bca_story.html. Magnuson, C.D., and L.A. Barnett. “The playful advantage: How playfulness enhances coping with stress.” Leisure Sciences 35, no. 2 (2013): 129–144. Neale, D. “A golden age of play for adults.” British Psychological Society (March 25, 2020). https://www.bps.org.uk/psychologist/gold- en-age-play-adults. Edwards, D. “Play and the feel good hormones.” Primal Play (June 23, 2022 ). https://www.primalplay.com/blog/play-and-the-feel-good- hormones. Guitard, P., F. Ferland, and É. Dutil. “Toward a better understand- ing of playfulness in adults.” OTJR: Occupation, Participation and Health 25, no. 1 (January 1, 2005): 9–22.

The Canadian dollar's recent decline to its lowest level in almost two years against the US dollar is primarily attributed to several factors, including worsening economic outlook, rising inflation concerns, and diverging monetary policies between the US Federal Reserve and the Bank of Canada.  Inflation Concerns: The persistently high inflation in the United States has raised expectations of aggressive interest rate hikes by the Federal Reserve. This anticipation of higher interest rates in the US has led to a flight to safety, with investors favoring the US dollar over other currencies, including the Canadian dollar. Diverging Monetary Policies: The Federal Reserve is expected to raise its benchmark interest rate significantly, possibly reaching as high as 4 or 5 percent, whereas the Bank of Canada may not be able to match such aggressive rate hikes due to concerns about the impact on the housing market and consumer spending. This disparity in monetary policy paths between the two central banks is widening the gap between the US dollar and the Canadian dollar. Commodity Prices: The Canadian dollar is also influenced by commodity prices, particularly oil, as Canada is a major oil exporter. The recent decline in oil prices, coupled with softness in other commodity prices, has further weighed on the Canadian dollar's performance. Market Sentiment: Market sentiment plays a crucial role in currency movements. The prevailing perception among investors is that the US dollar is a safer haven during times of uncertainty, leading to increased demand for the US dollar and consequent weakness in the Canadian dollar. Expectations for Future Performance: Some analysts predict further depreciation of the Canadian dollar against the US dollar in the near term, with projections of the loonie falling below 73 cents by the end of the year. This outlook reflects concerns about the Canadian economy's relative weakness compared to the US economy. Overall, the combination of inflation worries, diverging monetary policies, commodity price movements, and market sentiment has contributed to the recent depreciation of the Canadian dollar against the US dollar, with implications for Canada's economic outlook and trade competitiveness. Source: https://www.cbc.ca/news/business/canadian-dollar-1.6585291

If you’re delving into the intricacies of managing retirement savings, particularly the transition from RRSPs to RRIFs, read on. This transition is crucial to understand, especially considering the tax implications and mandatory withdrawal requirements associated with RRIFs. Missing the deadline to convert your RRSP to a RRIF can have significant tax consequences, as the entire value of your RRSP becomes taxable income, potentially pushing you into a higher tax bracket. This underscores the importance of staying vigilant about conversion deadlines. You can convert anytime but the last year to convert is the year you turn 71. While RRSPs and RRIFs share similarities, such as holding the same investments and being fully taxable upon withdrawal, there are key differences to note, such as the lack of contribution capability in RRIFs and the mandated minimum withdrawals. Managing RRIF withdrawals is a strategic endeavor, involving considerations like tax implications, OAS claw backs, and income splitting with a spouse. Additionally, converting a RRIF back to an RRSP is possible under certain circumstances, offering flexibility in retirement planning. Understanding the mechanics of RRIF conversion, the timing of withdrawals, and the options for structuring payments is essential for optimizing retirement income and minimizing tax liabilities. Navigating the transition from RRSPs to RRIFs requires careful planning and consideration of various factors to ensure financial stability and tax efficiency in retirement. Reach out to us anytime for more information or clarity! Source: How to cope with the RRSP-to-RRIF deadline in your early 70s - MoneySense How to cope with the RRSP-to-RRIF deadline in your early 70s - MoneySense

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