Optimism #94 - January 12, 2026
Dear clients and friends,Happy new year.
I know you know but just a reminder that it’s time for RESP and TFSA contributions. For those of you with Portfolio Managers, they are already on it and they should be completed within a week or two.
The optimal RESP contribution remains at $2,500 per year – which generates a $500 government match. Why have neither increased with inflation?
The TFSA max is $7,000 for 2026. (it apparently rises to $7,500 in 2027). Clearly TFSA holders vote more than students.
Spousal loan payments must be completed by January 30th.
LIF payments are always a bit late in January because they have to be manually calculated each year, based on age and the value of the account on January 1st. It’s more labour intensive than many people realize.
I received this email today and it exemplifies the satisfaction I get from working for you wonderful people. VL was wondering about taking the commuted value of her pension or leaving it intact. It is not always the case, but we went over the numbers, talked about investing with a dividend growth focus and we agreed, given reasonable assumptions, that it made sense for her to take the money and invest it. It also gave her cash to pay off her remaining mortgage balance.
"Milestone moment here this morning that I felt like I needed to share with you!
I just tallied my 2025 dividends and am happy to report that the total came to $18,949!
That is equal to $1500 a month in dividends, which is $500 more a month than I would have been getting from my GM pension you encouraged me to divest, and I still have all that money working for me, too!
Thank you for your life-changing advice back in 2020! I am so grateful you put me on this path!"
The RRSP deadline is March 2nd and the maximum is the amount your 2024 Notice of Assessment states on the last line of the last page. If you have large unused contribution room I am happy to be a sounding board for optimizing the ideal amount. Another option is to get your numbers to your tax pro and ask them. The software updates are ready early in February and that is not their busy season yet. Tax software will actually optimize it for them. Please don’t leave it until the last minute.
For those who still think RRSPs are a poor idea, here is an excellent article from Jamie Golombek explaining why it’s a no brainer.
Steve Saretsky suggests BC land owners consider title insuring their property with First Canadian Title. They are apparently the only title insurer in BC which covers aboriginal land claims on residential properties. There are more questions than answers on this topic.
I fully expect a market correction this year. Our assumptions about the withdrawals your portfolios are able to sustain allow for it. Our dividends and interest will continue to be paid. We own quality companies that are necessary and their dividend growth protects us, especially from more subtle risks like inflation. We can weather a storm.
Stocks are expensive. Ian McGugan at the Globe agrees in his article here.
While Morgan Housel’s book about The Art of Spending Money, I hover on this one. “I’d rather wake up and be able to do anything I want , with whom I want, for as long as I want, than try to impress you with nice stuff.”
Using skills learned in grade 8, I was attempting to impress my German speaking friends over the holidays. I tried to call Annette a young woman … a ‘junge frau’, but mistakenly called her ‘jungfrau’ … a virgin. Details matter. Good thing they laughed. Life is funny.
Stay positive and warm. We gain 54 minutes of daylight in the next month.
Derek Moran
