Welcome to May 2025
I am getting the May newsletter out late. This has been a busy time. Canadian election, more tariff ping pong, bank of Canada and US Federal Reserve announcements, and some really exciting news for Drake Financial. Let’s get caught up!
Although many of you may not have voted for the federal Liberal Party, they are our government again and Mark Carney is our Prime Minster. Let’s hope and pray that he is successful governing because if he is successful, we will be too. I am hopeful that his high level banking experience and international connections will forge good relationships with our countries as Canada works to win new trading partners to replace our southern neighbour.
Speaking of southern neighbour, has anyone gone over the Canada/US border since the tariff controversies? I went over a month ago for the first time this year to pick up a package at Pick It Up Sumas. I got called in to the US border security office and grilled about many things. At the end they charged me $20 USD as a delivery fee. Never had that before. Let me know your stories of boarder crossings to the US.
In economic news both the Bank of Canada and US Federal Reserve chose to keep the interest rates the same and not decrease them as many economists has expected. The commentary is that they are still assessing the effects of the tariffs on the local and world economies. The stock market has had the trajectory of a yoyo this year. Many economists are calling for a short recession in Canada, the US and the world. As long as employment is stable, then expect a short bump in the economic road. But if employment falters significantly then we will all have to buckle up.
And now some exciting news. Drake Financial Ltd. just sign a contract with Mabrook, an Ontario fintech company. The agreement is a software licensing and servicing agreement that will allow Drake to create a new online crowdfunding and investing portal. Drake has already been approved by the BCSC for registration of the portal and now we just await FINTRAC approval for our MSB (money services business). We expect the new site to be up an running in 30 to 60 days. We have been working with Mabrook for over a year and we will be announcing their investment offerings on the site along with many others.
Investment Advice:
We continue to recommend MIC shares for investors during this volatile time. For accredited investors who are investing cash (as opposed to registered funds) we will be announcing a new REIT investment opportunity that has favorable tax treatment. Check out our investment options here
May Quiz:
This month’s quiz is about Victoria Day. I will warn you in advance, it is tough. I only got 40% on it. But try it and let me know how you made out. QUIZ: A tribute to Queen Victoria - The Abbotsford News
Financial Literacy Segment:
Many of you have booked appointments with me to create a financial plan for you or just casually discuss your investment portfolios. I encourage any of you to contact our office to book an appointment to discuss your financial plans or investments. There is no cost and coffee and encouragement are free. Here are some general guidelines to consider.
Financial advice depends on your goals, income, expenses, and risk tolerance, but here are some broadly applicable principles to help you build a solid foundation:
1. Create a Budget: Track your income and expenses to understand where your money goes. Use the 50/30/20 rule as a guide: 50% for necessities (housing, food, utilities), 30% for wants (entertainment, dining out), and 20% for savings and debt repayment.
2. Build an Emergency Fund: Save 3-6 months’ worth of living expenses in a high-yield savings account to cover unexpected emergencies like job loss or medical costs. We can set up your high interest savings account as agents for many banks.
3. Pay Off High-Interest Debt: Focus on clearing high-interest debts (like credit cards with rates above 10%) before heavily investing elsewhere, as the interest often outpaces investment returns.
4. Save for Retirement: Contribute to retirement accounts like an RSP, RESP or TFSA, especially if your employer matches contributions. Aim to save 10-15% of your income annually for retirement.
5. Invest for the Long Term: Start investing early to benefit from compound interest. MIC shares are good for beginners. Consider GICs, MICs, REITs, DMI and other investments.
6. Diversify Income Streams: Explore side hustles, freelancing, or passive income sources (e.g., rental properties or MIC and REIT dividends) to reduce reliance on a single income.
7. Protect Your Assets: Get appropriate insurance (health, auto, renters/homeowners, life if you have dependents) to shield yourself from financial catastrophes.
8. Plan for Big Goals: Whether it’s buying a home, starting a business, or traveling, set specific savings goals and automate contributions to dedicated accounts.
9. Educate Yourself: Read books like The Wealthy Barber or Balance and follow reputable financial blogs or podcasts. Avoid get-rich-quick schemes. Links to these books in my blog
10. Review Regularly: Check your financial plan annually or after major life changes (marriage, kids, job change) to stay on track.
If you have specific details (e.g., income, debts, or goals), I can tailor this advice further. For real-time insights, What’s your main financial focus right now?
May Real Estate Metrics:
Canadian Real Estate Sales Flat
May 15 2025 News Release | CREA Statistics
Canadian Real Estate Values Down 3.9%
CREA | National Price Map
British Columbia Average Price Down 6.1% and Sales Down 14.6% Year over Year
Homebuyers Remain Hesitant in April - British Columbia Real Estate Association
Alberta Sales and Average Price up 5% Year over Year
Province of Alberta - Public-April.pdf
The Wealthy Barber
Home - The Wealthy Barber
Balance
Balance