This April, we wish you all the best of spring. With temperatures rising and tulips beginning to bloom, we have much to look forward to. Spring is also a natural time to revisit your financial plans and priorities.

With change in the air, we encourage you to consider the following topics in this month’s issue:

• Market Update - Spring 2026

• Why Segregated Funds, and Why Now?

• Market-Linked Investments - Understanding Principal Protection

• 6 Ways to Use Your Income Tax Refund

• Critical Illness Insurance

• Advisor’s Corner - Your Questions Answered

As the 2025 tax season continues, it is also a good time to reflect on broader financial planning considerations.

As always, please take the opportunity to review the topics that interest you. If any of these raise questions or relate to your situation, we encourage you to connect with your Macnaughton & Ward Account Manager for a personalized discussion.

If you would like to suggest topics for a future edition, please Email Us. We welcome your ideas and appreciate your continued support.

Market Update - Spring 2026

As we move through the spring of 2026, financial markets continue to reflect a mix of resilience and uncertainty. While there have been periods of volatility, this is not unusual and remains a normal part of long-term investing.

Inflation has moderated compared to the elevated levels seen in recent years, although it has not fully returned to historical targets. Interest rates remain an important focus, as central banks continue to balance the need to control inflation while supporting economic growth. As a result, markets are reacting to ongoing economic data and policy signals.

Global developments are also contributing to market uncertainty. Geopolitical tensions, including ongoing conflict in the Middle East, have contributed to periodic fluctuations in energy prices, which can influence inflation and overall market sentiment. Trade discussions between Canada, the United States, and Mexico are also being closely watched, as changes to trade relationships can affect economic growth and business investment.

Despite these challenges, many companies and sectors have demonstrated resilience. Corporate earnings have generally remained stable, and diversified portfolios have continued to provide a measure of balance during periods of market fluctuation.

What This Means for Investors

For long-term investors, periods of uncertainty can feel uncomfortable, but they are not unexpected. Market cycles include both growth and volatility, and maintaining a disciplined approach is often more effective than reacting to short-term changes.

This environment highlights the importance of:

• Maintaining a well-diversified portfolio

• Aligning investments with your time horizon and income needs

• Reviewing your plan periodically to ensure it continues to reflect your goals

• Avoiding decisions driven by short-term market movements

For many clients, particularly those in or near retirement, income stability and capital preservation remain key considerations. Structuring portfolios to balance growth, income, and risk continues to be an important part of long-term planning.

Our Perspective

While market conditions may change, the fundamentals of sound financial planning remain consistent. A well-structured plan is designed to account for a range of economic environments, not just current conditions.

We continue to monitor developments closely and assess how they may impact your overall financial strategy. Where appropriate, adjustments can be made to help ensure your plan remains aligned with your objectives.

A Reminder

Market fluctuations are a normal part of investing. Staying focused on your long-term plan, rather than short-term headlines, is often the most effective approach.

If you have questions about current market conditions or would like to review your portfolio, we encourage you to connect with your Macnaughton & Ward Account Manager.

Why Segregated Funds, and Why Now?

Many clients hold a mix of investments, some within segregated fund policies and others at their bank or in non-insurance investment accounts. While diversification is important, it’s equally important to understand that not all investment products offer the same protections and guarantees.

Segregated funds, offered through insurance companies, include unique features that are not typically available in traditional investment products like mutual funds or GICs held at a bank. These may include:

• Maturity and death benefit guarantees that can help protect a portion of your original investment

• Potential creditor protection, which may be relevant for business owners

• Estate planning advantages, such as bypassing probate and maintaining privacy

• Reset options, allowing you to lock in market gains over time

If you currently have assets invested outside of your segregated fund holdings, it will be worth reviewing how those funds align with your overall financial plan, especially in light of the guarantees and benefits available within insurance-based products.

We encourage you to speak to your Macnaughton & Ward Account Manager and read the accompanying article from Sun Life which highlights key features and considerations of segregated funds.

If you’d like to explore whether consolidating or repositioning some of your investments could better support your long-term goals, please reach out. We’d be happy to review your current strategy with you.

Your financial well-being is our priority, let’s make sure your investments are working as effectively as possible.

Market-Linked Investments - Understanding Principal Protection

Investments are designed to serve different needs. While some investors focus primarily on long-term growth, others may prioritize a balance between growth and a degree of downside protection.

If you are interested in solutions that offer a level of principal protection while still participating in market performance, Desjardins provides a helpful overview of Market-Linked Investments.

6 Ways to Use Your Income Tax Refund

It’s tax time. While paying taxes is never enjoyable, receiving an income tax refund can be a welcome outcome.

Last year, nearly three out of four taxpayers in Canada received a refund, with the average amount being $2,295. If you are expecting a refund this year, you may wish to consider how best to put those funds to use.

Before spending it impulsively, you may find Beneva’s suggestions on ways to use your tax refund helpful.

Critical Illness Insurance

Our health is an important part of overall well-being. We strive to maintain it through proper nutrition, exercise, and staying socially and mentally engaged. Despite these efforts, unexpected health events can occur.

Did you know cancer will affect nearly one in two Canadians during their lifetime? Or that nearly one in twelve Canadian adults live with heart disease?

The financial impact of a serious illness can be significant and is often overlooked. Canada Life’s article explores critical illness insurance and addresses common questions.

Advisor’s Corner

Where your questions meet clear financial advice

Q: My sister was in a serious car accident and is currently in a coma. The specialist has advised that while some patients recover, others may not. I am her Power of Attorney (POA) and feel overwhelmed by the responsibility.

She has pension and investment income, but I am unsure if it will be sufficient to cover her expenses. I would appreciate guidance on how to manage her financial affairs during this time.

A: We are very sorry to hear about your sister’s situation. This must be a difficult time for you.

It is important to approach this step by step and ensure you have the appropriate support in place. Seeking guidance at this stage is an important and positive first step.

Being a Power of Attorney (POA) is a significant responsibility, but many individuals are able to manage it effectively with the right information and support. You may wish to consider the following steps:

• Obtain written confirmation from the attending physician confirming incapacity

• Confirm monthly income and expenses

• Prepare a list of assets and liabilities

• Notify financial institutions and provide certified copies of the POA documents and your ID to verify your identity

• Maintain detailed records of all financial transactions

• Act prudently and in your sister’s best interest

• Avoid any conflicts of interest

   

While the above provides general guidance, each situation is unique and additional considerations may apply.

Your Macnaughton & Ward Account Manager can assist you in organizing your sister’s financial information and developing a plan to help ensure her obligations are met while maintaining appropriate oversight of her assets. This may include reviewing her financial arrangements to help manage tax considerations appropriately.

If your sister faces a significantly shortened life expectancy, we can also assist in reviewing potential estate planning considerations to help minimize tax implications and preserve estate value.

Depending on the circumstances, you may also wish to consult legal or tax professionals for additional guidance.

A comprehensive discussion of her financial situation will allow us to provide guidance tailored to her specific needs.

Planning Ahead: Considerations for Powers of Attorney

Acting as a Power of Attorney (POA) involves important responsibilities and, in some cases, limitations depending on the authority granted in the POA document and applicable provincial rules.

In certain situations, a POA may be able to help simplify financial affairs by consolidating accounts or reviewing existing investments. This can make ongoing management more efficient, particularly if ongoing care needs arise.

Where appropriate and permitted, some individuals may consider solutions that offer administrative simplicity and clearly defined beneficiary designations. However, it is important that any such arrangements are consistent with the individual’s overall estate plan and existing will.

Planning ahead can make a meaningful difference. Establishing clear account structures, documenting intentions, and organizing financial affairs before serious illness or cognitive decline becomes a concern can help reduce complexity and stress for family members.

In certain cases, solutions such as segregated funds may be considered where beneficiary designations align with the individual’s will and overall estate plan.

As every situation is unique, decisions involving a POA should be made carefully and may benefit from coordination with financial, legal, and tax advisors.