As the school year kicks off, it’s a great time to review your family’s education savings. Registered Education Savings Plans (RESPs) are one of the most effective ways to save for a child or grandchild’s post-secondary education. In addition to tax-deferred growth, the government matches your contributions through the Canada Education Savings Grant (CESG), providing up to 20% more each year.

One smart way to hold RESP investments is through segregated funds. They combine the growth potential of market-based investments with valuable features like maturity guarantees and estate protection — ensuring your contributions are secure and your child’s education savings are protected.

Back-to-school is a reminder that time passes quickly — don’t miss the chance to maximize this year’s RESP benefits. Speak with your MWFS Account Manager to review your options and make the most of your contributions.

Holding RESP investments in segregated funds gives you:

• Market growth potential

• Maturity guarantees

• Estate protection

Manulife Investment Management provides more details in the following document:

Manulife Segregated Fund Registered Education Savings Plan (RESP) - Client Info Sheet.pdf

Making contributions before year-end ensures your child (or grandchild) receives the maximum 2025 grant. Talk to your MWFS Account Manager about making contributions today.

Canadian equity markets reached an all-time high in August, reflecting strong performance through the summer months. However, as we move into September, analysts are striking a more cautious tone, citing global economic uncertainty and potential volatility ahead. U.S. markets posted modest gains in August, while interest rates have remained stable as central banks signal a pause in their tightening cycle. Inflation in Canada has eased but still affects everyday expenses, particularly food and housing.

For retirees and investors, this environment underlines the importance of diversification — balancing growth opportunities in equities with stability from fixed-income and guaranteed investments. While strong markets are encouraging, having a plan that can weather potential short-term fluctuations remains key.

Looking ahead: Markets will be watching the Bank of Canada’s fall announcements closely, which may influence interest rates and investor sentiment into year-end.

As always, your circumstances are unique. If you’d like to review how current market conditions may affect your portfolio, please reach out to your MWFS Account Manager for tailored advice.

Staying Steady Through September Volatility

• September is often a bumpier month for markets

• Volatility is normal and usually temporary

• The right mix of equities, GICs, and Seg Funds helps balance risk and reward

• Market timing rarely works — staying invested with a long-term plan does

If recent headlines have you concerned, connect with your MWFS Account Manager to review your portfolio and confirm your plan is on track.

Q: I’m single, age 72, with $500,000 in investments across my RRIF ($250,000 in segregated funds), a non-registered account ($150,000 in GICs), and a TFSA ($100,000 mix of GICs and seg funds). My income is about $38,000 annually, which covers my expenses. Can I maintain my income, grow my assets, and pay less tax — especially with inflation making everything more expensive?

A: Yes — with some adjustments, you can maintain your income today while also protecting your future purchasing power against inflation:

• Shift non-registered GICs into segregated funds (as they mature) that focus on capital growth. Unlike GICs, which generate fully taxable interest, growth-oriented seg funds can provide tax-efficient capital appreciation that better offsets inflation overtime.

• Balance your risk by moving about $150,000 of RRIF seg funds into GICs. This creates stability while freeing up your non-registered assets for long-term growth.

• Replace lost GIC income in ways that reduce your tax bill and help keep pace with inflation:

o  A Systematic Withdrawal Plan on your new non-registered seg funds (with much of the withdrawal treated as return of principal = lower taxes).

o  TFSA withdrawals, which are always tax-free and allow your taxable income to stay low.

o  A combination of both strategies, depending on your annual needs.

This strategy can help you:

• Maintain your current income

• Grow or preserve your assets

• Reduce your annual tax bill

• Better protect your long-term purchasing power from inflation

By managing your investments this way, you can enjoy financial stability today while keeping your estate and retirement income strong for the years ahead.

Why Inflation Matters in Retirement

Even if your income feels comfortable today, inflation slowly erodes what that money can buy.

For example:

• With annual inflation at 2%, $38,000 of income today would only buy about $31,000 worth of goods and services in 10 years

• At 3% inflation, that same $38,000 would feel more like $28,000 in 10 years

That is why it is important to include growth-oriented investments in your plan. The goal isn’t just to keep your income steady — it’s to keep your purchasing power steady, so your retirement lifestyle is protected.