As we approach the final months of 2026, this is a useful time to reflect on your financial plans and consider whether any adjustments may be appropriate before year-end.

In this edition, we explore current market conditions, retirement income options, tax planning considerations, and financial strategies for different stages of life. We also share insights from our investment and insurance partners to help you make informed decisions.

Whether you are planning for retirement, managing your investments, or helping the next generation prepare for important financial milestones, we hope you find something of interest.

As always, your Macnaughton & Ward Financial Account Manager is available to discuss any questions or changes in your circumstances.

In This Edition

• Market Update - October 30, 2026

• Year End Tax Planning Tips

• Longevity isn’t Just a Number; It’s a Lifestyle Plan

• Payout Annuities

• Total Cost Reporting - Understanding Investments, and the Value of Ongoing Advice

• “Borrowing an Age” Strategy

• Saving for Your First Home? Understanding Your FHSA, RRSP and TFSA Options

• Flexcare Extended Healthcare Benefits

• Your Questions Answered

• Closing Message

Market Update - October 30, 2026

Keeping Today's Markets in Perspective

As October comes to a close, financial markets continue to respond to changing economic conditions, inflation pressures, and global uncertainty. The Bank of Canada recently increased its key interest rate to 2.50%, reflecting concerns about persistent inflation and higher energy costs. While economic growth has shown resilience, ongoing trade tensions and geopolitical developments continue to influence financial markets. These changing conditions serve as a reminder that periods of uncertainty are a normal part of the investment landscape.

For investors approaching or enjoying retirement, maintaining a long-term perspective remains especially important. Rather than reacting to short-term market movements, it is helpful to focus on the purpose of your investments, your income requirements, and your comfort with investment risk. Diversification, appropriate asset allocation, and regular reviews remain important components of a thoughtful financial plan.

At Macnaughton & Ward Financial, our focus remains on helping you maintain a financial plan that reflects your individual circumstances and long-term objectives. If recent economic developments have raised questions about your investments or retirement income, we welcome the opportunity to discuss them with you.

2026 Year End Tax Planning

Important Opportunities Before December 31

With year-end approaching, now is an ideal time to review your financial and tax situation. Taking action before December 31 may help you maximize available tax benefits, manage taxable income, and avoid missing important deadlines.

Whether you're approaching retirement, managing investments, supporting your family, or running a business, there are several areas worth considering.

Have you reviewed your registered savings? RRSP, TFSA, FHSA, RESP, and RDSP contributions may offer valuable tax benefits or government incentives, depending on your circumstances.

Are you approaching retirement? Reviewing RRSP-to-RRIF conversion requirements, withdrawal strategies, and pension income splitting opportunities may help you manage retirement income more effectively.

Do you have non-registered investments? Reviewing capital gains and losses before year-end may reveal opportunities to improve tax efficiency.

Are you planning charitable donations? The timing and method of giving can influence the tax benefits available.

Good tax planning is about more than reducing this year's tax bill. It's about making informed decisions that support your broader financial goals.

Don't leave your planning until the last minute. Your Macnaughton & Ward Financial Account Manager can help you identify opportunities and coordinate with your tax professional.

Read the Complete 2026 Year-End Tax Planning Tips

Before December 31: Have You Considered These Items?

☐Review your 2026 income: Identify significant changes that may affect your tax situation.

☐Check registered savings: Review available RRSP, TFSA, and FHSA contribution room.

☐ Review retirement income: Consider RRSP-to-RRIF conversion requirements, withdrawals, and pension income splitting.

☐Review your investments: Assess realized capital gains and potential tax-loss selling opportunities.

☐Consider charitable giving: Review planned donations and whether donating eligible securities may be beneficial.

☐Review family savings: Check RESP and RDSP contributions and available government incentives.

☐Consider tax credits: Review medical expenses, disability-related credits, and other applicable deductions.

☐Check tax instalments: Confirm whether your December 15 payment is required and sufficient.

☐Review beneficiary designations: Ensure your registered accounts and insurance policies reflect your current wishes.

☐Coordinate your planning: Speak with your MWFS Account Manager and tax professional about significant financial decisions.

A little planning before year-end can help you enter 2027 with greater confidence and a clearer financial picture.

Longevity isn’t Just a Number; It’s a Lifestyle Plan

There is a myriad of financial issues to consider when planning for and moving into retirement.  At Macnaughton & Ward Financial, your Account Manager can help you with those.  At the same time, you may wish to spend some time considering other important aspects of retirement. In the link below, Manulife provides some insightful suggestions for those contemplating their future in retirement:

Payout Annuities

Annuities are a useful tool to turn a portion of your savings into a guaranteed stream of payments. Many people do not have a defined benefit pension plan in retirement. To provide you a reliable income stream, annuities may be a great way to convert a portion of your savings into an income stream for life for you and your spouse. There are different options available such as guarantee periods, indexing, preferential tax treatment and more. Equitable Life provides a great overview of annuities below:

Total Cost Reporting

Understanding Investment Costs, and the Value of Ongoing Advice

In our October newsletter, we explored how the costs associated with segregated fund investments are allocated among investment management, insurance contract administration and guarantees, managing general agency (MGA) services, and financial advice.

Our infographic illustrated that approximately 30% of the total investment costs were attributed to MWFS, with the remaining 70% allocated to investment management, insurance-related costs, and MGA infrastructure and oversight.

It is important to recognize that this was an illustrative breakdown. Actual costs and compensation arrangements vary depending on the investment product, insurance company, contract, and applicable fee structure. The 30% figure should not be interpreted as a fixed allocation for every client's investments.

What Does Ongoing Financial Advice Include?

Your MWFS Account Manager provides more than investment recommendations. Our role is to help you make informed financial decisions that reflect your individual circumstances, objectives, and changing needs.

Understanding Your Financial Picture

We take the time to understand your financial circumstances, including your income, assets, investment knowledge, financial objectives, time horizon, risk tolerance, retirement plans, and tax and estate planning considerations.

Investment Selection and Portfolio Reviews

Based on your individual needs, we recommend suitable investment options and asset allocations. As markets and personal circumstances change, ongoing reviews may identify opportunities to rebalance investments or adjust your portfolio.

Tax-Efficient Financial Planning

Investment decisions can have important tax implications. We help you consider strategies involving registered and non-registered accounts, retirement income, and estate planning, with the objective of improving overall tax efficiency where appropriate.

Guidance Through Life's Changes

Retirement, changes in family circumstances, inheritances, and unexpected financial events can all affect your financial plans. We help you evaluate your options and make adjustments as your needs evolve.

Perspective During Market Uncertainty

Market fluctuations can create uncertainty. Having an experienced advisor to discuss your concerns, review your objectives, and provide perspective may help you avoid making decisions based solely on short-term market movements.

Looking Beyond Investment Costs

Understanding what you pay for your investments is important. Equally important is understanding the services and ongoing support you receive.

At Macnaughton & Ward Financial, our approach extends beyond investment management. We assist clients with retirement income planning, registered savings plans, insurance, tax considerations, estate planning, and other financial matters.

By considering these areas together, we aim to help simplify financial decisions and keep your financial strategies aligned with your long-term goals.

The value of financial advice is not measured by investment performance alone. It also includes thoughtful planning, informed decision-making, ongoing service, and guidance as your circumstances change.

If you have questions about your investment costs, the services provided, or how your financial plan is progressing, we welcome the opportunity to review them with you.

Your Macnaughton & Ward Financial Account Manager is here to help you understand both the costs and the services associated with your investments.

Borrowing an Age Strategy

Sometimes when we age, we become limited in the options we have available to us. When it comes to investing, there is a powerful strategy to remove some of those limitations. Sunlife discussesthe “Borrowing an Age” Strategy in the article below. If you need more information, please set up an appointment with your Macnaughton & Ward Financial Account Manager to help you craft a suitable solution for your investment needs.

Saving for Your First Home?

Understanding Your FHSA, RRSP and TFSA Options

Three smart savings strategies to help you build your down payment faster

Have a child or grandchild planning to purchase their first home? Saving for a down payment can be challenging, but understanding the available tax-advantaged savings options may help make homeownership more achievable.

By strategically combining a First Home Savings Account (FHSA), Registered Retirement Savings Plan (RRSP), and Tax-Free Savings Account (TFSA), eligible first-time homebuyers may be able to reduce their income taxes while building their savings.

The key is knowing where to start.

Click above to read the full article.

Flexcare Extended Healthcare Benefits

Whether you run your own business, you’re recently retired or you simply do not have extended healthcare coverage through your employer, Manulife’s Flexcare program can provide a wide range of options to you depending on your needs. There are a number of different plans which may include add on or stand-alone features. To begin to discover the details, review Manulife’s Flexible Protection for a Healthier You below (and speak to your Macnaughton & Ward Financial Account Manager to design a plan that meets your needs):

Your Questions Answered

Life Insurance:

Is the Lowest Premium Always the Best Choice?

Q: My granddaughter, Judy, is 35, healthy, married, and has two young children. She earns approximately $50,000 annually, while her husband earns $80,000 and has $1 million in life insurance. They have a $200,000 mortgage and no other debts. How much life insurance should Judy consider, and which type of coverage would be most appropriate?

A: Life insurance helps protect your family's financial security. Determining the appropriate coverage involves reviewing outstanding debts, income replacement needs, childcare, future education expenses, and existing financial resources.

For illustration purposes, Judy's potential expenses might include:

While $500,000 provides a starting point, a complete insurance needs analysis may identify additional coverage requirements, particularly for income replacement.

Comparing Life Insurance Costs

Term life insurance provides coverage for a specified period, typically with level premiums during the initial term. However, premiums may increase significantly when the policy renews.

Consider the following illustration for $500,000 of coverage:

The 30-year totals assume coverage remains in force and premiums are paid throughout the period, including the renewal premiums shown in the original illustration. Figures are hypothetical and subject to insurer verification.

Why the Difference?

At first glance, Term 10 appears to be the most affordable option at just $15.75 per month. However, its illustrated monthly premium increases to $73.35 after 10 years and $204.75 after 20 years.

By comparison, Term 30 provides a level premium of $40.05 per month for the entire 30-year period.

In this example, Term 30 has the highest initial premium but the lowest cumulative cost over 30 years.

That doesn't mean a 30-year term is always the best choice. The appropriate term depends on how long coverage is needed, affordability, and your family's financial circumstances.

Looking Beyond the Initial Premium

When selecting life insurance, consider not only what coverage costs today, but also how long you may need it, future renewal premiums, and available policy options.

The goal is to find the right balance between coverage, cost, and flexibility.

Your Macnaughton & Ward Financial Account Manager can help assess your family's insurance needs and compare available options to determine coverage appropriate for your circumstances.

Note: Premiums are illustrative, not current insurance quotations. Actual costs depend on the insurer, product, underwriting, and policy terms. Coverage recommendations should be based on an individual needs assessment.

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Planning to drop by our office? We’re happy to offer complimentary parking for your visit, no need to pay at the meter.

Simply call us at (604) 581-9121 before you leave home to reserve your space. Provide your license plate number and we’ll register it for the duration of your appointment.

It’s quick, easy and ensures a stress-free visit. We look forward to seeing you!