Fraser Valley – Bill Westmacott: Wealth Solutions, Life Insurance Broker in BC and Estate Planning.
 Increase your financial IQ and you will make better money decisions Wealth Courses | Solutions | About | Testimonials | Blog | ContactCanada Just Voted, and Where Do We Go From Here? Bill’s Blog | May 5, 2025 Firstly, congratulations to Mr. Carney, who narrowly won the election. I hope he does an outstanding job for Canadians, but I am not confident based on the party’s track record. I am sure Mr. Carney sent chocolates to Mr Trump for his grand diversion and scare tactics! I still wonder why Mr. Trump wanted Mr. Carney in so badly, but I guess they are old friends from New York. However, he and his team have behemoth challenges ahead of them. Let’s look at the economic landscape after ten years of Liberal rule. Canada has one of the worst economies of the OECD nations (38 countries with the most developed economies in the world) due to their economic policies. Canada was downgraded in April 2025 by Fitch Ratings due to the enormous debts the Liberals ran up and projected massive deficits Mr Carney promised in his election platform. Also, let us hope Mr. Carney has excellent negotiation skills due to the Trump tariffs, as many Canadian companies are halting spending and laying off workers. Lastly, will the King of Net-Zero (Mr. Carney) have a change of heart or continue to cripple Canada with expensive carbon taxes. Please drop Bill C-69! For the sake of Canada, I hope he does, as millions of Canadians are struggling to keep afloat, and now Western provinces are considering leaving Canada due to oppressive and unconstitutional polices by Ottawa! So, where do you and I go from here? With so much economic uncertainty, geopolitical risks and market volatility, I encourage you to revisit your financial plans regularly and make the necessary adjustments. Do you track your monthly spending? Do you have a simple budget? You cannot adjust what you do not track.When I help clients develop a wealth plan, I recommend you think of your wealth in three timeframes. Short-term: today to five years. Mid-term: five to fifteen years. Long-term: fifteen years and beyond. The timeframes can be adjusted, based on a person’s age.In your short-term money, I recommend having several saving strategies: TFSAs, emergency cash, and a few savings accounts, each with a different purpose. Examples are a Travel or Fun account, Investment Savings, Business Savings, Car or Education Savings, etc. It may take several years to develop multiple accounts, but get started where you are today!Look for ways to reduce debt or eliminate it.Do you have adequate Life Insurance to protect your loved ones and offset all debt?If you became critically ill, would you be able to financially make it through a couple of years of potential recovery time with reduced or no income? Critical Illness insurance is essential for the majority of Canadians.How many diverse and uncorrelated asset classes do you have your wealth in? Many Canadians only have two or three asset classes, which is insufficient diversification.Second, few Canadians use hedging strategies in their stock/bond portfolios. Let me know if you need help with this, as I may have ideas for you. It is critical to protect what you have worked so hard to build!Understanding there are many challenges in the economy and markets (Housing, stock, and bonds/debt markets) it is wise to get a second opinion from an experienced advisor.If you are travelling, ensure you have proper travel insurance. Getting stranded in a foreign country can wipe you out financially.Do you need to start doing estate planning? So, as you are aware, a lot is going on, but stay focused on what you can do to add, adjust, grow and protect your hard-earned money. There are still great opportunities if you know where to look! All the best in 2025! |
