A few lessons learned in 2018

We have realized a few lessons in 2018, such as: getting a mortgage can be more difficult than before, and, it is not unusual to be asked for a co-signer.

Markets are great on the way up, unfortunately it can take one really bad month to wipe out all gains for the year.

What was reinforced: do not sell based on market declines but on company fundamentals. Dollars sitting in cash won’t decline, but also will not gain. Trying to time the markets is not the same as time in the markets.

News for 2019 – TFSA (Tax free savings account) contribution limit for 2019 has been raised to $6K. If you maxed out all annual contributions including 2019 you could have deposited $63,500. From $10K limit for a couple in 2009, a couple could have $127,000, invested-tax free, plus any interest, dividends or capital gains earned.

Do not forget that you can replace any funds taken out one year in the following year. If you have a large purchase still coming in 2018, consider taking the funds from your TFSA. You benefit any gain tax-free, and you can replace the full withdrawal amount in January 2019.