As summer begins to wind down and the Labour Day long weekend approaches, September brings a return to familiar routines, and, for many families, a new school year.

It is also a natural time to revisit financial priorities for the months ahead. Whether that means reviewing education savings, preparing for upcoming retirement income needs, or simply making sure your financial plans remain aligned with your goals, a little planning today can help keep things on track.

We hope you and your family enjoy a safe and relaxing Labour Day long weekend.

In This Edition:

• Market Update Snapshot - August 2026

• Back to School: Time for a RESP Check-In

• Understanding Total Cost Reporting

• Bare Trust Reporting: What Changes for 2026?

• Planning for Estate Liquidity

• Planning Ahead for Funeral Costs

• Canada - U.S. Trade: Further Perspective

• Your Questions Answered

• Market Outlook Library

• Short Term Savings - Current Promotion

As always, we encourage you to focus on the topics most relevant to you. If something raises a question about your own financial, retirement, tax or estate plans, please contact your Macnaughton & Ward Financial Account Manager.

We also welcome suggestions for future newsletter topics, Email Us!

Market Update - August 2026

Financial markets continue to respond to a mix of economic resilience and uncertainty. In Canada, the Bank of Canada maintained its policy interest rate at 2.25% at its July meeting. Inflation was 3.0% in July, influenced in part by higher gasoline and travel costs. At the same time, Canada - U.S. trade tensions and geopolitical developments continue to affect business confidence and investor sentiment.

For long-term investors, particularly those approaching or in retirement, changing headlines reinforce the importance of keeping investment decisions connected to the broader financial plan. Diversification, appropriate liquidity for upcoming income needs, and a strategy consistent with your goals, time horizon and comfort with risk can help provide perspective during periods of uncertainty.

Market developments may provide a reason to review a financial plan, but not necessarily a reason to change a well-considered long-term strategy.

If your circumstances, retirement income needs or financial goals have changed, we welcome the opportunity to review your plans with you.

Back to School: Time for a RESP Check-In

September means back to school for many families, and it is also a good time for parents and grandparents to review Registered Education Savings Plans (RESPs).

Whether you're starting a RESP, catching up on unused government grants or preparing for education withdrawals, back-to-school season is a good reminder to review your education savings strategy. Eligible B.C. children may also qualify for the $1,200 B.C. Training and Education Savings Grant.

Learn more about RESPs

Considering the trades? RESP savings may also be used for eligible apprenticeship programs.

Learn more

If you have an existing RESP, are helping fund a grandchild's education, or have a student beginning post-secondary studies, your Macnaughton & Ward Financial Account Manager can help review the plan and identify any items that may need attention.

Understanding Total Cost Reporting

Beginning with the year-end 2026 reporting, investors will start receiving more detailed information about the costs associated with their investments on the insurance company’s statements. For segregated fund contracts, enhanced annual statements are expected to begin arriving in January 2027, showing additional information about costs, fees and investment performance. The objective of Total Cost Reporting, or TCR, is to make investment costs clearer and easier for consumers to understand.

We will explore TCR over the next three editions:

September - Understanding the Changes
What TCR is and what clients can expect to see.

October - Where Investment Costs Go
A closer look at the different components that may make up the cost of investing.

November - Understanding Cost and Value
Why cost is important, but should be considered together with advice, service, planning and the features of the investment.

For additional background (now versus later), the following resources provide useful explanations:

•       Equitable - What is Total Cost Reporting (TCR)? | Equitable

•       Sun Life Global Investments - Understanding Total Cost Reporting | Sun Life Global Investments

•        Beneva - TCR: Understanding your investment fees | Beneva

   

As your new statements become available, we will help clients understand what the additional information means and how it fits into their broader investment and financial plans.

Bare Trust Reporting: What Changes for 2026?

Bare trust reporting has received considerable attention over the past few years, and the rules have changed again.

The good news is that bare trusts were generally not required to file a T3 return and Schedule 15 for the 2024 or 2025 taxation years. Beginning with taxation years ending on or after December 31, 2026, however, certain arrangements classified as reportable bare trusts may have a filing requirement. For calendar-year arrangements that are affected, the first filing deadline will generally be March 31, 2027.

What is worth reviewing?

A bare trust can arise when the person whose name appears legally on an asset is different from the person who actually owns or benefits from it.

Examples that may warrant review include:

• certain “In Trust For” or ITF accounts;

• an adult child added to a parent's  account or property title;

• a parent added to an adult child's property for financing purposes;

• property held in one person's name for another person; and

• certain nominee or informal ownership arrangements.

Importantly, joint ownership does not automatically mean that a reportable bare trust exists.

The new legislation also contains several exemptions. For example, trusts holding property with a fair market value of no more than $50,000 throughout the year may qualify for an exemption. A separate exemption of up to $250,000 can apply to certain family arrangements holding qualifying assets, provided all of the legislative conditions are satisfied.

The facts matter, including who legally owns the property, who benefits from it, the relationship between the parties and the value and type of assets involved.

What should you do?

If you have an ITF account, joint ownership arrangement or property held partly for convenience, financing or estate-planning purposes, it may be worthwhile to identify the arrangement now.

If you are unsure whether a bare trust reporting obligation may apply to you, please contact us. As part of our tax preparation services, we can help review your circumstances and identify when additional accounting or legal advice may be appropriate.

Sources: Canada Revenue Agency, Enhanced reporting rules for trusts and bare trusts: Frequently asked questions - Canada, updated June 5, 2026; Miller Thomson LLP, Bare trust reporting in Canada: Where the rules stand, which arrangements are caught, and who must file for 2026, August 20, 2026.

Planning for Estate Liquidity

An estate plan is about more than deciding who receives your assets. It is also important to consider whether sufficient funds will be readily available when they are needed.

Depending on individual circumstances, an estate may face taxes, final expenses, debts, professional fees or other obligations before assets can be distributed to beneficiaries. Some estates may also contain substantial property or investments that the family would prefer not to sell simply to create liquidity.

Life insurance is one planning tool that may be considered as part of a broader estate strategy. Its suitability depends on factors such as your age, health, family circumstances, existing assets, tax position and estate objectives.

BMO Insurance has prepared an educational video discussing its Estate Preserver approach.

The important starting point is not a particular product, it is understanding what you would like your estate plan to accomplish.

If your estate plan has not been reviewed recently, we would be pleased to discuss your objectives and determine whether further planning with your legal or tax advisers may be appropriate.

Planning Ahead for Funeral Costs

Funeral and final expenses are subjects many families understandably prefer not to discuss. Planning for them in advance, however, can make financial and practical decisions easier for family members at a difficult time.

Costs can vary considerably depending on location, services selected and personal wishes. A useful first step is simply to consider how final expenses would be funded and whether family members know your preferences.

RBC Insurance has prepared an overview discussing some of the expenses families may encounter.

How Much Does a Funeral Cost in Canada? | RBC Insurance

Funding may come from existing savings, investments, insurance or other estate resources. The appropriate approach depends on your circumstances and broader estate plan.

If you would like to include final expenses as part of an estate or insurance review, your Macnaughton & Ward Financial Account Manager would be pleased to discuss the options with you.

Canada - U.S. Trade: Further Perspective

Trade relations between Canada and the United States remain an important economic issue. Recent tariff measures and announced Canadian countermeasures have added another source of uncertainty for Canadian businesses, consumers and financial markets. Canada has announced counter-tariffs scheduled to take effect September 8 in response to U.S. measures introduced in August.

Rather than trying to predict how individual trade developments will affect markets, we continue to encourage clients to consider them in the context of their broader financial plans.

Empire Life Investments has prepared additional commentary for readers interested in the investment implications of recent trade developments.

Read Canada–U.S. Trade: Further Perspective

We've also added this commentary to our Market Outlook Library, where you can find recent market outlooks, economic commentary and investment perspectives from leading investment managers and financial institutions.

Explore the Market Outlook Library

For clients with established long-term strategies, current events can be useful prompts for review, particularly where personal circumstances, income needs or financial objectives have also changed.

Your Questions Answered

Q: I recently inherited $400,000. What should I consider?

My mother recently passed away and left me an inheritance of approximately $400,000. I am 58, expect to retire from the federal government in about five years with an indexed pension and also expect to receive CPP and OAS.

I own a townhouse with a $150,000 mortgage, have approximately $25,000 in credit-card debt, $50,000 in RRSPs and $30,000 in my TFSA. I am single with no children. What should I consider before deciding what to do with the inheritance?

A: Receiving a significant inheritance can change your financial position quickly, but it does not mean every decision needs to be made immediately.

A useful first step is to look at the inheritance in the context of your entire financial plan.

1. Address high-interest debt

Credit-card debt is generally one of the first areas worth examining because the interest rate may be considerably higher than rates charged on other forms of borrowing.

Before paying off other debt, such as a mortgage, it is also important to review the mortgage terms, including prepayment privileges and any penalties associated with early repayment.

2. Keep an appropriate cash reserve

Some of the inheritance may need to remain readily accessible while longer-term decisions are being considered. This can also provide flexibility for upcoming expenses, emergencies or a future mortgage payment.

3. Review registered-plan opportunities

TFSA and RRSP contribution room should be confirmed before making contributions.

The appropriate amount to contribute to either account depends on available contribution room, current and future taxable income, expected retirement income and other planning considerations.

For someone approaching retirement with a substantial defined-benefit pension, the tax implications of future RRSP/RRIF withdrawals may be particularly important when deciding whether additional RRSP contributions make sense.

4. Consider the role of longer-term investments

Once debt, liquidity and registered-account opportunities have been reviewed, the remaining funds can be considered in the context of:

• time horizon;

• investment objectives;

• risk tolerance;

• expected retirement income;

• future spending;

• taxes; and

• estate objectives.

   

There is no single investment solution that is appropriate simply because funds came from an inheritance.

5. Think about future income needs

An indexed pension, CPP and OAS may provide a substantial foundation for retirement income. Before committing part of an inheritance to additional income-producing strategies, it would be useful to prepare a retirement-income projection.

That can help answer an important question:

Will you need the inheritance primarily to produce income, provide flexibility, fund future goals or leave a legacy?

6. Consider the people and causes important to you

For someone without children, estate planning can become especially important.

You may wish to consider:

• family members you would like to  assist;

• charitable intentions;

• beneficiary designations;

• your will;

• powers of attorney or representation agreements; and

• how you would like remaining assets distributed.

Helping a niece, nephew or another family member can be incorporated into a plan in many ways. The appropriate approach should be considered alongside your own retirement security first.

The bottom line

An inheritance can provide an opportunity to reduce debt, strengthen retirement security, improve financial flexibility and revisit estate goals.

Rather than immediately allocating the entire amount, we would recommend beginning with a complete review of your financial position and retirement projections. From there, recommendations can be developed based on your individual priorities.

If you have recently received an inheritance or another significant financial windfall, your Macnaughton & Ward Account Manager would be pleased to help you work through the planning considerations.

Market Outlook Library

Markets and economic conditions continue to evolve as investors consider interest rates, inflation, economic growth and developments around the world.

For readers interested in a deeper perspective, our Market Outlook Library brings together current market commentary and economic insights from leading investment managers and financial institutions.

Explore different perspectives on the markets and the factors investment professionals are watching, conveniently gathered in one place.

Explore the Market Outlook Library

Current feature: Empire Life Investments
U.S.–Canada Trade Escalation & Segregated Fund Portfolio Positioning

These resources are provided for general educational purposes and may reflect the investment partner's own views, assumptions and investment approach. Your Macnaughton & Ward Financial Account Manager can help you consider current developments in the context of your individual financial plan and objectives.

Short-Term Savings - Current Promotion

Manulife Bank Advantage Account

3.00% Promotional Interest Rate

For funds that need to remain readily accessible, a high-interest savings account can play a useful role in managing short-term savings, upcoming expenses and cash reserves.

Manulife Bank is currently offering a 3.00% promotional interest rate on qualifying net new deposits to a new personal, non-registered Canadian-dollar Advantage Account opened by September 11, 2026.

The promotional period continues for 730 days (two years) from account opening, on eligible net new deposits up to $500,000. The promotional rate currently consists of the regular variable rate plus an additional variable promotional rate, and is subject to Manulife Bank's full eligibility requirements and terms and conditions. Manulife Bank states that eligible deposits may qualify for CDIC deposit insurance protection, subject to CDIC rules.

Ready to open an account?
Use our Manulife Bank referral link to begin the account-opening process:

Open a Manulife Bank Advantage Account

If you would like to discuss whether this account is appropriate for your short-term savings or how much you should keep readily accessible as part of your broader financial plan, please contact your Macnaughton & Ward Account Manager.

FINE PRINT - * 3.00% promotional interest rate is for net new deposits to a new personal non-registered Canadian-dollar Advantage Account opened between July 2, 2026 and September 11, 2026. The promotional interest rate is made up of the regular posted annual variable interest rate of 1.50% and the variable annual promotional rate of 1.50%. Interest is calculated daily and paid monthly beginning on the date the account is opened and continuing 730 days (2 years) on net new deposits to a maximum of $500,000. After the promotional interest period ends, the account will earn a variable regular rate of 1.50%. Any change to the regular interest rate will result in a corresponding change to the promotional interest rate. The offer is limited to one account per client and cannot be combined with other offers. The offer and rates are as of July 2, 2026, and subject to change without notice. Click here for full terms and conditions.

1 As of July 2, 2026, the regular variable interest rate of 1.50% is applied to all funds in the account. Interest is calculated daily on the total daily balance and paid monthly. Rate is subject to change without notice.

Before offering this promotion, please review client suitability to ensure it aligns with their financial goals and needs.

Manulife, Manulife Bank, Stylized M Design and Manulife Bank & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by Manulife Bank of Canada under license.

Office Closure - Labour Day

In recognition of the Labour Day long weekend, our office will be closed Monday, September 7, and will reopen for regular business hours on Tuesday, September 8.

We wish you and your family a safe and enjoyable Labour Day weekend.

Visiting Us? Reserve Your Parking in Advance  

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!