Invest in MATCO Funds Today


Before you start planning a new vacation or purchasing a new toy with this year’s tax refund, it’s wise to consider investing it, with the world markets down year to date. When markets are down, it’s a great time to maximize your refund and set yourself up for the future by averaging into your investments. We recommend you consider three alternative options to utilize your tax refund before planning that trip to Mexico.

1. Top Up Your Tax-Free Savings Account (TFSA)

The Government of Canada added $6,000 of contribution room to everyone’s Tax-Free Savings Accounts at the start of 2022. Combining this addition with accumulated contribution room from years past has made topping up your TFSA a great option to reinvest your tax refund in 2022. Putting money into your TFSA won’t lower your total taxable income like it would if you contributed to an RRSP, but it gives you more options for short to medium-term goals over the next couple of years. The other option is taking money out of the TFSA to top up your RRSP at the end of the year to generate a refund for the next tax season.

2. Contribute to Your Registered Retirement Savings Plan (RRSP)

Want to get a head start on generating a refund for the next tax season? Contributing to your RRSP is a great option to get the ball rolling. Traditionally, an RRSP is considered a long-term investment, excluding some programs for short-term goals (first-time home buying and continuing education). An RRSP has a tax penalty if you withdraw money for other reasons, but it also grows tax-free and should generate a refund if planned correctly.

3. Pay Down Debt

With rising interest rates, paying down high-interest debt may be a priority in your situation. As a rule of thumb, we look at the rule of 4% - if the interest rate is over 4%, we recommend prioritizing debt repayment. It’s always good practice to pay off credit card debt and a high-interest line of credit in most circumstances as soon as possible. We have regular conversations around debt consolidation, and there may also be other options [see our May 18 2021 Insight Blog] for reducing your interest rate without putting your refund towards paying down the debt.

The Bottom Line

Reinvesting your refund or paying down debt should benefit your individual wealth accumulation goals. Every individual and household will have a unique circumstance as to what works best depending on their short and long-term financial goals.

With Matco, we’ll ask you simple questions about your financial goals and help get you on track to achieving them.

Book your free review today.

 

Click here to email Tom Book a Meeting Now Buy our MATCO Funds today

Tom Stachiw, CIM
Portfolio Manager
Local: +1-403-718-7792

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MATCO FINANCIAL INC.

Founded in 2006 to manage and service seven family offices, today Matco offers the benefits of our extensive investment management experience to individual investors, foundations, endowments, condominium corporations, trusts, corporations and not-for-profit organizations.

Our mission is to simplify the investment world for our clients by understanding their needs and providing exceptional investment solutions that preserve and grow capital.


 Matco Financial is an independent, privately held discretionary investment counsellor and asset management firm that serves the needs of individual investors, institutions, advisors, trusts, corporations and not-for-profit organizations. Matco provides investment advisory services to investors on a discretionary basis through mutual funds and separately managed accounts. This communication is intended for information purposes only and does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Matco Financial Inc. makes no representations as to the accuracy or any other aspect of information contained in other websites. All statements that look forward in time or include anything other than historical information are subject to risks and uncertainties and are not guarantees of future performance. Investors should not rely on forward-looking statements. Actual results, actions or events, could differ materially from those set forth in the forward-looking statements.

For more information please visit www.matcofinancialinc.com
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Our mailing address is:
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