Nicole Ewing

[music]

Hello, I'm Greg Bonnell.

Welcome to MoneyTalk Live, brought to you by TD Direct Investing.

Every day, I'll be joined by guests from across TD, many of whom you'll only see here.

We're gonna take you through what's weaving the markets and answer your questions about investing.

Coming up on today's show, we'll discuss what you should be thinking about when it comes to your personal finances as we head into a new year with Nicole Ewing, director of tax and wealth planning at TD Wealth.

And in today's WebBroker education segment, Jason Hnatyk from TD Direct Investing is going to take us through how conditional orders work and how you can use them on the platform.

So here's how you can get in touch with us. Just email moneytalklive@td.com or you can fill out that viewer response box under the video player here on my broker.

Before I get our guest today, let's get you an update on the markets.

A bit of a choppy session. The big story, I guess, globally, is the Bank of JapanDidn't necessarily change its trendsetting rate but tweaked some of the rules around its yield curve control, namely on the 10 year period that seemed to send hawkish signals out to the market. The young jumped, the US dollar pulled back.

US equities are struggling in this environment. We have some green on the screen at the TSX Composite Index, up about 76 points, a little less than half percent. Some of the energy names have been playing catch up.

Not seeing a huge move in the price of crude today.

It's a bit negative now.

Let's check in on some of those big names. Suncor up to the tune of a little more than 1%, 41 bucks and change.

Some of the miners on the move as well today, let's check in on Kinross Gold. Right now, it's up to the tune of 4%. Five bucks and $0.72 a share.

South of the border, he got the S&P 500, the broader read of the American market, it is modestly positive, and has some sort of rally.

The last couple weeks have not been kind to the broader equity markets. People wonder about the Santa Claus rally, well, it's getting close to the end of the opportunity for one. Today, it's up about 1/10 of a percent. Let's check out the tech heavy NASDAQ and see how it's faring right now.

It is in negative territory.

Nothing too dramatic, down 30 points, a little shy of 1/3 of a percent. And Exxon, want to see some of the American energy names holding onto their gains.

Even though crude is modestly negative with the benchmark, 106 bucks and change at Exxon up 1.6%.

That's your market update.

With 2023 almost upon us, the holidays can be a good time for families to assess their household financesand position themselves for the year ahead. Joining us now for more is Nicole Ewing, director of tax and estate planning at TD Wealth. The goal, welcome back to the program. A timely discussion so let's just jump into it. At this time of the year, where sure had to be when it comes to our personal finances.

>> Well, as always, Greg, we want to be thinking that our overall plan and reflecting on whether or not we have executed on that plan this year and what we can do to put ourselves in a better position for next year. So a couple of things that really stand out right now, we are coming up to the last few days of December and December 31 is the deadline for a number of our strategies that we might want to put in place. So RESP is, for example, these are registered education savings plans, they have time limits on this. So we want to, for those who may not be aware, you have the opportunity to contribute up to $15,000 for the education of your child or grandchild or other family member, and there are government grants that come along with that, so we make our contributions each year and the government will match, give us a grant, up to 20% or $2500. So if you have not yet contributed to your $2500 minimum this year, I recommend going ahead and doing that.

If the beneficiary we are talking about has turned 15 this year, that's a really critical date, so if they haven't created a plan before now, 15 is the year that you need to make these contributions to get those grants in play.

If you are 17, if they turned 17 this year, then December 31 is going to be the last opportunity again to get thatgrant in place. So just thinking about what you might want to do there.

And then on the withdrawal side, you will want to reflect on what your beneficiary's income is for the year. So if they are in school, they are accessing some of these funds, you want to see if there is an opportunity to pull out as much as you can from the educational assistance amounts and ensure that those are taxed in the lower rate of the beneficiary. So December 31 as a key date for RESP's.

Other things, as we know, deadlines for TFS say is, and of the year, December 31, you get your money in and that will trigger again it on January 1 with an additional amount. Tax-loss selling, December 31 is the deadline for that.

So a number of things you want to be thinking about.

>> When it comes to the tax-free savings account, I want to dig a little deeper because perhaps people who haven't availed themselves of that vehicle are sometimes confused by the name savings account.

It's much more than that.

And sometimes don't realize what contribution room they might have, particularly if they have never used the vehicle.

>> It's an incredible opportunity, frankly, one of the best we have in Canada to grow our savings and investments.

It is tax-free savings account, but it's intended to be used for both short-term and long-term goals, and we have the opportunity to invest in securities, ETFs, all of those sorts of moneymaking vehicles and you have then the opportunity to have that income growing tax-free in the account. And, when you pull that money out, it is also tax-free. So quite significant. This year $6000 is the annual limit, which brings us to, if you have been qualified since the beginning, when this was first introduced, you would know how contribution room of 81,500, going up again next year, $6500 additional room, which will bring us to 88,000. So I know in the early days, when they were first out, they didn't necessarily get the attention of people because it was seen like a modest amount. But certainly when we are over $80,000 of room and you think of that invested in growing tax-free, that's a great opportunity to really grow your investments in a very effective way.

> This is also the time of year, of course, when you think about charitable giving. If you been doing well, you pass along.

We have some deadlines for tax purposes on that front?

>> We DO, so to summer 31st is the deadline for charitable donations as well.

Be mindful that when we come up to the end of the year, if you are thinking about contribute in securities, which again is a very effective tax effective way of making a charitable donation, you want to be reaching out to those to charities very quickly because they do have time frames in place where they are able to accommodate the transfer of those securities in kind and we are really pushing up against it.

The Marc may been missed but it's worthwhile to reach out to charities directly and see if it's still an option.

Otherwise, we can make our charitable donations right up to December 31.

But I wouldn't recommend leaving it that late. Do it today.

>> You mentioned tax-loss selling as well. Obviously, this has been a year where people may have some losses in their portfolio based on the performance of the broader markets.

What we need to be mindful there as we ticked down to 2023?

>> Again, December 31 is going to be ourLimited to crystallize our tax losses for this year.

We want to again be mindful of yes, December 31 is the deadline for tax purposes, and we need to get our institutions the time to settle those trades and make sure they've gone through. So December 28, very, very, very last minute to get your securities sold and get those moving and settled by the end of the year.

But really, at this point, you should know what your strategy is, you should know what your gains are, how many losses you want to crystallize.

Keeping in mind, again, that if you engage in that type of selling, you want to be mindful of the superficial loss rules, not repurchasing that same security within 30 days, but we can look at that again in January and either by that same security or you can now, if you sell a security, you can buy a similar security within that 30 days and still be safe.

But again, December 28, very last possible minute. I would encourage our viewers to really think about that today. Today is the deadline for everything, according cynical!

>> No better time than the present.

These are the hard deadlines that are important to keep in mind as we head into a new year. What about maybe taking some time over the holidays, even though it can be a busy period, to think about what kind of position you want to be an extra financially?

>> This is where we really need to reflect and this is been a challenging year for a lot of people.

A lot of unexpected, extra expenses, perhaps higher payments on our debts. We want to put ourselves in is best to position as possible going into the new year.

That means sticking to our budget.

That means not overspending during the holidays. Not getting carried away with it.

And having a plan that we are going to put some of those funds, if we are going to go in debt and have some of that on our credit card, for example, to have a plan in placeto pay that back as quickly as possible.

It's very easy to get lured by the joy of the season, particularly those of us who are last-minute shoppers to go a little bit overboard out of guilt or overcompensation.

But that's a poor strategy. Jester member that your loved ones don't, you know, their affection for you is not dependent on the gifts that you are getting them so make sure that you are not overstretching yourselves and that you position yourself as best you can.

Get together all of your records for the year, collect as much as you can and that will put you in a much better position to do your filings in the new year for tax purposes and to reflect on whether or not any changes need to be made to your financial plan. Do we need to do some rebalancing?

Do we need to think about has this year changed the way that you think about risk and your risk tolerance? For a lot of people, that may have changed.

So looking again, taking it was an opportunity to say, heading into the new year, what do I need to do to put myself into the position I want to be in at the end of next year?

>> Great points and a great start to the show.

We are going to get your questions about personal finance for Nicole Ewing at any time. You can get in touch anytime. Email MoneyTalk Live@TD.com or fill out the viewer response box under the video player on Whataburger. The first let's take a look at the top stories in the world of business and how the markets are trading.

Shares of IAMGOLD are on the move today, that on news that the Toronto-based gold miner selling its Boto project and surrounding assets in Senegal for $282 million US. The buyer is Casablanca listed Managem, which is active in half a dozen African countries.

IAMGOLD is up to the tune of more than 25%.

Magna International making acquisition to bolster itself driving and assisted driving technologies. The auto parts maker's pending $1.53 billion to buy the Veoneer Safety business from SSW Partners.

Their technology provides drivers with warnings aimed at preventing accidents.

Quick check in on Bay Street and Wall Street.

We will start here at home with the TSX Composite Index.

We are still in positive territory.

We are seeing money move towards energy and names and minors.

Not just IAMGOLD, some other names are getting bids as well.

The TSX Composite Index is up to the tune of a little more than half a percent, building on those earlier gains, it's up 126 points. South of the border, the S&P 500 is on the higher side of breakeven, it's up 10 points or record percent on that broader read of the American market.

We are back now with Nicole Ewing, taking your questions about personal finance, so let's get to them.

The first one off the top, Nicole, how do bare trusts work?

> Okay, so bare trusts, interesting concept.

I've been hearing more about that this last year. When wetalk about her trust, we are separating the legal ownership from the beneficial ownership.

So typically when we have a trust in place, money is contributed to the trust and the trustees have an obligation to exercise their authority, sometimes their discretion, in making decisions about the trust property for the benefit of the beneficiaries.

With a bear trust, it's a bit of a different situation because the trustees really don't have any authority beyond following the instructions of the beneficiaries.

So we call the bear trust essentially an agency type relationship where the legal owner of the trust is really following the instructions of the beneficiaries.

So for tax purposes, we don't see this as a trust. We are going to tax the income in the hand of the beneficiary. It is still a trust, but for tax purposes, we are not taxing any income of the trust. It's going to be taxed in the hands of the beneficiary.

So a bear trust might be used for things like privacy, if we are trying to not necessarily disclose who has the beneficial ownership of a property, if there are multiple beneficiaries or owners of the property, it might be a convenient way of doing it. Other times, it's on particularly in Ontario for probate planning purposes.

If a corporation is the parent trustee, we can potentially transfer some property into a trust that will then be governed by a secondary will that doesn't require probate and is essentially carved out of value of the property from the estate, we don't need to pay our 1.5% estay demonstration tax on it. So it's often used for that purpose, but it's… If there are any terms of… Terms of a bare trust that our beyond simply have a legal ownership and having instructions for the beneficiary would not qualify as a bear trust and we be looking at aregular trust or a… Trust and the trust rules would apply to that, which are quite different in terms of how income is taxed and the obligation of the trustee and beneficiary.

We want to make sure we know what type of trust is. But you may have a bare trust, for example, if you are in a joint account situation and really it you are holding legal title for a beneficiary where you may have two people on the legal paperwork and one of them might be the true beneficiary.

So if you have any questions about bare trusts, I would recommend speaking with a lawyer who can advise you about how they are used and why we need to be cautious about them, but it's an interesting topic. It came up this year quite a bit because there are new trust reporting rules that are coming into play. They were supposed to or were originally was indicated they were going to come in to place the end of this year. They will now come into place, be effective for year ending December 31st, 2023.

So there was a question of whether these rules would apply to bare trusts.

Citing that's why they might have been in the media a little bit more than typically. But yeah, it can be a very effective tool in the right circumstances.

>> Interesting breakdown of the space. I learned a lot from that one. I know the audience is going to learn a lot of the entire show.

Let's go to another question.

Here is someone asking, what can you do to avoid paying BC probate fees when you inherit real estate?

>> Interesting. Okay.

How do I… So beneficiary doesn't pay the tax. It is the estate which is going to be responsible for the tax. So when we pass away, we are deemed to have disposed of all our assets at the fair market value and our estate acquires them at fair market value.

So if there is gain in that, including real estate, my terminal tax return, my year of death tax return will include all of those assets.

Once they are in the estate, the tax has been paid at that point or… The responsibility of the estate and the deceased..

The beneficiary of any real estate property would not be responsible for the taxes unless there was something in the will that said that they were.

But there's a lot of strategies in BC that can be used to avoid the requirement to need probate when transferring real estate.

So we have joint right of survivorship. The jointly held properties and on the death of one of those individuals, they will be… They will fall off title and the remaining joint owner will be the sole owner of the property, so we won't have any probate… Any need for probate, it's passed automatically.

There is also secondary wills in BC that allow you to, in certain circumstances, perhaps with the bear trust example, have assets going to your secondary will that will not need to be subject to probate. There are also a very common strategy in BC is the use of alter ego trusts or joint partner trusts during lifetime, and they would then, any assets in that trust on death are not subject to probate because they are outside of the estate.

So there are some strategies to look into. I certainly recommend speaking with an estate lawyer who can help give you some suggestions on how to approach that situation. But the income taxes are the responsibility of the deceased and the estate, and the probate taxes to the extent that they are required would be the responsibly of the estate. So by that point, by the time the assets are in the recipient's hands, there will be any additional taxes to pay at that point, but we want to try to avoid these earlier taxes as best we can.

>> Interesting stuff.

Let's get to another question. This one about we talked about off the top, wanting to donate holdings to charities. This person says, I want to donate my stock holdings charities when I pass.

Would I face a capital gains tax?

>> Well, hopefully not.

If we plan properly, no. On death, we are deemed to have disposed of all of the assets and the estate acquires them and there are a few different ways when it comes to a charitable donation at death that things can be structured.

So it can be structured that the gift is made through the will. It can be structured so that it's paid through the estate.

But we want to be very careful about these rules and ensure we are actually getting the benefit of the full charitable tax credit.

Depending on the value of your securities and how much of a gain on them there is and whatever other income on your property in your year of death, we want to make sure that we are actually able to use the tax creditagainst your income.

Unfortunately, I've seen a situation a few times where someone is being very generous in making a donation, but there is a mismatch between when the nation is going to be, the credit is going to be a rising and the taxes going to be deal, so we want to make sure that we've connected those. But yes, if it is done properly and if things are done with the help of an accountant and a lawyer, then just as in lifetime, if you gift those securities to a registered charitable organization, then there will be no tax on those gates.

It's a very effective strategy. Reaching out to an accountant to determine should you be utilizing some of that tax credit now will, would you be able to be in a better position if you started making those donations on an annual basis to reduce your current income to the point that they'll actually get the benefit now during life and potentially have more funds to leave to charity?

With the language is going to be critically important here so we want to make sure that the will gives the trustees and the executor the authority to actually make the gift if that's what intended and give them the powers to do the tax planning that might need to be involved.

So some people might put this in a will and use a formula. I used to do that in private practice many years ago, or we would say that the give to charity is equal to the amount that would be to reduce the capital or income 20 and beyond that, we are not going to make the donation. But there are many ways to go about it.

But again, gifting of securities is a very effective strategy both in life and also upon death.

>>fascinating stuff. As always, at home, make sure you your own research before you make any investment or personal finance decisions.

We will get back to your questions about personal finance for Nicole Ewing in just a moment time. A reminder that you can get in touch with us anytime.

Just email moneytalklive@td.com.

Now, let's get our educational segment.

conditional offers are one tool that investors can use on WebBroker. Jason Hnatyk, client education instructor with TD Direct Investing has this explained.

>>conditional orders are a very useful tool that investors can implements in WebBroker. There are many reasons to use these. The two that jump out to me it would be one helping you implement a trading plan to help remove emotion from your trades.

That can be easier said than done when we are talking about our money. But it allows you to set entry and exit signals and define the amount of risk you're willing to take on a trade, so it can be very helpful to use conditional orders not matter. Second of all, it helps to automate the process. We don't need to be tied to our computers, we don't need to have our face in her phone.

Especially at this time of year, we've all got lost going also a conditional order can help free you up to kind of maybe enjoy the holidays.

Let's jump into WebBroker so I can show you how to use this very convenient tool.

I happen to be in the order strategies to get right now. We will jump back to this in a moment.

But just to show, therefore separate conditional orders available all with different outcomes and stages.

I would really recommend taking a look at the photos and description.

they do a great job of speaking to what each of these conditions is all about.

We are going to be focusing on the one cancels other order here today.

Also known as an OCO. this order uses a limit order as well as a stop order in its most common iteration and it is intended to, you are putting into separate orders. Whichever the first order is to execute,it will then cancel the second order to ensure that you are not oversold on your position.

So it would be used when you already own a position and then that you are bracketing your existing position with an exit strategy to take your profits and limit your losses, whichever comes into play. So let's jump into a chart so I can bring up a little bit of the visual and then we will go ahead and place the orders so you can see how easily can be accomplished.

I have a chart here of a commonly held ETF. Let's go ahead and draw a line on the chart, to show us a hypothetical entry point on the position. We've entered into the stock at this particular time. Now, we want to, through our trading plan, we have a goal at which we would like to achieve from our proper perspective but on the flip side of things, we have a maximum exposure, a maximum loss that we would like to stop us out if we happen to get that low.

So that potentially it would be the stop price at which would be able to enter our order. So the order comes down.

We have order protection place. But if things go our way, we also want to have an order in place to get us out so we can capture our profits, so with that very rudimentary drawing of on the screen, you can so we got our entry points and a bracket with an exit strategy to take our profits or limit our losses if the worst comes to bear.

So now I will jump into the order ticket so we can walk through placing the order to see how easy it is to accomplish this particular strategy. So we're going to go back to the buy sell button in the top right-hand corner of the screen here. Then, we are going to choose the strategies tab from aboveand now we are back to our choice of the different conditions THAT WE HAVE ON wEBbROKER.

I'm going to go back to one cancels other.

There is really no difference between doing your single orders. It's just that there happens to be two separate buyer two separate tickets that will be said in unison and once again, with the two tickets, whichever executes first, that will cancel the other one.

So let's go ahead and get our symbol and that we are using from our chart.

Let's go ahead and execute our bracket.

Just for consistency, I always like to enter my profit-taking order first.

It's muscle memory to make sure I am doing thisin the right order for my own cell.

So let's go ahead and put our profit order in place.

One tip, we need to ensure that when we are setting our expirations for a particular order, they have to match for both conditions. I will choose counsel for my limit and I will do the same when we go down to the second orderand get that in for the stop order as well.

we will choose sell, we will get the same quantity in and we already have the profit-taking order and here's a let's go ahead and choosethis to get some downside protection if the particular ETF drops down and then it would take us at a small loss.

Once again, getting in that good till cancel expiration.

Setting up the order is just as easy as that.

The order entry process is really the easy part. It's determining what stocks get into and what your entry and exit points might be, but once again, conditional orders are a great opportunity to not only protect yourself but to help automate the process to ensure that you have… That you can easily implement your trading strategy and make it work for you. WebBroker can be a big help with that.

>> Our thanks to Jason Hnatyk, client education instructor at TD Direct Investing. Make sure to check out the learning centre on WebBroker for more educational videos, live interactive master classes.

Do you have a question about investing or what's driving the markets? Our guests are eager to hear what's on your mind, so send us what's on your mind.

There are two ways you can get in touch with us. Send us an email anytime@moneytalklive@td.com.

or you can use the question box right below the screen here on WebBroker. Just writing your question and its end.

We will see if one of our guest can get you the answer right here at MoneyTalk Live.

We are back now with Nicole Ewing, take your questions about personal finance. Let's get to them. This one just came in.

can I put anything other than stocks and bonds into a tax-free savings account?

>> So yes…-ish.

There are some restrictions. It needs to be a qualified investment. But outside of stocks and bonds, you can do ETFs, mutual funds. They can go in there as well.

But double check and make sure that they are qualified investments for going ahead. But generally speaking, anything that we would be working with at TD should certainly qualified to go in. So stocks, bonds, ETFs, mutual funds, they can all go in.

>> A very straightforward one there.

Help that viewer out. Let's get to another viewer question. Lots of your questions coming in for you, Nicole.

If I sell a stock for tax-loss purposes, can I buy back in the same year if those 30 days have passed?

>> So let's say 31.

So yes. There is no will, the year over year is not the concern. We want to be mindful of the 30 days before and the 30 days after. So as long as we are outside of that sort of 60 one day window, then we can repurchase the same security without having those original loss rules applying. And I want to always say make sure you know what your spouse is doing in that situation as well because if they are buying or selling that same security, that is going to be looked at with your trades as well and they need to both be outside of that range.

For superficial loss purposes, you are linked with your spouse and any of your trades are going to be included in whether or not there is a superficial loss or an appropriate loss. So your spouse, all of your accounts, if you are buying within different types of different accounts or if you have accounts at different financial institutions perhaps, be aware of what is being bought and sold in those accounts.

Outside of the 30 days after the sale, you are free to repurchase that without any concern.

>> I have to admit that the first time I heard about that's best thing I was a bit surprised. I was like, really? Okay.

Better make sure you get that coordination in terms of your financial plan.

>> It's tough. This is one of the rules that people find out about when they're being audited for another reason. It's always going to be on the radar of CRA. It might not be something that they catch every time. But we really want to be in a position where we are not caught off guard by these sorts of rulings and certainly if you… If your taxes are being looked at for any reason at all, then that is something that could catch you up. And as we go forward into these higher interest rate environments for next year as well, if you underpaid and need to pay CRA amounts owing, it will be higher now than in the past.

the stakes are getting but more expensive.

So let's be as careful as we can to comply with the rules.

> Important reminders there. Let's get another question now. If you are saying, hi for that the rules for making loans to family members as a part of investing strategy have changed.

Can you explain?

>> I think we are talking about the prescribed rate loan strategy here and the strategy is still the same.

It hasn't changed. What it means is there are attribution rules between certain family members, so spouses and minor children, that if I gift or make a loan to you and you are my spouse, then any income you earn is going to be attributed back to me. A way around that is making a loan to the spouse at the prescribed rate, so that's the rate that the CRA sets as a fair market value loan.

It has been, it was at 1% for quite a while and that's a very effective strategy than that people make a loan to their spouse, charging 1% interest. The interest would then need to be paid back to the lending spouse, who would need to include that in their income, but if the spouse invested those funds and earn more than that one percent,… That was a good opportunity to get him into the hands of a lower earning income spouse. That rate has gone from 1% to currently 3% for another 11 days, and in January, it's going up to 4%. So 4%, really, the type of investments that we are doing that guarantee an income above that are less than they would be if it was at 1%, so something… The strategy might not be as effective as it would've been even just earlier this year. But if you were in, if you did manage to get a prescribed rate loan in place at these lower rates, 1%, for example, make sure you comply with the requirements so that that loan can continue. So if you don't pay your interest on the loan by January 30 the following year, the benefits go away. It's no longer considered, the attribution will kick back and we don't get the benefit of that planning strategy anymore. So making sure that you pay for January 30, making sure that you pay very obviously, perhaps a check going from one account to another, be careful if it's from a joint account back into a joint account, that's quite difficult then to prove that the income was paid by the appropriate person.

So if you already have one of these loans in place, make sure that you preserve it by paying by January 30.

If you have the opportunity to have a higher income of… Over the 4%, that might still be a strategy to think about. But not necessarily as compelling as it was just a short time ago.

>> Very important updates there. Points to consider for those looking to avail themselves of that strategy.

We are going to get back to your questions about personal finance for Nicole Ewing in a moment. Make sure you do your own research before you make any investment or personal finance decisions.

as Canadians continue to weather record high inflation, raising borrowing costs and inflation are forcing many consumers to spend more cautiously.

Anthony Okolie's been digging into the latest retail sales data and its applications for our economy.

>> According to statistics Canada, Canadian retail sales rose month over month. That's the biggest increase in five months and if you look across the country, retail sales were up in nine provinces, led by Québec and Alberta, but it fell in Ontario.

When we dig into the numbers, the gain was entirely due to higher prices.

Adjusted for inflation, sales volumes were actually flat for the month.

However, the agency said that there November advance estimates showed a decrease in half a percent. TD is also forecasting, based on their internal spending data, they suggest a similar drop in November.

Now when we break out the retail sales data by sector, as the chart shows, sales rose in 6/11 categories.

Leading that rise: gasoline prices, gasoline sales.

They rose for the first time since June, thanks to higher gas prices in October.

Of course, OPEC announced some production cuts, which helped increase the price of gas last month.

Sorry, in October. In terms of volume, gas sales were actually lower. Higher prices turn drivers off during the month. We look at some other categories, sales at food and beverage stores posted their second rise in five months.

It says higher price sales at supermarkets and grocery stores. Not a surprise. We did see the recent CPI data that showed price increases for food bought in stores rose 10% year-over-year.

So again, we are paying more for things like food and gasoline during the month. Meanwhile, core sales, which excludes auto and gas, it Rosemont the remote.

It makes up for the loss of September. Overall, TD Economics says that this report suggest that consumers were a lot more frugal in November, given the triple threats of higher inflation, rising interest rates and the hit to wealth. Greg?

>>it's pretty interesting. You see a headline, again, it's about paying higher prices for things, never seeing a bit of a pullback. Words that set us up for 2023 in terms of spending?

>> TD Economics says that Canadians will be hit with higher debt servicing costs and that point had their household finances quite hard, not just over the holiday season but into 2023.

This is even if the Bank of Canada sort of puts a pause or breaks on its rate hikes.

Debt servicing costs are expected to surpass pre-pandemic peak in the second half of next year. As expected, consumer spending on discretionary goods and services will likely come to a standstill, according to TD Economics, in 2023.

>> Interesting stuff as always.

Thanks.

>> My pleasure.

>> MoneyTalk's Anthony Okolie.

A quick check in on the markets. See if we are holding onto the green on the screen. In Toronto, the TSX Composite Index, we are up with a triple digit again, hundred 19 points, little bit more than half a percent.

Seeing some of the energy names benefit today. We also noticed that Air Canada was higher. It has gains up to the tune of a little more than 3%.

we've got Crescent Point energy making some gains earlier in the session that are still there.

but it's not there for me at all. Look back… What you really want is Nicole Ewing And her insights into personal finance. Want to live any longer.

Let's take another question here.

Nicole, where to start when setting up a will?

>>Good question. I always encourage people to do so, to start by starting.

Don't let perfect be the enemy on this. Let's just do the best thing that we can. So my tips to start, put together a net worth statement.

So looking at what you own, how it's held, is it held jointly?

What type of an account are your assets in? What liabilities do you have? So get all of that information together so that your lawyer can help review all types of assets that you have and help you work through what the best strategy would be, looking through your beneficiary designations, looking at who would be… Whether there are tax benefits to certain beneficiaries, these are all things your lawyer needs to look at and they need to know who owns your assets and how they are held.

Who do you want your beneficiaries to be?

I would encourage you to not only think of… Many people sort of default to children, but what if there is a common disaster? This is a question that is often asked and it brings the meeting to a standstill and people say they haven't thought about this. Giving a thought to who would you want to have those assets in an individual or charityin the event of a common disaster and your original beneficiaries had deceased you?

Also thinking about who your guardian might be for any minor children. That's another one that kind of stops people from moving forward is there not sure how to think about that.

Another issue that comes up a lot is who name as the executor. Who is going to actually administer your estate?

And if there is nobody that comes to mind immediately, which is another reason people don't move forward, I would encourage you to think about a professional trust company, so Canada trust company for example, they have trust officers who can work with you in getting your will in place. They can act as executors, they can act as co-executors with your loved ones, but they would essentially do all the administration of the estate and carry that burden.

They can also work with you and putting your will into place to make sure that they are able to follow the instructions and that there are no issues there.

So if you're not really sure how to start, I would encourage you to either reach out to a lawyer or to a trust officer or trust company to go through that with you.

There are a lot of questionnaires out there. Many lawyers have questionnaires that they will send to you with the information they will need unit so getting that in advance, having a look at that and going through some questions would be a great place to start.

>> Nicole, always a pleasure. We run of time for questions.

We have not run questions, we have just run out of time. It means we have to have you back real soon because the audience always wants to pick your brain.

Thanks for joining us.

>> My pleasure.

>> Our thanks to Nicole Ewing, Dir.

of tax and estate planning at TD Wealth. Stay tuned for tomorrow show. Beata Caranci, chief economist at TD Bank is going to be our guest, taking your questions about the economy.

I know you have questions about the economy, about the year we have had in the year we will have ahead.

You can find previous episodes of MoneyTalk Live at moneytalkgo.

ca.

You get a head start with any question you have by sending it into moneytalklive@td.

com.

That's all the time we have for the show today. On behalf of me and Anthony and the MoneyTalk crew, thanks for watching and will see you tomorrow.

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