CG Wealth Management October Newsletter
Personal Note From Chris Getzlaf
As we close out the month September, and quarter 3 (Q3) all together, I hope you were able to enjoy all that summer had to offer. With the official beginning of fall and the restarting of all things busy (work related, family related, school related, etc.) I wanted to quickly touch on the RESP season that we are in.
RESP Season
We are nearing a month into the new fall semester for university students. If you’re a client who has a Registered Education Savings Plan (RESP) and are planning on making a redemption to pay/help pay for your child/grandchild’s education, what we need to unlock monies from the plan is a copy of the student’s proof of enrollment and proof of pay for the fall semester.
If you’re reading this, have a child or grandchild who is not yet in post-secondary education, they will likely attend in the future years, and you’re wanting to help them pay for their educational costs, a RESP could be for you! Some key information about this type of plan are:
-It is a government-registered plan, whose goals is to help individuals save for their children/grandchildren’s post-secondary education.
-You can invest the money within a RESP, like how one would with a TFSA or RRSP.
-When to deposit money into the plan, you receive a government grant (the Canadian Education Savings Grant – CESG) of 20% on contributions up to $2,500 per year per child. Low-income individuals may be eligible to receive additional government funding when they contribute to the plan through the Canada Learning Bond (CLB).
-Investments grow within the RESP tax-deferred until they’re withdrawn. When a withdrawal occurs, typically any government grant received and any interest earned on investment is taxable to the beneficiary, aka the student. However, the student will likely have low to no taxable income as they’re in school, so taxes owed from the withdrawal could be low to nil. Not to mention that with school comes the potential to claim expenses that could further reduce any potential taxes owed.
-You can contribute to a RESP with a regular deposit schedule or through lump sum deposits throughout the year.
If you’re interested in learning more about RESPs and if they would be right for you, send me an email and I would be happy to discuss.
Send your questions about RESPs!
-Chris Getzlaf, Partner at CG Wealth Management
Market Updates
The top headlines in the market in April were:
Markets Continue to Rally:
The S&P/TSX Composite Index, Canada's stock market benchmark, delivered strong results in September 2025, rising approximately 4.92% for the month and contributing to a robust Q3 overall. The index gained over 11% in Q3 (12.5% including dividends), outperforming the U.S. S&P 500's 7.8% (8.1% total return) for the quarter. This performance defied seasonal weakness and broader economic headwinds. Year-to-date through September, the S&P/TSX Index is up over 20% reflecting resilience amid global uncertainties.
Small Caps and Value Outperform Large-Cap Growth in Q3:
In Q3, we broadly saw sector rotation occur within the market as the Russell 2000 (a U.S. index that measures the performance of 2,000 small-cap companies within the U.S.) outperformed the S&P 500 (which tracks the performance of the top 500 companies in the U.S. – like Apple, Google, Meta, etc.). During this timeframe, the Russell returned over 14% whereas the S&P returned 9%.
US Government Increases Deals and Equity Stakes with Local Companies:
The U.S. government significantly expanded its engagement with private companies through a mix of traditional contracts and innovative equity investments. This shift aimed to bolster strategic sectors like semiconductors, critical minerals, AI, energy, and defense. Some of examples of these deals can be found below by clicking on the title
Macroeconomic Updates
The top headlines in the macroeconomic sphere in April were:
Interest Rates Cut in Q3:
In Q3, the Bank of Canada (BoC) held two interest rate announcements (July 30 and September 17) and one monetary policy report. On July 30, the BoC held the overnight interest rate at 2.75%, citing high economic uncertainty from tariff fueled global trade as the primary reason for the unchanged rate. On September 17, the Bank of Canada (BoC) lowered its overnight rate by 0.25% to 2.5% - its first cut since March - citing tariff-induced damage to growth and employment, alongside cooling inflation at 1.9%.
Canadian Unemployment Rate Surges to 7.1%:
August's labor data, released early September, revealed a net loss of 66,000 job and pushed the unemployment rate to 7.1%, a nine-year high outside the COVID period. Manufacturing, transportation, warehousing, and professional services led in the greatest decreases in employment.
Inflation Eases to 1.9%, but Tariff Risks Loom for Price Pressures:
August’s inflation data, released in mid-September, showcased a 1.9% increase in The Consumer Price Index (CPI), year-over-year. Prices at the pump contributed the most to the acceleration in the all-items CPI. BoC reports warned that sustained U.S. tariffs could reignite inflation via higher import costs.
Learn: The Power of Life Insurance
Debt is a part of life for many of us—whether it’s a mortgage for your dream home, a car loan, or credit card balances from unexpected expenses. But what happens to those debts if you pass away unexpectedly? Without a plan, your family could be left struggling with payments, facing financial stress, or even losing assets like your home or car. Life insurance is a simple yet effective way to manage this risk, ensuring your debts don’t become a burden for your loved ones. Life insurance is a powerful tool as it can cover outstanding debts, protect your family’s financial future, and give you peace of mind.
Let’s explore how insurance can help your family, the most common types of policies, and why it’s a smart move for anyone with debt.
How Life Insurance Can Cover Your Debts?
Regardless of the kind of policy you may choose, by matching the policy amount to your debt (e.g., a $250,000 policy for a $250,000 mortgage), you ensure your family isn’t left with unmanageable bills. An additional perk of Life insurance is the flexibility it provides to your beneficiaries. Rather than be forced to use the entire payout from the policy for one specific thing, a person could choose to do what they want to do with the money – clear the debt entirely, keep making regular payments on the debt and invest the policy payout, or a combination of both.
The Kinds of Insurance Policies
Not all life insurance policies are the same. Here’s a simple breakdown of the three most common forms that can help manage your debt:
Term Insurance
What it is: Covers you for a specific period (e.g., 10, 20, or 30 years) and pays a death benefit if you pass away during that time.
Best for: Debt protection on a budget. It’s the most affordable option, ideal for covering temporary debts like a mortgage or car loan.
Example: A 30-year, $200,000 term policy can match your mortgage term, ensuring the home is paid off if you pass away.
Pros: Low premiums, straightforward, and flexible terms.
Cons: No payout if you outlive the term and no cash values are built within the policy.
Whole Life Insurance
What it is: Covers you for your entire life and includes a cash value component that grows over time, which you can borrow against.
Best for: Estate building purposes, long-term financial planning, or if you want a policy that builds savings while covering debts.
Example: The death benefit can pay off debts, and the cash value can be used during your lifetime for emergencies or debt reduction.
Pros: Permanent coverage that builds cash value, has predictable premiums, and beneficiaries receive the payout tax-free
Cons: Higher premiums than a term policy
Universal Life Insurance
What it is: Offers lifelong coverage with flexible premiums and death benefits, plus a cash value that grows based on interest rates.
Best for: Estate building purposes, those who want flexibility to adjust payments or coverage as debts or financial needs change.
Example: Adjust the policy to cover a growing mortgage or reduce coverage after paying off debts.
Pros: Flexible, builds cash value, provides permanent coverage as long as premiums are paid, and beneficiaries receive the payout tax-free
Cons: Premiums can vary, and cash value growth depends on market rates.
Which Policy is Right for You?
While you may be able to see how one of the above policies could be a fit for you and your family, that is where our team comes in. As Chris is licensed broker for Life Insurance, he would be happy to sit down and talk through if a life insurance policy is right for you and which one can most benefit you and your current situation.
