We are thrilled to bring you valuable insights from Jeet Dhillon, Senior Portfolio Manager at
TD Wealth. In this special segment, Jeet Dhillon discusses the recent interest rate cuts by
the Bank of Canada and their impact on the financial and housing markets, as well as
strategies for managing your financial portfolio effectively.
The Bank of Canada has recently reduced its interest rate to 4.5% in July, marking a
significant shift after two years of high rates. Jeet explains, “this is indeed positive news after
two years of high rates. The rate cut is a hopeful sign, yet we still need further cuts to see
more substantial relief.” The housing market stands to benefit, but caution is still necessary.
Jeet advises that buyers need to consider their financial capabilities as mortgage rates,
though better, are still adjusting. “Buyers need to consider their financial capabilities as
mortgage rates, though better, are still adjusting,” she notes. On the investment side, bonds
are becoming more attractive as their prices are expected to rise with rate cuts.
When it comes to managing financial portfolios, Jeet recommends a balanced approach.
Each client’s portfolio is unique, depending on their financial needs, time horizon, and risk
tolerance. She mentions, “currently, our position is neutral weighting on stocks, especially
given the economic slowdown. However, bonds offer a significant opportunity due to rate
cuts.” It’s essential to balance investments, focusing on quality stocks and bonds to navigate
economic changes effectively.
Jeet also highlights the tax implications of different income types. In Canada, various income
types have distinct tax treatments. She explains, “Interest income is fully taxable, while
dividends receive favourable treatment as companies already pay taxes, making only two-
thirds of Canadian dividends are taxable.; Capital gains have seen changes but remain
beneficial; up to $250,000 in personal gains are taxed at 50%, while gains above that are
taxed at around 66%.”
For those seeking financial advice or adjustments in their investment strategies, Jeet
recommends contacting an investment advisor. “TD offers various advisory services. Our
financial advisors can help you understand your financial situation and guide your
investment strategy,” Jeet advises. Regular reviews, at least annually, are crucial to ensure
your portfolio aligns with any changes in your personal life and financial goals.
In conclusion, Jeet’s insights provide valuable guidance for navigating the current financial
landscape. For personalized financial advice, visit your nearest TD branch. TD Wealth
advisors are here to help you navigate your financial journey with expertise and care.
Thank you for tuning in to Radio Y. Stay informed and make wise financial decisions. This
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