Welcoming our First Guest Blogger - Adam Durie
Dragonfly Willow Healing Den is pleased to be partnering with Adam Durie, Wealth Advisor and Certified Financial Planner who will be providing financial information and insights to our followers.
Hello avid readers!
I’ve been privileged by Angela to offer my insight this month into the holidays!
My name is Adam Durie and I’m a Wealth Advisor at Scotia Wealth Management. I also hold the Personal and Certified Financial Planner designations. So my insight, you would likely be apt to suspect, would be from the financial perspective.
Well… yes and no.
Part of what I admire so much in the field of Psychotherapy is its diligent focus on empowerment and goal setting. Professionals in that field are experts at keeping one on track of becoming the best version of themselves. To quote my illustrious host (Angela Masuzzo): “presence over perfections, shift your perception and put a daily intention forward.” Said another way.. intent matters. I would like to think that we wealth professionals are doing the same thing but just through a different set of lenses.
Interestingly, the literature does draw some correlations between the two. Anxiety, hopelessness, depression and even more serious mental health issues have been associated directly with financial well-being. There are further correlations with mental distress and debt accumulation (Durie, 2022).
When we think of the holiday season there’s usually a mixed bag of feelings. Excitement and nostalgia are usually in the mix. Often, however, they’re accompanied by apprehension, anxiety, and sometimes outright fear/dread. It can be a tremendously taxing period of time for some people to manage – emotionally and financially.
So lets get back to goal-setting.
12 Not 2
Any plan, for anything at all, is leaps and bounds more stressful when it’s compacted, rushing towards a deadline, and on a constrained budget.
Think about planning a trip or saving towards something like a down payment for a house or education. While they’re not without their own unique brands of pulling one’s hair out… they’re still not automatically associated with stress and anxiety in the same way as the holiday season. Why is that?
I would argue that it has a lot to do with time. We plan for the former over periods of years sometimes. This spreads the financial and emotional burden over a time that’s easier to digest. After all, if you’re putting a couple of hundred dollars aside every month for two years you don’t feel it nearly as hard as $2400 all at once.
Plan for 12 months not 2… When it comes to the holidays, I would say you should start planning for next year as soon as this year is over! Always be on the lookout for sales on things you know other’s will like (buy stuff off season when they’re reduced). Allocate a holiday budget of x amount that will encompass all expenses (perhaps that’s $3000, perhaps it’s $5000) and divide it by 26 pay periods ($115 – $192 in those cases). If you’re planning events during that period of time, book them way further in advance to get the best venues at the cheapest cost.
Charitable Giving
For those of you that have existing portfolios (non-registered in nature) that hold securities such as stocks; consider gifting to a registered (key word here being registered) charity in kind.
Doing this before December 31 can potentially reduce your tax bill through tax credits. One receives 15% on the first $200 and 29% (or 33% for high income earners) on amounts after that.
When you consider this as a strategy to set you up for success in the long-run.. the compound benefits are considerable.
Don’t Forget the Most Important Gift of All
The last bit of advice I can impart is that one should never forget the most important gift of all… your future.
If you are more strategic in your goal-setting for the holiday season, it can free up your cashflow to live a more manageable lifestyle. This, in turn, can allow you to plan your future.
As a wealth advisor, and with the breadth of an entire team of specialists at my disposal, I am equipped to precisely identify what needs you require to maximize your tax savings, accomplish your goals, and enjoy peace of mind in our mutual strategy.
References
Durie, A (2022). Financial Literacy and Prosperity: An Issue of Human Rights. University of St. Andrews.
