Canada’s Election is Over – What’s the Next Step in Your Financial Plan

The ballots are counted, the speeches made, and Canada’s election is officially behind us. Regardless of how you feel about the outcome – hopeful, cautious, or somewhere in between, one thing remains unchanged: your financial goals still matter.  In fact, this is an ideal moment to take stock, reevaluate your strategies, and reinforce the foundation of your financial well-being.

As the new government begins to implement its agenda, many Canadians are asking, what does this mean for my financial future?  Whether you’re saving for retirement, running a business, or simply trying to get ahead, here’s a practical look at the next steps you should consider in your post-election financial planning journey.

1. Review Potential Policy Changes That Could Affect Your Plan

Elections bring promises of change and many of those promises could affect your personal finances. While legislation often takes time to pass, it’s important to stay informed about proposed and potential changes. Areas to monitor closely include:

• Personal and corporate tax rates: Will tax brackets shift? Are any deductions or credits being introduced, adjusted, or eliminated?

• Capital gains inclusion rate: This has been on again off again, so time will tell.  Proposals to increase the inclusion rate could affect how investment income is taxed, particularly for high-net-worth individuals and business owners.

• RRSP, TFSA, and other registered accounts: Keep an eye on any adjustments to contribution limits or withdrawal rules.

• Pension and OAS eligibility: Changes to retirement income programs could impact your income planning in retirement.

• Housing affordability programs: New incentives or changes to mortgage rules can significantly affect first-time buyers, real estate investors, and downsizers alike.

• Support for businesses and the self-employed: Grants, tax relief, or regulatory changes can present both risks and opportunities.

This is a good time to speak with a financial professional to understand how potential policy shifts may intersect with your financial plan, and what strategies you might use to adapt in advance.

2. Revisit Your Goals in a New Economic and Political Environment

Election results often bring shifts in fiscal policy, investor sentiment, and overall economic direction. These shifts can ripple into areas like interest rates, inflation, housing prices, and stock market performance. That’s why this is an ideal time to take a step back and revisit your personal goals:

• Are your short- and long-term goals still aligned with your financial reality?

• Is your current investment strategy still appropriate given your time horizon and risk tolerance?

• Have there been recent life changes such as a new job, a growing family, or a business expansion that require a fresh perspective?

Adjusting your plan now ensures you’re staying proactive rather than reactive. Economic conditions may change, but your goals should always remain front and center.

3. Don’t Let Politics Dictate Your Investment Decisions

It’s natural to have emotional reactions to political outcomes, especially when they seem closely tied to your financial well-being. But history shows that markets are driven more by economic fundamentals and corporate performance than by who sits in office.

Selling investments or altering your portfolio based solely on political developments can lead to poor long-term outcomes. Instead:

• Stick to your investment strategy.

• Avoid panic decisions based on news cycles.

• Focus on your own risk tolerance and financial goals – not the headlines.

A well-diversified, goal-based investment strategy is built to endure periods of political uncertainty. Consistency and discipline are far more valuable than chasing trends or reacting to short-term news.

4. Use This Moment to Take Strategic Action

The post-election period is an excellent time to conduct a comprehensive financial checkup. Even if policies are still evolving, there are steps you can take now to position yourself for a strong year ahead:

• Maximize your RRSP, TFSA, and RESP contributions, while considering future tax implications.

• Rebalance your portfolio to ensure your asset mix aligns with your current risk profile.

• Review your insurance needs, estate plans, and legal documents, like wills and powers of attorney.

• Consider year-end tax strategies such as loss harvesting, charitable giving, or income splitting where appropriate.

Taking action doesn’t always mean making big moves, often, it’s the small, consistent steps that create long-term financial strength.

5. Reevaluate Your Estate and Tax Planning

Tax and estate rules are frequently impacted by new legislation. While any changes may take time to implement, planning ahead could save your estate or business significant money in the future.

Topics to review include:

• Capital gains on inherited assets.  Will changes make it more costly to pass on wealth?

• Family trusts and private corporations: Are there shifts in reporting or taxation that could affect your structure?

• Wealth transfer strategies: Are your estate documents aligned with your wishes, family dynamics, and the new tax landscape?

Don’t let outdated documents or assumptions derail your legacy. This is a great time to revisit your estate plan — especially if it's been more than three years since your last review.

Final Thoughts – Stay Focused, Not Fearful

Elections come and go, your financial goals endure. While it’s wise to stay informed and make strategic adjustments, resist the temptation to overhaul your financial life based solely on speculation or political change.

Remember:

• Your financial plan is the anchor, not the government of the day.

• Time in the market, beats trying to time the market.

• Education, consistency, and professional guidance are your greatest assets in any political environment.

Now is the perfect time to reflect, reassess, and act. By reviewing your plan and staying disciplined, you’ll stay confident no matter what headlines dominate the news.

If you're unsure how the election outcome might affect your situation, or if you'd simply like a second opinion on your financial plan, let’s talk. I’m here to help you navigate what’s next.

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