PrattePortfolio Management is an independent investment firm based in Montreal, Ottawa/Gatineau and Mont-Tremblant. It is dedicated to providing customized financial solutions to meet the needs of affluent families, entrepreneurs and institutional investors.
We offer active investment strategies that combine quantitative analysis, technical analysis and risk management to optimize returns. Our investment solutions are designed to adapt to changing market conditions.
We offer a range of products, including
- Pratte North American Equity Fund
- Pratte Income Fund
- Growth, Balanced and Conservative mandates
Our mission is to support our customers with expertise, building relationships based on trust and transparency. Find out more here.
Our approach is based on rigorous analysis and a long-term vision. We monitor markets to seize opportunities. Our investment solutions are designed to be robust and dynamic. Find out more here.
You can consult our yields here.
Our team is made up of exceptional financial specialists, dedicated to helping you achieve your investment goals. Meet our team here
In the Pratte North American Equity Fund, for example, stocks are selected primarily for their earnings growth potential and resilience to market fluctuations. Our approach aims to offer investors sustained capital growth.
Pratte Portfolio Management services are aimed primarily at affluent families, entrepreneurs and institutional investors. We are dedicated to providing customized financial solutions to meet their specific needs.
You can stay on top of the latest financial trends by reading our blog. Our team of experts is constantly on the lookout for global news to keep you informed.
The contribution limit for the 2023 tax year is $30,780 and $31,560 for the 2024 tax year. However, the amount you are entitled to cannot exceed 18% of your earned income (excluding pension and investment income) during the year. For example, if you earned $80,000 in 2022, your maximum contribution amount will be $14,400 for 2023.
However, if you are a member of a workplace pension plan, your limit may be reduced by the pension adjustment factor. If you have not contributed the maximum amount to your RRSP in recent years, it is very likely that you have unused contribution room, making your maximum contribution amount higher. To find out how much you can invest this year, you can either check page 3 of your latest federal Notice of Assessment, access your account on the Canada Revenue Agency (CRA) website, or call the CRA directly.
One of the benefits of an RRSP is that it allows your money to grow tax-free. Additionally, you can deduct your contribution amount from your total income, thereby reducing your taxable income. The funds invested in an RRSP become taxable upon withdrawal. Therefore, it is recommended to withdraw funds from your RRSP only after retirement when your marginal tax rate is generally lower. I
f you have received a salary increase, you may lose certain federal or provincial tax credits. For example, an increase of $1,000 in your annual income could cause you to lose nearly the same amount in tax credits. Therefore, it may be advantageous to invest this surplus in your RRSP to reduce your annual income and thus benefit from these programs or at least not lose them.
If you plan to purchase your first home, your RRSPs can be a considerable advantage. The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSPs to buy your first house. The maximum withdrawal that can be made from the RRSP under the HBP is $35,000. To qualify, you must be regarded as the buyer of your first home and become the owner of the main house before October 1st of the year following your withdrawal.
An RRSP can be an income splitting tool. Indeed, an RRSP in the name of your spouse allows you to split your retirement income. By contributing a portion of your allowable contributions in your spouse’s RRSP, you will decrease your income tax and your spouse will be taxed upon withdrawal at retirement. It is worth mentioning that the amounts contributed belong to the spouse, but if there is a withdrawal within three years following the contribution, it is you who is going to be taxed on the withdrawal. Only new contributions will be accepted making it impossible to transfer funds from your individual RRSP to a spousal RRSP. This is a very useful strategy for minimizing income tax at retirement. It is very important to note that the amount you pay into your spouse’s RRSP cannot exceed your own contribution limit. It is possible to contribute to your spouse’s RRSP until 71 years old.
If you want to return to school, there is a program called the Lifelong Learning Plan (LLP). Similar to the HBP, it allows you to withdraw funds, tax-free, from your RRSP to finance your education or that of your spouse. To benefit from the LLP, you or your spouse must be enrolled full-time in an eligible educational program. The maximum you can withdraw is $10,000 per year, up to a total limit of $20,000.
At this stage of your life, you will need to convert the funds invested in your RRSP before December 31 of the year you turn 71 into a Registered Retirement Income Fund (RRIF). You can also opt for an annuity. Otherwise, the value of the RRSP assets will be included in your income for the year.
The contribution limit for 2024 is $7,000. It is important to note that the annual limit is indexed to inflation. There is no deadline for contributing to a TFSA. However, since your TFSA contributions grow tax-free, the earlier you contribute in the year, the more you will benefit, assuming a bullish market.
Like the RRSP, unused contribution room can be carried forward indefinitely. Thus, an individual who was at least 18 years old in 2009 and has always resided in Canada would have accumulated $95,000 in TFSA contribution room if they had never contributed.
Since the TFSA is a very flexible plan, you can withdraw funds at any time without any tax consequences. Not only is there no tax on the withdrawal, but all amounts withdrawn create new contribution room for the following year. For TFSA holders who have already made one or more withdrawals, we recommend that you consult your My Account access on the Canada Revenue Agency (CRA) website, or call CRA directly to obtain your exact contribution room.
Since the introduction of the TFSA in 2009, many people have wondered which vehicle, the RRSP or the TFSA, should be prioritized. Several factors may come into play, making it essential to conduct a thorough analysis before making a contribution to either of the two plans. Here are some general guidelines that might help you make an informed decision for your next contribution.
From a strictly tax perspective, if the marginal tax rate at retirement (or at the time of withdrawal) is lower than the marginal tax rate at the time of contribution, opt for the RRSP. Otherwise, it is more advantageous to prioritize the TFSA. In the theoretical case where the rates are equal, the two plans are equivalent. However, the reality is more complex. It can be particularly difficult to predict when and at what marginal tax rate a contribution will be withdrawn. Moreover, an RRSP contribution, thereby reducing the net family income, may allow a household to become eligible for certain tax credits. This is a significant aspect.
It is also important to consider the intended use of the invested funds. If you plan to use these funds for various short or medium-term projects, it is better to prioritize the TFSA. Not only would there be no tax impact upon withdrawal, but the amounts withdrawn create new contribution room the following year in the TFSA, whereas they are lost with the RRSP. If the funds are intended for retirement, it would be relevant to opt for the RRSP, particularly in cases where the marginal tax rate during working years exceeds that at retirement.
In case of doubt, it is recommended to consult a financial advisor. Our financial planning specialists can help you determine whether the TFSA or the RRSP would be the right choice based on your financial situation.
It is possible for an individual to take out a loan to invest in a TFSA or an RRSP, known as a leveraging strategy. This option should be carefully evaluated as each person's financial profile is different. It is often more advantageous to save up to eventually invest in a TFSA or an RRSP rather than borrowing. Additionally, interest on the loan is not deductible.
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