This column was supposed to be about tax planning at year-end. Given the downward fluctuations in the markets in October (TSX -6.60%, Dow Jones -6%), I’ve decided instead to provide you with support with regard to market volatility and specifically, what action(s) to take.

It’s important to remember that drops and corrections are part of the investment routine. Do you remember the drop during the first days of February 2018 on the Dow Jones: -12.2%. The first reflex to develop is not to panic. When there’s a significant decline, we should know the fundamentals and reassure ourselves that the general trend over the long term is always favourable.

When you have been able to validate the financial background, it’s time get in touch with your financial professional and confirm the distribution of your assets and particularly, your risk tolerance. If you decide to make changes to the distribution of your assets between stocks and bonds, bear in mind that there’s no hurry. Set your objectives for the next quarter to put in place the changes that are needed.

Market volatility is important, but it’s also important not to forget taxation optimisation. Ensure that before the financial year-end you review the most common tax planning strategies:

• If you have achieved capital gains during the year due to the sale of financial assets (stocks, chalet, revenue property) and you have other securities showing a loss, you should sell the latter to achieve capital losses;
• Put a strategy in place for 2019 of a loan at the prescribed rate between spouses;
• Charitable donations: donations in kind of shares having a significant capital gain.

I invite you to take a long-term perspective and think of fiscal (tax) optimisation to achieve your objectives.

Don’t hesitate to contact me if you want to obtain a second opinion on your portfolio or if you have questions on the subject.

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