Looking back on the year 2022
Although Covid restrictions decreased significantly last year, it was also one of the most tumultuous years for the stock market. Many of the “Covid darlings” (i.e., Zoom, Peloton and Moderna) became “post-Covid dogs.” For the first time in 14 years, the market had a double-digit loss. We also saw an unprecedented hike in interest rates. The fastest interest rate increase, by the Bank of Canada in over three decades in hopes of cooling off the rising inflationary rate. This series of rate hikes caused an increase of 250% for some variable-rate mortgage payments.
Portfolio value decreases combined with increases in the cost of borrowing created stress on the Canadian economy, especially for Canadians relying on their retirement savings. In a survey conducted by Bromwich Smith and Advisorsavvy, over 70% of participants believe they will run out of money after they retire with 40% looking to extend their retirement date. Even more worrisome, 63% believe that they will never retire at all. (Hamilton Spectator 07/2022)
So, what good happened in 2022?
As mentioned previously, many Covid restrictions were lifted, and travel has increased considerably. Supply chain issues have improved, making many consumer goods more accessible. Insurance companies reported an increase in the internal rate of return for participating whole life policies. Also, a 30% tax credit on critical minerals in the flow-through shares space allows investors to keep more of their earned income.
2022 was also the year that Synergy Family Office merged with TAAG as TAAG Family Office and TAAG Wealth Management. With nearly six months behind us, we are settling in and seeing great momentum coming into the new year. TAAG’s market share has increased considerably in the small business sector. Despite the economic slowdown, TAAG increased its competitive position in Ottawa and the surrounding region, with an additional office in Arnprior, ON. TAAG Family Office’s model portfolio saw positive and consistent returns throughout the year in sectors such as housing development, REITs, and the private debt market. Although we did not escape the effects of the public market, a strong private market provided an average return of +7% for the year!
New for 2023
With the typical growing pains of a merger behind us, the future for TAAG is exciting. Existing Family Office and Wealth Management clients are taking advantage of TAAG’s additional services, and vice versa. Most exciting is our ability to work together and collaborate in the best interest of you, our client.
With the formation of TAAG Law and many other new initiatives, the best is yet to come!
TAAG welcomes Andrej Litvinjenko, Managing Director of Law & Lead Counsel specializing in infrastructure financing and corporate governance.
As the director of Family Office, I am excited for this expansion of TAAG. At the core of every good Family Office is the financing arm, accounting arm, and legal arm, now all realized with the addition of Andrej and TAAG Law.
Many of you know Hussein Khalife, our Financial Analyst, is helping develop a new initiative for this year to make institutional grade investing available to everyone. A number of our offerings have minimums as high as $500,000 and require accredited investor status. This new initiative will give more investors access to funds through DaVinci Capital, Ewing-Morris and other new private placements for as little as $5,000!
Not only will this provide more diversity but also a greater degree of liquidity and the ability to rebalance when the opportunity in the market presents itself. This platform has been in existence for some time now with excellent results, but exclusive to one firm here in Canada. We are working on a partnership with this group at the ground level as they work to expand nationally. This is the first step with more exciting details to follow in the next few months.
Lastly is our development of TAAG Access, an exclusive Concierge Service with a dedicated staff member who will support you with:
As entrepreneurs and employers, we understand the level of complexity and responsibility you face day-to-day. We believe that TAAG has created something unique and necessary in today's marketplace at a reduced cost from sourcing these services individually. This will allow you to focus more on your most precious resources, your time, family, success, and happiness.
Thank you for your continued support and we look forward to working with you in 2023 and in the years to come.
“Do today what others won’t and achieve tomorrow what others can’t.”
Jerry Rice, Pro Football Hall of Famer
Published by TAAG Corporation
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