What’s New – February 2022

The Power of Slow

It feels like 2022 has shot off like a rocket! New Year’s goals, market volatility, tax preparation, RRSP contributions — it is all a blur. Every day I begin my morning with a mindfulness practice and by lunch, I am already dashing from the coffee machine to my desk. I wear running shoes to work and they feel great, but reinforce the wrong behaviour.

If we are to change any thought pattern, behaviour or situation, we must alter our pace. We need to S-L-O-W down. Seems simple and yet, I have found it to be the most challenging aspect of implementing change. I am particularly cursed. My nickname has been “Racer Trace” since middle school. I am wired for speed. However, this new chapter of my life has opened up a glorious horizon of possibility. I now realize that these opportunities can only be realized by changing not what I do, but how I do it. And, the how begins with slowing down.

In our upcoming series, “Cash Flow Connections,” we will address both the knowledge component of living a healthy, financially confident life and the core patterns that exercise power over us. These patterns are so ingrained that they are often difficult to discern. If my colleague had not laughed at me one day as I raced past his desk, I would have thought I was actually pretty chill. 

For 2022, we invite you to join us in slowing down to examine and reflect. You do not have to fix anything. Reducing your speed is enough to launch a new beginning. We ask that as you shift gears you watch yourself with curiosity. As frustrating as our patterns can be, they are ours. Something in us thought they would work.

As we look at the internal landscape of our thoughts, feelings and mindsets, we are doing the essential, foundational practice of financial empowerment. Money is not distinct from our life journey; it inextricably winds through it.

One of my favourite quotes from Thích Nhất Hạnh, the beloved Vietnamese Buddhist monk who recently passed, is now residing on my computer monitor. It helps us consider the importance of small actions on the greater whole. It also reminds us that there are effective ways to move ourselves forward, with gentleness and patience.

“When we walk like we are rushing, we print
anxiety and sorrow on the earth. We have to walk
in a way that we only print peace and serenity on
the earth. Be aware of the contact between your
feet and the earth. Walk as if you are kissing the
earth with your feet.”

Thích Nhất Hạnh


We look forward to seeing you at Cash Flow Connections and wish you a very slow 2022…

See you soon!
Tracy & Kamal

Dollar-Cost Averaging Revisited

There is ongoing debate about the pros and cons of Dollar-Cost Averaging (DCA). This is a process where an investment is made, at regular intervals, regardless of an asset’s price.

For example: Emily wants to contribute to her TFSA as part of a 5-year plan to save enough for a condo down payment. She has authorized her financial institution that on the 15th of every month an electronic funds transfer will move $100 from her chequing account to invest in a balanced global mutual fund.

There are several components to this strategy. First, this investment performance may improve in the long term, but only if the investment increases in price. The strategy cannot protect the investor against the risk of declining market prices.

The key advantage of DCA is that it reduces the effects of investor psychology and market timing on a portfolio. By committing to this approach, investors can avoid making counter-productive decisions out of greed or fear, such as buying more when prices are rising or panic-selling when prices decline. Instead, dollar-cost averaging compels investors to focus on contributing a set amount of money each period while ignoring the price of each individual purchase.

Another key benefit is that for those who do not have a significant lump sum at the outset of their plan, it is an effective way to ensure that money regularly goes into their investment strategy. 

Dollar-cost averaging is not a solution for all investors. Trading costs may add up. This strategy still requires you to do your research and track your progress. If the original investment decision was faulty, you could end up investing steadily into a losing investment.

Another disadvantage of DCA is that markets tend to go up over time. This means that if you invest a lump sum earlier, it is likely to do better than smaller amounts invested over an extended period.

Research from the Financial Planning Association and Vanguard found that over the very long term, dollar cost averaging can underperform lump sum investing. Lump sum investing beat dollar-cost averaging 66.66% (2/3) of the time.  Therefore, you’re better off investing a lump sum as soon as possible.

The bottom line is that dollar-cost averaging could be a good approach for an investor who has a solid investment plan, would like to avoid behavioural biases of being influenced by market fluctuations and wants to follow a passive pre-set approach. 

On the other hand, if you have the funds, a solid investment and are in a rising market, you may experience superior results from investing in a lump sum.

As with all strategies, each person must align their individual situation and process to achieve their specific long-term goals.

RRSP 2021 Deadline – March 1, 2022

RRSPs are one option to save for your future. You can determine with your tax or financial advisor whether RRSP contributions make sense for you. You can also check out some of your options through this online calculator.

Your RRSP contribution limit for 2021 can be found on your Notice of Assessment or by logging into the Canada Revenue Agency website - My Account portal. If you’d like to top up your TFSA or add your 2022 TFSA contribution, you can also confirm your maximum TFSA contribution limit through the CRA My Account portal.

Tax Season

Tax receipts are mailed and available starting at the end of February but can be issued as late as early April depending on the deadline for the issuer. Please review your personal Income Tax Receipts Checklist to see what to expect and when, so you are not left wondering what happened to that pesky last tax receipt.

Filing deadlines for 2021 Taxes

  • Apr 30, 2022 (May 2, 2022 since April 30 is a Saturday): Deadline to file your taxes
  • Jun 15, 2022: Deadline to file your taxes if you or your spouse or common-law partner are self-employed

Payment date for 2021 taxes

  • Apr 30, 2022 (May 2, 2022 since April 30 is a Saturday): Deadline to pay your taxes

Further information is available at:


And finally...

We are as always, available to look at your current investment and financial planning strategies, answer your questions and help you map out a plan for achieving your financial goals. Just give us a call if you need a second opinion or guidance for how to take your next step. As always, we are here to help!

Tracy Theemes and Kamal

Sophia Financial Group of Raymond James
3762 W 10th Avenue, Vancouver, B.C.

If you have any questions or would like further information about our workshops contact:
604 569 2891

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Contact Us

Sophia Financial Group
Raymond James Ltd.
3762 10th Avenue West
Vancouver, BC V6R 2G4