Discover Moose Jaw is taking a look back at 2023 and today's article is with Aaron Ruston, CEO of Purposed Financial in Moose Jaw.

 

Q: What were some financial system highlights for you in 2023? 

A: The markets - we saw quite a strong recovery after 2022, which was strongly impacted by bonds decreasing due to increasing interest rates overall, and the stock markets kind of got beat up in 2022. The highlight was the markets finding their path again in 2023, talk of decreasing interest rates which brought some encouragement, as well as the economy picking up and then slowing down, so inflation dropped. 

Highlights for us – myself, our team, and our offices, was the fact that we made an even deeper connection with our clients. Over 90 per cent of our clients are by referral, so it’s been very good. We’ve connected on a deeper basis with our clients this year, I believe, and we hope to continue to do that. It’s been a good year overall, we’re hanging on for 2024, and hopefully it’s a great year. 

That's been it – we've seen positivity in the markets, we’ve felt good about our relationship with our clients, we’re growing, we’re getting better I think. I celebrated my 40th year in this industry on December 4th of this year- I know I don’t look that old!  

It’s been a lot of highlights in 2023, that’s for sure.  

 

Q: Inflation has been a big concern for Canadians in 2023. What has been your experience on the topic this year, and do you have any insight into what next year will bring? 

A: Inflation has certainly been a concern in 2023. 2022 kind of spurred that on with the interest rate rises. We’ve seen people dramatically affected by the increased interest rates on their lines of credit, on their renewing mortgages – all of those things. It has been hugely detrimental to a lot of people. We’ve certainly seen gas prices start to come down, but we certainly haven’t seen food prices start to come down, and those types of things, because of the carbon tax and other transportational costs that are added, that increase those prices overall. It’s really brought many people to – I won’t say the breaking point – but to the point of being broke. A lot of people were $200 away from being completely upside down. With these increased costs, the only thing they can do is look to borrow from credit cards and lines of credit, which then only compounds the issue overall. 

We’re starting to see inflation come down. It was at one point over 8 per cent. They say now it’s about 3.1 to 3.3 per cent, which again is interesting, because we don’t see prices falling on numbers of things. 2024, I believe what’s going to happen with that, and what our economists are telling us is, inflation will move closer to what their point of 2 per cent is overall. Interest rates should start coming down in the second quarter, early part of the third quarter 2024, which will bode well for people’s spending, as well as from the corporate side for companies to move forward and be able to borrow themselves, and increase productivity as well. That’s what we’re anticipating in 2024. 

 

Q: What advice do you have for people going into next year? 

A: Advice is a common thread for me. Sometimes the best investment you can make is to pay off debt, particularly where debt is high and it’s non-deductible debt. There are certain debts like car loans and mortgages, that the debt you’re paying is paid with after-tax dollars. If you’ve borrowed money to invest or put into your business, then that interest is deductible.  

Otherwise, I would say this year, look for good buying opportunities. Find a good financial advisor that can give you some clear ideas. Look to reduce your debt overall, reduce the highest interest rate debt first, put a systematic plan together, pay that down, keep your spending under control. In 2024, as interest rates drop, work very hard to pay down those debts. 

As far as market investments, I think we’re going to see things start to come back on a number of sectors, so just find an appropriate portfolio for yourself, get someone to help you, and you can make a difference in 2024 – it could really be the antithesis of 2022, when everyone felt so bad. 2023’s the bridge; 2024 could really take off.  

Be cautious, move forward with a plan with a blueprint.  

 

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