THE JOHNSON LEGACY REPORT

Paul Johnson Financial Advisor

250-979-2748 paul.johnson@raymondjames.ca

Raymond James Ltd. 500 – 1726 Dolphin Avenue

Kelowna, BC V1Y 9R9

www.johnsonlegacy.ca

Lori Samuels Financial Advisor

250-979-2712 lori.samuels@raymondjames.ca

Jay Dowhaniuk Financial Advisor

250-979-2720 jay.dowhaniuk@raymondjames.ca

Building Trust for Generations

DECEMBER | 2015

‘TIS THE SEASON OF TAX-LOSS SELLINGThis is the time of year when we suggest investors take a close look at their portfolio to see if the harvesting of gains or losses can be done in a way that’ll save them some tax.

None of us like to take a loss on an investment, but sometimes the negative of taking a loss can be turned into the positive of saving capital gains tax on another, more profitable investment.

We always recommend that investors who are considering tax-loss selling to consult with their tax advisor to ensure that any strategy they employ fits well with their individual circumstances.

Tax-loss selling of investments that are trading at less than their cost can offset the capital gains realized on other profitable holdings. If losses in any given taxation year are sufficient to totally eliminate all of that year’s capital gains, the remainder can be carried back, offsetting gains for up to three years, or forward indefinitely, offsetting gains into future years.

This is a very simple strategy that can add significantly to an investor’s after-tax return. In fact, a team member did a few calculations on the proverbial “back of the envelope” on behalf of one of our clients, and discovered that going through this simple exercise every November or December had increased his net after-tax return by a little over one percent on average per year.

In these difficult times, when interest rates are low and markets are volatile, increasing after-tax return by as much as an extra one percent can represent an excellent return thanks to a few minutes of an investor’s time and a couple of phone calls -- one to the accountant, and the other to the advisor in order to place the trades.

Reminders:

Tax-Loss SellingThe deadline for tax-loss selling in Canada is December 24, 2015, and the deadline for tax-loss selling any U.S. holdings is December 28, 2015.

Tax Free Savings Accounts (TFSAs)If you have funds sitting in your bank account, please remember you can contribute $10,000 to your Raymond James TFSA for 2016. The earlier you contribute the funds, the sooner they are sheltered from any tax.

***If the new Liberal government decides to reduce the contribution amount to $5,500, we will be sure to advise you.

Holiday Hours Please note that our office will be closed on December 25th, December 28th, and January 1st.

Market Pulse:

Major Stock Indexes Level/Price YTD Return Ending November 30/15S&P/TSX Comp 13,470 -7.95%

S&P 500 Comp 2,080 1.04%

Dow Jones Industrial Avg 17,720 -0.58%

Major Bond IndexFTSE Universe 984 2.36%

CommoditiesCrude Oil - WTI (US$/bbl) $41.24 -22.58%

Gold (US$/oz.) $1,068.00 -9.81%

Silver (US$/oz.) $14.13 -9.22%

CurrencyCanadian Dollar (USD/CAD) $0.75 -13.14%

Personal Updates:Paul is still dealing with some health issues and his surgery was delayed for the time being. He will be celebrating Christmas at home with Jessie, his three daughters, and their families.

Lori will be celebrating Christmas with family in Denver, Colorado. There won’t be enough time to ski there, so she plans to get a few days of skiing in at Big White before and after Christmas.

November was a month to forget for the Dowhaniuk Family as both Jay and Tucker were sick for the first couple of weeks. Feeling better, Jay managed to survive putting up the Christmas lights just before the first major snow fall of the year.

Jay set up his bike trainer in the basement, but the next step will be to actually get on it!

Brianne worked major overtime preparing for the Artisan Christmas Craft Fair, which was a huge success. It doesn’t look like Brianne is going to be able to slow down before Christmas with so many orders coming in.

Charley’s birthday is coming up on December 8th. She is very excited to be turning seven years old!

The Dowhaniuks will be enjoying Christmas at home with family and sometime at Big White.

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Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.This newsletter has been prepared by the Johnson Legacy group of Raymond James Ltd., and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Privacy legislation requires that anyone you are referring consents to having his/her information provided to us. This newsletter is intended for distribution only in those jurisdictions where RJL and the author are registered. Raymond James Ltd., Member-Canadian Investor Protection Fund.

The four of us at Johnson Legacy Wealth Management appreciate our relationship with each

and every one of you and are grateful to those of you who have introduced friends, family

and colleagues to our practice.

We wish you the very best this holiday season has to offer and a happy, healthy, prosperous New Year.

In lieu of Christmas gifts and cards

Johnson Legacy has donated to the following charities this holiday season:

The Salvation Army Kelowna Community Food Bank

SPCA Boys and Girls Club

Sleeping Children Around the World.