Canada In Good Shape, But Money Management Required

Canadian taxpayers and investors may be feeling a bit jittery about market volatility but Jim Flaherty, Minister of Finance, says we are in good shape, all things considered. He told the House of Commons Standing Committee on Finance last week that Canada is well positioned to face global economic challenges posed by challenges in the US and Europe. However, the global recovery is fragile, he said, and both governments and individuals need to manage potential fiscal challenges accordingly.

While the news coming from the US is not greatóthat the country is in the midst of its weakest recovery since the Great Depression according to Bank of Canada Governor Mark CarneyóCanadians can direct efforts to prepare for a prolonged recovery period. Fiscal sustainability is fundamental, he warned, both at government levels, but also by households, citing that Canadians are as indebted today as Americans and the British.

Financial advisors, therefore can take the lead with their clients to discuss debt and cash flow management sooner, rather than later.