A new year generally is a moment of both reflection and anticipation. As we turn the page on the decade that was, we look forward to a decade filled with opportunity in addressing many of our world's pressing needs. Two of the most urgent issues are climate change and the aging population.

 

Climate change, and the financial impact that supply chain disruption, flooding, extreme weather and water scarcity represent are real and quantifiable. Consider the effect that climate change is having on agriculture globally, with arable land drying out and blowing away, and invasive species finding their way into new territory where flora and fauna have yet to develop adequate defenses. Think about the effect of a rising sea level on coastal cities where hundreds of millions live, work and play and the cost to displace them once the situation becomes untenable. This notwithstanding the effect that the distorted carbon cycle is having on the acidification of our oceans, a problem exacerbated by the release of tons of greenhouse gasses from the thawing permafrost and burning forests around the world. There are of course, endless other consequences of our actions since the industrial revolution, and in particular in the past 20 years.

 

Much like climate change, the aging population of baby boomers is an issue that we have known about for years. By the year 2030. it is estimated that 1 in 4 Quebeckers will be over the age of 65, but the healthcare system is sorely behind in preparing for the onslaught of age-related disease and therapies that they will require. The scrounge of Alzheimer's and related dementia, along with the prevalence of cancer and cardiovascular disease will result in an insurmountable cost to the medical apparatus rendering the development of novel therapies and technologies essential. 

 

Both of these issues stand to gain from the technological advances we have made in the past decade and represent a compelling investment opportunity. By allocating capital to industries leveraging technology, it is possible to develop solutions that we can implement with both speed and precision. In the case of climate change, the advances we have made in computing and predictive algorithms have made the design and location of wind turbines more efficient. Agriculture is benefiting from the development of more disease resistance crops that can grow in saltier earth with less water. Logistical software has made it easier to save energy in the transportation of goods, if only for the 'last mile' of delivery. But we have much farther to go if we are to tackle some of the most pressing issues, including changing our own habits and behaviours to better reflect our current collective reality.

 

In terms of addressing the needs of the aging population, it is much the same challenge. With AgeTech, technological applications that provide healthcare providers with the tools necessary for better outcomes are already on their way. Start-up companies are hot on the remote patient monitoring trend, and established players are looking for ways to ride the 'gray wave' expected to accelerate until 2030. It is no accident that an entire industry has developed around care for the aged, preventative therapies and drug development. This happens to be the demographic holding the proverbial purse strings, the challenge will be how much will be transferred to subsequent generations after taking into account the cost of long-term care and the fiscal impact of poor financial planning.

 

What might you ask, do both these trends have in common?

 

They will both be inherited by subsequent generations who will come of age in a decade of continued climate change and the effects of prolonged aging. But it is not all doom and gloom. The opportunity to participate in the transition to a sustainable economy is now and it is never too late to take a fresh look at how assets will be transferred to family in the most tax efficient manner.

 

Seizing the chance to make the move out of a 'traditional' fossil fuel portfolio as we faced continued global strife on the geo-political and macroeconomic level is forward-thinking both as a savvy investor and a citizen of the planet.  Taking the time to have the conversation with family about how to protect wealth and age with dignity is also forward-thinking and will put you in good stead as we embark on one of the most crucial (and consequential) decades in modern history. 

 

Gabriel