Planning Success

Jul 08, 2019 | Kyle Sarai


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Global equity markets have rebounded from the challenging fourth quarter of last year. Most markets around the world are up between 14-19% YTD. The concerns over interest rate hikes and tight money have long disappeared, and anticipated long-term low interest rates have been the topic of conversation. Corporate earnings rose this year, but we believe the second quarter earnings will remain flat or increase slightly.

Over the next two months, we will be visiting with clients and providing their semiannual reviews. Our reviews look a bit different than most financial advisory teams. We have provided each client with a personalized binder that contains their investment policy statement, financial/business succession plans, quarterly portfolio performance reports, wills, trust & estate plans, as well as tax, insurance, banking and charitable giving information. As we strive to be the best wealth management firm in Canada, we want to help our clients clarify their goals and cement their plans in writing, so that we know everyone is on the same page. This helps us to set goals and track results.

Client Planning Success Story:
Recently, our firm began a relationship with a sophisticated investor who had previously managed his family's wealth himself. After a few meetings with this client, we discovered his main concern was succession planning, namely, what would happen to his family business should he suddenly pass away. The client was in his mid-seventies with no will, no written business succession plan, no insurance and a net worth in the tens of millions. He and his wife co-owned their business, with both children working in senior management, and they had recently begun entertaining the idea of selling it to a third party.

We introduced the family to our Ultra High Net Worth Planning Specialist, Mr. Darren Bank, and conducted a discovery with the family to uncover their wishes and goals. There were nine key items that needed to be urgently addressed, the most urgent being the need for an estate freeze on their assets, as the tax liabilities were getting higher each year, and the need to open a joint partners trust to roll their assets into.

Ultimately, we provided a blueprint for this client which allowed us to begin the work of putting together a multifaceted financial plan for their business and their family. At no additional cost to them, we have scheduled meetings with a large accounting firm to discuss tax planning strategies, as well as a meeting with an estate lawyer to review their wishes and update their wills.
I wanted to share this story to demonstrate that at RBC Dominion Securities, we are more than money managers. Like this particular client, you may have met with us to address a singular financial need, but there may be much more we can help you with.

Sincerely, Kyle Sarai MBA