Family Day every year is a great time to spend doing something special with those we love the most. I certainly know that I will be enjoying it with Aveeve and my two girls. Mid-February is a busy time for the McLaughlins: in addition to Family Day and Valentines, we have our daughter Leila’s birthday. She just turned six, which amazes me because it feels simultaneously like I was holding her in my arms for the first time just yesterday, and that there’s never been a time without her. The speed that our girls are growing up seems to accelerate every year. Milestones are also a poignant reminder of why we plan, save, and invest: to secure our family's future and to celebrate all these cherished moments without worry.

Celebrating Milestones & Planning for the Future

Each family milestone, be it a birthday, a graduation, or the purchase of a first home, is not just a cause for celebration but also an opportunity to reflect on our plans for the future. These moments remind us of the importance of preparing for what lies ahead, ensuring that our loved ones can enjoy these milestones to their fullest.

Key Topics for Family Wealth Planning

Investing in the future is the best thing that a family can do, and thankfully there are a huge number of tools and strategies that can be employed to accomplish those goals. Below, I’ve listed some of the best ones, but each family is unique, and each combination of solutions should be customized, too. We all have to save and invest within our available cash flows, first, and tax- and savings- strategies will differ in their utility depending on a number of factors. Our expertise lies in building these solutions within the broader wealth management framework for our clients, and—of course—in getting the return that is needed to make any long-term savings goal worthwhile.

• Education Savings:The RESP remains a cornerstone of education planning, offering both a structured way to save for your child’s education and valuable tax advantages. It’s about laying the groundwork for their future success. Contributions into RESPs are done with tax-paid dollars, bring in attractive government grants, and are tax sheltered while within the RESP wrapper. The first step is to establish an RESP.
• First Home Purchase: The FHSA is a newer tool in our arsenal, designed to help your children climb onto the property ladder. Its tax efficiency and the ability to contribute significantly towards a first home purchase make it an essential consideration for any family wealth plan. Importantly, and uniquely for this account type, contribution room only accrues once the account is open (even if it’s not fully funded), so it’s important to do as soon as possible for adult children who one day hope to buy their first home. Read about the nuances of the newly-launched First Home Savings Accounts.
• Health & Fertility Planning: The celebration of Leila’s birthday is extra monumental to us because of the raw amounts of grit and science that were employed to give us both of our girls. As we know first-hand, the path to parenthood can sometimes be unexpected and challenging. Planning for potential fertility treatments, including the costs associated with IVF, is a testament to potential parents’ resilience and hope. Approximately 1 in 6 Canadians will experience infertility, and treatments can run upwards of $20,000 per cycle for IVF. As the average age of mothers at childbirth (currently 31.6 years) continues to rise, younger generations would do well to start planning early for its possibility. It’s a subject close to my heart, and I’m here to provide both professional guidance and personal support. This article from MoneySense lays out the costs of undergoing IVF.
• Inter-generational Wealth Transfer: Permanent insurance is not just a safety net but a powerful means of transferring wealth across generations. By integrating permanent insurance into your wealth transfer strategy, you can ensure a lasting legacy, with significant tax efficiencies. Strategies like cascading insurance (G1 buying insurance on G2’s life with G3 as a beneficiary), corporately-owned insurance, and insured annuities are all ways to enhance a legacy no matter what comes. See an example here of how a Cascading Insurance Strategy can work.
• Inheritance and Legacy Planning: Early planning is crucial in determining how your wealth will support future generations. Properly structured and frequently refreshed documents like wills, powers of attorney, healthcare directives, and even USAs (for business-owning families) are the crucial first step. Trusts and estate planning are invaluable tools in this endeavour, ensuring your legacy is preserved and passed on according to your wishes. This short video describes the trigger events for will & estate reviews, and the risks of not reviewing your documents regularly. For those helping to settle an estate, or those wanting to lessen the burden on their executors, RBC Estate and Trust Services can help lighten the load.
• Charitable Giving: Instilling a sense of philanthropy within our family values not only teaches our children the importance of giving back but also allows us to make a meaningful impact. Structured giving can become a significant part of our legacy, reflecting our family’s values and contributions to the community. We try and involve the girls in all of our own charitable endeavours, and like to point back to our work as we enjoy our city together, reminding them that giving and volunteerism are essential parts of being in a community. We have found semi-private foundations from our Gift Funds Canada program to be an invaluable turn-key solution for clients.

Conclusion

As we celebrate family milestones, let's also commit to securing our legacies. Whether it's planning for education, a first home, addressing health challenges, or ensuring the smooth transfer of wealth across generations, every step we take is a step in the right direction. A good team of advisors can help to map out the most efficient and effective way to get to all of your goals. I know that when I think about the future my own two girls will have, I think first in envy at all of the amazing progress that they will witness in their lifetimes. This reminds me, of course, that I won’t always be there to help them through the ups-and-downs that life brings. And it strengthens my resolve to ensure that the supports that I am able to build now will last longer than I will.