Helping executives manage their financial success

Between the demands of leading your company and the complex nature of your personal finances, it’s only natural to want to ensure your assets are in order and working as hard as you do. We’ve created an efficient, consultative process to evaluate your case individually and tailor holistic strategies around your specific circumstances.

We understand the challenges you face, such as finding solutions for concentrated stock positions and strategies to protect your family and your legacy. We offer personalized guidance on these important issues and more – allowing you to focus on what matters most.

CASE STUDY: Corporate Executive

Paul was a 50 year-old advertising executive who had moved up through the ranks of his firm after many years of hard work and successful campaigns. Paul’s regular compensation was made up of a high salary plus bonus. In addition, because he had partial ownership of the firm, he received profit sharing. This was paid directly to a private holding company owned by Paul and his wife Anne. Anne was a self-employed consultant whose income varied. Together they had two teenage children. Despite having a high household income, they felt anxious about their family’s current financial situation and their ability to meet their immediate and longer-term financial goals, including semi-retiring in the next ten years and how to plan for future withdrawals from their holdco.

Key Considerations:

• Wealth management and financial planning
• Tax minimization
• Insurance opportunities
• Risk reduction
• Estate planning

How We Helped:

• Conducted an in-depth discovery to understand their full financial picture, determine their short and long-term goals, priorities and risk tolerance.
• Completed a comprehensive financial plan to identify gaps between their current financial circumstance and their goals.
• We worked with their accountant to fully understand the potential tax implications on their holdco. By devising a strategy to focus on capital growth, we were able to reduce current taxes and increase the balance in the capital dividend account (CDA). Surpluses in the CDA allowed for tax-free distributions to Paul and Anne.
• Part of their tax minimization and estate plan included the purchase of a permanent joint last to die insurance policy within the holdco.,
• As a result of the plan, we found that despite their anxiety around their finances, with a few tweaks they are in a comfortable position to meet their goals.
• Their previous investments were highly concentrated on ownership in individual Canadian companies. To reduce risk, we implemented an investment strategy to provide better balance between fixed income and equities, while also increasing global diversification.
• Collaborated with our insurance specialist and recommended strategies to minimize the risk of financial instability should Paul experience income loss, disability or premature death.

Together with our senior trust advisor, we made several estate plan recommendations. These included the drafting of a new will, powers of attorney, a testamentary trust and because they were Ontario residents, the use of a secondary will to deal with the holdco.