Financial & Estate Planning Jan 28, 2010 brunch presentation

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LEARN about our no-cost, in-house financial planning process for high net worth clients with over a million of investment managed by our team in DS …

LEARN about our no-cost, in-house financial planning process for high net worth clients with over a million of investment managed by our team in DS
- Our specialists can help you to

- Minimize taxes for personal investments, family and business taxes

- Enhance your retirement income with tax-smart saving strategies outside of your RRSP

- Create tax-free income for your retirement and tax-free benefits for your estate

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  • Slide to emphasize_that we do much more for our clients than just manage their assets. Wealth management deals with a variety of life events, all of which have financial implications, good and bad, and our role is to help clients identify these events and develop strategies to take advantage of opportunities and avoid the pitfalls._____________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________
  • Unique in that we are all housed in house UNLIKE MANY OTHER PLAYERS!! HOLISTIC – think of it as achieving and maintaining good health, many different aspects come together such as fitness, diet, emotional & spiritual.

Transcript

  • 1. Planning In a Volatile Market RBC Dominion Securities Susan Yao-Arkilander Wealth Management Team
  • 2. WEALTH MANAGEMENT NEEDS Client Needs Insurance Retirement Estate Plan Assist Parents Assist Children Income Protection Investments Wills Living Expenses Education Asset Protection RRSP Trusts Special Needs IPP / RCA Heirs Inheritance Charitable Giving Taxes Disability
  • 3. Susan Yao-Arkilander’s Wealth Management Team www.susanyao.com Will & Estate Consultant Robyn Solnik Financial Planner Piero Mazza Susan Yao-Arkilander Investment Advisor Clients Domestic and International Trust Services Tax Planning Support RBC Private Banking / Health Care Banking Insurance Specialist Andrew Scace
  • 4. Managing all aspects of your wealth
  • 5. Who We Are
    • ” We are a unique Wealth Management Team supporting your Investment Advisor in meeting client’s goals, needs and priorities through a Holistic Planning Approach.”
  • 6.
    • Comprehensive written financial plan, tailored to each client’s situation and goals
      • Plan can be customized to provide financial clarity to individuals with more complex financial circumstances
      • Whether married or single, still working or already retired, Financial Plan will be tailored to each client’s situation
    • Gives client an in-depth snap shot of financial situation, now and in future
    • Identifies strategies to maximize a client’s situation
    • Provides alternates or “what if” scenarios
    Financial Planning
  • 7. Financial Planning
    • Each plan is prepared to address various financial planning needs, including:
      • Cash and debt management
      • Tax planning
      • Investment planning
      • Retirement planning
      • Risk management
      • Estate planning
    • Financial Plan provides a clear indication of ability to meet objectives, with detailed recommendations based on specific needs
  • 8. Projection into the Future
    • Based on stated objectives, strategies and savings ability, we prepare a long-term projection of cash flow and net worth (graphs and detailed charts provided)
  • 9. Projection into the Future
    • We address specific goals such as funding children’s education or exercising stock options, as appropriate
    • We provide direction on the most tax-efficient manner to access funds from registered and non-registered savings or any investment holding companies
  • 10. Risk Management
    • Cash flow and net-worth projections are prepared to illustrate the impact on surviving family members if the client or their spouse were to die in the next year
    • This analysis determines if the wealth accumulated, combined with any insurance coverage, is sufficient to mitigate the risk of an unexpected death
    • If important to the client’s personal situation, we will provide a similar analysis that will address the risk of becoming disabled
  • 11. Estate Planning
    • Estate plan review highlights the various ways to transfer the accumulated wealth to their designated beneficiaries
    • We will review the taxes that will be payable upon death at each year until projected life expectancy
    • We will also provide recommendations to address stated objectives such as asset protection, charitable intentions, income splitting or providing for a specific family member
  • 12. Action Plan
    • Throughout the plan, we provide Action Items
    • We provide a single page Action Plan that summarizes the key recommendations indicated in the previous sections, with appropriate time frames for follow-up
    • Action Plan also provides a clear guideline for each client to help monitor implementation
    • Financial Plan updates suggested every 3 to 5 years, or if there is a material change in a client’s situation
  • 13. Typical Meeting
    • Review assets and ownership
    • Discuss tax implications of death
    • Discuss client’s estate planning objectives
    • Review Estate Planning Documentation
    • Provide information on the tax effective transition of wealth to family or charity
    • Follow up Report
  • 14. Some Estate Planning Strategies
    • Testamentary Trusts for income splitting
    • Multiple Wills to save probate on private company shares
    • Spousal Trusts for second marriages
    • Use of Joint Tenancy
    • Beneficiary designations
    • US friendly Wills
    • Basic Will planning issues and structure of Will
  • 15. Planning considerations continued
    • US Estate Tax for vacation properties
    • Business succession planning
    • Estate Freezes
    • Insurance to pay tax and/or equalize estate
    • Cottage Succession Planning
  • 16. Other Planning Considerations
    • Charitable Giving – DS Charitable Gift Fund
    • Living Trusts – the DS Family Trust
    • Planning for disabled beneficiaries
    • Powers of Attorney
    • Selection of Executor
  • 17. Estate Planning Specialist
    • Working with Investment Advisor’s clients to provide both personal and corporate insurance solutions to help increase net worth, reduce the impact of taxation and ensure your wealth is transferred to your heirs.
    • Relationship with the 9 insurance companies in Canada
    • Manulife Financial, Canada Life, Sun Life, Industrial Alliance, RBC Insurance, Standard Life, AIG, Transamerica and Empire Life
  • 18. Solutions
    • Personal
    • Income Protection
    • Mortgage/Loan Protection
    • Capital Gains/Estate Preservation
    • Tax Sheltering/Transfer of Wealth
    • Income Needs
    • Corporate
    • Buy/Sell
    • Key Person
    • Business Succession
    • Professional Corp/OPCO/HOLDCO
    • Tax Sheltering/Transfer of Wealth
    • Income Needs
  • 19. Our Process
    • Review Existing Insurance
    • Review Financial Plan or Will and Estate Report
    • Client Goals and Objectives
    • Corporate or Personal – Ownership of assets
    • Liabilities and Taxes
    • Apply for insurance
  • 20. “Canadians pay too much tax” -
    • You’re taxed when you earn
    • You’re taxed when you save
    • You’re taxed when you spend
    • You’re taxed when you die
    • So . . . what’s left for you and your family?
    Jim Flaherty
  • 21. Typical asset allocation
  • 22. Insurance as Another Asset Pool Fixed Income
  • 23. Tax-exempt insurance
    • $ 300,000 of surplus assets are repositioned and deposited over five years into a $1MM tax-exempt Universal Life Solution.
    • Non-Registered balanced portfolio, growing at 6.25%, taxed at the highest marginal tax rate.
    • Insurance investment growth rate of 5% - tax-exempt on a joint last-to-die basis.
    Tax-exempt life Insurance Non-Registered Investment 2,419,550 2,162,817 1,977,961 1,857,515 1,770,726 1,725,497 1,636,336 1,572,860 1,512,407 $ 1,454,833 Estate Value 8% 989,930 80 30 9% 804,480 75 25 11% 656,007 70 20 15% 536,749 65 15 24% 440,650 60 10 65% 60,000 362,973 55 5 95% 60,000 349,306 54 4 157% 60,000 336,199 53 3 354% 60,000 323,628 52 2 2,325% $60,000 $ 311,569 $300,000 51 1 Annual return on Estate Value Deposit Estate Value Account Age Year
  • 24. Questions?
  • 25. Next Step
    • Speak with your RBC DS Investment advisor to book a meeting.
  • 26. Attend our Wealth Management Forums visit www.susanyao.com for more information
    • February 18, 2010 Insured Annuities With life expectancies increasing and low fixed income yields, annuities are becoming more attractive as a source of tax-effective retirement income. Innovative structuring of annuities to enhance after-tax yields will also be discussed.
    • March 10, 2010 6:30 p.m.-8:00 p.m. Guaranteed Income for Life Rethinking retirement planning, remove market worries and ensure steady cash flow, tax-efficient, choose when to start or stop receiving income, full access to your savings at anytime.
    • April 14, 2010 Tax Planning for Health Care Professionals Learn about strategies on tax deferrals, income splitting, creating your own Individual Pension Plan (IPP), Professional Corporation considerations and estate planning considerations.
    • May 20, 2010 Sale of Business Planning Learn about strategies on how to multiply your $750,000 capital gains exemption, tax strategies using Charitable foundation, IPP or RCA on sale of assets, and other potential strategies.
    • June 8, 2010 Business Owner’s Guide to Wealth Management Ten decisions that can make or break your business
    • When: 11:00 a.m. to 12:00 noon as scheduled below (brunch will be served) except for March 10
    • Where: RBC Dominion Securities Inc., 5th floor Board Room 260 East Beaver Creek Rd (on Hwy 7, west of Hwy 404), Richmond Hill, Ontario L4B 3M3
    • RSVP: Phone or email a week prior to the forum date you wish to attend;
    • Contact: Carissa Li, Associate, phone 905-764-3585, 1-800-268-6959,or Susan Yao-Arkilander, Host Advisor, 905 764 2229 or email [email_address]
  • 27. Thank you
    • This presentation has been prepared for use by RBC Dominion Securities Inc.*, Royal Mutual Funds Inc., RBC Private Counsel Inc. and RBC DS Financial Services Inc., Member Companies under RBC Investments. The Member Companies, Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. In Quebec, financial planning services are provided by Royal Mutual Funds Inc. or RBC DS Financial Services Inc. and each is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RBC Dominion Securities Inc., Royal Mutual Funds Inc. or RBC Private Counsel Inc. Insurance products are only offered through RBC DS Financial Services Inc., RBC DS Financial Services Inc., RBC DS Financial Services Inc., subsidiaries of RBC Dominion Securities. *Member CIPF.
    • The strategies, advice and technical content in this presentation are provided for the general guidance and benefit of our clients, based on information that we believe to be accurate, but we cannot guarantee its accuracy or completeness.This presentation is not intended as nor does it constitute legal or tax advice. Clients should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This will ensure that their own circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change.
    • ™ Trademark of Royal Bank of Canada, used under licence. RBC Investments is a registered trademark of Royal Bank of Canada, used under licence. ©Royal Bank of Canada 2008.