This document discusses the importance of financial planning, particularly for intergenerational wealth. It notes that financial planning provides clarity, efficiency, and resiliency by establishing goals, implementing efficient strategies, and preparing for risks. The document then outlines the key components of a financial plan, including tax planning, financial management, retirement planning, estate planning, risk management, and investment management. It provides examples of strategies and vehicles for various areas like family trusts, business succession, registered retirement savings plans, tax-free savings accounts, and more. The overall message is that holistic financial planning is important for effectively managing wealth over generations.

1. Financial Planningfor Intergenerational Wealth

2. Your Panelists
Don Scott, FCPA, FCA
Director of Tax Services,
Partner
dscott@welchllp.com
613.236.9191 x 515
Jim McConnery, CPA,
CA, TEP
Partner
jmcconnery@welchllp.com
613.236.9191 x 529
Elliott Bourgeois, M.Sc.
Manager, Wealth
Management Services
ebourgeois@welchllp.com
613.236.9191 x 107

4. Why is Financial Planning important?
• Clarity
• Efficiency
• Resiliency

5. Clarity
• What things in your life are important to you?
• How do you want to spend your time?
• What are your goals?
• What are your children’s goals?
• What lifestyle do you dream to achieve?
• Why am I coming into work every day?
Know your goals, how you want to live, and what you want to achieve

6. Efficiency
There are numerous variables that make our financial situation unique and
complex.
• Should I invest in a TFSA or RRSP? RESP? DPSP? BLT? RDSP? RRIF?
• Should I invest or pay down my mortgage?
• How can I reduce my tax bill?
• How do I effectively pass wealth to my children?
Clear strategies on the efficient allocation of income and assets to achieve
your vision

7. Resiliency
Hope for the best, but be prepared for the worst.
• Identify and quantify risk areas
• Identify tolerance for risk and propose appropriate strategies
• Avoid, reduce, transfer, or retain risk as necessary
Peace of mind that your financial well-being can withstand opposition.

8. What does Financial Planning entail?
Tax Planning
Thorough diagnostic of current situation and goal setting.
Segmented into 6 pillars:
Financial Management
Retirement Planning
Estate Planning
Risk Management
Investment Management

9. Financial Management
Cash Management
• Budgeting
• Forced Savings
• Debt-Management

10. Family Trust Planning
• Popular and versatile planning vehicle
• Accommodates tax planning and the
transition of wealth in a family group
• Top personal tax rate generally applies to
income
• Trust is used as a conduit for the income
• Includes an avenue to income split with
family members, including minors
• Alter-ego trust can be used as an estate
planning vehicle for persons over 65

11. Business Succession
Planning
• Fundamental concern for business owners
• Addresses the ownership and continuity of a
business
• Significant risk to a business that does not
have a plan
• A business may lack the liquidity to fund tax
in the event of an owner’s death
• An outright sale of the business may be
required in the absence of proper planning
• Business owners sometimes neglect
succession planning by virtue of being too
busy

12. Retirement Planning
Will I have enough?!
Years left in
the workforce
Amount of
current retirement
savings
Savings levelsIncome needs Inflation Rate Expected
return on
investment

13. Canadian Pension Plan (CPP)
Employees and
employers
between 18-65
(contributory
period)
5.1% of earnings
between the YBE
of $3,500 and
YMPE of $57,400
$1,154/month
maximum
Can be started
between 60-70
Can be split
with a spouse

14. CPP Split Example
Kyle and Karen have been married for 20 years and both contributing to CPP
for 30 years. Karen is in a higher tax bracket than Kyle. Karen receives $600 a
month CPP and Kyle received $300.
Since Karen and Kyle have been married for 2/3 of their contributory period,
2/3 of Karen’s CPP (2/3 x $600 = $400) and 2/3 of Kyle’s CPP (2/3 x $300 =
$200), are available for sharing, for a total of $600.
With $600 available and a 50% split, each person will receive $300. Therefore,
after splitting, Karen receives $500 and Kyle receives $400.

15. Old Age Security (OAS)
• Paid to all Canadians who meet residency requirements
• $600/month
• 40 years residency for full benefit
• 15% claw back at $77,580 net income
• Can be started between 65-70

16. Registered Retirement Savings Plan (RRSP)
• Tax deferment to lower-income years
• Deposit Limits (Notice of Assessment)
• Withholding tax on withdrawals
• Spousal RRSPs
• Pension Adjustment

17. Registered Retirement Income Fund (RRIF)
Age (at start of year) Minimum % Withdrawals
60 3.33%
61 3.45%
62 3.57%
63 3.70%
64 3.85%
65 4.00%
66 4.17%
67 4.35%
68 4.55%
69 4.76%
70 5.00%
71 5.28%
72 5.40%
73 5.53%
74 5.67%
75 5.82%
76 5.98%
77 6.17%
Age (at start of year) Minimum % Withdrawals
78 6.36%
79 6.58%
80 6.82%
81 7.08%
82 7.38%
83 7.71%
84 8.08%
85 8.51%
86 8.99%
87 9.55%
88 10.21%
89 10.99%
90 11.92%
91 13.06%
92 14.49%
93 16.34%
94 18.79%
95+ 20.00%

18. • Contribute with after tax dollars
• Savings grow tax free
• $6,000/year, $63,500 total
• Income-Splitting
Tax Free Savings
Account (TFSA)

19. TFSA or RRSP?
Invest or Pay Down Mortgage?
Pension Income or Commuted value?
Common Questions

20. Holistic Wealth Management
We’ve heard you

21. Your Panelists
Don Scott, FCPA, FCA
Director of Tax Services,
Partner
dscott@welchllp.com
613.236.9191 x 515
Jim McConnery, CPA,
CA, TEP
Partner
jmcconnery@welchllp.com
613.236.9191 x 529
Elliott Bourgeois, M.Sc.
Manager, Wealth
Management Services
ebourgeois@welchllp.com
613.236.9191 x 107