Your wealth management is incomplete without these 5 pillars

The beginning of Q4 is just a few weeks away and I hope September is going well for you.

I might not know so much about the building construction field but I do know that pillars are quite important in every building. Just like our legs bear our body weight, pillars ensure stability for a building and also transfers its weight to the ground below.

Plus, going below the required number of pillars for a building can put the whole building at risk. The same rule applies when it comes to your wealth management plan.

There is no one-size-fits-all strategy for managing wealth. But every wealth management strategy should include these 5 pillars for it to be truly ‘future-proofed’ and preserved for your family:

1. Personalized investment advice for your portfolio

Getting personalized advice from a portfolio manager for your investments is like having a personal Chief Investment Officer. The right portfolio manager will be steadfastly committed to putting your interests first and take their position as the steward of your wealth.

So, when you’re ready to choose a portfolio manager, choose one that’s discretionary. This will help you sleep well at night – knowing someone is making decisions in your best interests.

At RBC Dominion Securities, for example, we manage investment portfolios according to our clients’ customized Investment Policy Statements. These Policy Statements detail their objectives, goals and constraints in managing their portfolios. One of the things clients appreciate about us is our ability to quickly respond to market changes without having to seek approval for every transaction.

2. Tax management & planning

With growth in your net worth comes greater taxation liability –it’s called success tax. However, you can legally limit the impact of these taxes (not avoid them) to your wealth by putting proper tax planning in place.

Without this in your wealth management plan, you stand the risk of having these taxes eat too deep into your hard-earned wealth.

That’s why we work with tax lawyers and accountants to not only minimize annual taxes but also the ones that show up upon death and lifetime taxation.

3. Complete retirement strategy

Just like each pillar of a building holds it together for years to come, a retirement plan is another pillar you can’t overlook. The biggest challenge in retirement planning is ensuring your money lasts throughout your retirement.

With life-spans increasing and inflation rising, you need to know how much income you’ll need during their retirement years. One thing we do for clients is to stress-test and plan retirement projections with different scenarios such as higher or lower investment returns, higher inflation and spending more or less during retirement.

4. Insurance planning

Insurance is another integral part of your wealth plan. Even with your best efforts, losses can occur. With an efficient insurance plan in place, you and your family can enjoy peace of mind + wealth protection. One thing we do with insurance planning is to use it as an investment alternative and in achieving estate planning goals for clients as well.

5. Estate planning

High net-worth individuals' (with $1M - $30M investable assets) priorities are wealth preservation, tax minimization and intergenerational asset transfer. For your legacy to be fulfilled, you must make an estate plan.

A well-designed estate plan involves the help of multiple professionals with wealth management expertise and best legal advice – working together to develop a customized plan that will best support your family and your legacy.

If your current wealth management has all of these pillars, then you can enjoy that peace of mind you deserve. If it’s lacking one or more of these, then it’s almost like having no wealth strategy in place to weather future storms.

Like I said, a one size-fits-all approach isn’t what you need. So, if you’d like to see what a personalized plan would look like for you, book a free consultation with me here.

We’d also go over what’s missing in your current wealth management plan (if you have any).

Your trusted advisor,

Rachelle