financial & estate planning jan 28, 2010 brunch presentation
Upload: susan-yao-arkilander-cfp-private-wealth-management-rbc-dominion-securities
Post on 29-Nov-2014
1.259 views
DESCRIPTION
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 estateTRANSCRIPT
Susan Yao-Arkilander Wealth Management Team
Planning In a Volatile Market
RBC Dominion Securities
2 | WEALTH MANAGEMENT SOLUTIONS
WEALTH MANAGEMENT NEEDSWEALTH MANAGEMENT NEEDS
Client Needs
InsuranceRetirementEstate PlanAssist
ParentsAssist
Children
Income Protection
InvestmentsWills LivingExpenses
Education
Asset ProtectionRRSP
Trusts
Special Needs
IPP / RCA
Heirs Inheritance
Charitable Giving
Taxes
Disability
3 | WEALTH MANAGEMENT SOLUTIONS
Will & Estate
ConsultantRobyn Solnik
FinancialPlanner
Piero Mazza
Susan Yao-Arkilander
Investment Advisor
Clients
Susan Yao-Arkilander’s Wealth Management Team www.susanyao.com
Domestic and International
Trust Services
Tax PlanningSupport
RBC Private Banking /
Health Care Banking
RBC Private Banking /
Health Care Banking
Insurance SpecialistAndrew Scace
4 | WEALTH MANAGEMENT SOLUTIONS
Managing all aspects of your wealth
5 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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)
Mike Pre-Retired Retired Deceased Sue Pre-Retired Retired Deceased
2008 2012 2016 2020 2024 2028 2032 2036 2040 20440K
50K
100K
150K
200K
250K
300K
350K
400K
450KExpenses (Except Taxes)
Total Tax
Total Funds Received
2008 2012 2016 2020 2024 2028 2032 2036 2040 20440.0M
0.5M
1.0M
1.5M
2.0M
2.5M
3.0M
3.5M
4.0M
4.5MTotal Net Worth
Lifestyle Assets Total Net WorthYear 2047Amount 4,227,140
9 | WEALTH MANAGEMENT SOLUTIONS
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
Year Age(s) Employment
Income Investment
Income Government
Benefits RRIF
Income Total
Income After Tax Income
Total Lifestyle
Expenses Capital
Redeemed 2008 50/50 235,000 17,184 0 0 252,184 194,842 93,134 0 2009 51/51 242,050 20,083 0 0 262,133 195,766 95,684 0 2010 52/52 249,312 23,663 0 0 272,974 203,862 146,051 0 2011 53/53 256,791 24,946 0 0 281,736 210,405 101,016 0 2012 54/54 264,495 28,952 0 0 293,447 218,933 103,802 0 2013 55/55 272,429 33,262 0 0 305,692 227,838 106,672 0 2014 56/56 280,602 37,894 0 0 318,496 237,139 109,629 0 2015 57/57 289,020 42,866 0 0 331,886 246,853 168,018 0 2016 58/58 297,691 45,228 0 0 342,919 255,020 115,810 0 2017 59/59 306,622 50,793 0 0 357,415 265,518 119,040 0 2018 60/60 315,820 56,757 0 0 397,577 301,485 122,367 0 2019 61/61 0 76,424 21,381 0 149,806 144,299 146,558 63,285 2020 62/62 0 79,933 22,023 0 153,956 133,234 214,869 88,758 2025 67/67 0 79,204 45,630 0 170,834 150,612 239,663 97,319 2030 72/72 0 45,616 52,898 197,475 341,988 253,924 277,835 33,493 2035 77/77 0 57,750 61,323 203,780 368,853 281,599 322,087 51,597 2040 82/82 0 43,908 71,090 210,113 371,111 290,365 257,508 0 2045 87/87 0 51,338 82,413 216,008 395,758 317,154 298,523 0 2046 88/88 0 52,709 84,885 217,152 400,746 322,136 307,478 716 2047 89/89 0 55,431 87,432 218,174 407,036 328,234 316,703 4,307
10 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
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 | WEALTH MANAGEMENT SOLUTIONS
“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 | WEALTH MANAGEMENT SOLUTIONS
Typical asset allocation
Fixed Income
Non-Registered
House
Business
Real Estate
Registered
22 | WEALTH MANAGEMENT SOLUTIONS
Insurance as Another Asset Pool
Fixed Income
Non-Registered
House
Business
Real Estate
Registered
Life Insurance
Non-Registered
House
Business
Real Estate
Registered
Fixed Income
23 | WEALTH MANAGEMENT SOLUTIONS
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.
Non-Registered Investment Tax-exempt life Insurance
Year Age Account Estate Value Deposit
Estate
Value
Annual return on
Estate Value
1 51 $300,000 $ 311,569 $60,000 $ 1,454,833 2,325%
2 52 323,628 60,000 1,512,407 354%
3 53 336,199 60,000 1,572,860 157%
4 54 349,306 60,000 1,636,336 95%
5 55 362,973 60,000 1,725,497 65%
10 60 440,650 1,770,726 24%
15 65 536,749 1,857,515 15%
20 70 656,007 1,977,961 11%
25 75 804,480 2,162,817 9%
30 80 989,930 2,419,550 8%
24 | WEALTH MANAGEMENT SOLUTIONS
Questions?
25 | WEALTH MANAGEMENT SOLUTIONS
Next Step
Speak with your RBC DS Investment advisor to book a meeting.
26 | WEALTH MANAGEMENT SOLUTIONS
Attend our Wealth Management Forums visit www.susanyao.com for more information
February 18, 2010 Insured AnnuitiesWith 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 LifeRethinking 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 ProfessionalsLearn 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 PlanningLearn 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 ManagementTen 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
27 | WEALTH MANAGEMENT SOLUTIONS
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.