17. Long-term portfolio performance is most influenced by asset allocation and less influenced by market timing and stock selection Source: Brinson, Singer, Beebower Study; Financial Analysts Journal, Feb. 91 More than 90% of a portfolio’s variability depends on asset mix Market Timing 2.1 % Other Factors 1.8 % Stock Selection 4.6 % Asset Allocation 91.5 %
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19. 8 000 1 000 000 10 000 20 000 30 000 40 000 50 000 60 000 80 000 100 000 200 000 300 000 400 000 500 000 600 000 800 000 1956 2004 1960 1965 1970 1975 1980 1985 1990 1995 2000 Markets Are Unpredictable Black Monday Asian Currency Crisis Tech Bubble Bursts Arab Oil Embargo Gulf War Vietnam War Interest rates peak at 21% Gold $875 US / oz Index Values (CAD)
44. We ask the right questions: Are your investments suitable for your goals? Can you pay less tax? Will you have the income you need to retire and do the things you want to do? Can you retire when you want to? Do you have the right amount and types of insurance? Will your estate transfer efficiently and tax-effectively? Do you have control over your income?
45. We create your realistic plan We manage your investments with a long-term perspective designed to complement your comfort for risk, goals for growth and objectives of your plan We are there to help you implement your plan on a systematic basis : Responding to changes in your personal and financial situation Reviewing your overall financial picture regularly Adjusting the allocation of your assets if needed
46. Turenne Joseph Tel. Office : (514) 350-8750 ext. 8815 Toll Free : 1 (866) 688-8750 Fax : (514) 350-8752 Email : [email_address] Financial Security Advisor Mutual Funds Representative Licensed in Québec, Ontario and British Columbia Investors Group Financial Services, a Financial Services Firm 2001 Universty, Suite 1620 Montreal QC H3A 2A6 … Maximize your possibilities and financial freedom …
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Notas del editor
(Note to Consultant) If you are licensed with Investors Group Financial Services Inc. (Mutual Fund Dealers Association – MFDA) use line one of the disclaimers listed above. If you are licensed with Investors Group Securities Inc. (Investment Industry Regulatory Organization of Canada - IIROC) use line two of the disclaimers. Delete the dealer line that is not applicable. If there is a guest speaker insert the following disclaimer on this page: Views expressed by guest speakers may not be shared by Investors Group. Before we jump right into this presentation, I want to take a minute to go over some of these key points. It is important to me that you are aware of these details before we start – details that I hope all advisors are talking to you about. First, we are going to be talking about many ideas today but, before you decide to act, it is critical that we review your specific situation. Everyone is different so what works for some may not be as applicable to others. Second, this is what I do for a living. If we decide in the future to work together it is important to me that you are aware of how investment and insurance plans work, any fees that might be associated with them, and how I get paid. We have plenty of material that I will share with you at our first appointment that spells it all out very clearly. (Go over disclaimers) Now that we’ve gone over that, let’s get right into it…
We are going to discuss a number of important concepts today and each and every one of them can effect your financial well being today and long into your future. < Go through points on the slide – Recommendation , practice with presentation ahead of time and create a quick summary in your own words of what will be presented in relation to each bullet point. This will be a very effective way to open the seminar and establish your credibility. >
Section heading slide to introduce the key topic <pause for audience to read or introduce, depending on your style>
According to 2006 Canada Census: Women have a life expectancy 4.8 years longer than men – that’s stated in the census as 82.5 years for women vs. only 77.7 years for men. But just the difference in life expectancy doesn’t tell the whole story. Take a look at this… 75% of men over 80 have a spouse or partner and and 66% of those men still live with their spouse It’s a much different story for women - Only 45% of women over 80 have a spouse or partner, and only 22% of those women live with their spouse. The majority of the spouses of these women are older and in nursing care. There are a few realities here that need to be incorporated into your plan. Not only will your money have to last longer, for many of you it will also need to withstand supporting an elder spouse in your later years.
In most families, women continue to take on the lion’s share of family responsibilities and are more likely to take time out from their career to attend to them. < Recommendation – Review the list of possible time outs and ask how many attendees have taken time out from their career for one or more of these reasons. Consider asking the attendees to state what they felt the impacts were to their personal finances and that of their family.> The results can have significant impact on your long term financial plan. The most obvious result is the impact of not earning an income during the time off. This loss of income usually means that you stop investing – both inside and outside your RSP – which by extension, reduces the amount of time your investments will have to benefit from the impacts of compound growth. As you will not be earning income during the time off, you will also not be contributing to your employer sponsored pension and CPP or creating contribution room for your RRSP (because contribution room is calculated from taxable income). Both of these realities will eventually impact not only the amount of income you will enjoy in retirement but also, the length of time it could last. This added to the likelihood that you will live longer than your male counterparts, needs to be seriously taken into consideration in your plan. Last but certainly not least, statistics prove that not participating in the workforce can slow career progression. Many women that take extended leaves return to the same level of position upon their return – while their counterparts who have worked right through have been promoted to higher level positions with increased salaries. We all know that it’s important to do the right thing for yourself and your family and if that means taking time away from your career then great! This all needs to be taken into consideration with your initial plan and supports the need to do a review on an annual basis to talk about where you are, what direction you plan to take next and whether or not you need to make any adjustments to make sure that you will still meet your goals.
Whether we like it or not, for a number of reasons, including some that we have already talked about, statistics also show that quite often, women are still earning less than men. Your goals are the same and you still pay the same price for products and services but in many cases, have to accomplish this on a lower income. This creates an even greater need to plan ahead. Your plan needs to prepare you to achieve short term goals like saving for the children’s education or buying a home, to help you weather any crisis that may come your way and ensure you have adequate income when you decide to leave the workforce.
You may be choosing to stay single permanently, or find yourself living alone due to separation, divorce or perhaps the unfortunate loss of a spouse. Regardless of the reason, many women do find themselves living independently. Independence is great but, without a second income to help pay the bills and/or someone else to lean on for support should you become ill or disabled, there are multiple factors that need to be incorporated into your plan to help you maintain your independence and financial health. If you don’t already – you need to create a safety net or as some people call it, an “Emergency Fund” in case your income is interrupted due to losing your job, illness, disability, etc. How much you need to put away – 3 months salary? 6 months? More? and where best to invest it will be the first items we address together. If you don’t have any children to worry about, you may believe that you don’t need any insurance. This could be true as you may or may not need life insurance but a solid insurance plan that looks at all options - disability, critical illness and the benefits of long-term care insurance will go a long way to making sure you can maintain the independence you enjoy. Do you take out personal insurance or just rely on your employer’s group plan – which is better? Does it make sense to take out an insurance policy now – or wait until you’re closer to possibly needing it? We will answer each of these questions for you and help you decide what fits. Finally, if there is no-one in your life who knows you and can speak for you, putting a Power of Attorney and/or Health Care Directive in place is extremely important, both for financial and health care decisions. This way, someone can manage your affairs if you become incapacitated
Even though you’ve committed to a new and exciting relationship, in today’s world, it’s considered prudent to maintain your own financial independence. This doesn’t mean you are any less committed to the relationship and your chosen partner should understand the benefits. Again, talking and putting all your cards on the table can help avoid uncomfortable conversations later. If you have a credit card in your own name today – keep it and keep using it responsibly. If you do not, then it’s time to apply for one. You should be the primary cardholder on a credit card. This way, if something should happen to your partner, you will have instant access to credit that you may need. Maintaining your personal credit rating could be as simple as using the credit card we’ve already discussed and keeping the account up to date. Again, should something happen to your partner or the relationship dissolve for any reason, having a good personal – rather than joint – credit score will be critical to you moving on in your life. Once we begin working together, the next point will automatically be taken care of as part of the plan we will create for you. Traditionally, many women who entered into committed relationships assumed that they would quality for a survivor’s pension that would help fund their retirement – important to know that many considerations can come into play including the fact that if you become a spouse after the person has already started the pension (and they are receiving individual payments), they may no longer be able to make payments which provide the survivorship option. Consider whether or not it would be better to maintain a relationship with your own lawyer rather than always meeting with your spouse in the room, especially if your spouse has a closer relationship with the lawyer due to business dealings. This simple step can help you avoid surprises, financial and otherwise. Again, particularly in blended families or families with complex personal dynamics, this independent advice could really be valuable.
When the right individual comes along, many of you will begin a committed relationship. This is an important step both emotionally and financially. You can avoid potential issues later on by going into the relationship with both eyes open. Once again, there are financial preparations that need to be considered before jumping in with both feet. This is a major event in your life so talk about the finances . Each of you should disclose assets and liabilities, so that both members have a clear picture of their new partner’s financial background – here’s a good example - if past record includes a bankruptcy, you may want to know and talk about why and how it happened. Keep receipts or statements to record the value of all assets prior to the start of the relationship or marriage, although keep in mind that in some jurisdictions, even assets acquired prior to the time of the relationship may be shareable. The rules regarding the division of family property vary between provinces, but generally speaking, the assets acquired over the course of a relationship are shareable. From a financial perspective, we can give you advice but we’re not lawyers and always recommend that you speak with an experienced family lawyer before moving in with someone or getting married. Whether you’re coming into a relationship with your own home, a business you’ve worked hard to build up equity in or a precious family inheritance that’s dear to you, executing a domestic contract with your new partner is the prudent approach to protecting both parties’ best interests. This type of contract is increasing in popularity in today’s relationships and suggesting one early on can help avoid conflict and reduce stress for both of you in the unfortunate event that things don’t work out. Finally and most importantly - If you have children from a previous relationship, make sure that you protect their interests by updating your will and, if necessary, purchasing insurance to provide for them and their care should something happen to you. Again, we can help you determine the right type and amount of insurance to meet your needs.
Although it’s really unfortunate, many relationships come to an end and whether the dissolution has been a long time coming, or due to a sudden decision, the flurry of emotions that you may have to deal with can make it difficult to think about financial matters. Following these simple steps can get you on the road to financial recovery more quickly and help you sleep at night, knowing that regardless of how you’re feeling, your ability to pay your bills and manage day to day is taken care of by professionals. Step 1 …. Speak to a family lawyer – BEFORE YOU TALK TO ANYONE ELSE. I can’t stress this enough. Let’s face it, we all know someone whose ended a relationship who no doubt has free advice to offer but everyone’s situation is unique so please, talk to a professional first. By the way, if you don’t already have a lawyer, we can help you find one…which brings us to Step 2…..Call me! There are immediate adjustments you may want to make to your financial plan that could touch your investment, insurance and estate plan. < Recommendation …good spot for a story of how you have helped someone else in this situation. Of course, make sure not to use their name or be too specific on details so as to protect their privacy.> Know, respect and accept provincial common-law regulations. Your family lawyer will be able to explain these in more detail but remember that in many provinces, a common-law partner will have essentially the same rights as married spouses after living together for what may seem to you like a relatively short period of time. Make sure to act quickly to satisfy time limits when applying for support or division of property. Again, your lawyer can give you the specifics and again, another reason they should be your first call. When we hear from clients, we immediately sit down with them to especially review their personal insurance plan. Many people are covered under their partner’s group medical or dental insurance but – the partner may have the option of cancelling that coverage at any time without informing you. It’s important that we take steps together to assess the coverage that’s right for you and put something in place to reduce surprises.
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When you are investing to build wealth, there are a few key financial strategies that are the absolute “must haves” for any investment plan. <Run through list and provide your own very brief description of each one> Let’s take a look at each one of these and how they can positively impact your financial health.
Paying yourself first is an absolute rule you need to impose on your pocketbook. As responsible women, we tend to pay all the bills first, then look after family needs, we even give more money to charity on average then Canadian men but….who pays us? It’s important to visualize your ultimate goal and then let us help you determine how much money you will need to achieve it. Once you have a plan in place, then commit to saving a set amount on a regular basis and treat it just like one of the bills. Pay yourself first….then spend what’s left. The long term results could astound you – let’s take a look at some stats.
This graph shows the importance of saving regularly and starting your plan early on. What this chart shows is that if you save just $200 a month, beginning at age 30 and achieve a return of 8%, you will have approximately $285,000 by age 60. If you wait until you are 40 to start, you will have saved only $115,000. If you wait to age 50, you will have saved only about $36,000. This particular illustration would reflect an tax sheltered investment like an RSP. If the dollars you’re saving are put into a non-registered account then the final amount would be reduced by the taxes paid on returns. Of course, there are always taxes to consider but a solid plan can help you with that as well. We’ll talk more on that later.
Investing regularly also helps you to take advantage of dollar cost averaging. The concept of “buy low and sell high” may sound attractive, but is difficult to follow due to the unpredictable nature of short-term market prices. To take advantage of these changing prices, one of the simplest yet most effective investment strategies you can use is known as dollar cost averaging. This chart shows how making a commitment to investing a smaller amount on a regular schedule can help you lower your average cost by purchasing more investment units at lower prices, and fewer units at higher prices. Take a closer look at the example: Rather than making a lump sum investment of $600.00 on January 1 st , a monthly investment of just $100.00 over 6 months helps buy more units when they are “on sale”, resulting in a lower average cost. This concept of investing regularly, within a properly diversified portfolio can really increase the impact of your savings.
You’ve probably heard the terms “Asset Allocation” and “Diversification” bandied about but what do they really mean and how can they help you succeed in building wealth? The concept is simple, rather than trying to pick individual investments that will take you to the top, proper asset allocation is a critical ingredient that can really smooth out the impacts of market moves. As you will see here, more than 90% of any portfolio’s variability depends on having the right asset mix to potentially maximize the level of return you will get for the market risk you are comfortable with. We accomplish this by diversifying your investment portfolio across the right variety of asset classes, investment styles, geography and market capitalization options – to achieve your goals.
Even once we have your suggested investment mix drafted, we then work with you to take a step back and consider all of the possible tax implications and tax savings you may be able to take advantage of. What type of investments should you own – Should they generate interest – dividends or capital gains? Each of these types of return is taxed differently so, it’s important that you understand all of it and invest the right portions of your investment into the right type of investment – again, depending on your goal. We’ll also sit down and review your personal tax returns to help identify tax deductions that you may not have even considered – What would be the impact of maximizing your RRSP contributions now instead of February? Are there income splitting opportunities for you? Maximizing tax deductions and tax credits can go a long way to building your wealth faster. We’ll also help you look at the entire variety of tax-deferred investment options that are available today – like RRSPs and Corporate Class structures and of course the new Tax-Free Savings Account…which by the way is kind of like having the right shoes to go with your outfit…no woman should be caught without one. Why pay tax when you don’t need to? The bottom line is that taxes can really impact your investments and your plan and we understand more about taxes that we would like to admit. Including tax planning into your plan is something we truly take to heart, on your behalf.
And of course, invest with a long-term view. After a tumultuous year and sharp declines in the markets in 2008, many investors asked themselves how best to proceed. Do I pull my investments out? Do I sit tight and wait? History has shown that consistently the best advice has been to stay the course and stick to your long-term plan. The chart shows that since 1950, following the worst 12 month periods of performance on the S&P/TSX, the market has made solid gains just 12 months later with only one exception. And, within five years, the markets were up significantly—meeting and exceeding long-term return expectations. Many of the strongest returns in the markets occur in the period immediately following a sharp decline in equity markets. In order to take advantage of those returns, it’s important for investors to continue to focus on a long-term plan, stay the course, and remain invested. Those who exit the markets, even for a short while, risk missing great opportunities when they recover. Although we can’t ever tell you where the markets will go in the near-term, past experience indicates that strong returns could be just around the corner, so investing for the long-term has always remained a key element in the advice we provide to clients.
How we determine the right asset allocation for you depends on us asking you the right questions. That’s right, we’ll sit down and talk about things first and once we know what your goals are, we can help you determine how much money you will need to achieve them. From there, we determine how long you have to save toward that goal and then figure out together how much risk you are willing to take. All of this important information is fed into a scientific system we use that creates your personal and specific asset allocation mix and expected rate of return. We won’t ever move forward with investment recommendations for you without taking this first and very important step.
In the final analysis, it’s not about how much money you have or what rate of return you earn, it is about you and what you want your money to do for you in your life.
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When speaking with women, many of them believe that they don’t need any insurance. Single women without dependants seem to think that because they aren’t leaving any children behind, there is no need for insurance. Women in a relationship think that their partner’s insurance will cover everything but….think beyond just life insurance for a moment. Consider the possibilities of you suffering from a critical illness or incurring a disability. Take a look at the stats…..Many, many people buy a Lotto 6/49 ticket without even thinking about the odds of winning but far too few of us invest in protection against something with a much, much higher chance of occurring. < Go through list Recommendation – Everyone knows someone whose family has been touched by an illness or disability. This is a good point to use a personal anecdote to emotionally draw in the audience and maintain their attention.>
There’s nothing more constant than change. As we start out, insurance is a basic solution – designed simply to replace income. As time goes by and life becomes more complicated, insurance coverage needs to consider protecting the savings we’ve worked with you to build up, your education savings for the children, your retirement plan, or perhaps even paying off mortgages or other debts. As maturity brings a broader perspective into focus, things we never considered before – like preserving estate values and having the resources to deal with medical and physical needs should our health suffer become top of mind. We will help you take a brief “time-out” from your busy schedule to ensure that your plan incorporates the right insurance choices for your life today, and the life you want to live tomorrow. It’s not as expensive as you think and we’ll make sure that the costs fit your budget just right.
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So, when the time comes and you need to create your retirement paycheque, we’ll help you take a closer look at all the sources of income that the average Canadian can expect in retirement – and trust me, there may be more than you think. Once we’ve gone through them all, you will quickly realize why it is imperative let us help you make them all work together – otherwise you will likely be stuck paying more taxes than necessary. (Go through all the sources of income on the slide) Now lets quickly take a closer look at how each one works…
RRSP Contributions to an RRSP are the most common way Canadians privately save for retirement. The contributions you make grow on a tax-deferred basis allowing you to fully benefit from long-term compound growth and help reduce your immediate income taxes. Its important to know that you must convert your RRSP savings into something that produces income no later than December 31st of the year of your 71st birthday. There are your four basic choices you can make: Cash in your plan: If you cash in your RRSP, its full value immediately becomes taxable. This is not advisable. Convert your RRSP to a Registered Retirement Income Fund (RRIF): RRIFs are the number one choice of Canadians by far. They operate like an RRSP, but in reverse. Instead of putting money in, you take it out on a regular basis. Buy an annuity: A life annuity will pay you a specified income, usually monthly, for the rest of your life. It's a simple choice, but a major drawback can be that you are stuck with it for life. You can't change your mind later and choose a different annuity if interest rates increase after you purchase it. Despite the drawbacks, annuitizing part of your portfolio is often a good thing to ensure you have a minimum income stream to meet their non-discretionary expenses. The last option is to use a combination of both RRIF and annuities. It all depends on your situation. TFSA The Tax-Free Savings Account (TFSA) is a new investment vehicle that allows you to contribute up to $5,000 per year in a savings plan that grows tax--free and provides you with tax-free withdrawals. Of course, contributions do not reduce your taxable income at the source like an RRSP. Investing in a TFSA can also reduce the extent to which your Old Age Security is clawed-back. Note that the $5,000 contribution limit is indexed and the threshold will increase in increments of $500 as necessary. Non-Registered Investments With the introduction of the TFSA, non-registered investments have definitely taken a back-seat in terms of investment tools. However, non-registered investments still have their place, especially for those who have maxed-out their contributions to both their RRSP and TFSA. We can help identify the right non-registered choices to help you meet your objectives.
CPP(QPP) I’m positive everyone here today has heard of CPP(QPP), because from the moment you received your first paycheque, a portion of it was automatically deducted and pooled into pension funds with every other working Canadian. CPP(QPP) is a government pension fund designed to assist Canadians during retirement by providing them with a monthly income. The amount you receive throughout your retirement is calculated based on your total contributions and the length of time during which you were a contributor and is fully taxable. One thing that many people fail to realize is that CPP(QPP) payments do not happen automatically – there is an application process that must occur before you can begin to benefit. OAS The Old Age Security program is financed from Government of Canada general tax revenues – you make no direct contributions to this program. The Old Age Security pension is a taxable monthly benefit available to most Canadians 65 years of age and older. The amount received is determined by how long you have lived in Canada and based on your income levels at the time of receipt. It is said to be an “income tested benefit”.
Some of you may have an employer-sponsored pension plan and that will be one of your most important sources of retirement income. It's easy to see why there is so much confusion about company pension plans. Employer-sponsored pension plans are as varied as the companies that offer them, with numerous choices and options – and lots of puzzling terms like “vesting” and “flex benefits.” There are two basic types of registered employer-sponsored pension plans, regulated by government: Defined Benefit (DB) pension plans &quot;define&quot; or guarantee a specific pension amount paid to you regularly from when you retire for the rest of your life. The amount of your DB pension benefit is set according to your age, length of service and your salary. Over 85 per cent of all Canadians enrolled in a pension plan are in a defined benefit plan. Defined Contribution (DC) pension plans , also known as money purchase plans, do not guarantee the amount of future benefits. Instead, DC retirement income depends on accumulated contributions and the investment returns earned by these contributions. With a DC plan, your contributions are combined with your employer's contributions, plus the investment earnings on these contributions, to purchase a life annuity contract that pays you retirement income. Certain smaller businesses have employee Group Registered Retirement Savings Plans (Group RRSPs) , regular contributions are deducted from your employment income. It's important to remember that the total contributions into your Group RRSP, plus other personal RRSPs, cannot exceed your personal annual maximum contribution limit. Deferred Profit Sharing Plans , are funded solely by your employer and do not have the same rules as registered pension plans. With a DPSP, the size of your retirement benefit depends on how well the investment performs over time. An important thing to note is that all these plans counts towards your RRSP contribution room.
The sources of income on this slide should be viewed as supplemental rather than a primary source of funding. Post-Retirement Employment According to a study conducted by Investors Group approximately 23% of all retired Canadians do paid work during their retirement years. The study also found that the reasons for returning to work are quite diverse; they range from: lack of retirement funds, maintaining social connections and gaining new experiences. This additional income, even if a small amount, can go a long way to pushing back your full dependence on your retirement savings. However, it can also have an adverse effect on other income tested benefits. We’ll touch on this in a few slides. Home Equity Although both single and married individuals may move many times during adulthood, relocating in later life often involves “downsizing” to a smaller home. Older adults are frequently interested in having less space and fewer home maintenance responsibilities. For some, selling the family home can be the result of a disability, an illness, or the death of a loved one. For others, this transition is based on a desire to be near family or to experience a new retirement lifestyle in a different area of the country. Whatever your reason for downsizing, it can come with two main financial benefits: (1) you generally reduce your utility bills, home insurance and property taxes, and (2) the proceeds from the capital gains due to appreciation are tax-free, assuming the house was your primary residence. Its important to remember that selling a house does not always generate the level of retirement income that one would think. Remember that if you plan on staying in the same area, you will be buying back into the same market that made your house appreciate in value. And finally you can also borrow money from the bank using your home equity as collateral. Many retirees do this to help pay for renovations, new cars or vacations. This can be very helpful, especially because you can often get loans at favorable interest rates, due to the backing of your equity.
If you were a stay-at-home parent for a period of time, be sure to mention this when you are applying for Canada Pension Plan benefits. The amount of the benefit you or your survivor receives is based on how long and how much you have contributed to the Plan and, in some cases, the beneficiary's age. The CPP takes into consideration that caring for young children can mean leaving the work force or working fewer hours. If your earnings either stopped or were lower because you were raising your children under the age of seven, you can ask the CPP to exclude that period of time from the calculation of your benefit. To make sure that these periods of low earnings do not reduce your pension later, the CPP can apply the Child Rearing Provision. This means that the CPP does not count the years when you were raising your children under the age of seven when calculating the amount of your benefit. By doing this, you get the highest possible payment. Here’s an example of how this works: Julie was employed outside the home until her daughter, Elizabeth, was born in 1983. Julie stayed at home with Elizabeth until she started school in 1989. When Julie applied for her pension some years later, the CPP excluded the period from the month following Elizabeth's birth to 1989 when calculating the retirement pension amount Julie should receive. When her pension application was approved, Julie discovered that her monthly payment would be $735 per month. Without the benefit of the Child Rearing Provision, her retirement pension would have been $650 per month. Of course, this is something we will advise you on and help you take into account as you approach retirement.
Our approach to creating your Retirement Paycheque looks at every income source you will have in retirement and provides you with a consolidated picture of where you’re at. We’ll look at the tax implications of the money you’re receiving and if possible, suggest alternatives again designed to help your money last longer. We can even help you consolidate all of your sources of income into a single bank account that generates one, single monthly paycheque that’s as tax efficient as we can provide. It can be just like when you used to get bi-weekly paycheques from your job – regular and dependable. The beauty of this process is that it’s a hands-off, no hassle approach to simplifying your retirement. So is this were it all ends? Certainly not!
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Just as we talked about early on in the day, you are more likely to survive your partner. This will be a sad and stressful time in your life and again, I can help. Once you’re up to it, you should speak to your lawyer and determine what rights and responsibilities you have in regard to your partner’s estate. If you and your partner discussed details before, you should know where the will and any insurance papers are. Make sure to take these with you. Generally, you will have 6 months after probate is granted to make a claim against the estate if in fact there is no will. If there is a will, you are probably in a good position to assist the executor in finalizing the affairs. Make sure you apply for survivor benefits from pension plans as soon as possible and I can’t stress this enough but …. Just like the song …. I’ll be there. I work with many clients who have suffered a loss and as their planner, I was there to talk them through each and every step of the way…helping them to get back on their feet. Wouldn’t you like this same comfort in your life?
We always encourage people that it’s never too early to prepare. Do the right people in your life know where to find your will or insurance policies? Will they know who to contact if something happens? Do they know where you keep your list of phone numbers? If your address book is completely in your cell phone and especially if you have the key lock password protected….you may want to rethink that and at least write down a few key folks and their numbers and make sure someone knows where the list is. Have you appointed an executor? Why not? Do you have specific wants and needs for your funeral? Have you discussed this with your family and friends or written everything down for them? As women, you care very much about the people around you. Taking care of these details now will reduce their stress during a very difficult time and this doesn’t take a lot of time to do. Do you have a will which appoints alternate executors and beneficiaries in the event your partner predeceases you? Personal effects like jewelry and china are often more important to women – consider attaching a list to your will setting out who will receive what. Be sure to raise the issues which are of concern to you with each of your advisors – lawyer – accountant – and financial planner.
It’s surprising how many women have not yet written a will and although you’re all amazing and seem invincible, you will pass on one day and without a properly executed will your estate could be divided in a way you may not have wanted. Someone will be appointed to administer your estate, rather than you choosing the person you want. Your preference to a guardian for the children may go unknown. Your assets may be frozen for a much longer period of time, which means no one has access to money or property until the estate is settled A minor’s inheritance may be frozen until he/she reaches the age of majority. At the age of majority, they will be entitled to their portion of the estate - which may be too soon Taxes payable by your estate and/or by your heirs may be higher than if you had implemented an estate plan.
<Go through list of things to consider when putting together a will> We always recommend putting a team together to help you with your estate plan consisting of your lawyer – your accountant and your financial planner. Each of these professionals bring a different view to the table that can help make sure that no stone is left unturned and you will leave the legacy you desire. Of course, your estate plan goes beyond your will
Qualities to look for: Trustworthy, good judgment, clear understanding of your wishes, ability to take on additional responsibilities, has adequate level of maturity and ability to manage any ongoing trusts for a long time. If possible, choose someone who is younger than you, although that may not be advisable if you yourself are quite young. May choose a family member or friend. Benefits and disadvantages: may not be familiar with affairs and wishes; may not necessarily charge a fee; may find the time-consuming role during a time of grieving a difficult burden, especially if your estate includes any ongoing trusts for minor children, disabled heirs, etc.; awkward situations can arise if all beneficiaries are not treated equally. Choosing a professional executor: will charge fees; will have expertise; no personal interest. Important to avoid anyone who would be in a conflict of interest position.
Think about these are possible goals during the planning process: Do you want to preserve as much as possible for your partner, children or grandchildren? Do you need to provide for a child or adult with a disability? Do you want to transfer a business to a family member? Do you want to minimize tax? Now? Or for your beneficiaries? Do you have a favourite charity? < Recommendation – Ask the audience to mention a few of their personal goals – or perhaps the goals of their parents or someone else close to them. This will help to emotional benefits of a solid estate plan.> These are all possible goals for your estate plan and your financial plan needs to also take these into consideration.
Just as there are with investments and insurance, there are many choices to be made and options to help preserve, maximize, equalize and protect the value of your estate. I’ve placed just a short list on the slide for your consideration but this is just a sampling of what can be considered today. <Read through list and add more if you feel necessary> Beneficiary designations Joint ownership Charitable Giving Insurance Trusts It’s keenly important that each strategy is implemented within the context of your estate and financial plan as a whole. We’ll take the time to help you assess the big picture before suggesting specific strategies and helping you to implement them.
Section heading slide to introduce the key topic <pause for audience to read or introduce, depending on your style>
The statistics speak for themselves. While almost 60% of Canadian women are employed today, they are less likely to be insured and like their male counterparts…..don’t feel confident with their plan and don’t meet regularly with a financial planner. Why not? I sincerely hope that I’ve laid out all the benefits of a solid plan and relationship with a planner for you today. Maybe now’s the time to break out from the pack and take the next step…Where do you start? Right here.
We can help you start planning today <Run through slide>
Then, we’ll work quickly to put you on the road to success. <Run through slide but put into your own words>
![[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Turenne Joseph Financial Security Advisor, Mutual Funds Representative Licensed in Québec, Ontario and British Columbia Investors Group Financial Services Inc. (in Québec, a financial services firm.) [email_address]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)