Economic Resilience: 10 Issues to Discuss with clients

Christine Steendam

Does the Canadian economy have the resilience to compete through what is projected to be a prolonged economic downturn? Why does the answer matter so much? Because financial advisors, tax preparers, bookkeepers and others in the financial services are being challenged to bring new value to old roles.

The opportunities, however, are big for those working on economic resilience today. There are three important trends and ten key issues to consider, and they will be expanded upon by 19 top thought leaders at the Distinguished Advisor Conference, being held on November 10-13 in Puerto Vallarta, Mexico. Early registration ends September 15.

New trends to watch: The trends to discuss with your clients include new investment preferences, the dilemmas posed by an ageing demographic and the potential opportunities in new entrepreneurship.

New investment priorities . According to Responsible Investment Association assets in Canada managed using one or more responsible investment strategies increased to $2.1 trillion at end of 2017, up from $1.5 trillion at the end of 2015. Canadian responsible investment assets now account for more than 50.6% of total Canadian assets under management , up from 37.8% two years earlier. That’s a significant and eyebrow-raising change that advisors need to address with their clients.

Changing demographics . The growth of the aging demographic has been another ongoing concern. As the Boomer generation approaches retirement, a large portion of the Canadian population is exiting the workforce and collecting pensions, selling assets, and settling into retired life, the new focus in retirement planning is on the Gen Xers, who continue to struggle to put together retirement savings while supporting ageing parents and raising children. They’re putting off retirement, making it a challenge for millennials to establish themselves in the workplace. An economic downturn will impact these three demographics greatly, but, with the right guidance for each life stage and a focus on collaboration and inter-generational wealth, the impact felt can be lessened.

The rise of entrepreneurship . On the other hand, one of Canada’s greatest economic strengths lies in the rise of small business. In 2017, private sector businesses employed approximately 11.9 million individuals in Canada; 69.7% or 8.3 million private sector employees worked for small businesses (1-99 employees). Over half of the private sector is employed by small business.

When you take into account the 19.9% (2.4 million) employees employed by medium-sized businesses, you can see that Canada’s workforce is dominated by small to medium sized enterprises—employing a total of 89.6% of Canada’s private sector employees! This isn’t without its own risks, however. Close to 45% of the Canadian workforce is now in business for themselves, and that comes with high needs from the tax and financial industry to help Canadian business owners build their business beyond the start-up stage, stay compliant with the CRA and soar past that critical 5-year mark, and onto new heights. Supplementing their investment in one primary asset – the business – with financial assets that support the risks they are taking is critical.

Ten Key Issues . Delegates at the Distinguished Advisor Conference will learn more about:

1. How to future-proof your business

2. How to build a global network

3. How to Unleash the Secret to Cash Flow Efficiency for Your Clients

4. How to better manage high taxes, with a global perspective

5. How to make a strong case for Small Business prosperity

6. How to address the new after-tax income challenges of HNW Executives

7. How to identify the big opportunities in succession planning

8. How to work with ageing clients

9. How to help HNW clients with philanthropic planning.

10. How to build momentum, with compassion.

Register by September 15 online or by calling 1.866.953.4769 to join us in Puerto Vallarta, Mexico November 10-13 for the Distinguished Advisor Conference (DAC) . Visit the full agenda and speakers page, and take advantage of the “study with a buddy” rate for your tuition fees, when two or more people attend the conference.

Note: Up to 14.5 CE Credits will be available. Knowledge Bureau has applied for pre-approved IIROC and insurance credits, too.

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