Six Key Issues In Practice Reform

The sweet spot in wealth management statistically lies with the 55 plus crowd, whose net worth is the highest in Canada, but they are increasingly elusive, spending summers at the lake, and winters in the south.

That leaves the shoulder seasons to engage with them in critical tax and wealth management planning, says Evelyn Jacks, Founder and President of Knowledge Bureau, and that, combined with significant tax and regulatory change, requires practice reform in six key areas.

Jacks, who is embarking on a series of strategic educational think tanks for tax and wealth advisors with Knowledge Bureau instructors and guest speakers this week, says that while it appears to be more difficult to do business with clients face-to-face, it’s more important than ever. "The tax and wealth management business has become both more lucrative and more demanding, and that trend will continue as boomers and their families transition into their next lifecycles,” says Mrs. Jacks. 

A strategic look at managing resources is critical to serve those needs in a changing environment and that includes knowledge value propositions that are in top demand, says Mrs. Jacks. “We will be zeroing in on six key issues during our fall programming and hope advisors and firms will join us to think strategically about them.”

The issues are:

1. Multiple Structure Tax Planning: How can tax erosion on personal, corporate and trust structures be minimized or offset with proper planning?
2. Investment Planning: What actions need to be taken now to generate specific income returns over times of transition?
3. Retirement Planning: How portable are assets earmarked for retirement and what are the after-tax values in the retirement period for couples and singles?
4. Estate Planning: What frameworks should be put into place for risk management in the preservation of wealth for the next generation – both with tangible assets and financial assets?
5. Cross Border Tax Planning: Taxpayers must disclose foreign holdings both here in Canada and abroad under the expanded T1135 filing requirements. Of particular concern to U.S. citizens living anywhere in the world, including Canada, is FATCA (Foreign Account Tax Compliance Act) which now requires full disclosure of any accounts held by U.S. citizens here. Have you reminded your clients of these requirements? Voluntary disclosure can reduce penalties.
6. Professional Fee Erosion: What will the fees and charges be in building wealth going forward, particularly in the retirement period? Can they be minimized? Are they deductible? Transparency is required, and knowledgeable advisors must broach the subject professionally and consistently.

Jacks says that an astute advisory firm needs to be fleet of foot to maximize time with clients and meet their specific demands communicating in a variety of different ways, but in the end, it is the knowledge proposition in each of these key areas that will determine the ongoing successful growth of the firm.

These issues are the subject of Knowledge Bureau’s Regional Canadian Workshops and Distinguished Advisor Conference over the next five months.

For more information contact Evelyn Jacks at Knowledge Bureau, 1-866-953-4769 or by email evelyn@knowedgebureau.com. Educational consultations can be arranged by contacting the registrar@knowledgebureau.com or online at www.knowledgebureau.com.