Seniors build your advisor team version

Seniors are the wealthiest and fastest growing demographic group in Canada with billions of dollars in financial assets under their control.

As an advisor, one must recognize and understand the different priorities of the broad age range of seniors. There are many older seniors whose primary focus is preserving their capital so they can pass it on to the next generation. Maintaining one’s independence both financially and while living is important as no one wants to be a burden to others.

Younger seniors, particularly free spending baby boomers, need investment income to maintain their accustomed lifestyle. Tax efficient income and minimizing the downside risk of their investments is critical. Products such as variable and fixed annuities sold by life insurance companies, segregated funds with guaranteed minimum withdrawal benefits, structured products that guarantee principal and index-linked GIC’s create an essential part of a retirement plan especially if one does not have a pension plan.

Seniors should have an advisory team made up of professionals who can co-ordinate the advice given and the recommendations made. If all advisers work together as a team, the senior client is assured that all parties are working in their best interest toward a common goal. It would not be uncommon in our practice to have the senior client meet with the lawyer, accountant, investment advisor/insurance advisor, the real estate and the banking representative to coordinate and execute a plan for downsizing their home, an estate plan to distribute assets at death in a tax efficient manner or to assist with decisions about the succession of the family business or cottage. A team approach to planning allows the client to have all the needed advisors in one room at the same time to listen and then communicate the best plan of action. In the event that all parties are not able to meet jointly, it is critical that the advisors in the various professions have permission to communicate with each other on the clients behalf. A win – win relationship is achieved and individual solutions can be implemented with a clear understanding of the individual client’s needs when your professional advisors work as a team.

Additional advantages provided by insurance company segregated funds include strict monitoring and selection of outside fund manages who offer investment portfolios inside the segregated fund. These monitoring processes use stringent criteria to make sure the investment funds available represent the highest quality investment managers.

If you are interested in capturing the growth potential of the financial markets, wanting to diversify the risk in your portfolio or reposition your retirement plan to provide income and security of your capital during market fluctuations, consider the benefits of a segregated fund. Speak to a qualified financial advisor about the opportunities a segregated fund provides for you and your family.