Post on 28-Dec-2015
For Advisor Use OnlyFor Advisor Use Only 2
Why Asset Consolidation?
When you have all of a client’s assets, you certainly can do a better job for the client and it creates a more loyal client
with a higher level of trust.““
David TurnerWellington West Capital Inc.
For Advisor Use OnlyFor Advisor Use Only 3
Providing Comprehensive Advice
What type of advice can you provide? “George”• Small business owner• Age 49• Married• 13-year-old step-daughter• 25-year-old son
For Advisor Use OnlyFor Advisor Use Only 4
Peak Earning Years
Building Wealth• Discuss tax savings strategies
• Contribute to an RSP• Minimize taxes on investments• Defer the receipt of taxable income
• Discuss strategies during retirement • Purchase an annuity• Reverse mortgage• Pay down debt or contribute to an RSP
For Advisor Use OnlyFor Advisor Use Only 5
Profession/Career
The Business Owner• Discuss succession planning
• Arrange for a tax-efficient transferof ownership
• Maximize the business’s value before transition
• Structure retirement income• Protect against unforeseen events
• Provide tax-minimizing strategies• Estate freeze• Minimize probate fees
For Advisor Use OnlyFor Advisor Use Only 6
George’s Wife
Building Wealth• Discuss income-splitting strategies
• Contribute to a spousal RSP• Open an RESP• Have the higher income earner pay
expenses, and lower earner invest
• Discuss estate planning• Updated Will and Power of Attorney• Appoint a legal guardian for minor child• Review registration and official
ownership of assets
For Advisor Use OnlyFor Advisor Use Only 7
Intergenerational Planning
Shake the Family Tree
It’s estimated that $1 trillion will passfrom Canadians now over 55 to
younger generations.
““David K. Foot
Boom, Bust & Echo 2000 (Macfarlane Walter & Ross, 1998)
For Advisor Use OnlyFor Advisor Use Only 8
George’s Step-Daughter
Hitting the Books• Discuss saving habits
• Allowance• Earning extra money• Establish a budget• Financial goals and objectives• Investing
For Advisor Use OnlyFor Advisor Use Only 9
George’s Son
Getting Started• Discuss establishing good credit history
• Pay bills promptly • Borrow only what’s needed and is
affordable• Try to pay loans quickly and on time
• Discuss money management strategies• Create a household budget• Smart spending• Set up an automatic savings plan• Open an RSP
For Advisor Use OnlyFor Advisor Use Only 10
George’s Parents
Preserving Wealth Seniors are one of the fastest growing groups in Canada.
By 2016 at the latest, Canada will have far more seniors
than children
“The Daily”, Population projections 2000 to 2026 Statistics Canada, March 13, 2001
““
For Advisor Use OnlyFor Advisor Use Only 11
George’s Parents
Preserving Wealth• Discuss retirement income planning
• Draw on non-registered investments first• Hold interest earning investments in
tax-deferred accounts• Hold dividend and capital gain generating
investments in non-registered accounts• Apply for the GST credit, federal age tax
credit, and federal pension tax credit• Discuss estate planning
• Update Will, Power of Attorney,and beneficiaries
• Life insurance, trusts, gifts, and donations• Prepay funeral expenses
For Advisor Use OnlyFor Advisor Use Only 12
Summary of Opportunities
Discussion Strategies
GeorgeGeorge’s
Wife
George’s Step-
Daughter
George’s Son
George’s Parents
• Succession planning
• Tax minimizing strategies
• Retirement planning
• Income splitting
• Estate planning
• Savings habits
• Credit history
• Money management strategies
• Retirement income planning
• Estate planning
For Advisor Use OnlyFor Advisor Use Only 13
IdentifyingOpportunities
Advisor Use OnlyAdvisor Use Only
For Advisor Use OnlyFor Advisor Use Only 14
Ideal Client
• What characteristics do your ideal clients share?• Are they in a particular age groupor life stage?
• Do they belong to a particular profession?• Do they have a specific income level?• What is their investment knowledge?
For Advisor Use OnlyFor Advisor Use Only 15
Segment Your Client Base
Systematically assess the value and profitability of each client relationship
to ensure you are appropriately focusing your prospecting efforts.
For Advisor Use OnlyFor Advisor Use Only 16
Saying Goodbye
When introducing a new advisor mention:• Why and how they’ll be able to help
the client• The advisor’s investment philosophy
and approach are more suitable• The advisor’s experience
and qualifications• They will be contacted to arrange
an initial appointment• Their files will be transferred
For Advisor Use OnlyFor Advisor Use Only 17
Look for Opportunities
Ask questions about…• Pension or benefits coverage• Major life events• COI referral needs• Investment products• Insurance products• Financial concerns
For Advisor Use OnlyFor Advisor Use Only 18
Conversation Insights
Ways to approach the topic of asset consolidation• Provide suggestions on assets held elsewhere and the
importance of comprehensive advice to ensure all assetsare complementary
• Highlight your services and demonstrate added value• Risk management• Tax planning• Estate planning
• Review the pros of asset consolidation • A “big picture” perspective• One source of reporting and advice
Ask for the business!
For Advisor Use OnlyFor Advisor Use Only 19
Expand Your Rangeof Services
By looking beyond traditional COI partners, you’ll have more to offer your clients while improving your
business’s potential value.
For Advisor Use OnlyFor Advisor Use Only 20
Getting Started
•Define your ideal client
•Segment your client base
•Eliminate unprofitableclient-relationships
•List services you offeror would like to
•Acquire appropriate licensing
•Hire an associate
•Expand your COI network
•Reach out to your clients’ family
•Establish goals
Use your worksheet!
For Advisor Use OnlyFor Advisor Use Only 22
Thank You
The information contained in this presentation has been provided by TD Asset Management Inc. (“TDAM”) and is for information purposes only. The information has been drawn from sources believed to be reliable but is not guaranteed to be accuracy or complete. The information is not intended to provide financial, legal, tax or investment advice. Particular investment or trading strategies should be evaluated relative to each individual’s objectives. TDAM, The Toronto-Dominion Bank and any of its affiliates and related entities are not liable for any errors or omissions in the information or for any lossesor damage suffered.
TD Mutual Funds are managed by TDAM, a wholly owned subsidiary of The Toronto-Dominion Bank. Available through authorized dealers.
TD Mutual Funds is a trade-mark of The Toronto-Dominion Bank, used under license.
Questions?