Think Forward,
Planning Right to Left.

Financial experts reveal the advice that they personally make sure to track their spend in their own lives.  There are many ways to achieve this.  Here are their top six:

1. Have one main investment account and another for short- to mid-term needs

Most people who have at least one long-term [investment] account should consider opening another account for mid-term goals. Mid-term goals might involve buying a house or paying for a child’s education.

Match your portfolio spending to the specific goals and time horizon.

2. Don’t be too restrictive with your budget

Trying to change your spending habits too quickly can result in burnout.  Make room for expenses that matter to you. If an activity with a friend is a priority, keep this in your budget. Find other ways to cut down on spending; like canceling unused subscriptions.

3. Automate saving money

You should automate everything you can about saving so that you don’t have to make a conscious decision to do it.   Money in a checking account can be tempting and easy to spend.  Make regular transfers to a high-yield accounts that can help you save for an emergency.

If applicable, automatically transfer your money to a retirement account. If you work for a company that offers a shared RRSP plan, it’s ideal to sign up for the full employer match. Not taking advantage is like leaving hundred-dollar bills on the ground.

4. Spend more to save more

Focus on quality and spend more if it means it will last.  For big-ticket items take advantage of sales events and/or buying seasonal items at the end of the season. Participate in free loyalty programs and search for online coupons before making a purchase.

5. Look out for the small purchases on your credit card statements

When reviewing your credit card statements, it’s easy to just focus on the bigger charges. But it’s key to also review the smaller line items.

These purchases are easy to overlook. Check your statements monthly, and if you see something you don’t recognize (even a few-dollar charge), report it to your credit card company immediately.

 6. “One-size-fits-all” approaches doesn’t work

Personal finances should be based on your values.  Once you understand that other people’s priorities are not the same as yours, you will be able to make the most sense of the right savings methodology for you.

The question becomes: What is important to you may differ from your neighbours and friends.

Bottom Line

There are a lot of rules of thumb out there when it comes to money, but don’t feel pressure to follow them all.  The best thing you can build into your personal financial plan is the flexibility to make changes as needed.

Planning the management of your estate after you pass away requires careful consideration and preparation.  There is much more to the process than deciding who gets the fine china, and your grandmother’s silverware!

Well executed estate planning leaves little room for dispute when it comes to distributing monetary and physical assets, but also re-establishes adherence to wishes regarding charities, bursaries and trusts.

What you need to know

It is imperative that any will include the sound advice of a lawyer specializing in this area.  We may want to rely on those we have trusted in the past, but if your lawyer isn’t listed as a specialist, rely on them for a recommendation to a trusted colleague with the appropriate experience.

Inexperienced attorneys may not provide the appropriate after-tax guidance, or the proper advice to select an executor, both of which could make your legacy desires difficult, or even impossible to fulfill.

If you have some special needs, like the following, experience becomes even more important.

Charitable Trusts

Setting up a charitable trust allows the trustee to decide where their money is going and how they will be remembered.

Establishing your legacy may include making a contribution to an area of your community that was significant in your life. Areas may include sports, the arts, the hospital, the zoo, or your alma mater.

You may ask yourself:

• What causes are important to me?
• How will my money (and this charity) further benefit society?

Your Last Will and Testament

Drawing up a will is an important resource regardless of the life-stage, amount of assets, likelihood of death, or number of heirs.  If you own anything of value that you would like to pass on to another, it is always better to decide yourself, versus running the risk of having an outsider make decisions on your behalf.

It is also important to note that your will is a living, breathing document, which means you can’t just set it and forget it.

Updating your will every few years to reflect your changing financial and familial situations allows you to remain in control of your assets and determine how they will be distributed. The conditions that could cause you to re-set your will are:

• Getting married, or divorced
• Becoming a widow(er) – This is an often-overlooked event since the strain of loss distracts the surviving spouse, and, unfortunately, elderly couples often pass away quickly after one another.
• Birth of a child or children
• Marriage or divorce of an adult child
• Birth of grandchildren
• Passing away of siblings

Often the beneficiaries of investment accounts, especially “registered” accounts like RRSPs and RRIFs should be specifically named in the Will and with the custodian of the accounts.

Let’s review the basics.

To begin this process, you must first determine your net worth. To do so use this equation:

Total Assets – Total Liabilities = Total Net Worth

Assets include land, buildings, and things that you own outright.

Liabilities encompass debts, mortgages, and anything that you owe.

Steps to Creating Your Last Will and Testament

1. Hire a lawyer— Be sure to choose a lawyer that you feel is skilled and experienced with Wills and Estates, trustworthy, honest, and that will hopefully be around longer than you. A lawyer will help you put your affairs in order and ensure you don’t miss anything important.
2. Name your trustee/executor— This person will make sure that the stipulations outlined in your will are met. So, choose someone you know and trust.
3. Decide how your assets will be divided — Planning for every scenario will alleviate additional stress on the part of your trustee/executor when having to make decisions about your personal assets.
4. Name your beneficiaries.
5. Determine if you are contributing to any charity or trust and describe said identity in the will.
6. Outline your end of life decisions in your living will ( also called Power of Attorney for Personal Care)
7. Update beneficiaries for all your life insurance policies and registered accounts, including pensions

A Living Will for End of Life Decisions

A Living Will is a legal document that a person uses to make known his or her wishes regarding life prolonging medical treatments.

A Living Will outlines your wishes for medical treatment if you are unable to speak or lie in a vegetative state. The document outlines which life prolonging treatments you want and do not want in regard to resuscitation.

Canadian law is changing on the matter of Right-to-Die, and a Living Will could include additional instructions that address overt action to end a life.

Estate Planning and Beyond

Determining how your life will be remembered in the event of your death is an important part of your legacy. Making the big decisions easier for your family by having them outlined in a comprehensive document can be one of the most important choices you ever make. You may determine establishing a charitable trust is the right choice for you or you may deem to divide the assets among family. The most important thing to remember is that it is your decision and will therefore be the right one.

Bottom Line

Planning the management of your estate after you’re gone is not an easy endeavor. Your financial advisor is an appropriate person to consult at the beginning and throughout the process.

Executive Summary

It’s a common misconception that having a pre-existing condition means that you automatically do not qualify for life insurance. The good news is this is not always the case and armed with a good life insurance agent, many individuals with pre-existing conditions get approved for insurance. The path to being insured just may look a little different for someone with a medical condition.

What You Need to Know

Work with a Broker – There are many life insurance carriers in Canada and each company has a different set of underwriting guidelines and level of flexibility. It is crucial to reach out to a number of companies when trying to get a pre-existing condition covered. Working with a broker is the most efficient way to research companies as most life insurance brokers have the ability to work with any company they choose.  This also means they will have knowledge of which companies work best for hard-to-insure clients.

Understand Traditional Underwriting vs Non-Medical Underwriting – Many companies now offer non-medical underwriting. This usually means that applicants will be asked a number of medical questions and if the questions satisfy the insurance company, then the insurance will be approved. If they don’t, the application will be rejected.  This can work in the favor of someone with a pre-existing condition if the questions either:

1. 1. 1. do not ask bout that particular condition
      2. the question asked about that condition is forgiving (example: you are diabetic, but the application only asked if you are an insulin dependent diabetic).

However, sometimes traditional underwriting can be the best option for someone with a pre-existing condition. Traditional underwriting can allow you the opportunity to make a case for a well-managed pre-existing condition through in person exams and doctors statements.  If the applicant doesn’t qualify for non-medical insurance because of a condition, there is usually no wiggle room with the insurer.

Manageable Condition vs Severe Condition – Not all pre-existing conditions are treated the same by insurers. Life insurance companies put each applicant through an underwriting process that uses in person medical exams, claim histories, and underwriting guides to determine whether or not they will insure someone.  There is a big difference to an insurance company between someone with a manageable condition and someone with a severe condition.

For example, having high blood pressure is considered to be a pre-existing condition.  However, it is a condition that can often be managed by medication and lifestyle choices. Therefore, an insurer may look at someone with high blood pressure and determine that their condition is well under control and be willing to make an offer to insure. 

Conversely, someone who has been diagnosed with a terminal cancer would be considered to have a severe and unmanageable condition that would cause the insurer to reject the application.

Guaranteed Acceptance Products – Many companies offer guaranteed acceptance life insurance products and sometimes this is the only option for applicants with a pre-existing condition. These products are typically offered with high premiums and small face amounts.   As well as higher premiums, they usually contain a deferred provision.  This means that the insured is expected to pay premiums for two years before the insurer will pay out the death benefit. In the event the insured dies within the first two years, the premiums are most often paid back to the beneficiary.  This can be a good option for those who are otherwise uninsurable but would like to have something to cover final expenses.

The Bottom Line

Knowledge is power when it comes to getting approved for life insurance and so is having a good advisor to guide you along the way.  Be sure to bring a complete list of medical conditions and any medications you are on when meeting with a life advisor so that they can help you sort through companies and products to find the best fit for you.

Executive Summary

Dealing with dementia with financial services and investment clients will become increasingly complicated over time. The number of people who are aging, the ever-extending length of their lives, and the activity that they display well into retirement, coupled with the complexity of capital markets and products can produce a difficult situation for many.

The boundaries of the Boomer generation has them aged from 55 to 75 in 2024. Advances in all types of medical diagnostic and treatment regimens has increased the life expectancy well into the 80s for both men and women in Canada and the United States.

The legislation and regulation regarding clients with dementia will continue to evolve, but it squarely falls under the Know Your Client area. As you suggest or receive investment recommendations and choices to or from your clients, you must feel confident that they are capable of making decisions on their behalf.

And as much as Advisors may feel that Compliance can make their lives miserable at times, this is one situation where involving Compliance will be the smartest decision to make. It is paramount that you maintain your clients’ interests above all else and if you embark on this journey too quickly, without guidance, and, frankly, as the friend and trusted advisor who is now discussing potentially personal and emotional issues, the relationship could be irreparably damaged.

Involve a third-party like Compliance, branch or regional management to assist with each case.

If one of your clients displays the following characteristics, it may be time to act.

1. Rapidly forgetting items and details, and the inability to retain new information
2. Difficulty performing familiar tasks
3. Forgetting words or using words out of context
4. Disorientation in time and space by not knowing the day or a familiar place
5. Impaired judgment with the inability to analyze and act on a situation
6. Problems with abstract thinking like telling time or performing mathematics
7. Misplacing items or putting them in unlikely places
8. Severe mood swings from easy-going to anger
9. Changes in personality
10. Loss of initiative and interest in friends, family and favourite activities

If you see several of these activities and conditions in a client, especially when they haven’t been previously present, it is time to act.

Each situation is different since each of us are individuals. But several steps are common to every situation:

• Review the Power of Attorney documentation on file
• If family members are involved, encourage your client to include them in your next meeting or conversation
• Discuss your concerns with your branch or regional management to receive the latest direction from your firm’s legal and compliance departments

The sources of dementia are many; they range from strokes, sleep disorders, nutritional deficiencies, thyroid conditions, Parkinson’s disease, Huntington disease, mental illness and the most discussed cause, Alzheimer’s Disease.

The source of the dementia will determine the appropriate course of treatment, naturally. In nearly every case, as a percentage of the total, the reversal of symptoms is almost always impossible to achieve.

Canada, along with the rest of the G7 countries, has some of the best dementia diagnostic and treatment in the world. As developed nations the life expectancy is consistent, and the incidence of dementia is similar across the seven countries. In 2023 the number of cases is estimated at nearly 14 million, or 30% of all dementia cases worldwide.

Each province and territory has a well-developed system of provincial, regional, and local dementia and Alzheimer’s societies. Each provide educational and support resources for individuals and families.

If your practice is skewing toward older clients, and this is an area of interest to you, volunteer opportunities are plentiful on the fundraising and care dimensions. Special areas have been established in many care facilities where well-mannered and tempered dogs are brought in to provide later stage dementia patients with comfort, for example.

Key Factors to Know

Dementia, whether it is Alzheimer’s or another source, will touch almost every family. Globally almost 50 million people have been diagnosed, with a new case identified every 3 seconds according to the Alzheimer’s Society in the United Kingdom.

The cost of dementia globally is estimated at $818 billion USD for 2015. A significant amount of healthcare resources are being poured into this area since it has a debilitating effect on those directly and indirectly afflicted.

Memory loss and diminished mental abilities, like reduced joint flexibility and endurance, are a normal part of aging. According to the Alzheimer’s Society of Ontario the symptoms typically follow a pattern of increased frequency of forgetfulness, and the forgetfulness of increasingly important and personal details of one’s life.

The Bottom Line

Stay attuned to your client’s personal situation and stay in-contact closely enough to understand if any physical or mental abilities are being impaired.

The best pre-emptive steps are to include multiple generations in your client base and include multiple generations in your discussions for family financial planning. Obtain consent to discuss your client’s situation with their adult children.

And don’t assume that the older generation, who may be losing some mental acuity, and may be experiencing dementia, does not realize this and want assistance.