The Challenges of Affluence

With more capital to manage, affluent families have more issues to address and more at risk.

Today’s affluent families are faced with preserving, administering and growing family capital at a time when an uncertain economy, complex tax rules, and an increasing array of financial products make the task more challenging than ever. Many of our Family Office clients share the following concerns:

Investments

  • Do we have a coherent investment philosophy and strategy and a written investment plan?
  • Are we taking advantage of the investment opportunities and strategies available today?
  • Is the management of our investments well-coordinated?
  • Do we have a real grip on how well our managers are performing net of fees?
  • Are we paying unnecessary taxes on our investments?
  • Have we addressed our potential U.S. estate tax liability?

Future cash-flow needs

  • Will we have enough capital to fund our lifestyle needs while meeting our goals for wealth transfer to subsequent generations and charities?
  • Do we have the most appropriate and cost-effective insurance arrangements in place?

Family matters

  • Are we cultivating a responsible attitude towards money?
  • Is the next generation properly prepared to thoughtfully manage family capital?
  • Have all members of our household made optimum use of registered accounts (such as RRSPs and TFSAs) and legitimate income-splitting strategies such as prescribed loans?
  • Are we in need of an up-to-date succession plan?
  • Do we have an effective and up-to-date estate plan?
  • Have we properly quantified and planned for our future capital gains tax liability?
  • Do we need a more focused and effective philanthropic vision and strategy?

Finances

  • Do we give the administration of our financial affairs enough time and attention?
  • Are our financial affairs being administered in the most effective manner?
  • Are we overly reliant on one person to manage the family’s capital?
  • Do we have the right professionals and are they well-coordinated?