Wealth Management
Many of our clients have financial management needs with degrees of complexity that call for a variety of capabilities – asset and income protection, estate and succession planning, tax planning, etc. These form the practice of wealth management.
This level of expertise requires a multi-skilled team – not just one advisor. (That would be a little like expecting you could have only one doctor for every medical problem you might have in your lifetime.) Still, managing wealth begins with a genuine interest in your well-being. It’s about empathy, understanding and adding value. Without these, the best technical skills are irrelevant. Know that whatever your financial or personal circumstance, our team has dealt with them before. We know what has worked, and what hasn’t, for many other clients in various situations.
With input from you about your personal and financial circumstances and objectives, we will conduct a review to identify options for you to consider and then work with you and your advisors to successfully implement them. Continuously. Because things happen – your personal circumstances change, the investment environment changes, new tax rules are introduced, etc. Our job is to help you stay ahead of the issues that impact your wealth.
Our wealth management services are covered as part of your investment management fee.
Read about what we’ve done for others.
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Turning High Income into High-Net-Worth
Solutions
Investment management, Financial planning, Estate and succession planning, Tax planning, Family education
Walter was a young neurologist in southwestern Ontario when he was first introduced to us in 1988 (preceding Newport). He and his wife, Julie, had three young children and wanted to become better organized financially.
At the time, Walter and Julie were invested in a number of private limited partnerships – but these were illiquid investments, with minimal reporting. They didn’t know how these were performing or where they stood financially.
We helped the couple see that Walter’s predictable, high income was a tremendous advantage that, properly stewarded, could lead to financial independence. They didn’t need to take a lot of investment risk. We put together a realistic savings and investment plan that would make work optional one day, though as Walter told us, “I love what I do. I don’t ever want to retire as long as I’m healthy.”
Another key priority was the development of an estate and succession plan to protect their young family. In later years we helped Walter incorporate his growing medical practice in order to become more tax efficient.
Today, Walter and Julie are wealthy and yes, true to his word, he is still working happily – and by choice.
The children have grown and are pursuing their own careers, but the lessons of prudent saving and investing were well learned at home. All three have started investment accounts with us and are part of our NextWave program. In fact, one son is a young physician, so events have come full circle and we find ourselves providing the same counsel we gave to his parents almost thirty years ago.
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Providing a More Predictable Income at Lower Risk
Solutions
Investment Management, Financial Planning, Estate & Succession Planning
Susan approached us to help manage the portfolio she inherited following her husband’s passing a few years earlier. She had adjusted to her new circumstances and was building a life on her own when she decided that changes to her investments were needed. She had a sizeable portfolio but there were two issues:
Firstly, the account was invested 100% in equities. While this afforded long-term growth, it was entirely too volatile for Susan’s comfort. She told us she didn’t want to worry about the ups and downs of the stock market; she just wanted to know her money would be there for her and her family. We agreed that her existing portfolio represented more risk than needed given her needs and objectives and did not provide steady income.
The second issue was that there were unrealized capital gains equal to more than half the portfolio. Given that Susan’s other objective was to leave an inheritance to her children, she hoped to minimize the impact of taxes down the road.
Before we made any changes to the portfolio, we worked with Susan to confirm her spending needs and ran financial projections to determine how long her capital would last. This was essential for determining the target rate of return and level of risk she would need to assume to meet her objectives.
We also arranged for an insurance policy to cover her projected capital gains taxes. Susan was aware that the unrealized capital gains in her investments would result in her estate having a large tax bill. She wanted to ensure she left her adult children financially secure. An insurance policy was a good way to use some of the capital that she would not need to fund her lifestyle to ensure her children received the full inheritance she planned for them.
With the planning and structuring work done, we made changes to the asset mix to reduce the amount of equities – adding income-producing alternatives such as real estate, infrastructure and high-yield debt. We were able to greatly reduce the risk and volatility levels of the portfolio while continuing to deliver an attractive rate of return that would meet Susan’s personal objectives.
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Comprehensive Planning for an Entrepreneur
Solutions
Investment management, Tax planning, Individual Pension Plans, Inter-generational planning
Jacob owned and operated a highly-successful company when he was referred to Newport by a senior tax partner at a major accounting firm.
With an investment portfolio worth more than $50 million, Jacob was attracted to Newport because of our sophisticated, diversified investment mix of traditional and alternative assets – especially unique private investments that he could not access on his own. We were retained to manage a family trust and non-registered investment accounts.
Through our exploratory conversations, Jacob also became enthused about the wealth management ideas we brought to the table. We recommended that he establish an Individual Pension Plan to allow him to shelter more corporate income and worked with him and his accountant to put this in place.
Jacob subsequently sold his business and then established a family office with whom we work closely to manage the investments. One of his objectives was to prepare the next generation for wealth by educating and involving them in the process. We subsequently opened investment accounts for his three young adult children and are engaging them in a process of continuous learning through our NextWave program. What began as a specific investment need has evolved into a holistic wealth management relationship for the whole family.
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