Transcript Slide 1

Consolidate Your
Clients’ Assets
For Advisor Use Only
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 Turner
Wellington West Capital Inc.
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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
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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
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Profession/Career
The Business Owner
• Discuss succession planning
• Arrange for a tax-efficient transfer
of ownership
• Maximize the business’s value before
transition
• Structure retirement income
• Protect against unforeseen events
• Provide tax-minimizing strategies
• Estate freeze
• Minimize probate fees
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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
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Intergenerational Planning
Shake the Family Tree
It’s estimated that $1 trillion will pass
from Canadians now over 55 to
younger generations.
David K. Foot
Boom, Bust & Echo 2000
(Macfarlane Walter & Ross, 1998)
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George’s Step-Daughter
Hitting the Books
• Discuss saving habits
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Allowance
Earning extra money
Establish a budget
Financial goals and objectives
Investing
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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
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Create a household budget
Smart spending
Set up an automatic savings plan
Open an RSP
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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
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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
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Summary of Opportunities
Discussion Strategies
George
• Succession
planning
• Tax minimizing
strategies
George’s
Wife
• Income
splitting
George’s
StepDaughter
• Savings
habits
• Estate
planning
planning
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George’s
Parents
• Credit history • Retirement
income
• Money
planning
management
strategies
• Retirement
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George’s
Son
• Estate planning
Identifying
Opportunities
For Advisor
Advisor
Use Use
OnlyOnly
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Ideal Client
• What characteristics do your ideal clients share?
• Are they in a particular age group
or life stage?
• Do they belong to a particular profession?
• Do they have a specific income level?
• What is their investment knowledge?
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Segment Your Client Base
Systematically assess the value and
profitability of each client relationship
to ensure you are appropriately
focusing your prospecting efforts.
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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
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Look for Opportunities
Ask questions about…
• Pension or benefits coverage
• Major life events
• COI referral needs
• Investment products
• Insurance products
• Financial concerns
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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 assets
are 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!
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Expand Your Range
of Services
By looking beyond traditional COI
partners, you’ll have more to offer
your clients while improving your
business’s potential value.
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Getting Started
• Define your ideal client
• Segment your client base
• Eliminate unprofitable
• Hire an associate
• Expand your COI network
• Reach out to your clients’
client-relationships
• List services you offer
or would like to
• Acquire appropriate
licensing
family
• Establish goals
Use your worksheet!
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Business Building
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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 losses
or 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?
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