Client Case Studies

The Gatsby Family*

Client Profile: The Gatsby family, a multi-generational household became clients in the 1980s. Over the decades, we have had the privilege of supporting five generations through significant milestones and transitions, providing customized financial solutions to meet their evolving needs. As a family with diverse generational dynamics, they faced distinct challenges on aligning financial objectives, wealth preservation, estate planning, family legacy and values.

Net Worth: $250M

Our Approach: At the core of our relationship with the Gatsby family is a comprehensive, family-oriented approach to wealth management. Recognizing the complexities of significant wealth and the dynamics of multi-generational households, we prioritized open communication and collaboration. By understanding the distinct goals and priorities of each generation, we ensured that every decision aligned with the family’s overarching objectives.

Advice/Implementation:

1. Personalized Investment Strategy

• We developed a financial plan for the Gatsby family focusing on asset location and portfolio strategies (growth, value, income, principal protection) which were aligned with the advanced wealth planning and tax strategies for each of the generations.
• Given the active portfolio mandate, diversification was paramount. We used a risk budgeting model and implemented portfolios that were spread across asset classes, geographic regions, and investment styles to optimize the risk-adjusted returns.
• Additionally, we designed a customized options strategy to enhance yields on long-term holdings while contributing to risk mitigation.

2. Comprehensive Tax & Estate Plan

• We collaborated with the Gatsby’s accountants, lawyers, and real estate agents to implement a full estate plan across all generations, aligning with the family’s legacy and multi-generational values. We addressed critical components such as wealth transfer, probate, tax minimization, real estate, and charitable giving.
• We created a Family Trust to spread the lifetime capital gains exemption across various members of the family and allocate income distributions.

3. Intergenerational Wealth Planning

• We serve as trusted stewards, providing bespoke strategies that honour their legacy and ambitions while fostering alignment across generations. By addressing complex dynamics with care and confidentiality, we ensure a seamless transition of wealth, safeguarding the family’s vision and laying the foundation for sustainable growth and enduring impact.
• In the development of the wealth plan, we ensured that all children and grandchildren would be prepared for future education (Registered Education Savings Plan), savings (Tax-Free Savings Account), and to purchase their first home in a tax-efficient manner (First Home Savings Account + Registered Retirement Savings Plan).

Outcome:

Our family-orientated and tailored approach has enabled the Gatsby family to preserve and grow their net worth through market cycles, and seamlessly transfer wealth across multiple generations while maintaining alignment with family values. Through proactive planning and an unwavering commitment to their success, the Gatsby family continues to thrive, confident in their financial future and their ability to adapt to their evolving needs for years to come.

*Names have been changed to preserve confidentiality.

Mr. & Mrs. Spector*

Client Profile: Brady and Emily, are both accomplished professionals, who became our clients early in their careers. Over time, they built a successful and prominent business. As the business grew, they sought our expert guidance to manage the complexities of their substantial wealth and secure their financial future. The Spector’s ongoing and primary objectives were the ability to diversify their portfolio, plan for business succession, minimize tax liabilities, and effectively extract liquidity from the corporation. 

Net Worth: $75 Million

Our Approach: By working closely with the Spector’s, we gained a deep understanding of their operational priorities. Our team employed a strategic approach and crafted personalized financial solutions tailored to their specific needs and objectives.

Advice/Implementation:

1. Investment Strategy/Wealth Plan

• We crafted and managed their portfolio on a holistic basis (corporate and personal). Each recommendation was carefully analyzed in relation to their current financial position, diversification, and existing portfolio.
• Due to the complexity of the Spector’s corporation each portfolio had unique objectives and risk tolerance, aligning with their specific goals.

2. Business Evaluation

• Over the years the Spector’s were subject to numerous expansion and sale opportunities. Alongside our team, we evaluated enterprise value, value-add and cost-benefit overlayed with their financial plan and objectives.
• We strategized the succession plan of the business, mapping out the steps required in the event the Spector’s wished to transition the business to their children or business partners.

3. Tax Strategy

• Implemented advanced tax planning techniques to allow liquidity extraction and reduce liabilities in a tax-efficient manner.

Outcome:

With our guidance, the Spector family successfully navigated their careers on the backs of a secure and robust financial plan. The application of their diversified investment portfolio, business succession and tax planning afforded the Spector’s the time to focus on the growth of their business throughout the years. The Spector’s sold their majority share in the company and are now happily semi-retired and embarking on their next adventure. 

*Names have been changed to preserve confidentiality.

Mr. & Mrs. Maguire*

Client Profile: Charlie and Clara, a couple in their mid-sixties, approached us as they neared retirement, seeking a comprehensive wealth management strategy to ensure their financial security in the next phase of life. Their primary objectives were focused on achieving income stability, managing healthcare costs, and securing a legacy for their family. They sought guidance to create a sustainable retirement plan that would provide peace of mind and enable them to live happily in retirement while fulfilling their long-term goals.

Net Worth: $5 Million

Our Approach: Through in-depth discussions in our pre-retirement meetings, we gained a clear understanding of their vision for retirement, which aided in the development of a tailored financial strategy designed to meet both their immediate needs and future objectives.

Advice/Implementation:

1. Pre-Retirement Meeting

• We reviewed their current financial position in detail, comparing it to their projected financial situation upon retirement. This provided clarity on their readiness for retirement and allowed us to provide the most effective recommendations and strategies moving forward.
• As new clients, we reviewed Charlie and Clara’s existing investment portfolio and deemed their risk tolerance and objectives previously were not aligned with what they wanted to achieve in retirement.
• With retirement just three years away, we meticulously analyzed all their retirement and pension documents, identifying that Charlie’s marginal benefit from working an additional three years was minimal.

2. Personalized Retirement Income Strategy

• We crafted a diversified, income-focused investment portfolio that balanced growth, capital preservation, and income generation, ensuring Charlie and Clara would have a reliable income stream in retirement.
• We optimized their Canada Pension Plan (CPP), Old Age Security (OAS), and Long-Term Disability (LTD) benefits to ensure they were maximizing their available income, both now and in the future.

3. Legacy and Estate Planning

• As part of the retirement plan, we reviewed their estate plan and recommended strategies to shelter their wealth more efficiently, including considerations for probate, wills, beneficiaries, real estate, and their investment portfolio.
• Given their desire to ensure their two children would be financially secure, we walked them through various estate scenarios, outlining in detail the intergenerational transfer of wealth in the event of their passing.

Outcome:

With a comprehensive, well-structured plan in place, Charlie and Clara felt a renewed sense of confidence as they transitioned into retirement. They are now at ease, knowing that their legacy will provide for their children, which has eliminated their financial stress. Charlie was able to retire earlier than initially planned, drawing more income from his portfolio than he had from his employer. Clara continued working until 65 and has now also retired. Together, they are living comfortably on the income generated by their investments, frequently travelling, and enjoying their retirement years.

*Names have been changed to preserve confidentiality.

Mr. & Mrs. Redding*

Client Profile: David and Olivia, a couple in their late twenties, came to us for financial guidance as they embarked on the journey of purchasing their first home. David, a member of a multi-generational client family, had recently received an inheritance from a relative, alongside a generous gift from his parents to assist with the down payment. Olivia, a new client, had just transitioned into a new role and received a severance package from her previous employer. She also held multiple investment portfolios across several banks, credit unions and other financial institutions.

While their primary focus was homeownership, they were equally committed to establishing a long-term investment strategy to secure their financial future.

Net Worth: $2 Million

Our Approach: We employed a holistic, tailored approach to address David and Olivia’s unique financial situation, ensuring it was aligned with their current life stage and long-term aspirations. The first step was to analyze their assets comprehensively, create a detailed snapshot of their financial positions, and provide clarity on their present standing. 

Advice/Implementation:

1. Home Purchase Strategy

• We advised David and Olivia on the strategic use of their assets to maximize the benefits of the First Home Savings Account (FHSA) and the First-Time Home Buyer Program (FTHB) within the Registered Retirement Savings Plan (RRSP). This approach allowed RRSP deductions to shelter their assets in a tax-free and tax-deferred manner, optimizing their financial position for the upcoming home purchase.
• Alongside our mortgage team, we provided crucial guidance, helping them navigate the pre-approval process. By ensuring they understood their borrowing capacity and available options, we enabled them to secure a favourable mortgage rate that aligned with their budget and long-term financial goals.

2. Financial Education and Budgeting

• We collaborated closely with David and Olivia to develop a comprehensive and realistic budget. This budget accounted for new homeownership expenses, investments, and lifestyle goals.
• We equipped them with tools and resources to track spending and build sound financial habits, fostering a solid foundation for their financial future.

3. Long-Term Investment Plan

• Once the down payment strategy was finalized, we revisited their financial snapshot and provided a personalized roadmap, advising on systematic contributions and savings, account consolidation and a long-term growth strategy.
• Each portfolio was carefully customized to reflect their specific goals, risk tolerance, and time horizon.
• We educated David and Olivia on the importance of long-term wealth-building through consistent and disciplined investing.

Outcome:

With our comprehensive guidance, David and Olivia confidently purchased their first home, marking the beginning of an exciting new chapter. Our collaborative planning helped them achieve their immediate dream while establishing the foundation for lifelong financial success.

*Names have been changed to preserve confidentiality.