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The Greatest Wealth Transfer in History is Here

January 2, 2024

As some of the youngest Baby Boomers turn 60 this year, and the oldest approach 80, the greatest intergenerational wealth transfer is now in motion. It is expected that over $1 trillion of wealth will be transferred to Canadians — a number that has grown with the price growth in the financial and housing markets.1 Consider that the S&P/TSX Composite Index Total Return is up by over 3,000 percent since the start of 1983! Mirroring the distribution of wealth, this transfer is expected to disproportionately affect higher-income households. In Canada, the top 20 percent of households hold more than two-thirds of all net worth, compared to the bottom 40 percent, which hold just 2.8 percent. Have you prepared for your own wealth transfer? Back in 2017, a survey suggested that only 22 percent of high-net-worth Canadians had a detailed plan to pass along assets, though nearly 60 percent were not confident in their children’s ability to preserve or grow their inheritance.4 One of the more positive outcomes of the pandemic appeared to be that more Canadians were influenced to put a greater focus on estate planning, at least when it came to the basics of preparing a will.5 However, a recent Angus Reid poll suggests this may not be the case: the statistics about wills haven’t significantly changed As the costs of living, housing and raising families continue to surge, for many investors the tactics of estate planning may also be evolving. Some are pursuing a “giving while living” strategy. Others are using insurance or trusts to help support future generations and create a lasting legacy. If you have yet to give your estate plan the thought it deserves, why not make this a priority before year end? It has the potential to enhance your overall wealth management and can be one of the greatest gifts you leave for your loved ones. For ideas on where to start, please call.

The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. ©️ 2023, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION

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The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus.