With the Liberal Government’s present focus on making life harder for business owners, it may seem like the benefits of owning and running a small business are diminished. With this in mind, we felt it important to re-visit some of the positive strategies that being self-employed and/or incorporated can bring which are not currently in Bill’s cross hairs… (more…)
Author Archive
Recognizing Strategies that Work for Business Owners
Thursday, September 7th, 2017Proposed Tax Changes
Tuesday, August 1st, 2017FUNDAMENTAL changes to private corporations have been announced that could significantly affect entrepreneurs and incorporated professionals
On July 18, 2017, the Canadian Department of Finance released a consultation paper that proposes ground-breaking modifications to the Income Tax Act. Should they become law, these proposals could drastically affect private companies and their shareholders. The proposals are a complete u-turn on decades of case law founded and CRA accepted practice.
Living Your Life By Design
Monday, July 10th, 2017We all have a vision for our ideal life. The version of our best life that we hope to attain. The difference between achieving that life and dreaming about it comes from whether we are living
our life by design, or by default.
Entrepreneurial Families: Your Personal Board of Directors
Monday, May 8th, 2017As seen in the Spring 2017 issue of Iconic Concierge Magazine.
Embracing the entrepreneurial spirit, we subscribe to the idea that the path of life is not a straight line, it is unique series of detours. As such, it is important that your financial plan services your unique set of circumstances and delivers the solutions that matter most to you and your family.
What No One Tells You About Business Succession
Tuesday, March 28th, 2017
Lorraine McGregor, Spirit West Management
VELA Wealth is pleased to work with a network of established experts who help deliver outstanding outcomes for clients. This month, we’ve partnered with Lorraine McGregor of Spirit West Management to talk about the realities of business succession planning.
The Journey to Success is Full of Four Letter Words
Thursday, August 25th, 2016The Journey to Success is Full of Four Letter Words
The question is which ones will you choose? Our principal and founder, Jason Boudreau recently gave this talk to colleagues are the Advocis Vancouver Strategies for Success Conference. Are you developing a career in wealth management? Here is a highlight of some 4-letter words he suggests you consider you keep in your repertoire.
READ…
soak it in.
TALK…
To mentors (and then do it regularly).
To those who are where you want to be and those coming up.
MEET…
With everyone. Grow your pipeline.
TAKE…
A genuine interest in who they are and what they are up to in life and business. Everyone has something to teach you and can add value to your life
STAY…
Focused! How will you get to your goals? Stay focused on your pipeline.
KEEP…
Going! Stick with it. Persevere. It’s about timing.
SELF…
Get to know yourself, inside and out. Get out of your own way.
What drives you?
What are you the absolute best at?
What holds you back? Limiting beliefs?
How can you become self-actualized?
Your purpose is inside you, waiting to be discovered. Find it.
KNOW…
Your ‘why’. You know what you do, you know how you do it, but do you know why you do it?
WHAT…
IS YOUR PURPOSE?
Have a purpose much greater than you! How can your business be a vehicle to bring your purpose to the world?
WIFE (TIME WITH WIFE)…
Spend the time. Behind you is a support system.
KNOW…
Your market, inside and out!
What makes them tick?
Why are they successful?
What’s important to them?
What are they concerned about?
Who do they care about and spend time with?
How can you help them?
KNOW…
Their ‘why’.
LEAD…
With planning. Follow with product. Never the other way around!
STAY…
Relevant. Mind, body, heart and soul. Continue to gain education and master your craft. Make the time to relax and replenish your mind and soul. Ensure you are taking time out for yourself and working out in whatever means you are comfortable. You are of no service to anyone else unless you are in full working form.
CALU…
Is making a real difference for our industry and our clients.
SEEK…
Coaching.
LOOK…
For ways to add value beyond your core offering.
TEAM…
Without them, you are just you, and it’s not nearly as fun!
SHOW…
Your gratitude!
GIVE…
Of yourself, from your heart. Everything else will follow.
The Value of Financial Advice
Monday, July 25th, 2016The value or ‘alpha’ a financial planner provides to their clients is a challenging metric to measure and goes far beyond investment returns . Financial advice should be unique to every client’s personal situation and goals and the timing, nature and outcomes of advice may be monetary or non-monetary. Given these quantitative and qualitative aspects to the planner / client relationship, is it even possible to measure the impact of advice and what is the value a planner adds?
Forbes published an article in 2015 looking at the value of financial advice and focused on studies completed by Vanguard and Morningstar. Some key points from these studies are summarized below:
Vanguard’s Advisor Alpha
Vanguard developed their Advisor Alpha concept in 2001. The info graphic below shows their overall estimate for Advisor Alpha is 3% on a net basis (4% less an assumed 1% fee). Vanguard explain their objective is to shift the focus away from “traditional beat-the-market objectives” (i.e. traditional alpha) toward what they view as the “best practices of wealth management.” These best practices are separated into several categories that focus on tax efficiency, costs, risk management, and making good investment decisions:
(1) Build a customized investment plan aimed at achieving goals and meeting constraints for risk tolerance and risk capacity
| > 0% | suitable asset allocation with broadly diversified investments |
| 0.45% | focus on low-cost investments (low expense ratios) |
| 0 – 0.75% | locating assets properly in taxable and tax-advantaged accounts |
| >0% | focusing on total returns investment instead of income investing |
(2) Minimize risks and tax impacts
| 0.35% | rebalancing to the strategic asset allocation |
| 0 – 0.70% | deciding where to draw assets from (tax-deferred or taxable) to meet spending |
(3) Behavioral coaching
| > 1.5% | providing support to stay the course in times of market stress |
Overall net impact of good advice: about 3%
Morningstar’s Gamma
Morningstar created a similar study about the value of good decision making and their research is more directly focused on how retirees can achieve higher income, which they call gamma. Morningstar left out issues like behavioral coaching, and included other matters like dynamic retirement spending. The dimensions for improving financial decisions considered in their paper are broken down into several issues, along with how a naïve investor might approach each issue and how an improved outcome could be achieved with the guidance of a professional. Working with an adviser, a client may make improved financial decisions resulting in an increased retirement income. The improved outcome scenario comes out 22.6% ahead of the naïve investor.*
By it’s very nature, value is subjective, however, where the client is at the centre of a relationship, they should experience value from a collaborative relationship with a financial planner, acting in their interests. Whether this advice results in improved investment returns, objective decision making or both, working with a trusted planner in a long term relationship should result in a beneficial outcome.
*Source: Forbes ‘Value of Financial Advice’ July 21, 2015
Welcome our newest Senior Advisor, Rob Wallis
Tuesday, July 5th, 2016
We’re proud to announce VELA Wealth has recently brought Rob Wallis across the pond to join the team as our newest Senior Advisor.
With a personal goal to achieve meaningful, long-standing relationships, Rob takes the time to create an environment of trust, comfort and confidence. A methodical and analytical thinker, Rob compassionately navigates clients through the financial planning process, ensuring they feel guided and supported.
Rob brings over 10 years of financial planning expertise to the VELA team with a proven track record of delivering high calibre solutions with style and elegance. His key areas of expertise include pension and retirement planning, with a concentration on providing tailored investment planning solutions.
British born and raised, Rob is a globe-trotting travel enthusiast who has visited more than 25 countries thus far. These same travels brought him to a rooftop bar in Laos, where he met his supportive and patient wife Jennifer. Rob also has a profound love of the outdoors and is a self proclaimed foodie with wonderful sense of humour and positive life affirming outlook.
Fast Facts about Rob:
Favourite Book: The God of Small Things
Hobbies: Skiing & collecting old maps
Favourite Pastimes: Hiking, cooking, travelling and spending time with family
Dream occupation — if you weren’t doing what you’re doing now: Commercial airline pilot
Most unusual item in his desk drawer: A picture of the Laughing Cavalier. Always makes me chuckle, check it out https://en.wikipedia.org/wiki/
Guilty pleasure: British beer and French Wine
Bucket List Task: Hiking across the Pyrenees from the Atlantic to the Mediterranean. 600km, 60 days, 50,000 metres elevation gain over the hike. And to learn to fly a float plane!
Gravity 2016
Wednesday, April 13th, 2016It was just two weeks ago when we hosted Gravity 2016, and we are still buzzing.
The Back Story
As we came to the conclusion of our brand revitalization and website refresh, it was suggested that VELA host a launch event of some sort. Personally, this didn’t resonate with me. Our brand speaks to the entrepreneurial spirit. We embrace and encourage connection and collaboration. A website launch party simply didn’t coincide with those values.
Through further discussion with my wife, Carissa Boudreau of Clearly Prepared; my branding agency, Free Agency Creative; and my PR team at Neesh Communications, we decided to host Gravity.
Gravity is a unique opportunity to celebrate that entrepreneurship can go beyond simply networking to explore new collaborative models.
Gravity 2016 Recap
Right off the bat, Ripe Rides made a statement in front of the Terminal City Club, delivering some of our 120 guests in VIP style. Inside the venue, Beta5 Chocolates, Body Energy Club, Moody Ales, and Happy Water took care of our food and beverage needs for the evening.
Jason Boudreau of VELA Wealth hosted the evening, while Norm Trainor of The Covenant Group provided the keynote address. Free Agency Creative also spoke to the brand values and creative direction behind VELA’s ‘Guiding the Entrepreneurial Spirit‘ video presentation.
Of course, the evening included the opportunity to mix and mingle with known colleagues, and also encouraged forging new meaningful connections.
Last, but not least, we thank our gifting partners for providing such useful and relevant gifts for Gravity attendees.
Body Energy Club, CHIMP, Pressed & Proper, The $2000 Coffee, Clearly Prepared, Groundwork Athletics, Jiva Organics, Style by Sarai and Your Ultimate Speech.
Charitable Giving and the Business Owner: Phase Two
Tuesday, March 15th, 2016We previously introduced you to the Anderson’s, a successful business family with aspirations to create a meaningful legacy. As part of their tax and estate planning, we incorporated charitable giving and life insurance to both achieve these aspirations and help offset the taxes they would owe in their estate.
THE VISION
Now that John and Barb have set themselves up well, it’s time to shift the focus to ‘phase two’ of the planning, their children and grandchildren.
One of the common themes we discuss with clients is that of ‘cascading planning’. If you think of a waterfall or a stream cascading downward from its source to its ultimate destination, you can get a feel for what we mean. Cascading planning involves looking at multiple generations and focusing on ‘continuity’. This is how a family can truly create a lasting legacy.
In this second phase of planning for the Anderson family, we are helping them to get a head start on this planning that we know their children and grandchildren will eventually have to do and, in the context of their family’s legacy, would certainly want to do.
THE PLAN
To help execute on this planning, we will look at two key areas;
Firstly, we will review if all of the children (who are married with their own children) have up-to-date wills. These wills should not only outline the usual pieces of guardianship and distribution of assets, but also the family’s charitable legacy wishes. Wills are some of the most, if not the most, important documents we can have, given that they ‘speak for us when we can no longer speak’. Just as John and Barb have outlined their philanthropic wishes in their own wills, so too should their children. This will help ensure the continuity of the family legacy for generations to come.
Secondly, we are going to implement a permanent life insurance strategy, similar to John and Barb’s, for each of the children and grandchildren. At first, John and Barb were a little confused about why they would do this as most people really do not think about implementing life insurance for their children and grandchildren. However, in the context of cascading and continuity planning, it is the natural evolution of the family planning, given what John and Barb have just done themselves.
These policies will be owned by the family holding company and there are significant benefits to getting a head start on them for generation two and three.
Cost. Given that the heirs are much younger, the insurance premiums will be much less for the same, or potentially greater, long-term benefits.
Living Benefits. Within the policy, there is a tax-sheltered investment component called a cash value. Every year, the cash value (and the death benefit) grow through the reinvestment of what are called ‘policyholder dividends’. This growth occurs on a tax- sheltered basis and during their lifetime, the children and grandchildren can access these funds for any purpose, such as university tuition, purchasing a home, expanding the family business or even making charitable contributions.
THE RESULTS
Eventually, when they reach their life expectancy, John and Barb’s children will have these policies to help execute their own estate planning. Through the direction in their wills and as it was for their parents, there will be a donation(s) made utilizing the insurance, helping to offset or even eliminate the capital gains tax in their estate.
This helps to ensure that there is continuity of the wealth that the family has worked so hard to build and, equally as important, that the legacy that John and Barb created for the Anderson family will now be stewarded by their grandchildren.
This is how families create meaningful legacies that live on for generations.