Tuesday, April 26, 2022

Preserving Wealth

"Toronto-based research firm Strategic Insight projects that approximately $1 trillion in personal wealth will be transferred from one generation to the next in Canada between 2016 and 2026, with roughly 70% of that in the form of financial assets." – Advisors Edge January 30, 2018


"70 % of Wealth Transfers fail." – The Future of Estate Planning. Trusts and Estates June 2010


"65% of Canadians say it's likely they will leave an inheritance to their heirs or estate but only 46% of Canadians have a will." – Sun Life Canadian UnretirementTM Index, 2015.


Experts estimate that $1 trillion of inheritances will pass from one generation to the next within a decade in Canada. In addition, many individuals are selling their businesses, resulting in substantial gains. Accordingly, the ability to effectively manage one's wealth and prepare and implement a proper estate plan is no longer just prudent. It's crucial.


Jack Lumsden is an experienced financial advisor who uses an easy-to-read narrative style to clarify financial planning concepts that everyone needs to know. Preserving Wealth explains:


•Investment strategies to provide for growth and protection of capital,

•How to develop an effective estate transfer plan to reduce estate costs and taxes,

•Strategies to preserve wealth and safeguard an inheritance or gift for the next generation,

•How to select an executor, and what to do if you are an executor,

•The critical discussions to have with your family, and

•How to assemble a financial team.

read an excerpt...

“I’d like to take a stab at this,” declared Mark. “In the first two categories, cash and bonds, you’re basically lending money to another party, but with stocks, you’re buying shares, or ownership, in a company. Over the long term, stocks have outperformed the other types of investments.”

“Details!” demanded Sally. “More details, please.”

“Sure. In the category of cash, you’ve got savings and chequing accounts, and Treasury Bills (T-Bills). T-Bills are sold every Tuesday by the Government of Canada, for terms from thirty days up to a year. They’re sold at a discount, which means they’re sold at less than their face value, but at the maturity date, you get the full face value; therefore, the deeper the discount, the better return you’ll get. I also found out that the reason the government issues T-Bills is that it provides them with a way to raise cash.”

“Maybe I was wrong about you, Mark. Maybe you do know something after all,” Alice said with a grin from ear to ear. “Now tell us about bonds.”

“I’ll take that as a compliment, I think,” said Mark. “When you buy bonds, you’re really making a loan, either to a level of government, which could be federal, provincial, or municipal, or to a company. They, in turn, promise to pay you a set interest rate for a certain period of time, and when that time’s up, they pay back your loan.”

“Wait a minute, hotshot,” Alice said. “What about GICs? Are they considered cash or bonds?” She was a sly one.

Uncle Wayne jumped in to save Mark. “I would include GICs in the bond category, because they have some of the same characteristics as bonds.”

“That’s what I was about to say,” Mark declared, although he looked as though he didn’t expect us to believe him. “Anyway, GIC stands for Guaranteed Investment Certificate, and, essentially, it’s a loan you give to a bank or trust company. The usual term for a GIC is one to five years, although it can be longer. For example, you loan the bank $1,000, and the bank will pay you a set interest rate for a specific period of time and then pay back your $1,000. A lot of people like GICs because they’re guaranteed for up to $100,000 per institution per person by the Canada Deposit Insurance Corporation (CDIC), provided that the term of the GIC doesn’t exceed five years.”

"So what’s the difference between a bond and a GIC?” asked Sally.

“There are two main differences: the guarantee factor and the liquidity. You usually can’t cash in a GIC before the end of the set term. A bond has more liquidity; you can sell it on the open market anytime you want. However, the value of the bond is not guaranteed. If you sell it before the maturity date, you could end up losing money, or if you’re lucky, making money.”

“You’ll have to run that by me again,” Sally complained. “You’re starting to lose me.”


about Jack Lumsden...

JACK LUMSDEN, MBA, CFP®, is a financial advisor with over t
wenty years of experience. He has enjoyed building a strong career and loyal client base. In addition to helping clients preserve and transfer their wealth, he focuses on those who are or will be making the transition from their working years to retirement with the need to develop a lifelong income and cash-flow strategy from the financial assets they have accumulated.

A lifelong resident of Burlington, Jack dedicates much of his spare time to staying active and coaching high school football. Spending time with family is another of his core values. He enjoys attending sports events with his son, Connor, and country music concerts with daughter, Paige, while he and his wife, Sandi, like to travel with friends and explore new destinations.

Jack's education includes a BBA from Wilfrid Laurier University (where he met Sandi), and an MBA from McMaster University. He is also a CERTIFIED FINANCIAL PLANNER® or CFP® professional.


Please NOTE:

The publisher is running a Goodreads giveaway in conjunction with the tour: 10 print-copies. Anyone in Canada on Goodreads can enter 



Connect with Jack Lumsden

Financial Planning: jacklumsden.com

Author website: preserving-wealth.ca

Facebook: https://www.facebook.com/JackLumsdenCFP

Goodreads: https://www.goodreads.com/author/show/20761015.Jack_Lumsden


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