Financial Planning
Financial Planning
Nature and Scope of the Offering
Our Financial Planning Team will guide you in the development of strategies that will allow you to achieve your financial objectives. More specifically, this plan will cover the following areas:
Personal Finances and Taxation
- Preparation and analysis of your personal financial statement
- General comments on your finances and possible tax strategies
Retirement
- Analysis of your retirement situation via several projected scenarios
Insurance and Risk Management
- Estimate of life insurance requirements in case of the death of your spouse
- Estimate of your liquidity at death
- Estimate of your disability insurance needs
Legal and Estate Aspects
- Preparation of your estate balance sheet and general comments
- Estimate of your tax bill at death
Business Aspects
- General comments
Planning Steps
The main activities to be completed in the context of this offering are:
- Gather your personal and financial information and determine your objectives.
- Establish a portrait of your current situation.
- Analyze your situation.
- Draft a written report including findings and recommendations specific to your situation.
- Meet with you to explain the results of the financial plan and discuss possible strategies.
Investment Management
Investment Management
Our Investment Beliefs
- We believe investment management for our clients is the management of risks and not just the management of returns. Successful long-term investing is not easy. Investors feel the pain of loss much more than the joy of gain.
- A client’s appropriate Asset Allocation is the most important determinant of long term financial success.
- We believe investments held for the medium-to-long term are better than a short term trading focus, and that trading activity should be minimized, whenever possible. Short term fluctuations and volatility are the necessary ingredients for long term gains, which take time to develop.
- We are not just passive managers or active managers. We believe there is a place for both in a portfolio. Value and momentum factors, when applied correctly, can help manage risk and provide returns beyond broad market returns.
- We believe that ongoing debate and discussion as part of a portfolio management team will result in better risk management and performance than a single decision-maker implementing ideas with little input from other sources.
- Investing grades are never 100 per cent. We expect to make mistakes but the key is to minimize the impact of those mistakes.
- Costs and taxes need to be managed. We balance risks, costs and tax implications when developing and implementing long term investment strategies.
- Technological advancements within the financial services industry are occurring at a rapid pace. Incorporating these technologies into our business will improve efficiencies and enhance our service offering but we also believe that the human element of wealth management is irreplaceable.
The JMRD Watson Managed Account
An Advisor Managed Account is another name for a fully discretionary account.
Discretionary portfolios provide the latitude we need to manage all of your investments. You entrust your savings to our Team and we will make all the necessary decisions involved in the day-to-day management of your portfolio in keeping with your investor profile, restrictions, constraints and investment objectives.
Some of the benefits include:
- A discretionary managed portfolio gives you the benefit of having a professional making the decisions in your portfolio with your best interest in mind;
- As a client, you no longer have to make all the decisions and this allows you not to have your emotions get in the way of your performance;
- The portfolio management is structured inside of well-defined parameters according to your personal investment policy statement;
- The discretionary management allows us to rebalance your portfolio rapidly when the markets are volatile. This allows us to seize the opportunities for you under all market conditions;
- We will continue to contact you on the desired basis to keep you up to date on the performance and the evolution of your strategy.
- You will have access to personalized communication and management;
- Your monthly management fee is based on the value of your portfolio instead of a fee per transaction. This way we are not compensated for the number of trades executed, but rather for our decisions and services offered;
- Discretionary portfolio management fees for a taxable, non-registered account are generally fully or partially tax-deductible; ( subject to applicable regulation );
- We have the capability to do all client transactions at the same time. That way, you don’t need to worry anymore if you are called first or last to benefit from an investment opportunity;
- A very limited amount of Investment Advisors In Canada are registered Portfolio Managers;
- JMRD Watson has four Portfolio Managers and tremendous ‘bench strength’ when it comes to investment management.
The only difference between the JMRD Watson Advisor Managed Account and the JMRD Watson Basket Program is that the Basket program allows an investor to entrust SOME of their investment assets on a discretionary basis while the Managed Account is all of their investment assets.
An investor would gain access to this discretionary management by purchasing one of our JMRD Watson Baskets. They are the Exchange Traded Fund (ETF) Basket and the Diversified Income and Growth (DIG) Basket.
The JMRD Watson My Wealth Managed Account
+ The Basket Program
+ World Renowned Find Managers
= JMRD Watson Model Portfolios
Retirement Planning
Saving for Your Retirement
Take advantage of our expertise to live out your retirement dreams. We will help you each step of the way, from accumulation to disbursement.
You probably have a good idea of what you want to do once you’ve retired: renovate the family home, travel the world, purchase a vacation property, etc. Ambitious or not, your retirement dreams can come true if you plan them right today.
To implement a savings strategy that will help you live out the retirement of your dreams, you must of course evaluate your current assets in relation to your objectives, but you should also take into consideration the fiscal consequences of your investments, your succession plan, your income sources and every other factor that can impact your savings ability and your future income.
Your advisor has the expertise necessary to help you in this process. With his help, you will be able to accurately define your objectives and retirement needs, as well as determine the right strategies to execute at opportune times of your life.
Typically, we go through four life stages during which it is critical to review our savings and investment strategies to ensure that we remain on the right path to our dream retirement:
Accumulation
This stage concerns you if you are just starting your career and have very few invested assets with relatively high expenditures. For instance, you may be considering purchasing your first home, in the process of paying back school loans or planning to start a family.
Preservation
This stage applies when you have begun accumulating retirement savings, and have a stable career and family life. What matters most at this point in time is to preserve your wealth, while continuing to grow your assets with calculated risks.
Disbursement
This stage refers to retirement. This is when it is important to properly manage your wealth by using the right disbursement strategy so that you may optimize your pension income.
Transfer
This stage concerns your wealth after your passing. It is important for you to have prepared the transfer of your assets and implemented the right succession plan in order for your loved ones to be cared for as you had intended.
Although each stage is typically associated with a certain age group, your situation may differ. That’s why it’s important to have an expert evaluate with you the solutions that are right for your unique life path and desires. Your National Bank Financial – Wealth Management investment advisor knows all the pros and cons of the different savings solutions and retirement income options available, and he can inform you as to their fiscal and financial impact. By discussing your goals with your advisor, you will be better positioned to make the right decision, namely regarding:
- Pension plans;
- RRIF (registered retirement income fund);
- LIF (provincial or federal life income fund);
- LIRA (locked-in retirement account);
- RRSP, TFSA;
- Government plans;
- Investment income;
- Annuities; and
- Any other strategy that may affect your retirement income.
Take advantage of our knowledge and experience to make the right decisions, according to your situation. We will help you:
- Assess the right investment strategies for your objectives;
- Project your retirement income over the short, mid and long terms;
- Evaluate your retirement cash assets; and
- Prioritize your disbursements so as to minimize your tax burden.
Insurance
Insurance Products* and Annuity
Having the right insurance coverage can make all the difference for your peace of mind, but you must first assess your needs and potential risks.
We all hope to live long and healthy. However, we can’t predict what the future holds, and that is why having good insurance coverage can make all the difference for your peace of mind, and that of your loved ones. For instance, your spouse may need ongoing health care and maybe you can provide for these services now, but what are you prepared for them once you are retired and no longer have access to the same income sources?
It is crucial to see to your financial security and that of your family today in order to avoid financial misfortunes in the event of death, illness or disability later on. To ensure that you have the right coverage, your advisor will guide you to an expert who will help define your needs by factoring in your potential risks. This analysis will allow you to establish and implement a strategy that is right for you.
* Insurance products are offered by duly registered personal insurance advisors.
Estate & Tax Planning
Estate Planning
Having a succession plan and an updated will can save your beneficiaries a lot of trouble. We can help you plan efficiently.
To ensure that your wishes are respected, you must have a succession plan and an updated will. This will help avoid many difficult issues for your beneficiaries.
To do so, you must:
- Define the objectives of your succession plan;
- Determine your wishes (beneficiaries, asset distribution, tutors, etc.);
- Establish the financial needs of your beneficiaries, such as your children’s education, your mortgage payment plan, etc.;
- Evaluate your needs in case of incapacity; and
- Minimize the tax burden and maximize the cash flow available for your loved one.
Tax Planning
Taxes are one of life’s certainties, but there are ways to minimize your tax burden, at the time of the initial investment and upon its disbursement.
Imagine having the chance to receive an income without having to pay taxes. You probably already know what you would do with this newfound wealth. While having to pay taxes is a certainty, there are several investment strategies that can help you minimize your tax burden, whether at the time of the investment or upon its disbursement.
Capital gains and investment income are taxed differently depending on the investment product you use. With good planning, you can ensure you choose investment vehicles that reflect your tax situation so that you can grow your wealth more efficiently.
Your advisor will help you analyze your portfolio and identify ways to reduce your tax burden. For instance, he may advise you on income splitting – with your spouse or children – or suggest you invest in a registered plan.
Estate Planning Process
- Will & Power of Attorney
- Tax Consideration
- Joint Ownership & Beneficiary Designations
- Charitable Giving
The Value Of a Personalized Plan
An estate plan will allow you to:
- plan the steps and ensure the transfer of your assets at your death, according to your wishes;
- maintain your family's quality of life in the short and/or long term;
- reduce probate fees (no probate fees on Quebec) and optimize taxation on revenues;
- anticipate funeral costs and allow your loved ones to mourn without having to deal with administrative formalities;
- plan charitable donations, if appropriate, and;
- appoint those who will carry out your wishes in case of incapacity.
There are very few certainties in life, but unfortunately death is one of them. It can happen at anytime, and even if it is inevitable, its aftermath can be completely planned. Doing nothing or waiting until it is too late is certainly not in the best interest of your family or your business.