FORUM Magazine - May 2022 by Advocis

FORUM MAY 2022 • $5.50

The Magazine of Influence for Financial Advisors

Rethinking Retirement Looking beyond the assets and exploring the mental mindset required for the next chapter

Remembering

Harley Lockhart

How three former advisors transitioned to a happy retirement

AGE-PROOFING YOUR PRACTICE

“I MADE A DEAL ON DRAGONS’ DEN” — LESSONS FOR NEW ADVISORS Publication Mail Agreement # 40069004

The Summit Experience

Going above and beyond for your best clients, every step of the way.

Smoothing out the complexity of large cases

The Summit Experience by Manulife

Large cases are unique and can be complex, but with meticulous attention and a high standard of service, solutions are available to help clients and advisors achieve their goals and enjoy an exceptional experience.

For large complex client solutions, Manulife established a service specifically designed for minimum life insurance cases with $5 million face amount or $50,000 of annualized premium, critical illness insurance with $1 million face amount or 10,000 annualized premium, or Disability Insurance: $20,000 monthly benefit or $10,000 annualized premium.

Large case clients have specific insurance and estate planning needs that require specialized service. Wealth preservation and tax strategies are key topics of interest. Families are often also concerned with equitably and efficiently passing important assets, including the family business, on to the next generation. Personalized service, attention to detail and execution excellence are critical to ensure the successful culmination of years of careful planning.

Every large case is unique While no large case can be described as typical, they often share similarities, such as involving multiple family members and affecting several generations. They may take several years of careful planning and involve situations such as estate freezes and large policies that involve multiple insurance companies.

The Summit Experience involves a team of professionals who work collaboratively to looks for creative ways to solve difficult problems: • The Tax, Retirement and Estate Planning Services (TREPS) team can work directly with the client’s CPA, lawyers and other advisors • Field underwriters with experience in large cases can help develop and package cases before they are submitted to underwriting • Product experts to advise on the best product solution • The advanced sales team can provide customized illustrations and sales concepts • Staff MD’s are available for peer-to-peer conversations • Manulife wholesalers are available to discuss options and answer any questions

A top advisor’s perspective Samuel Cohen-Scali, President of SCS Design Financier is experienced in working with ultra high net worth clients in both Canada and the United States. When presented with a large complex case, he trusted Manulife to act as the lead underwriting team to work cooperatively with the four other insurers.

At every step, we go above and beyond Step 1: Pre-application

Step 2: Application

Constant communication Maneuvering a complex case through underwriting and coordinating with other insurers required diligent attention and regular communication. While important innovations such as the advisor portal and electronic applications were vital for efficiency, the team’s human touch made an important difference. The Manulife team including the Chief Underwriter, Managing Director of Large Cases, Underwriting Director, Case Coordinator and Pricing Manager of Large Cases met weekly with Sam to discuss the progress and look for opportunity to keep everything moving through the process and ensure the policies were approved as quickly as possible.

A process designed to deliver a smooth experience

Step 3: Underwriting

Step 4: Delivery

Manulife is one of the few companies in Canada to have a proprietary Life Underwriting Manual, which allows underwriters to access the most up-to-date guidelines, tools and resources and efficiently manage the complexity of large cases. With one of the highest retention rates in Canada, Manulife can bind with reinsurance partners on routine cases for higher amounts, which translates into faster turnaround and issuing cases sooner. For Sam’s clients, it meant have policies issued less than two months after the receipt of the initial applications.

The final word from Sam “I am privileged to work on the insurance and estate planning of ultra high net worth families in Canada and the U.S. As their trusted advisor, it is my duty to partner with reliable and trustworthy insurance companies across Canada and the U.S. As such, I can vouch that Manulife is not just a supplier but also a true partner of SCS Design Financier. Working for such families requires the knowledge and the ability to secure jumbo insurance capacity in the Canadian market. There is a science behind securing and optimizing such insurance capacity and allowing the Manulife Summit Experience underwriting team to have the lead on my VIP large cases is an enormous added value to bring to my clients. The team works efficiently and diligently on my large files that often last many months. They continually coordinate with other insurance companies in the market as well as re-insurers to deliver required insurance coverage needed for my valued clients. I could confidently say that Manulife is a key partner in contributing to SCS Design Financier’s success and we are thankful for all their hard work.” For more information, please visit advisor.manulife.ca/advisors/insurance/ large-case-the-summit-experience.html

© 2022 Manulife. All rights reserved. Manulife, Manulife & Stylized M Design, Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. The Manufacturers Life Insurance Company. For more product information, visit Advisor Portal.

FORUM VOLUME 52, 2

MAY 2022

ISSN 1493-826X

FEATURES Adjusting to Retirement

Retirement is about more than having enough assets. Kira Vermond explores the psychological effects of transitioning to the next chapter

Life in Retirement

Best Behaviour

Remembering Harley Lockhart

Three former advisors tell FORUM about how they “rewire” their days

DEPARTMENTS

COLUMNS

30 TAX UPFRONT

EDITOR’S JOURNAL Home affordability is top of mind for clients

FHSAs — an alternative way for first timers to save for a home BY JAMIE GOLOMBEK

OPENERS Industry associations and diversity, equity, and inclusion initiatives; home equity lines of credit and mitigating risk; being a Dragons’ Den contestant

36 ADVOCIS NEWS Association updates, events, and memorial tributes

31 ESTATE DILEMMAS How court results confuse advisors on the best strategy for beneficiary designations

Todd Fithian explains how advisor behaviour impacts client decision-making

BY KEVIN WARK

32 CORPORATE INSURANCE A ruling on beneficiaries and corporate life insurance policies

38 THE FINAL WORD A Seat at the Table BY ROB EBY

33 GUEST COLUMN How to thrive when serving an aging client base BY JENNIFER MOIR

Publication Mail Agreement # 40069004 Return Undeliverable Canadian Addresses to FORUM Magazine Circulation Department, 10 Lower Spadina Avenue, Suite 600, Toronto, Ontario M5V 2Z2

4 FORUM MAY 2022

A special tribute to a former chair of Advocis

COVER PHOTO: ISTOCKPHOTO

BY GLENN STEPHENS

N AT I O N A L Q U A L I T Y AWA R D W I N N E R S

IN RECOGNITION OF QUALITY BUSINESS EXCELLENCE IN LIFE INSURANCE SALES AND SERVICE TO CANADIAN CONSUMERS

2021 AWARD WINNERS

Mona LaBelle, 4 years

Vijay Tanna, 18 years

Shawna Vandeven, 5 years

Edward Sinnott, 18 years

Shane McFadden, 5 years

Pamela Barton, 20 years

Jun Fan, 5 years

Wayne Henrikson, 20 years

John Darch, 5 years

Geoff Douglas, 21 years

Jason Malloy, 6 years

Shirley Ma, 22 years

Douglas Stroud, 6 years

Bao Lam, 23 years

Michael Spicer, 7 years

Isabella Choy, 24 years

Ramandeep Sekhon, 7 years

Brian Burlacoff, 25 years

Michael Bryans, 7 years

Peter Stern, 25 years

Barbara Buryn, 7 years

Isabella Lo, 26 years

Stephen Welscher, 8 years

Raymond Monnier, 26 years

Darren Ryan, 8 years

Matthew Wilhelm, 26 years

Darren Roche, 1 year

Thien Ly, 11 years

Kerry Deachman, 27 years

Amerigo Tinor, 1 year

Jason Trudeau, 12 years

Jeffrey Willms, 27 years

Jason Szeto, 1 year

Chris Moore, 13 years

Manish Kanani, 28 years

Jason Graves, 1 year

Robert MacKinnon, 13 years

Brian McEvoy, 30 years

Francis Ryan, 1 year

Raj Daryanani, 13 years

Dennis Boodram, 30 years

Ricardo Lampert, 1 year

Brian Peaker, 14 years

Kevin Williams, 32 years

Norberto Quitain, 1 year

Mark Gorchynski, 14 years

Edgar De Souza, 33 years

William Reinkens, 1 year

Gino Piticco, 15 years

David Gray, 33 years

Randy Butt, 2 years

Henry Yeung, 15 years

Audrey Chiang, 39 years

Michael Ruan, 2 years Filia,The 15 years Michael Sinclair, 46 years With more than 5,000 CLU® and CHS designation holders in Franco good standing. institute for advanced financial education is the leading designation body in canada for

financial services practitioners in the specialty areas of advance estate and wealth transfer, and living benefits. The institute provides a platform of standards and advanced

Josee Brisson, 2 years 16 yearsspeak powerfully of a practice that is built on knowledge and a belief in the knowledge through designation programs and accreditation Gerry services.Cabunoc, Institute destinations continuous refinement of that knowledge.

Karly Berry, 2 years

Louis Maestre, 16 years

Julia Hoo, 2 years

Edward McQuillan, 16 years

Chad Buell, 2 years

Brian Grundner, 16 years

Rachelle Langlois, 3 years

Tammy Truman, 17 years

Ron Sutherland, 4 years

Victoria White, 17 years

Matthew Ewonus, 4 years

Craig Ash, 18 years

For more information on the NQA award, please visit: www.advocis.ca/nqa

Advocis®, The Institute for Advanced Financial Education (The Institute), CLU®, CHS, CH.F.C.®, PFA™ and APA® are trademarks of The Financial Advisors Association of Canada (TFAAC). The PFA designation is conferred by The Institute for Advanced Financial Education.

BY DEANNE GAGE

Housing Alarms

hail from Nova Scotia, a province known, up until recently, for its vast amount of cheaper real estate. I remember the days of houses on the market for up to six months, which if they didn’t sell were left abandoned. I remember houses selling for $10,000 under asking as a matter of course. This was just three years ago. Those days vanished in the early stages of the pandemic. More remote work options meant people were no longer restricted to living near their employer and fighting traffic for two hours a day. They could now reside in more spacious, peaceful, and affordable locations, even out of province. For example, a record 18,000 Ontarians jumped ship between 2020 and 2021 for Nova Scotia and other Maritime provinces, up from 14,900 the year before. Many snapped up the cheap-to-them houses, bidding well over asking. This caused the average price of a home in Nova Scotia to rise considerably, often pricing local first-time homebuyers out of their own province. Many just cannot compete with out-ofprovince buyers who have more equity and can participate in large bidding wars. You could say East Coast real estate has caught up to the rest of the country. Home affordability is a paramount issue for many clients. While they may own themselves, they worry about their children and grandchildren’s ability to one day become homeowners. The average price of a home in Canada is now $816,720 but the average family makes just $55,700. Some advisors report this concern as being second to the “Can I afford to retire?” question. Those clients likely saw last year’s report from CIBC Economics that found parents contributed up to $10 billion nationwide toward houses for their children. That translates into an average parental loan of a shocking $82,000 for first-time homebuyers and $128,000 for those moving from a starter home to a larger property. Parents now wonder if they should be saving not just for their retirement but also earmarking savings to help their kids with 6 FORUM MAY 2022

FORUM PUBLISHER: Peter Wilmshurst advocisforum@gmail.com EDITOR: Deanne Gage dgageforum@gmail.com COPY EDITOR AND PROOFREADER: Alex Mlynek ART DIRECTOR: Giselle Sabatini gisellesabatini@rogers.com ADVERTISING: Peter Wilmshurst advocisforum@gmail.com Tel: 416-766-4273 Fax: 416-760-8797

TFAAC BOARD OF DIRECTORS CHAIR Rob Eby, CFP, RRC VICE CHAIR Catherine Wood, CFP, CLU, CHS PAST CHAIR Abe Toews CFP, CLU, CH.F.C., CHS, ICD.D TREASURER Eric Lidemark, CFP, CLU, CH.F.C., CHS SECRETARY Stephen MacEachern, CFP, CLU, CH.F.C., CHS CHAIR, INSTITUTE John W. Hamilton, CLU, FEA, CPCA CHAIR, CLC Will Britton, CFP DIRECTOR AT LARGE Wendy Playfair, CFP, CLU, CHS

a home. How can the average family afford to do so? At some point, should homeowners plan on downsizing to a property or town that’s cheaper (if they can find one) and divvying the equity profits among their kids? Anecdotally, I know a couple who are expanding their house to include an apartment so their teens who are approaching adulthood have their own space. They assume it might be a while before they can afford to rent an apartment of their own — even shared — let alone buy a home. In Nova Scotia, I know a few who bought up property not just for themselves but for their teenage children, anticipating that a house for them may be out of reach if they didn’t do so. Perhaps in the future, we will be returning to an era of majority multigenerational households — something already prevalent in many ethnic communities. In last month’s budget, we all learned about the new Tax-Free First Home Savings Account (FHSA) to come in 2023. Our tax columnist Jamie Golombek provides more details on how the FHSA will work, but he notes there are still many questions and concerns. I’m not convinced the FHSA will do anything to solve the specific dilemma of affording a house, but it does present one option for advisors to discuss with clients. See page 30 for more information.

DIRECTOR AT LARGE Arun Channan, BASc, MASc, CSP, CFP PUBLIC DIRECTOR Geoffrey Creighton, BA, LLB, C.DIR., CIC.C PUBLIC DIRECTOR Sara Gelgor, LLB, LLM, MBA, ICD.D PRESIDENT & CEO Greg Pollock, CFP

FORUM is published four times annually by The Advocis Publishing Group, 10 Lower Spadina Avenue, Suite 600, Toronto, Ontario M5V 2Z2 TEL: 416-444-5251 or 1-800-563-5822 FAX: 416-444-8031 FORUM is mailed to all Association members, the subscription price being included in the annual membership fee. Address changes can be made through info@advocis.ca or by calling member services at 1-877-773-6765. The opinions expressed in articles and advertising are those of the authors/advertisers and not necessarily those of FORUM or the Association. Material of a technical or semi-technical nature may become invalid because of later changes in law or interpretation. The Association is not responsible for obsolescence of FORUM articles whose content should be checked by the reader before implementation. Requests for permission to reprint articles are to be addressed in writing to the editor of FORUM. ™ Trademark of The Financial Advisors Association

of Canada carrying on business as Advocis.

FORUM EDITORIAL ADVISORY BOARD MICHAEL BERTON, CFP, RFP, CLU, CHS Assante Financial Management Ltd. LEONY DEGRAAF HASTINGS, CFP, EPC deGraaf Financial Strategies NICHOLAS LANDRY, CEBS, CHS, RCIS BFL Canada - CSI IZUMI MIKI-MCGRUER, CFP, CLU, CH.F.C., CHS Freedom 55 Financial

PHOTO: DANIEL EHRENWORTH

EDITOR’S JOURNAL

Tax Efficient Philanthropy Do your clients own publicly traded securities (personally or corporately) in a non-registered account? If so, donating securities in-kind can eliminate their taxable capital gain. Contact Abundance Canada for more information on this and other tax efficient donation options.

Visit abundance.ca/for-professional-advisors or call 1.800.772.3257 to speak with a gift planning consultant.

Generosity changes everything

Abundance Canada is a public foundation registered with the Canada Revenue Agency (CRA). Abundance Canada is authorized to receive charitable donations, issue official donation receipts and distribute funds to registered charities in Canada and qualified donees through our donor-advised model. Charity Registration No: 12925-3308-RR0001.

OPENERS Fodder For the Water Cooler INDUSTRY ASSOCIATIONS AND DEI INITIATIVES

HELOCS AND MITIGATING RISK

ixed rate, variable, or a home equity line of credit (HELOC)? The market has been such lately that depending on your client’s requirements and their capacity to deal with risk, any one of those three options might fit. According to Steve Meldrum, CEO of Swell Private Wealth in Medicine Hat, Alta., many people like the security that comes with a locked-in rate. But when the Bank of Canada raised its rate to 0.5% rate in early March, he says many turned to even lower variable rates to get the best deal they could. A HELOC can provide more options than a fixed or variable rate, such as

8 FORUM MAY 2022

In February, the CFA Institute brought in its DEI code with companies signing on to integrate their own policies and statements, with governance from senior team members within two years of signing. In its 2017 strategic plan, Advocis brought in eight imperatives, one of which was diversity. It retained a consultant a couple of years ago and put on a number of seminars and workshops on DEI. But Continued on page 10

locking in just a portion of a mortgage. With a HELOC, a person can lock in say, $200,000 of a $300,000 mortgage with some of it going for a two-year mortgage and the remainder for a five-year mortgage. “The idea is that you’re just trying to mitigate risk,” says Meldrum. “For example, you also have the risk that if rates don’t go up then you’ve lost all that opportunity cost. So, I think that sometimes having a blend is good for people.” And in the right situation, it’s a HELOC that can be the perfect combination. “If I treat a HELOC as a chainsaw I think it works wonderfully to get rid of

debt, and when people have free cash flow they can pay down their obligations very quickly,” he says. “But if I give that chainsaw to someone who is not disciplined, it can be dangerous and they can get hurt, because the HELOC interest rate is slightly higher than a regular mortgage.” But some people compare a HELOC to leasing a vehicle. They want to pay the lowest rates and if those rates go too high, they will simply sell their home, says Meldrum. HELOCs also offer investors the ability to take money out and put it into a business, but if things turn, they can take that money and put it back into their line of credit. — Susan Yellin

PHOTOS: ISTOCKPHOTO

wo of Canada’s professional membership groups for financial advisors and planners have instituted guidelines on the complex issues of diversity, equity, and inclusion (DEI), but they aren’t prepared to go as far as the CFA Institute in instituting a code for members to develop and adopt. “What the CFA Institute has done is good work, but I’m not sure we want to copy their approach,” says Tashia Batstone, president and CEO of FP Canada. “It’s early days for us in terms of whether a code is an appropriate strategy. We are considering whether there are other things that we should be doing to build confidence and trust in financial planning for a more diverse population of Canadian consumers.” Advocis also doesn’t believe in mandating that all individuals participate in its strategic plan for DEI, though president and CEO Greg Pollock says there is tremendous interest in the entire project. “My observation of our association is that it wasn’t really reflective of the Canadian fabric. When I looked at the membership of the organization, I realized we are missing something and wondered why we don’t have greater representation from diverse groups.”

BRANDING & SOCIAL MEDIA BY ERIN BURY

LANDING THE DRAGON

’ve always been a big fan of startup pitch shows Shark Tank and Dragons’ Den, even before I became an entrepreneur. I loved watching entrepreneurs share more about the problem they faced that sparked a business idea, and seeing how investors would grill them before making a deal — or not. When my husband, Kevin Oulds, and I started Willful in 2017, it was always a goal of ours to make it on to Dragons’ Den. We finally realized that goal in 2021, when we pitched on the show and secured a deal with techfocused investor Michele Romanow. The process for applying for the show, preparing for our pitch, filming, and promoting our appearance led to a lot of takeaways that are applicable for young advisors looking to grow their business. Here’s what we learned:

DON’T ASK, DON’T GET People often ask us how we made it on to the show, and I always reply with a very simple answer: we applied. The application process for Dragons’ Den was quite simple — we filled out an online form and attached a short video pitch. It probably took about 45 minutes to fill out the form and film the video — a very small investment of time. I’ve always been someone who puts my hand up for opportunities, whether it’s speaking at an event, doing a media interview, or pitching to the Dragons — and many people, especially women, can be reticent to put themselves forward for fear that they won’t be good enough, or that they don’t deserve it. I’m here to tell young advisors to put yourself forward for awards, speaking engagements, partnerships, or other opportunities to build your profile — the worst someone can say is no! You won’t get the opportunities you don’t chase. The caveat is that we knew we were ready for Dragons’ Den — we didn’t apply in month one of our business; rather we applied when we knew we had the traction that would impress them.

Speaker Labs. We watched past seasons of Dragons’ Den, compiled a list of about 50 potential questions we could be asked, and mapped out and practised our responses. We rehearsed in front of fake Dragons — our team members, friends, and family — and had them grill us. Most importantly, I reviewed our numbers and knew them like the back of my hand. All of this prep paid off, because we felt confident on stage, prepared to answer any question they threw at us, and we knew our business metrics. If you have a big pitch, speaking engagement, or something else you’re nervous about, overprepare to ensure your nerves don’t get the best of you.

PERFECT YOUR PITCH Every business has an elevator pitch — ours is that we help Canadians get a will online in less than 20 minutes. What’s yours? And how is it differentiated from the advisor down the street? We prepared a one-minute pitch for the Den, and we asked ourselves some crucial questions as we developed it: How can we get our message across so anyone watching can understand it? How will the audience know what sets us apart? And how can we ensure we’re building trust that our platform is a great option for getting a will done? You’re likely pitching your business daily to potential employees, potential clients, partners, and other stakeholders, and you need to have your elevator pitch nailed down. You should also be able to deliver it consistently and confidently anytime — a dinner party, at a conference, or even to the Dragons.

LEVERAGE YOUR TIME IN THE SPOTLIGHT

PREPARATION IS KEY

We were thrilled to make it onto Dragons’ Den, and we didn’t want to waste this opportunity to promote our appearance and get Willful in front of more Canadians. We developed a full promotional plan that included media outreach, digital ads, video testimonials from Michele Romanow, and a variety of other tactics. You should be doing the same for any promotional opportunities — if you’re quoted in a media article, a guest speaker at an event, or the recipient of an award, make sure you highlight it on your website, in your marketing materials, in your email signature, and on your social media channels. Clients are always looking for proof points that you are a trusted, legitimate business, so these types of trust signals are amazing ways to build confidence.

When we stepped onto the Dragons’ Den set to film, I expected to be extremely nervous. But Kevin and I both felt quite calm because we overprepared. We practised our one-minute intro pitch about a thousand times, tweaking it with the help of our friends at speaker training company

ERIN BURY is the CEO at willful.co, an estate planning startup that provides an affordable, convenient, and easy way for Canadians to make a will online. Willful works with financial planners across Canada to help their clients get a solid estate plan in place.

MAY 2022 FORUM 9

OPENERS Continued from page 8

bringing in a diversity and inclusion plan is not easy. “There’s no magic bullet when it comes to these topics,” says Pollock. “So, for example, the discussion in Toronto might be different than the discussion elsewhere in the country. We want to reflect the fabric of the community.” Advocis also did a survey of its staff a

year ago, with 40% identifying themselves as racialized, a significant majority identified as being women, and its executive management team split up evenly between men and women. FP Canada has also ensured there is inclusion at its board level and is putting together a policy that will outline its commitment to DEI from a governance perspective. Batstone says FP Canada also wants to encourage more diverse populations to explore financial planning as a career. “We want the financial planning professional to

be reflective of the demographics of the Canadian population, so we are looking at our recruitment strategies differently,” she says. “But it’s also broader than that — it’s making sure that we’re looking at our certification program to ensure there are no unintended barriers that are going to exclude people from being able to get a CFP or QAFP certification.” She also adds: “When working with a financial planner, Canadians often want to work with someone who looks like them, understands their culture, and in many cases, speaks their language.” — Susan Yellin

DID YOU KNOW? 7/10 rate their current financial situation as good or better. However, >1/10 rate their financial situation as excellent. At the same time, twice as many report major general or financial stress during the pandemic, compared to before the pandemic, which presents a somewhat contradictory scenario.

Excellent Very Good

The study also makes clear the economic effects of the pandemic have not been uniformly experienced. Some groups, including men, those with household investable assets, those under the age of 36, and Canadians with employer financial wellness plans were all more likely to cite their financial situation as excellent or very good.

Good

Fair

Women and those under the age of 36 report being more concerned about finances adding stress to their lives.

Poor

SOURCE: MANULIFE CANADA RETIREMENT STUDY, 2022

Workers are concentrated most on paying off debt, ensuring savings are invested wisely, and planning for retirement in the short term. SHORT-TERM GOALS

45%

Pay off debt

36%

Ensure my savings are invested wisely

35%

Plan for retirement

33%

Save for short-term needs (car, vacation)

29%

Create an emergency fund

22%

Save for a new home

21%

Create a monthly budget

21%

Gain a better understanding

19%

Protect my family in the event of my illness or death

17%

Save for a child’s education

18%

Plan for health-care costs (now or in retirement) None of the above Don’t know/not sure

1% SOURCE: MANULIFE CANADA RETIREMENT STUDY, 2022

10 FORUM MAY 2022

COVER STORY

Adjusting to Retirement Retirement is about more than having enough assets. Kira Vermond explores the psychological effects of transitioning to the next chapter

12 FORUM MAY 2022

PHOTO: ISTOCKPHOTO

ne weekend earlier this spring, Judith Cane looked up at her husband and uttered two words: “I’m done.” Cane, a money coach in Sackville, N.B., and former longtime Advocis member who once sat on the national board, just turned 65, and for the first time in her life was truly serious about retiring. It just felt right. With a roster of more than 50 clients, she planned to scale back to about 25 who were still on the maintenance side of her six-month coaching program. Eventually, she

would wind that part of the business down, too. Besides, her husband, Ian, was set to retire on June 6, 2022 so the timing was ideal. But his impending retirement was only one reason Cane made the decision when she did. Like many Canadians living altered lives as the COVID-19 pandemic delivers wave after wave of high case counts around the world, she started focusing on what truly mattered to her. There was her elderly mother with whom she wanted to spend quality time. And Cane already had loads of hobbies, from quilting to playing music to curling. In an era of lingering uncertainty, there was a real sense of “if not now, then when?”

MAY 2022 FORUM 13

COVER STORY “I have to tell you how I felt,” she says. “The minute I said, ‘I’m done,’ and I wasn’t going to take any more full-time clients, it was like the shoulder I’d been working on with my chiropractor, massage therapist, and physiotherapist suddenly started feeling better.” Cane is hardly the only person to make a sudden decision about taking retirement these days. Between Omicron variant spikes and war in Europe, many Canadians are feeling a sea change when it comes to their future. Some, like Cane — not to mention overwhelmed frontline workers — can’t wait to trade in their 9 to 5 for a less-hectic life rich with purpose and meaning (or just a few months watching Netflix and recovering). Others are having their retirement dreams dashed in the wake of high inflation, real estate spikes, and a turbulent market. Others lost businesses and have wiped out nest eggs. According to a 2021 Fidelity Retirement Report, 21% of pre-retirees have decided to put retirement off later than originally planned. Judith Cane

TECHNICAL ANSWERS NOT THE ANSWER Whether they fall into the “retire now” or “retire later” camps, Julia Chung, partner and senior planner at Spring Financial Planning in Surrey, B.C., isn’t surprised that many are rethinking their longterm plans. “A lot of people felt there was certainty about where they were going [before the pandemic],” she says. “And that certainty really feels like it’s gone. There’s just this underlying sense of unease.” That anxiety runs deep. Client worries range from recognizing their own mortality to concerns about having enough money to retire. The possibility of paying for long-term care someday is top of mind, too. Some of her clients are even trying to determine if they have money to support their Ukrainian family members when they arrive in Canada as refugees or worry about giving enough to the local Ukrainian church. Still, other people are feeling frozen at the thought of making any financial moves at all as decision fatigue sets in, she explains. “You’re making decisions every single day. Do I put on my mask or not? Do I send my kids to school? Those daily calls we’re making are harder and more intense. That leaves us with less emotional room to make long-term decisions,” says Chung. She calls what Canadians are feeling, “trauma.” Even those who

cicea.ca 14 FORUM MAY 2022

“The minute I said, ‘I’m done,’ and I wasn’t going to take any more full-time clients, it was like the shoulder I’d been working on with my chiropractor, massage therapist, and physiotherapist suddenly started feeling better.” haven’t lost jobs and can work from home are still experiencing chronic stress from months of isolation and upended plans. Humans are social animals and without those connections to family and community, they’ve lost a key component of what makes them happy and whole. It’s a bigger loss than many realize, she says. For advisors, that means client discussions about retirement now should focus just as much on the emotional aspects of their

“The CEA designation allowed me to increase my overall business revenue more than any other designation I've achieved over my career.” William McBay, CFP, CLU, CHS, CEA

Philip Sallaj

next phase of life as the financial ones. In fact, too much concentration on the technical side of asset management, pension plans, and a Registered Retirement Income Plan (RRIF) could actually backfire. While important, they don’t always lead to peace of mind. “The math and rules don’t change that much but how we talk to clients does change,” she says. “We call them soft skills, but they’re not remotely soft. It’s really hard. It’s about uncovering the question beneath the question. What is it they’re actually anxious about? Inflation? Or that they’re going to run out of money?” Even after running the numbers and determining there will be plenty to retire comfortably on, some still feel stressed. Uncovering what’s behind the fear takes listening skills.

WHY BOTHER RETIRING NOW? For Philip Sallaj, principal and managing partner for the Planning Group NB Inc., in Moncton, N.B., more practical concerns abound. Some clients put off retiring once they realize how much they’ll have to pay for health benefits once their group insurance expires. In some cases, the clients could be looking at $500 to $600 per month that they hadn’t planned for. Just the week before,

Julia Chung

a 62-year-old client decided to work for two more years just to remain on their company health plan. “A lot of times you never read about this issue or hear [an advisor] talking about the loss of benefits. But it’s an adjustment for some clients,” he says. In other cases, the pandemic has had a direct result on clients’ decisions to retire later due to travel restrictions, and fear over contracting the coronavirus while abroad and away from Canadian health care and family support. Sallaj points to one couple he counselled whose retirement plans were put on hold when the pandemic hit, scuttling jet-setting dreams. Without them, what was the point of quitting their jobs? “They’re the prime example where people are going, ‘I can’t travel during the pandemic. Might as well keep working,’” he says. For those afraid to retire now due to global instability and the spectre of an impending recession, Sallaj does his best to put fears to rest. Particularly for his long-term clients who have been with him for decades, he points to other times of market volatility — Y2K, 2008, and March 2020 — and reminds them that they still came out ahead by holding fast. Besides, it’s not as though retirees need to draw on all of their

“Getting my CEA has been outstanding for me and my business. I love this designation.”

cicea.ca

Mark Albert, CEA

MAY 2022 FORUM 15

COVER STORY funds at once. Rather than taking a million-dollar Registered Retirement Savings Plan (RRSP) portfolio invested in a balanced mandate and moving it all to a moderate mandate for their RRIF, it makes sense to just move enough for the next three to five years of income. If the client is young enough, the rest can remain in their RRSP and continue to grow for their long-term income needs, he explains. Meanwhile, Al Jones, senior advisor at A. Jones Wealth & Estate Planning in Barrie, Ont., points to clients who have decided to postpone retirement for more satisfying reasons: they love working from home. Forget long commutes and dealing with difficult bosses face-to-face. Office politics are dampened somewhat too when everyone is online. Some have even moved out of the city to buy a home in nearby Collingwood, a stay-and-play community complete with a cute downtown, beaches, ski resorts, and golf courses. “It’s really de-stressing. They’re finding they’re enjoying it,” he says. “People want to feel like they’re contributing and they’re saying to me, ‘Al, this is pretty good. I don’t have the strain of the commute anymore, I still enjoy the work, and the income is good.’” What are the benefits of those extra couple of years working? It means more money in the bank for even more fun when the pandemic finally recedes.

GET ME OUT OF HERE On the flipside, others cannot wait to trade in their career for permanent weekends. Jones has some clients who are frontline workers who are exhausted after the last couple of years and just want to get out. They’ve put in their time. They deserve it. Even so, Jones is adamant that they take the necessary steps to think things through. Even if they have some money in their retirement fund, it’s sometimes not enough. At least not yet. “They’ll say, ‘I’ve got the money,’ and yeah, that’s great but you’re 45 or 50. So let’s talk about what you’re going to do for the next 15 years. You’re not going to be on a golf course because you can’t afford to do that every day, or travel all the time. So how can we transition?” he says. Jones explains that the conversation revolves around purpose

cicea.ca

Al Jones

“People want to feel like they’re contributing and they’re saying to me, ‘Al, this is pretty good. I don’t have the strain of the commute anymore, I still enjoy the work, and the income is good.’” and meaning in retirement. If a frontline worker feels recharged by helping others, is there another way to create that feeling? In some cases, the client simply needs a change. So rather than quitting, they reduce hours or work somewhere new. Recently, he spoke to a former airline pilot who is now driving a shuttle for a car dealership. He didn’t need the money, but he enjoyed having contact with people. The key to smooth transitions is to be proactive and pre-emptive,

“I refer advisors to CICEA. The technical component is invaluable to advisors and their clients. It is undeniably one of the best courses for training advisors on how to gain new clients through referrals and introductions, brought about through the estate planning discussions. Whether you’re a rookie advisor or a veteran in the industry, the CEA designation will absolutely help you grow your business.” Daniel Collison, BA, CFP, TEP Managing Partner I Advice2Advisors

16 FORUM MAY 2022

says Michael Nichols, president of Compass Private Wealth in Guelph, Ont., an institutional money manager that focuses on institutional investments and alternative investments. When he first sits with his high-net-worth clients, they discuss 60 life events that could be on the horizon, from the birth of a child to lifethreatening illness and retirement. Then they make a plan to address them. Many clients also come up with an age range for retirement, say, 62 to 65, rather than a single number. So instead of scrambling if a client suddenly wants to retire, he says the firm is ready. “Every year or two we go through the list with them and make sure we’re up to date. That means it’s very unusual for us to have a client who would call us with something that is unexpected,” says Nichols, admitting that “a worldwide pandemic” was never on the list. Still, he says almost all of his clients kept calm in March 2020. Invested very conservatively and with little market fluctuation, assets held steady.

HITTING THE ROAD Chung also likes to talk to her soon-to-retire clients about maintaining purpose in the face of extreme change. For some, particularly essential health-care workers and teachers who are driven to help others, retirement is bittersweet. They want to move on but feel they’re abandoning their community and what gives their lives meaning. “But they’re so burned out. They’ve spent the last two and a half years just killing themselves. They don’t know what’s on the

other side — just that there’s the relief from stress,” she says. Because they may not be thinking clearly, she wants them to consider what will make them feel valued if work is no longer there for them. “What are you going to do to find purpose? I know this is an escape from — but what are you escaping to?” Some make the switch easier than others, simply because their life’s priorities have changed. She says a few clients are thinking seriously about living on a fraction of their usual income. They don’t care about having the nicest house on the block because no one visits these days. Travelling the world isn’t important either, now that they’ve gotten used to staycations and hitting the road in Canada. That’s precisely what Cane is planning to do when she retires. Putting her financial planning skills to work on her husband, she asked him what would give his life meaning and purpose after he leaves his job with the Red Cross. He chose to travel and planned a trip this summer that will take them from the Acadian Peninsula in New Brunswick to Quebec City, and the Finger Lakes region in New York to a national park in Maine. Thrilling? Yes. But what Cane is most excited about is saying goodbye to long workdays. “I want to be able to decide if I’m just going to lie in bed for an hour and read. Or if I’m going to drive 30 minutes down to the ocean and watch the sunrise,” she says, sounding wistful. “I want to be able to have the freedom to do whatever I want and not be tied to a 6 o’clock alarm going off anymore.” KIRA VERMOND is a writer and editor based in Guelph, Ont.

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COVER STORY

Life in

Retirement Three former advisors tell FORUM about how they “rewire” their days Ann Richards, Toronto Retired: May 2019 Years in the business: 25

here are always advisors who say, “Let me just get through this market correction, and then I’ll look at retirement.” But we all know something can happen to throw us off our game. And I just didn’t want that. I wanted to be proactive. I went through withdrawal for a while — always wanting to go into the office or watch the markets, or clients would come to mind all the time. And I would reach out to my successor and say, “This client came to mind. Is everything OK?” But eventually, time does its job and I can let go more and more. 20 FORUM MAY 2022

Losing a certain work status is very hard. When I was an advisor, some mutual fund companies would include you in special events and all of a sudden, you’re not a member of that kind of exclusive club anymore. And that is a bit of a loss but you can’t have it both ways. Those are the things you have to let go. You need to know what you are retiring to. My husband retired a few years earlier than me, and we wanted to retire to travel. Now with COVID, that didn’t happen as much as we liked but we did have some trips to England and Vancouver to see our parents. Now that travel is opening up, we are planning a trip to Sicily in May.

You need structure to your life to replace the structure you had at work. My structure includes doing some part-time work for a consulting engineering company. I don’t know about engineering but I know about client relationships and account management. Every tax season, I volunteer through CPA Ontario and prepare income tax returns for low-income families. I also lead a walking group from my condo on Tuesday and Thursday mornings. We do it at 6:15 a.m. so the people who work have time to get to their offices. The retired folk are generally up and ready to go at that time of day anyway. It’s a nice group and I enjoy contributing to the community.

Angela Knight van Schaayk, North Bay,Ont. Retired: March 2020 Years in the business: 30

he year before I retired, I had a health scare and I realized that I needed to get work stress out of my life. I spent my whole life helping business owners with their own succession plans. Sometimes, it behooves us to do plans for ourselves but the health scare was my wakeup call. I was concerned about what was going to happen to my clients because they are also my friends. And I wanted to make sure that they were well taken care of with someone who was really qualified. I’d found somebody who was knowledgeable and had been in the business long enough to know group insurance. My successor had been interested in my business for years and it was finally the right time. Like most retired people, we had planned on doing a lot of travelling and we had just returned from Cozumel, Mexico, when

COVID hit. It was a bit of a shock because I had just closed my office. If we can’t go anywhere, what to do during the lockdown? Luckily enough for me, I was the president of the Rotary Club of North Bay, and we had just moved all our meetings to Zoom. So that really helped to fill a void. I was also still doing investments and life insurance for family.

That’s how I started filling my time up. I’m also on the economic development committee in the Municipality of Ferris, just south of North Bay, and am involved with various charitable committees. And I just got appointed to the North Bay Regional Hospital board. Even now that we can fly, my husband doesn’t know if my schedule will free up enough time so we can go away. In the summer months, I’m on the lake. I’m an avid boater. If we’re not on the lake, we get into my blue Mustang convertible and we drive to Algonquin Park. Ten years ago, I had a mid-life crisis and bought the Mustang, which has an eight-cylinder engine and Roush after-market performance parts. It’s a big rush to drive it — just what I needed. Both of my parents died young of colon cancer in their early sixties. I’m going to have the biggest party when I turn 65 because I’ll be the first person in my family to make it to that age.

Jim Kennedy, Mississauga, Ont. Retired: September 2019 Years in the business: 46

ravel was one of the big things I wanted to do in retirement but the pandemic put a hole in those plans. In October 2019, my wife and I did take a trip to Vienna and Budapest for 10 days. We were lucky to get that in. When the pandemic started, we spent quite a bit of time looking after grandchildren so our children and their spouses were all able to continue working. Daycares weren’t open during the first wave. My two grandchildren were toddlers at the time and we had them five days a week at our house. During the summer months, we were able to go up to our cottage and the kids and grandkids came as well. So, the grown-ups all worked from the cottage and we continued to babysit the grandkids. We now have four grandchildren. It was a lot of work, but I wouldn’t trade the experience for anything. The bond with our grandchildren is truly special. Our kids were concerned about me getting COVID, but we were all dedicated to our family bubble. You have to be ready both financially and psychologically for retirement. Your income is going to be less and you have to learn to live within a tighter budget. Some experts say that your expenses are less but I didn’t really find that. If you’re taking a 50% pay cut your expenses don’t go down by 50%. That’s why it’s important to make sure you’ve done good planning. The psychological part was a struggle for me. Many people, myself included, feel very defined by their occupation,

and all of a sudden you’re not doing that anymore. As a wholesaler, I was communicating with a lot of people every day, and then all of a sudden, I wasn’t. In fact, after two years of retirement, I decided that I really can’t get out of the business. I keep a small practice of clients I’m able to work with. I’ve aligned myself with a firm that specializes in working with families with special needs children. I help them co-ordinate available resources and things like that. It’s learning something new and making a difference. I’m also involved with a couple of charitable organizations, and I’m still on the Advocis Peel Halton board as past president and treasurer. That’s kept me in touch with the industry. If you have a hobby, it will probably make the transition into retirement easier. 

MAY 2022 FORUM 21

L O N G - S TA N D I N G C L U D E S I G N AT I O N H O L D E R S

The Institute for Advanced Financial Education honours longstanding CLU® holders – those who have held their designation for 25 years or more—demonstrating a longtime commitment to excellence in financial advice. We are honouring CLU designation holders who are celebrating 25, 30, 40, 50, 60 & 65 year increment milestones in 2022.

Darcy W. Hermary, CLU, CH.F.C. CHS CFP Ian F. Doughart, CLU Fred K. Sundquist, CFP, CLU, CH.F.C. Jane E. Blaufus, CLU David F. Kraemer, CLU, CH.F.C., CHS Peter Brian Friesen, CLU, CFP Perry R. Pellegrini, Andrew E. Macdonald, CLU, CHS CLU, CFP, CH.F.C., CFA Eugene V. Schmidt, CFP, CLU, CH.F.C., CHS David Ho, CLU, CH.F.C. J. Richard Kennedy, CLU, CH.F.C. Mario D. Lalonde, CLU Kevin J. E. Giffin, CFP, CLU Robert J. Ingram, CLU, CH.F.C. Gerry C. Cabunoc, CFP, CLU, CH.F.C. Gus Macdonell, CLU Mathew L. Braganca, CLU Julianne C. Leith, CLU Ronald Fredericks, CLU, CHS, CFP Mohamad H. Mahdi, CLU, CH.F.C. Kerry C. Deachman, CLU Brion C. Fahey, CLU Chung-Kid Hu, CLU, CH.F.C. Gary E. Harwardt, CFP, CLU, CH.F.C. Michael H. Gilchrist, CFP, CLU, CH.F.C. Ellard Delaney, CLU Barry E. Jackson, CFP, CLU, CH.F.C. Neil Bocking, CLU, CH.F.C. Bruce E. Biggar, CFP, CLU Mark A. Wadey, CLU, CH.F.C. Allan McGlade, CFP, CLU Don Wood, CLU, CH.F.C., EPC Marc L. Madore, CFP, CLU, CH.F.C., CHS Angelo Venetsanos, CFP, CLU Michael B. McCormack, CLU, CH.F.C. Neil A. Paton, CLU, CHS Terence G. Amy, CLU, CH.F.C. Blair MacLean, CFP, CLU, CHS Gary A. Wardrop, CLU, RHU Allison P. Mcphail, CFP, CLU, CH.F.C. Ashmead Khan, CFP, CLU, CH.F.C. Robert N. White, CLU Shaun Khorsandi, CLU Kenneth J Blows, CFP, CLU, CH.F.C. Steve L. Steinman, CFP, CLU, CH.F.C. Keith W. Leech, CFP, CLU, CH.F.C., CHS Carol Wood, CLU, CH.F.C., CHS Irv Wilson, CLU Marc G. Bouchard, CFP, CLU, CH.F.C., CSA Lorne A. Zalasky, CLU Harold (Ken) A. Steele, CLU, CH.F.C. 25-YEAR Sonia Schneider, CLU, CH.F.C. Marie Heddle, CFP, CLU, CH.F.C., CHS CLU DESIGNATION HOLDERS Glenn Ayrton, CFP, CLU, CH.F.C. Graham M Carter, CLU Lisa L. Wong, CLU, CHS Bradley C. Charlton, CLU, CH.F.C., CHS Susan D Olynyk, CLU, CH.F.C. Mark J. Colosimo, CFP, CLU, CH.F.C. Paul T. Craievich, CLU, CH.F.C. Michael Y. C. Wong, CLU, CH.F.C. Gary F. Regel, CFP, CLU, CH.F.C., CHS Theresa J. Zavitz, Michael T. Washburn, CFP, CLU, CH.F.C. Libby A. Wildman, CLU CFP, CLU, CHS, GBA, EPC J. Mark Gouws, CFP, CLU, CH.F.C. Robert P. Young, CFP, CLU, TEP Abbie M MacMillan, CLU David G. Tompkins, CLU Frank R. Tooton, CFP, CLU, CH.F.C. Rick Y. L. Lam, CLU, CH.F.C. John R. Lanning, Ray J. Anders, CLU, CH.F.C. Magdalen Pik Sung Ng, CLU, CH.F.C. CH.F.C., CLU, REBC, CFP Thomas E. Bryan, CFP, CLU, CH.F.C. Margaret Nilevsky, CLU Kelvin A. McGillivray, CFP, CLU, CH.F.C. Paul H. Craft, CLU Wesley D. B. From, CFP, CLU, CH.F.C. Jeanette McPherson, With more than 5,000 CLU® and CHS designation holders in Heather good standing. The institute for CFP, advanced financial education is the leading designation in canada for E. Collingridge, CLU, Jurgen K Rudolph, CFP,body CLU CFP, CLU, CH.F.C., TEP financial services practitioners in the specialty areas of advance estate and wealth transfer, and living benefits. The institute provides a platform of standards and advanced CH.F.C. Dwayne F Day, CLU, CH.F.C. Chau Chan,through CFP, designation CLU, CH.F.C. knowledge programs and accreditation services. Institute destinations speak powerfully of a practice that is built on knowledge and a belief in the Barry E. Mount, CLU Mark J. Feeney, CFP, CLU, CH.F.C. continuous nement ofCLU that knowledge. Geoff rey E.refiNanton, Raymond C. K. Cheung, CLU Teresa Y. K. Tang, CLU George Ranisau, CLU, CH.F.C. Vivian E. Saunders, CFP, CLU, CH.F.C. Glen D. Oliver, CFP, CLU, CH.F.C. William G. McTaggart, CFP, CLU Thomas D. Martell, CFP, CLU Allan Williams, CLU, CH.F.C. Peter J. Izzio, CLU Michel J. Lemaire, CLU, CH.F.C., CHS Michael J. Couture, CLU, CH.F.C., TEP Robert J. Gaudet, CLU, CH.F.C. Scott R. Sisson, CFP, CLU, CH.F.C., CHS James Virtue, CFP, CLU, CA Malcolm T. Smith, CFP, CLU, CH.F.C., CHS Chris B. Dietz, CFP, CLU, CH.F.C., CHS Ejaz Uddin Nadeem, MA, CFP, CLU Kevin M. Spence, CFP, CLU Stuart Crawford, CLU Ian M. Johnson, CFP, CLU Dale F. Schnell, CFP, CLU Annemarie Haapala, CLU, CH.F.C. Jill M. Koehler, CLU, CH.F.C., CHS Donald W. Hall, CLU

The Institute for Advanced Financial Education (The Institute™) is the leading designation body in Canada for financial services practitioners in the specialty areas of Advanced Estate and Weatlh Transfer, and Living Benefits. The Institute provides a platform of standards and advanced knowledge through designation programs and accreditation services.

Holding a CLU designation is proof of commitment to higher standards. Even under the most difficult economic circumstances, longstanding CLU designation holders have continued to help Canadians build and preserve their wealth.

David T. Robinson, CFP, CLU, CH.F.C. Robert A. McCullagh, CFP, CLU, CH.F.C., CHS Alexander ODonnell, CLU, CH.F.C. Mark D. Lipman, CLU Paul F. Crema, CFP, CLU, CH.F.C. David V. Deverall, CLU Brian M. Pritchard, CFP, CLU, CHS Leslie M Szilagyi, CLU Robert A. Whiton, CLU, CH.F.C. Jean G. MacDonald, CLU, FLMI Kevin R Netterfield, CLU Rene P. Sauve, CLU Brent J. Rich, CFP, CLU, CH.F.C., CHS

30-YEAR CLU DESIGNATION HOLDERS David Ong, CFP, CLU, CH.F.C. Lucien J. Bossuyt, CLU, CH.F.C. Timothy J. Ramsay, CLU, CH.F.C., CFP, CPCA James W. Brownlee, CLU, CH.F.C. Patrick S. O’Connor, CFP, CLU, CH.F.C, FEA Troy Shelemey, CLU, CH.F.C. Eric E. Schenstead, CLU Doug A. Foster, CFP, CLU, CH.F.C., RFP T. Kevin Brady, CFP, CLU, CH.F.C. Doug W. McMechan, CFP, CLU, CH.F.C. Dave D. Foley, CH.F.C., CLU, CHS Douglas C Markewich, CLU, CH.F.C., TEP Derek A. Graham, CFP, CLU Greg Simmonds, CFP, CLU, CH.F.C. Mark S. Borts, CFP, CLU, CHS, CH.F.C. Ronald K. Pugsley, CFP, CLU, CH.F.C., CHS Richard J. Reaney, CFP, CLU, CH.F.C. Del G. Baycroft, CFP, CLU, CH.F.C. Stephen R. Campbell, CFP, CLU, CH.F.C. Martin L. Sobocan, CFP, CLU, CH.F.C., CHS Brigitte E. Kandert, CLU, CH.F.C., FCSI,Pl. John Lanni, CFP, CLU, CH.F.C. Daniel P. Lynch, CFP, CLU, CH.F.C. Robert N. Long, CFP, CLU, CH.F.C. Michael P. Deboski, CLU, CH.F.C. Ernest G. Cerson, CLU, CH.F.C. Patrick J. Kelly, CFP, CLU, CH.F.C.

S Neil Schloss, CFP, CLU, CH.F.C. Neil Feigelsohn, CLU, CH.F.C. Gregory D. Abbott, CFP, CLU, CH.F.C. Imelda Harris, CFP, CLU, CH.F.C. Donald C S Rea, CFP, CLU, CH.F.C. Richard A. Benson, CFP, CLU, CH.F.C., CHS Michael A. T. Hajmasy, CFP, CLU, CH.F.C. Roderick W. Abbott, CFP, CLU, CH.F.C. David W. Faulkner, CFP, CLU Mario Paolucci, CLU, CH.F.C. Richard R. Dobel, CLU Mark A. Woofter, CFP, CLU, CH.F.C. Peter F. Creaghan, CLU Pierre Roy, CFP, CLU, CH.F.C., CHS Thomas D. Sullivan, CFP, CLU, CH.F.C. Vincent S. Wiegers, CFP, CLU, CH.F.C. Michael H. J. Evers, CFP, CLU, CH.F.C. Hal D. Gillrie, CFP, CLU, CH.F.C. David G. Draper, CFP, CLU, CH.F.C., EPC Peter H. Vogelsang, CFP®, CLU, CH.F.C., CHS

40-YEAR CLU DESIGNATION HOLDERS Donald P. Gordon, CFP, CLU, CH.F.C., TEP G. Philip Fisher, CFP, CLU, CH.F.C., RHU Heather Bethune, CLU, CH.F.C. Jim Steeden, CFP, CLU, CH.F.C., CHS Bruce D. Peckover, CLU, CH.F.C. Drew L. Stewart, CLU, CH.F.C., CEA Zachary J. Cattiny, CFP, CLU, CH.F.C. W R Lyle Garrett, CLU, CH.F.C., EPC Charles C. Cuffari, CFP, CLU, CH.F.C. Fernand H. Robichaud, CLU, CH.F.C. Johan C. Mares, CLU Rudy G. Fedorowich, CLU Patricia M. Gilding, CLU, CH.F.C. J. Bradley Stenning, CFP, CLU Peter Anthony Wouters, CFP, CLU, CH.F.C., CHS

50-YEAR CLU DESIGNATION HOLDERS Edward A. Misurka, CFP, CLU, CH.F.C. Edward W. Polci, CLU Douglas K Clarke, CFP, CLU, CH.F.C. Larry R. M. Terrace, CFP, CLU, CH.F.C. David C. Chescoe, CLU, CH.F.C. David J. Reckin, CFP, CLU, CH.F.C. Paul A. Paleczny, CLU, CH.F.C. Larry R. Mandseth, CFP, CLU, CH.F.C. Edward J. Topolniski, CLU

60-YEAR CLU DESIGNATION HOLDERS Paul V. Sabourin, CLU Stanley Tucker, CLU

65-YEAR CLU DESIGNATION HOLDERS Carl F. Woodward, CLU

For more information on the CLU designation, please visit www.iafe.ca/clu

The Institute for Advanced Financial Education™ (The Institute™), CLU® and CH.F.C.® are trademarks of The Financial Advisors Association of Canada (TFAAC). The Institute is a wholly owned subsidiary of Advocis®. Copyright © 2018 TFAAC. All rights reserved. Unauthorized reproduction of any images or content without permission is prohibited. Financial Planning Standards Council is the marks licensing authority for the CFP® marks in Canada, through agreement with Financial Planning Standards Board Ltd. CAIB® is a registered trademark of the Insurance Broker Association of Canada. F.Pl. is a registered trademark of the Institut québécois de planification financière. FEA® is a registered trademark of the Family Enterprise Xchange.

CLIENT COMMUNICATIONS

Best Behaviour Todd Fithian explains how advisor behaviour impacts client decision-making

24 FORUM MAY 2022

PHOTO: ISTOCKPHOTO

he financial services industry has become laser-focused on client behaviour. Understanding why clients do what they do is important, but many advisors are missing an opportunity to take a careful look at their own practice approaches to ensure the experience they’re creating for clients truly reflects the client’s needs, wants, and desires — and not the advisor’s. When advisors engage with clients in ways that make relationships easier and bring clients closer, the trust that is built affects behavioural factors that drive client decision-making. When advisors build these trusting relationships, clients will not only seek advice, they will follow it, because why would they choose to do anything else? They trust the advisor who has helped them discover their values, clarify their vision for the future, and helps them develop a plan to achieve their specific goals. They are unlikely to be influenced by social media or cultural factors because they understand why they have made the decisions they’ve made. They know that their plan reflects their values and vision, which may be very different from someone else’s values and vision. I believe three components, when used together, best represent the priority of engagement that forward-thinking advisors implement with their clients. 1) leading with empathy; 2) seeking to understand; and 3) delivering informed planning. Empathy is about building a relationship with deep care and respect for the client and their vision for the future. This step may require advisors to slow down and truly listen with the intent to learn. While some people are born empathetic, I’ve come to understand that for many advisors empathy is a skill that must be learned. It’s not that empathy doesn’t exist within us all, it’s that we don’t always value it. What you learn by listening with empathy, and how you apply the knowledge gained, can help you build powerful, trusting client relationships. Many advisors have been taught to problem solve. Gathering financial data and offering solutions is a habit that has become deeply ingrained. However, offering solutions to the client before you understand — and before the client understands — what they really want doesn’t build a strong relationship. The good news is that bad habits can be changed and advisors can build new neural pathways by following a client-centred advice model consistently. Change takes time, effort, and willingness to be accountable. When you are empathetic, you learn what matters to your clients and understand why it matters. The key is listening. When they tell you about their experiences, listen. This isn’t the time to sell or to communicate planning solutions. Learning to lead with empathy, and truly leading with it, will differentiate your practice and allow you to move closer to the centre of your clients’ lives. When you commit to enhancing your empathy skills, you begin to create a process that can be replicated and will become instinctive.

Understanding is about gaining awareness and appreciation for the circumstances that are impacting the client. It is a qualitative discovery process that goes far beyond the traditional fact finding and data gathering that is essential to advising and serving clients. You need to think differently when gathering that information. Your client-facing moments should be dedicated to learning more about your clients, what they want, and the decisions they need to make to achieve their goals. By engaging all stakeholders in these conversations, you become the advisor at the centre of their lives. As trust grows, they won’t make a financial move without you. Empathy and understanding are essential components when creating powerful relationships with clients. Some say that seeking understanding is soft stuff. I disagree. An advisor’s ability to help clients clarify what they want and why they want it will affect the strength of the relationship. Planning brings quantitative and qualitative analysis, assessments, modelling, and forecasting together. This is where things get interesting. Through empathy and understanding advisors gain qualitative knowledge that will inform the quantitative analysis. The first step is to overcome the bias toward quantitative planning that pervades our industry. Quantitative factors are important, but they must reflect the qualitative data that comes from conversations around client values, vision, and goals. All too often, qualitative information lives in a file or, worse, becomes a distant memory when advisors work on and present solutions. Combining qualitative and quantitative data makes it possible for advisors to deliver actionable advice that leads to appropriate client action. When advisors lament that clients fail to act on the plans they’ve presented, I suggest they go back to their files and see whether the solutions presented reflected the clients’ values, vision, and goals for the future. While the industry is focused on understanding human behaviour, I believe the advisor of the future will create a new client experience. They will employ empathy, seek understanding, and develop plans that are built with qualitative and quantitative factors in mind. These steps are designed to lower client tension, giving clients time and space to gain clarity around what they want and why they want it. Once they understand these things, you can help them understand what it will take to achieve their goals and offer a plan that can help take them there. By focusing on the client and what matters to them, you will have all of the opportunities you want to present solutions. You may be thinking that this sounds like a lot of work, that the process has more steps than your current approach, and that it could add considerable time to your current approach. First, let me confirm that I hear this concern frequently, and I have found that it does not hold true. The trust, rapport, and clarity built by moving slowly at the beginning of the relationship improves the decisionmaking ability of your clients and speeds up implementation. What’s even better is that your clients will become fans of your work and they’ll boast about you to everyone who will listen. TODD FITHIAN is the co-founder and managing partner of The Legacy Companies, which help advisors grow their businesses. He can be reached at todd@think-legacy.com. Advocis and The Legacy Companies have formed a partnership to bring Legacy’s courses to Advocis members.

MAY 2022 FORUM 25

TRIBUTE

Remembering

Harley Lockhart (1947–2022)

n February 10, the industry lost one of its most passionate members — a man of utmost integrity and a great leader. It was a pleasure to serve on the Advocis board of directors with Harley Lockhart and an honour to call him a friend. Harley was a practising advisor in the Okanagan Valley of British Columbia. He commenced his career after graduating from Acadia University in Nova Scotia, the province he grew up in, teaching junior high school, and then went to work at Scotiabank. In 1980 he was transferred to Calgary where he met his wife, Dale. By 1990, Harley and his family were living in Kelowna, B.C., and during his time there, his more than 30-year career as a financial advisor began to blossom. Harley not only went above and beyond serving his clients, he did the same for the industry. He served as president of the North Okanagan Chapter, was the first chair of the Chapter Leadership Council, and in 2012–2014 served as the chair of the TFAAC board of directors. Harley also served his community. He was treasurer of Trinity Baptist Church in Kelowna and served on the board of the Kelowna Mission Thrift Store. He also coached many minor sports. Harley believed in raising the professional bar and was committed to continuous education. As such it is fitting that he was awarded the Leslie Dunstall Medal. In recognition

26 FORUM MAY 2022

of his contribution to the industry and the community, the Thompson Okanagan Chapter awarded Harley the Peter Newton Award. Harley was a very unique individual. He was a man of deep convictions and strong opinions, but also had a great sense of humour that was punctuated by his wry and sometimes sarcastic smile. In the words of Todd Alstad, an Advocis colleague, “Harley had a pointed tongue and was the ultimate heckler.” Past Advocis chair Caron Czorny commented that Harley had a “great way to really listen then think about an issue and be bold in his comments when he felt strongly about an issue. He was also quick to support and smile.” “Actions spoke louder than words. If you spoke up then you better back those words up,” noted Advocis colleague Rob Bauml about Harley. “He was definitive that way and easy to follow as a leader because there were no inconsistencies in what he said or what he did.” Past chair Robert McCullagh observed, “I learned a great deal from him both in business and as a person.” When Harley retired, his son Jake continued to this day to manage the practice and serve the clients of Quail Ridge Financial Services. Like his father, Jake has also been awarded the Leslie Dunstall Medal. Past chair Randy Reynolds has been referring clients to Jake because he knows they will

PHOTO: MICHELLE VALBERG

By Kris Birchard

receive outstanding service “just like his dad.” Harley believed in doing the “right things” and constantly quoted the Advocis slogan non solis nobis, not for ourselves alone. Let me share an example of Harley’s leadership. In the early 2000s, there was a case going to the Supreme Court of Canada that involved the chartered banks and licensing requirements in the western provinces. The banks argued that they were regulated federally and not provincially and were therefore not required to be licensed provincially to sell creditor insurance in their branches. Interested parties in the western provinces requested that Advocis apply for Intervenor Status in relation to the Court’s hearings on the case. It should be noted that applying for this status, and if granted, the execution thereof, came with a hefty cost of close to $150,000, at a time when financial resources, although available, were somewhat stretched. Harley spoke strongly to his board colleagues in favour of making the application despite the cost. Harley’s reasons were non solis nobis. He said it was the right thing to do for our members and, more importantly, for the protection of their clients. The board heeded Harley’s advice and made the application. The Supreme Court granted the Intervenor Status and asked for an oral submission as opposed to the more common written submission. The reason the court gave for granting Intervenor Status was that they saw Advocis as a credible spokesperson for the Canadian consumer. When the court rendered its decision, it was in favour of the provincial licensing regime. In their decision the justices cited seven reasons for doing so. Five of those reasons were contained in the Advocis brief. This decision is positive evidence of the relevance of Advocis and was a direct result of Harley’s commitment to doing the “right thing” and to non solis nobis. Finally, consider past chair Al Jones’s insightful thoughts on Harley. “Harley, a Maritimer as salty and grizzled as the Atlantic Ocean,” he wrote. “A true mariner who weathers the storm and whose honesty at times was a detriment to himself. Harley often referred to me as a ‘brother from another mother’ as we share Nova Scotia roots. His blatant honesty and salty black humour seemed to cross the abyss of political correctness; however, to me it resonated his care and passion for his beliefs and a genuine commitment and loyalty to his family, friends, and colleagues. He was a mentor and lighthouse beacon to me and our industry. Non solis nobis.” Harley was a man of faith. His love of the Lord and the Bible guided his actions and decisions. His Kelowna colleagues told me that Harley would say, “When I am gone, I hope the world will be better because I was here.” Harley, it is safe to say that your hope was realized. May you rest in peace.

Worth Repeating: IN HARLEY LOCKHART’S OWN WORDS FROM MARCH 2014

hat an exceptional time to begin a career in financial advice. The recent introduction of Bill 157, the Financial Advisors Act, in the Ontario legislature is a huge step toward the creation of a bona fide profession for advisors and planners on the same level as doctors, lawyers, nurses, and accountants. Advocis has long championed a professions model. Serving the public is, after all, the key to our success. Being a financial advisor can be a great career for the right person. Foundational to being the right person is having integrity and focusing on the well-being of clients. Understanding from the beginning that it’s not about you sets your career in a positive direction. If you have the right character, it is up to you to maximize your chances of success — to “start strong” as you begin your career. A strong first step is membership in an association such as Advocis, which demonstrates a willingness to be accountable to your peers for the benefit of the public. The mandatory Advocis Code of Professional Conduct establishes that anything less than the consumer’s best interest is not acceptable. From its inception in 1906, the association has always focused on the well-being of others — non solis nobis (not for ourselves alone). If you’re a new advisor, find a mentor who not only knows the ropes but has proven him or herself time and again. A quality mentor can help you identify challenges and potential roadblocks, flesh out a short- and/or long-term plan for success, and give you pointers on building your professional network. While I can’t speak for all advisors of my vintage, it has been my experience that seasoned practitioners are happy to mentor those starting out. Next to mentorship is education. Our industry is intensely competitive, and no matter how good you think you are, there will always be half a dozen others who are just as good, if not better. Naturally, motivation and organization will come into play — planning your work and working your plan — but by focusing early in your career on increasing your knowledge, you set yourself up for a bright future. Here’s a tip: Never be satisfied with how much you know. Always be looking for that next educational challenge. Got your CFP? Great — now go get your CLU. Got your CFP and your CLU? Excellent — now grab your CHS and attend some conferences. You see how it works? Nothing replaces hard work in this profession, and the best way to distinguish yourself is by increasing your knowledge in areas that are relevant to your specialties or goal specialties. I’m not recommending you become a designation collector; instead, collect knowledge and, most importantly, learn how to apply it. It’ll never let you down and will pay you back many times over throughout your career. Perhaps the most important part of your makeup as an advisor is patience. Becoming a success in this industry takes time. This doesn’t mean we can’t enjoy a boost once in a while. If Bill 157 becomes law in Ontario (and is eventually rolled out nationwide), you and your peers will benefit. But in my experience, success comes more readily — and often more swiftly — to those who are organized and have a clear vision for their future.

MAY 2022 FORUM 27

CLU DESIGNATES

John A. Tory

AWARD 2021 THE INSTITUTE CONGRATULATES 2021 JOHN A. TORY AWARD WINNER

QI LU, CFP, CLU FOR ATTAINING THE TOP MARK IN CANADA.

ALBERTA Scott C. Robertson, CFP, CLU, CHS Roger D. Stevenson, CFP, CLU Braden Pennycook Neda Jeddi, CLU, QAFP Rhealynne Ries, CLU Courtney Alcock, CFP, CLU Harvey H. Agustin, CFP, CHS Louis J. Rouleau Jos Herman, CFP, CPA Tara L. Schneider Stephanie Dwyer, CFP, CHS Thomas Carrozzier, CFP Derek G. Nicoll, CFP, CHS Adegboyega A. Olatunde, PFP® Mo Zhou Julia Best BRITISH COLUMBIA Scott A. Grant, CLU Pavel Dyadin, CLU Shengbin Yang, CFP®, CLU, PFP® Jordan Rausch, CLU, QAFP™, CIM Clay E. Gillespie, CFP,CIM Huiqiang Peng, CHS Herby Desriveaux, CFP Clive Agyar, CFP John L. Hakkarainen Qi Lu, CFP Daniel Sitar, CFP Mackenzie Seeley, CFP Jason F. Netherton Kelvin Yee Hang Lam, CFP® Colton Elmer Hope, CFP

Harpreet K. Bains Brett Clark Ahmad Soleiman-Panah, CFP Yubing Li, CFP MANITOBA Sheryl Troup, CFP, CLU, CPA, CA Richard H. Reif, CFP, CLU Angela C. Wittmann, CFP Travis Gesell, CFP NEW BRUNSWICK Justin P. Richard, CFP, CLU NOVA SCOTIA Jason E. Malloy, CLU Keith MacKay, CFP, CHS, RCIS Chad Allan Relf, CFP, CLU ONTARIO Nickolas A. Cassis, CFP, CLU Debra L Hamilton, CLU, CHS Lucie Larocque, CFP, CLU Sean Warburton, CLU Chunhua Shi, CLU Jeffrey Poirier, CLU, CHS David A. Cooke, CLU Luxmihaasan Lucky Rasappah, CLU, CHS Naoshad S. Pochkhanawala, CLU Rachel L. Bough, CLU, CHS Chad Larmond, CLU, RHU Patrick J. Buscar, CFP, CLU Suzanne Schultz, CFP, CLU Timbo Lam, CFP Gary R. Armstrong, CPA, CGA Rob A. Polci Jianguo Duan Bruno Daniel Fortin, CFP Johnny Gialamas, CFP Shobana Varatharasa Terry T. Marek, CFP,CLU, R.F.P. Geoff S. Douglas, CFP, CLU Viresh C. Mathur, CLU John A. Kodric, CLU Michael S. Madeira, CLU David H. Sutherland, CLU

Stephen D. Palmer, CLU Eric Allan Simpson, CLU, CHS Min Juan Zheng, CLU Elias Soltani-Aski, CLU, CHS Julia Lee Dicks, CLU, RHU, CPCA Matthew R. Dam, CLU Mark J. Levitt, CLU Anthony Visconti, CFP, CLU, CHS Rushelle S. Irons-Vamos, CLU Paul Douglas Gaulton, CLU Katie Lee Deering, CLU Brock A. A. Schultz, CLU, CHS Qing A. Wang, CLU Tom James, CLU Steve G. Adams, CLU, BBA, MBA Donald N. Mason, CLU Andrew Dennis, CFP, CLU Marilia Liana Carvalho, CLU Lucia Solomon, CLU Thien Tu Nguyen, CLU Paul N. Scheib, CLU Brian D. McCreery, CLU, CIM Timothy Howard, CLU, CHS Timothy Schonberg, CLU Katina Michelis, CLU, CHS Christopher H.M. Lee, CLU Namrata Patel, CLU Patrick C R MacDonald, CLU, CHS Fei Jiang, CLU Michael Mccaffrey, CLU Charu Mathur, CLU Jeffrey Bernstein, CLU Satheeskumar Nagalingam, CLU Maureen McBratney, CLU, PFA Dobrinka Zhivkova Nikolova, CLU Jason D. Fast, CLU Shawna Clarkson, CLU Luigi Costa, CLU Alynn Godfroy, CLU Amy Kate Wickenden, CLU Diane D.G. Guo, CLU Qian Li, CLU Yin Shen, CLU Rebecca McGrath, CLU Marc Gabriele, CLU Domenic Larizza, CLU Victor Schuliakewich, CLU, CHS Joshua Alvin Davie, CLU Jigarkumar V. Patel, CLU Kevin John Moniz, CHS, CLU

The Institute for Advanced Financial Education (The Institute) is the leading designation body in Canada for financial services practitioners in the specialty areas of Advanced Estate and Weatlh Transfer, and Living Benefits. The Institute provides a platform of standards and advanced knowledge through designation programs and accreditation services.

By obtaining the CLU® designation, you have demonstrated exceptional commitment to your career and clients, and have elevated your practice to a level that distinguishes you among your peers. www.iafe.ca

Katherine Ann McConnell, CLU Adriano Beghin, CLU, QAFP Carrie Yutien Wang, CLU Geethanjali Subramaniam, CLU, CHS Thomas E. Juha, CLU, CHS Edward Hambarchian, CLU Randy I. Rosenblat, CLU Shan Lu, CLU Tracy M. Tronchin, CLU Dwayne Anthony Gordon, CLU Sarah P. Cumpson, CLU Matthew E. Thomas, CLU Zheng Max Liu, CLU Anupreet Malik, CLU Yan Dou, CLU Zhuming Yi, CLU Michael D’Angelo, CLU FenFang Tong, CLU Dayun Huang, CLU Dongwen Huang, CLU Sean George, CLU Mosunmola Sami, CLU Li Jiang, CLU Mitchell Donald Fox, CFP®, CLU Jennifer J. Trevor, CLU Jingwei Sun, CLU Atul R. Patel, CLU

Narinder Singh Lobana, CLU Tigest D. Gulbet, CLU Jaswinder S. Minhas, CLU Devendra Kumar, CLU William Hurley, CLU Hanjun Chen Kun Wang Stephanie Epstein Dylan Brown, CFP Gregory M. Toner, CPA John C. Stephen, FSA Yinghui Meng Jacqueline Soong, CFP Jessica A. Kemp Amanda M. Bieber, CFP Jeanette M. Molloy, CFP Sandra Shoebridge, CHS, QAFP Dalia Hamdy Oluwashayo J. Oretan, CFP, TEP Shengbin Chu, CFA Garry L. Goodwin, CFP, CHS Duncan E. Presant, CFP Patrick Michael Fitzgerald, CFP, CHS Marija Vuckovic Mr. Kevin A. Dineen Liya G. Tewelde Andrew Hill, CFP

David Davies Irina Yugay Zhiling Pu Elena Yazeva, CFP Adam Lachance Peter B. Gillespie Jung-Hee Kim, CFP, TEP Li Jiang, CLU QUEBEC Salomon Gamache, CLU, Pl.fin, CIM Samuel Platel, Pl. Fin Liliana Danila SASKATCHEWAN Jason M. Arden, CLU, CHS Sean Purdue, CFP UNKNOWN Adi Bartal, CLU Peter Lacey, CLU Pascale Hansen, CLU Devin K. Block, QAFP

Leslie W. Dunstall

AWARD 2021 THE INSTITUTE SPECIALLY RECOGNIZES THE 2021 DUNSTALL PRIZE WINNERS FOR ATTAINING TOP MARKS IN THEIR RESPECTIVE PROVINCES: ALBERTA Braden Pennycook, CFP, CLU

MANITOBA Sheryl Troup, CFP, CLU, CPA, CA

ONTARIO Jennifer J. Trevor, CLU

NEW BRUNSWICK Justin P. Richard, CFP, CLU

QUEBEC Salomon Gamache, CLU, Pl.fin, CIM

NOVA SCOTIA Keith MacKay, CFP, CLU, CHS, RCIS

SASKATCHEWAN Sean Purdue, CFP, CLU

The Institute for Advanced Financial Education (The Institute), CLU® and CH.F.C.® are trademarks of The Financial Advisors Association of Canada (TFAAC). The Institute is a wholly owned subsidiary of Advocis®. Copyright © 2019 TFAAC. All rights reserved. Unauthorized reproduction of any images or content without permission is prohibited.

TAX UPFRONT

BY JAMIE GOLOMBEK

The Lowdown on the New FHSA An alternative way for first timers to save for a home

he April 2022 federal budget introduced more details on the proposed launch of the Tax-Free First Home Savings Account (FHSA), a new registered account to help individuals save for their first home. No doubt our clients have already been asking us how they might take advantage of the new plan come 2023 and where it fits in with other ways of saving for a down payment for a new home, such as via a Tax-Free Savings Account (TFSA) or accessing Registered Retirement Savings Plan (RRSP) funds via the Home Buyers’ Plan (HBP). While much more information is sure to come out in the months ahead regarding the details of the FHSA, let’s take a quick look at what we know so far. To open an FHSA, the individual must be at least 18 years of age and a resident of Canada. In addition, they can’t have lived in a home that they owned either in the year they open the account or during the prior four calendar years. Individuals can only participate once in their lifetime to purchase a single property. Once a non-taxable withdrawal is made toward a qualifying purchase of a home, the FHSA must be closed within one year from the first withdrawal. Contributions to an FHSA would be tax deductible and income earned in an FHSA would not be taxable while in the plan, nor taxable when withdrawn so long as the funds are used to buy a first home. There’s a lifetime contribution limit of $40,000, and an annual contribution limit of $8,000 beginning in 2023. Unlike RRSP or TFSA contributions, unused annual contribution room cannot be carried for30 FORUM MAY 2022

ward, meaning an individual contributing less than $8,000 in a given year would still face an annual limit of $8,000 in subsequent years. And, while a client can have multiple FHSAs, the total amount they can contribute to all of their FHSAs cannot exceed the annual and lifetime FHSA contribution limits. To provide flexibility, individuals will be able to transfer funds from an FHSA to an RRSP or a Registered Retirement Income Fund (RRIF) on a tax-deferred basis. Transfers to an RRSP or RRIF won’t be taxable at the time of transfer, but amounts will be taxed when withdrawn from the RRSP or RRIF in the usual manner. Transfers will not affect, or be limited by, clients’ RRSP contribution room. If the individual hasn’t used the funds in their FHSA for a qualifying first home purchase within 15 years of first opening the FHSA, it must be closed and any unused savings can either be transferred into an RRSP or RRIF, or can simply be withdrawn on a taxable basis. Clients will also be allowed to transfer funds from an existing RRSP to an FHSA on a tax-free basis, subject to the $40,000 lifetime and $8,000 annual contribution limits. These transfers, however, will not restore their RRSP contribution room with respect to the amount transferred. Note that the HBP, which allows individuals to withdraw up to $35,000 from an RRSP to purchase or build a first home without having to pay tax on the withdrawal, isn’t going away. Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years,

starting the second year following the year of the withdrawal. And, while no changes are being made to the HBP rules, clients won’t be permitted to make both an FHSA withdrawal and an HBP withdrawal for the same home purchase. And, while it’s hoped that Canadians will be able to open an FHSA and start contributing at some point in 2023, that will depend on when detailed rules are introduced by the government and financial institutions’ ability to launch a new type of registered plan in the months ahead. Finally, it wouldn’t surprise this author if some tweaks are ultimately made to the rules as outlined in the Budget to close some potential unintended planning opportunities that now seem to be available. For example, consider the lifelong renter who is happy to continue to rent a condo or house for the rest of their life. They have no intention of ever buying a home. Yet, they qualify as a potential firsttime home buyer under the proposed FHSA rules. Assuming they have the funds to make both their maximum contribution to their RRSP, TFSA, and FHSA, why wouldn’t they simply begin contributing $8,000 annually for up to five years, for a tax-deductible contribution of $40,000 and then, at the end of 15 years, simply transfer the amount to their RRSP or RRIF? This way they’ve been able to effectively get an extra $8,000 annually of RRSP room and a deduction; otherwise, they might be either maxed out, or, perhaps not even have been able to contribute if they don’t have any earned income/RRSP room, or perhaps they’re over 71 years old! I suspect that the rules may be changed to provide either an age limit (the original pre-election Liberal plan had an age cap of 40) or perhaps a mandatory income inclusion at the end of the 15-year period, rather than permit a transfer to an RRSP/RRIF for possibly decades’ worth of continued tax-deferred compounding. Alternatively, the government may allow a tax-free transfer to an RRSP, but only if the individual has unused RRSP room. JAMIE GOLOMBEK, CPA, CA, CFP, CLU, TEP, is the managing director, tax & estate planning with CIBC Private Wealth in Toronto.

ESTATE DILEMMAS

BY KEVIN WARK

Revisiting Beneficiaries How court results confuse advisors on the best strategy

y now most insurance advisors will be familiar with the 2020 Ontario court decision in Calmusky v. Calmusky relating to the application of the presumption of resulting trusts to statutory designations, and the ripple effect it has caused for insurance and estate advisors and their clients. A trio of more recent court decisions across Canada have now considered the merits of the Calmusky decision. As well, there have been ongoing representations to the Ontario government by a number of organizations seeking legislative changes to address this issue. Let’s briefly review the Calmusky decision as well as highlight the more recent court decisions and industry efforts.

STATUTORY DESIGNATIONS AND THE PRESUMPTION OF RESULTING TRUST Calmusky v. Calmusky involved a legal action by estate beneficiaries to claim the proceeds of the late father’s Registered Retirement Income Fund (RRIF) under which an adult son had been designated as beneficiary. The applicant’s position was that the “presumption of resulting trust” applied to the RRIF funds, and therefore the name beneficiary of the RRIF, the adult son of the deceased, held those funds in trust for the beneficiaries of the estate. This presumption applies where a gift is made to an adult person (other than a spouse) and places the onus on that person to prove on the “balance of probabilities” that a gift was intended. In Calmusky, the Court agreed with the applicant’s position that the presumption of resulting trust did apply to beneficiary designations. Since the beneficiary in this case was unable to demonstrate that a gift was intended, the RRIF proceeds fell back into the father’s estate to be distributed in accordance with his will. This was a surprising result for the estate planning community — and one that could negatively

impact the estate plans of many people in Ontario and other provinces as well. Fortunately, the 2021 Ontario Supreme Court decision in Mak v. Mak put the Calmusky decision into doubt. Based on very similar facts involving an estate challenge to the designation of an adult child as beneficiary of a RRIF, the Court specifically considered the decision in Calmusky and decided that the presumption of resulting trust does not apply to statutory designations. The Court specifically noted “the whole point of a beneficiary designation … is to specifically state what is to happen to an asset upon death.” However, the reasoning of the Mak decision was not considered or adopted in a subsequent decision by the British Columbia courts. Simard v. Simard followed earlier B.C. decisions and applied the presumption to three RRIFs owned by the deceased under which one of her adult children was designated as beneficiary. Of some interest, the Court held that the presumption did not apply to one of the RRIFs that was managed by a financial advisor, as there was sufficient evidence that a gift was intended by the deceased in relation to that RRIF. Concluding the trilogy of more recent cases, the Supreme Court of Nova Scotia in Fitzgerald v. Fitzgerald considered and agreed with the Court’s reasoning in the Mak decision. The Court concluded that the presumption did not apply to a beneficiary designation governing a Tax-Free Savings Account (TFSA), as a statutory designation is materially different from an inter vivos gift of property. While there appears to be a growing consensus that the presumption of resulting trust should not apply to statutory designations, without a higher court decision or specific legislative changes, the potential application of this presumption remains an issue of ongoing concern to insurance and estate planners. Several organizations, including a joint effort by Advocis and CALU, have made

submissions and held discussions with Ontario government officials, requesting legislative changes be made to confirm that the presumption of resulting trust does not apply to statutory designations. Unfortunately, the Ontario government appears to be taking the view that this issue needs to be ultimately resolved by the appeal courts. This could be a slow process with differing results across the country unless and until this issue makes its way to the Supreme Court of Canada. This leaves insurance, financial, and estate advisors with the responsibility of making their clients aware of these legal issues and carefully documenting their intentions to make a gift to adult children when establishing beneficiary designations. This is of particular importance where the designated beneficiary differs from the residual beneficiaries of the estate, as this is where legal challenges will most likely arise. Be sure to also speak with existing clients who have already made beneficiary designations to confirm their intention to make a gift to the beneficiary of their plan. Such activities also open the door for updating and revising estate plans to ensure they continue to meet the needs of your clients and their families. As a final step, clients should be encouraged to share their estate plans with family members to minimize any surprises and help avoid potential litigation between family members. KEVIN WARK is managing partner of Integrated Estate Solutions and a tax advisor to CALU. He is the author of several tax/estate planning books entitled “The Essential Canadian Guides” that are available through Amazon.ca and Kindle.

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MAY 2022 FORUM 31

CORPORATE INSURANCE

BY GLENN STEPHENS

Harding Case T

he recent tax court decision in Harding v. The Queen does not break any new legal ground, but it does clearly illustrate the serious income tax consequences that can arise when the ownership and beneficiary designations in corporate life insurance policies are not carefully addressed. This case involved a successful business owner, Boyd Harding, who owned all the shares of a holding company (Holdco) that was the majority shareholder of a corporation (Opco) that carried on a logging business in eastern Canada. There were four insurance policies involved in this case: • A policy on the life of Mr. Harding’s wife, Deborah Harding, which she owned and under which she had named her four children (Mr. Harding’s stepchildren) as equal beneficiaries; • Another policy on Ms. Harding’s life under which Holdco was owner and 25% beneficiary, with her children named equal beneficiaries of the remaining proceeds; • Two policies on the life of Mr. Harding, both owned by Holdco and both naming Ms. Harding as beneficiary (subject to a 25% share payable to Holdco under one of the policies). Opco paid all of the insurance premiums under the above policies, which was approximately $476,000 over the years in question (2013, 2014, and 2015). The Canada Revenue Agency (CRA) took the position that all of these amounts should be included in Mr. Harding’s income as a taxable shareholder benefit. Mr. Harding responded to the CRA’s position by stating that he had never intended to confer a benefit, that he was unaware of the policies that insured his wife, and that family members were beneficiaries of those policies. He also stated that the beneficiary designations were made in error and were facilitated by one of the stepchildren, who was the insurance 32 FORUM MAY 2022

agent involved in the case and who had duped him into acquiring inappropriate policies. Mr. Harding also suggested that there was no actual benefit because the proceeds had yet to be paid. In the end, the court agreed with the CRA. It found no bookkeeping or administrative error in the beneficiary designations, and that even if Mr. Harding was unaware of some of the policies and how they were structured, he knew or ought to have known that Opco was paying the premiums, and that the policies had no legitimate business purpose. In any case, the Court found that a benefit can be conferred under the Income Tax Act even if the shareholder is unaware of it. The fact that no proceeds had been paid was found to be irrelevant, i.e., a taxable benefit arose because Mr. Harding’s wife and stepchildren would have received insurance proceeds on the insured’s death. The Court’s decision meant that all of the Opco-paid premiums were included in the taxpayer’s income as a shareholder benefit, a result that was all the more onerous because the amount of the benefit is not deductible to Opco. This essentially amounts to double taxation. Interestingly, the Court chose to apply the entire amount

of the shareholder benefit to Mr. Harding personally, even though Holdco was a beneficiary under two of the policies. Theoretically, a pro rata share of the taxable benefit could have been attributed to Holdco, although this issue does not appear to have been raised in the proceeding. Harding is not precedent-setting, and the decision is unsurprising and largely predictable. Having said that, it is useful as a means of illustrating “what not to do,” and clearly shows the negative tax results that can arise where corporations provide personal benefits to shareholders or their families. A key takeaway from this decision is to understand how the policies could have been structured in a way that allowed the policies to provide the intended benefits to family members without risking a taxable benefit to Mr. Harding. For example, it would have been open to the parties to have Holdco as the owner and beneficiary of all the policies in question. Although accounting and tax advice would have been needed, it is likely that Opco could have paid tax-free dividends to Holdco, out of which premium payments could have been made. Holdco would then have been paying premiums on policies it owned using its own funds. No shareholder benefit would have arisen. With appropriate planning and perhaps some share restructuring, proceeds received by Holdco, net of the adjusted cost basis of the policies, could have been distributed as tax-free capital dividends in a way that allowed the intended beneficiaries to ultimately receive the funds. There would have been some professional fees and other implementation costs, but these would have paled in comparison to the fees and tax costs actually incurred in this case. GLENN STEPHENS, LLB, TEP, FEA, is the vice-president, planning services at PPI Advisory and can be reached at gstephens@ppi.ca.

PHOTO: ISTOCKPHOTO

A ruling on beneficiaries and corporate life insurance policies

GUEST COLUMN

BY JENNIFER MOIR

Age-Proof Practice

How to thrive when serving an aging client base

he impact of aging clients and their families on your practice has great potential, for better or for worse. Strengthening your relationships with high-value older clients and building bridges early to the next and influential generation must become a thoughtful and targeted investment in your practice in order to solidify loyalty and retain family wealth. Pivoting your service offerings to proactively address a suite of growing uncertainties aging adults have about future life transitions, prolonging autonomy, or attaining personal goals regarding selfactualization and worth is a great starting point, and is both a compassionate and pragmatic investment. It’s one that can result in retention and asset consolidation, referral to others who are wrestling with the same questions, and initiate communication with the next generation. When destabilizing life events occur such as the death of life partner or diagnosis of a new health condition, both older adults and their adult children will mobilize quickly in an attempt to regain a sense of control and stability. Questions about readiness to face the challenges ahead will surface and drive activity as they search for information and direction. Without proper guidance, costly and ill-informed choices and decisions can occur. If they don’t know to turn to YOU for guidance or resources, then they will not hesitate to turn to someone else who understands their dilemma and can offer them the assistance and stability they crave. How do you begin to pivot your practice and service offerings to ensure your aging client needs are being proactively addressed, and you remain front and centre in their mind? Start by completing a Practice Profile and then design service offerings that are

meaningful and immediately helpful given the life stage and circumstances your aging clients find themselves.

COMPLETE A PRACTICE PROFILE Your Practice Profile should focus specifically on your older clients. Consider their reality and how this reality is likely to change over the next five, 10, even 15 years. What is the average age of your senior clients, current marital status, and likelihood of losing a life partner or developing a chronic or debilitating health condition? Who owns the majority of the wealth you manage on their behalf, and what is the likelihood of an early distribution of that wealth? Here is a good question: How many multi-generational relationships do you currently have, and is there likely to be a transfer or sharing of responsibility and decisionmaking with another person in the not-sodistant future? Who is that other person? It is also prudent to note how many of your clients have aging parents themselves, and for whom they may have to start advocating for in the next decade. A responsibility that could quickly become an overwhelming duty for them. By following this line of questioning, you will start to develop a more accurate Practice Profile of your aging clients. This will help guide you in developing a relevant suite of service offerings for them, their families, and your practice.

DECIDE ON YOUR LEVEL OF SERVICE Whole-person advice and service is quickly becoming the expectation rather than exception, particularly with aging clients. Advisors will need to choose what level of service they will offer based on what their Practice Profile reveals. The ability to

deliver selected offerings either in-house, or by working in partnership with other expert resources, must also be part of the evaluation. The different levels of service be described as Required, Whole Person, or Whole Family. Required service would include basic know-your-client updates, gathering of trusted contact person (TCP) information, and updated power of attorney information. Whole-person service would include opportunities to link aspects of personal well-being as one ages with financial longevity, information on senior housing and transitions, advocacy tips and strategies, or introducing clients to vetted, local resources that can prolong independence and support self-actualization. Whole-family service would go further in exploring questions around when and how to transfer or share decisionmaking responsibilities, legacy planning, communicating wishes, creating inventories of assets and heirlooms, or support for caregivers.

PREPARE TO THRIVE As the eldercare industry matures, it is creating a terrific opportunity for you to build a dedicated network of industry experts who reflect your standard, who you can refer clients to with confidence, or with whom you can partner with strategically. For your practice, create a set of meaningful service offerings of immediate and relevant value by leveraging your resources. Services should be designed to engage, educate, and empower your clients — and their families — on key later life issues and questions they will have. Adopt best practices that will guide you in fulfilling new regulatory requirements like the TCP, and deliver consistent, valuable, and verifiable service. This process of realigning service and business practices will occur over time and evolve with experience. Finally, promote your commitment and share what you have done, or are doing, to help prolong the health, wealth, and autonomy of older clients and families. Authenticity and action resonate deeply and will not soon be forgotten. JENNIFER MOIR is the founder of Age Well Solutions. She can be reached at jennifer@agewellsolutions.ca. MAY 2022 FORUM 33

AN N UA L

J.G. TAYLOR AWARD RECIPIENTS presented by

Christie Coltman CFP, CLU J.G. TAYLOR AWARD RECIPIENT

Christie has been a board member of the Vancouver Island

both relocated to beautiful Victoria in 1994 and began to

Advocis Chapter for 6 years, having finished her two-year

build their business in B.C while maintaining their client

Presidency in 2021. During her tenure as President, the

relationships in Alberta. In 1999, they formed Bewley &

Vancouver Island Chapter was awarded Chapter of the Year

Coltman Financial Services. She feels fortunate that she

in 2020 and Christie was named the Volunteer of the Year

helps clients pursue their dreams, achieve their goals

for the B.C region. Her focus as President during 2020/2021

and protect those that are most important to them. She

was on the community initiatives, including fundraising

is a Chartered Life Underwriter (CLU), Certified Financial

for Food Banks of B.C and The Women’s Transition House.

Planner (CFP) and is a Court of the Table Member of MDRT,

Having participated in the Tour de Cure for several years,

as well as a member of the Victoria Estate Planning Council.

she brought her passion for raising funds for research and cancer treatment to Advocis by creating Team Advocis BC

Christie is most proud of being the mother of her two

which raised over $45,000 in 2021.

children, Nicole and Bennett.

Christie began her career in 1992 in Edmonton when she joined her mom, Pat Bewley, at North American Life. They

With more than 5,000 CLU® and CHS designation holders in good standing. The institute for advanced financial education is the leading designation body in canada for financial services practitioners in the specialty areas of advance estate and wealth transfer, and living benefits. The institute provides a platform of standards and advanced knowledge through designation programs and accreditation services. Institute destinations speak powerfully of a practice that is built on knowledge and a belief in the continuous refinement of that knowledge.

Award recipients have demonstrated excellence among their peers. they have made an impact on the profession and the public they serve; exemplified the Institute’s code of professional conduct; positively affected their communities; participated in the industry, with either the Institute or Advocis; and/or within other financial services professions.

Al Jones ICD.D

J.G. TAYLOR AWARD RECIPIENT

Al Jones has maintained a longstanding affiliation with

(MDRT), Al was also a two-term President of the Innisfil

Advocis, and is an active member of the Simcoe Muskoka

Chamber of Commerce, and a past Chairman of the Board

Chapter. Nationally, Al is a Past Chair of the TFAAC Board

of the People’s Credit Union, being the first person of colour

and a Past Chair of the Institute. He was the first to

to chair these boards.

complete the national trifecta of volunteer leadership by also being the Past Chair of the Chapter Leadership Council,

In April 2019, Her Majesty officially appointed Al to be

responsible for the 45 Advocis chapters across Canada.

the Honourary Lieutenant-Colonel of the Grey & Simcoe Foresters Regiment for a three-year term. Al is committed

Al began his career with London Life in 1996 and is currently

to the regiment’s goal to promote, educate and support our

the President of A. Jones Wealth and Estate Planning Inc.

Canadian Armed Services.

in Barrie. Al earned his ICD.D designation in 2018 and was recognized by his peers as class valedictorian of the Director

Along with his wife Sue, they have proudly raised their sons

Education Program. The ICD.D designation represents

Adam and Connor.

a lifelong commitment to excellence in the boardroom. A Qualifying Life Member of Million Dollar Round Table

The Institute for Advanced Financial Education (The Institute), CLU® are trademarks of The Financial Advisors Association of Canada (TFAAC). The Institute is a wholly owned Subsidiary of Advocis® Copyright © 2019 TFAA. All rights reserved. Unauthorized reproduction of any images of content without permission is prohibited.

AdvocisNews ASSOCIATION UPDATES AND EVENTS

CHAPTER NEWS Calgary Event – “Lean In and Help Shape the Future of our Industry”

dvocis Calgary hosted one of the first live events in more than two years with national leadership in attendance at Lean In and Help Shape the Future of Our Industry. Held on March 22, the event was well attended by Advocis members from across Alberta and featured hosting by Wade Baldwin, as well as presentations by TFAAC board chair Rob Eby, Calgary Chapter president Jayshri Patel-Amin, and many more.

Will Britton, CLC Chair; Heather MacDonnell, director of chapter relations; Julie Martini, vice-president, strategic engagement; and panel moderator, Rob Eby, Advocis chair.

he Advocis Chapter Leadership Council hosted its annual Western Regional Meeting in Calgary. Among chapter-building activities, volunteer leaders participated in a workshop led by past chair and longtime volunteer Izumi Miki McGruer. Attendees left with a better understanding of how they can support their individual chapters, and are looking forward to future collaborations with one another.

36 FORUM MAY 2022

LEGAL AND REGULATORY AFFAIRS UPDATE Insurance Regulators Move to Ban DSCs in Segregated Funds

n February 10, the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) announced their intention to completely ban the use of deferred sales charges (DSCs) in segregated funds by June 1, 2023. In the joint statement they also encouraged the industry to refrain from using DSCs by June 1, 2022. This latter date would align with the ban on DSCs for mutual funds set out by the Canadian Securities Administrators (CSA). In making their decision, CCIR/CISRO seem to be leaning heavily on the work done by the CSA over the past decade. In 2018, the CSA concluded that DSCs create a serious conflict of interest between clients and advisors: the CSA found that the allure of upfront compensation incentivizes advisors to recommend DSCs when they are not in the best interest of their clients. The redemption schedule characteristic of DSCs also deters the ability of investors to sell poorly performing funds, with restricted fund flows strongly correlated to poor investor outcomes in the CSA’s research. Insurance regulators believe that DSCs in segregated funds represent similar consumer protection issues. While we believe these issues merit investigation, we are concerned that CCIR/CISRO did not undertake an analysis of DSCs specifically in the context of segregated funds. Segregated funds share similarities to mutual funds, but there are also important distinctions related to their use as an insurance product and the duration that consumers typically hold the product. These distinctions will be important as the CCIR/CISRO have announced their intention to study other segregated fund compensation options, such as front-end loads and chargeback options, this fall.

NOTICE OF ANNUAL GENERAL MEETING OF MEMBERS The Annual General Meeting (AGM) of Members of The Financial Advisors Association of Canada carrying on business as Advocis (the Association) will be held exclusively online. Online voting for the 2022 AGM will be available from no later than May 31, 2022.

or International Women’s Day, Advocis South Saskatchewan hosted The Business of Leadership — Celebrating International Women’s Day! Sandra Masters (above right) who made history by becoming the first woman elected to mayor in Regina’s history, spoke alongside special guest Caron Czorny, president of Advocis Simcoe Muskoka.

dvocis Toronto hosted its 4th Annual International Women’s Day event on March 3. The theme for this year’s International Women’s Day was #BreakTheBias. Attendees came together to support women’s equality and help build an inclusive environment. Presenters Kim Siegers-Robinson, Cathy Hiscott, and Noreen Santer discussed how to overcome the common challenges faced by female successors, and they also dove into women’s evolving relationship with money.

New chapter. New questions. Prepare your practice to thrive with aging clients and families. • •

expertise and strategies to enhance your practice education and solutions to empower your clients

Solutions start with conversations. Contact us today. www.agewellsolutions.ca | 613-277-6449

Items for approval by the membership include: • Minutes of 2021 Annual General Meeting • Appointment of the Auditor for the next fiscal period • Election of Directors • Receive the audited financial statements for the financial year ended December 31, 2021 and the Auditor’s Report • Any other business THE AGM of Members of The Institute will also be held exclusively online. Online voting for the 2022 AGM will be available from no later than May 31, 2022. Items for approval by Institute Designation Holders include: • Minutes of 2021 Annual General Meeting • Appointment of the Auditor for the next fiscal period • Receive the audited financial statements for the financial year ended December 31, 2021 and the Auditor’s Report • Any other business

FINAL WORD

A Seat at the Table BY ROB EBY

ixteen years ago, I was tapped on the shoulder and told — not asked — to join Advocis. What resonated with me then and still resonates with me now is the opportunity to be part of an association that represents the interests of advisors and the advice that we give to clients with regulators and other key stakeholders within our industry. The roots of this perspective began much earlier than the formal incorporation of Advocis, which was created through a special act of the federal Parliament in November 2003. Rather, our lineage traces back to the first meeting of the Life Underwriters Association of Canada (LUAC), which gathered at Convocation Hall in Toronto on June 4, 1906 — a meeting in which LUAC president George Allen stated that “in the constant and untiring education of the public and the legislators, lies safety.” As part of a family practice of three generations of planners, I was raised to be proud of the advice that our family shared with our lifelong clients over many years, and to understand that it was through this constant and untiring spirit that we could work together as professionals to ensure that our voice was heard. Having lived through that history, I also believe that this moment is perhaps the most important of our lifetimes as planners to effectively communicate the pride and responsibility of our work to the governments and public bodies that have oversight over us. This is no overstatement. After many years — decades, even — of advocacy and development, title protection has arrived in Ontario and Saskatchewan, with other jurisdictions likely to follow in their footsteps. The demand for regulatory intervention to ensure the responsible conduct of advisors as significant concentrations of intergenerational wealth prepare to transfer are being driven by a demographical shift that is happening right now. The impact of COVID and how it has created a technological transformation in our business will necessitate significant engagement with regulators in the years ahead to ensure compliance with existing frameworks are upheld as client meetings, product documentation, and signed agreements move predominantly into the digital realm. These realities are not on the way or around the corner

38 FORUM MAY 2022

— they are falling into place as I write this, and we cannot hope to shape them in the interests of the public and our profession unless we present a strong and unified voice as an association. Through our legal and regulatory affairs staff and the member volunteer work of our provincial advocacy committees (PACs), I’m pleased to say we are achieving that unified voice. The contributions we are continuing to make in responding to proposals from regulators around issues such as the fair treatment of customers (FTC), the consolidation of the Mutual Fund Dealers Association and Investment Industry Regulatory Organization of Canada into a single self-regulatory organization, and burden reduction for advisors in outside activity reporting to the Canadian Securities Administrators are but a few examples of where we are making the position of our profession known in an impactful way. When I think of how much work remains on an issue such as title protection, I look confidently upon this work and know that we will make a difference. If you would like to play a role, I encourage you to reach out to your chapter leadership or our national office to learn more about the PAC in your province. Equally important, however, is that Advocis advocate for advisors to continuously improve themselves. We have worked for many years to educate and raise the professional standard of financial advisors, and I believe that this plays a key role in our credibility and preparedness to undertake advocacy work as well. It makes it fitting that we, as The Financial Advisors Association of Canada, have worked hard to bring protection to the title of financial advisor to the current title protection act, and it implies that we are also aware of the work to educate stakeholders and the public on the important work of financial advice, what it entails, and how to elevate and protect the standards that should define it. If we are willing to answer the tap on our collective shoulder, a seat at the table is ours to take. All we need is the confidence and capability to speak with the wisdom, professionalism, and unity that our profession deserves. ROB EBY, RRC, CFP is the chair of Advocis. He can be reached at rob.eby@igpwm.ca.

The Institute for Advanced Financial Education (IAFE), a subsidiary of Advocis, is now a FSRA-approved credentialing body.

The CLU® (Chartered Life Underwriter) designation is authorized for the use of the Financial Planner title in Ontario.

The PFA™ (Professional Financial Advisor) designation is authorized for the use of the Financial Advisor title in Ontario.

This is a positive step forward for our designation holders, for the financial services industry and for consumers across the province. For more information, visit iafe.ca

TAX CREDITS NOW SAVE UP TO 100%! The Certified Executor Advisor (CEA) designation is now government – certified and qualifies for valuable refundable tax credits:

• The Canada Training Credit and • The Ontario Jobs Training Tax Credit What It Means: CEA Tuition: $1,495.00 Canadian Credit: - 747.50 Canadian Net Cost: $747.50 = 50% savings Ontario Credit: - 747.50 Ontario Net Cost: $0 = 100% savings Calculations assume tax credits have not previously been used. To qualify you must: Be a resident of Canada and file a tax return Earn between $10,000 and $155,625 (2022) Be age 26 to 65 on December 31st of the tax year

Plus: Advocis members save $200 at cicea.ca/advocis

Preserve assets, build clientele, grow AUM, market life insurance and segregated funds. It’s a business plan. Visit: The Institute: cicea.ca Register: Advocis: cicea.ca/advocis

The Network: cean.ca Nonmembers: cicea.ca/register

Ask: Still have questions? info@cicea.ca

FORUM Magazine - May 2022

Articles inside

OPENERS

ADVOCIS NEWS

TAX UPFRONT

CORPORATE INSURANCE

THE FINAL WORD

ESTATE DILEMMAS