19 minute read
Cover Story: New Outlook Wealth
DISCOVER THE WOW IN NOW
Meet President and CEO of New Outlook Wealth, Michael van Lierop. He’s brash, opinionated and smart – and looking to disrupt the wealth management space in Canada.`
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BY THE MINT EXPERIENCE PHOTOS BY STUDIO 78
MThe business of providing financial advice is ripe for disruption, according to New Outlook Wealth’s founder, Michael van Lierop. The Winnipeg-based entrepreneur and financial innovator is looking to dramatically improve Canadians’ access to affordable financial advice and investment management, at a time when most of the financial industry seems content to pursue and service millionaires almost exclusively. There is a growing gap to be filled today, between small retail clients and the wealthiest Canadians in terms of product choice, investment management fees, and access to experienced financial planners. Using a combination of robust financial planning in tandem with white-glove portfolio management that is typically reserved only for the wealthiest investors in Canada, New Outlook Wealth (NOW) is able to bridge this gap by bringing industryleading wealth management to all Canadians, regardless of wallet size. The term wealth management itself is broad and it can be misleading to clients because it tries to encompass everything good financial advisors can do. As a result, it means different things to different people. “For our clients, it means providing them access to a wide range of products and services with the goal of maximizing the outcomes of our client’s financial plans,” said van Lierop.
- Michael van Lierop
“We are the conduit or gateway for clients to access the expertise and products they need with the guidance and support of highly experienced financial planners.” One noticeable difference for clients of New Outlook Wealth is the separation of financial planning from money management. In the mutual fund business, advisors recommend funds – which are baskets of stocks and bonds – based on client risk profiles. At NOW, the money management is deliberately separated from the advisor, removing potential conflicts of interest and enhancing the overall investment experience for clients. “Having your very own Portfolio Manager is a very special experience,” explained van Lierop. “Our advisors team up with a Portfolio Manager – so our clients get to speak directly with the person in charge of managing their money. They ensure the client’s money is invested properly and safely, and we ensure the client’s financial plan is on track and that they are happy.” New Outlook Wealth refers its investing clients to three Winnipeg-based Portfolio Management (PM) firms. Clients’ investments are managed directly by a Portfolio Manager inside Separately Managed Accounts (SMAs), where client’s money is invested according to their wishes and guided by the specific knowledge and portfolio preferences of each PM firm. “We like to say that Separately Managed Accounts (SMAs) are the cooked-to-order filet mignon steak dinner when compared to mutual funds, which can resemble off-the-shelf fast food,” stated Crysler Jamieson, Vice President - Investments. “Ironically, our clients can have
MICHAEL VAN LIEROP
their investments managed in SMAs at a cost far below than that of your typical mutual fund. So it’s win-win all around.” The differences between SMAs and mutual funds is something NOW believes in profoundly. In addition to offering clients a better investment experience, the costs of investing are often 50-100 bps (0.5-1.0%) lower than typical mutual funds. SMAs are also more transparent and significantly more tax efficient for investors. Van Lierop goes on to explain:
“A Portfolio Manager is like the chef in a gourmet kitchen. They have a recipe to follow and ingredients to use but can adjust to suit the flavour profile and taste preferences of the customer. The SMA is a perfectly cooked steak delivered by an experienced waiter to the customer’s table. Meanwhile, a mutual fund advisor works at a fast-food restaurant – the customer chooses a cheeseburger (assuming there are burgers), it gets pulled off the shelf, the pickles get removed maybe, then gets dropped into a paper bag. And in this scenario, the cheeseburger is more expensive than the steak!”
Technology is a big part of the vision van Lierop has for disrupting the financial advice business in Canada. It means there is a very real way to democratize access to a broad range of low-cost investment products and ensure clients have choice – including ETFs (Exchange Traded Funds), pools, and SMAs (Separately Managed Accounts) in addition to a wide range of insurance and lending products. While clients with investable assets exceeding $250,000 will be introduced to their own Portfolio Manager, those clients with less money can access the same investment expertise and products on a digital wealth platform operated by Toronto-based Purpose Advisor Solutions, on the Harness Investments platform. “One big adjustment for our clients who are used to the mutual fund world is that our asset management ecosystem is all about choice, low fees and performance,” said van Lierop. Meanwhile, NOW advisors are busy adopting stateof-the-art technology and new tools to deepen their service to clients and their value proposition in a highly competitive marketplace. “Today, having a financial plan is a default expectation of clients,” commented van Lierop. “You have to be prepared to adapt to a fastchanging industry. Canada is taking major steps in the Fintech [financial technology] space and we want our clients to ride that wave and not get left behind.” The motivation to start NOW was born from frustrations on several fronts with the current state of affairs in the financial industry in Canada. “Virtually all the major banks, their investment arms, and wealth management firms want the same clients – households with $1M or more in investable assets”, added Andrew Smart, Vice President – Wealth & Advisory. “Those clients receive preferential rates on lending and receive lower investment fees. We recognize there’s a case to be made to provide a custom response to the more advanced needs of our larger clients, but we don’t do this at NOW at the expense of everyone else. Even our smallest clients get access to top-notch investment management and planning services.” Michael van Lierop moved to Winnipeg in 2012 with his wife and children, where they live in a centuryhome in the historical River Heights neighbourhood. Born in Quebec, van Lierop was raised on a beef and sheep farm in the Eastern Townships, a popular tourism region about an hour east of Montreal. He graduated in 2001 from Bishop’s University with Honours. “I have a degree in Political Science,” admitted van Lierop,
“which has nearly nothing to do with what I do for a living. That said, I’ve always valued the importance of higher education to become a well-rounded citizen and critical thinker.” Starting his career path as an entrepreneur suggests the completion of a career circle a long time in the making with the founding of New Outlook Wealth, “I had my own web/IT business right out of university,” added van Lierop. “By my mid-20s, I wanted a new challenge and to force myself out of my comfort zone. Prospecting clients and selling life insurance was pretty much the furthest I could go in terms of leaving what I was comfortable doing.” In addition to a wanting to fulfill his entrepreneurial inclinations, van Lierop continues to want to do things differently. “The last thing we need is another wealth management firm,” he jokes, “so I determined early on, if I’m going to risk my career and the financial stability of my family, it has to be for the right reasons.” Those “right reasons” included the desire to build out a platform for financial advisors to join who share in his vision to genuinely provide financial planning to all Canadians, lower investment fees dramatically for average investors, and increase compensation for advisors. “Normally, these things are mutually exclusive. You just can’t do them all together or at once,” explained van Lierop. “If you charge clients less, normally the advisors make less. We want to do both – and we can. If advisors are paid properly, they can focus their business and service their clients better. “It’s about fairness. Fairness for clients in terms of fees, and fairness for advisors in terms of compensation,” van Lierop summarized, “The financial industry is not fair for most Canadians anymore. We want to change that. And we’re not waiting for tomorrow!”
New Outlook Wealth Winnipeg, MB Brandon, MB Gilbert Plains, MB Calgary, AB Edmonton, AB info@newoutlook.ca www.newoutlook.ca
SAY HELLO TO NOW’S OUTSTANDING ADVISORS!
New Outlook Wealth is made up of teams of highly skilled financial planners located in Winnipeg, Brandon, Calgary and Edmonton. While the company is new, the people behind it bring an enormous amount of financial industry experience. With that experience comes a deep knowledge and appreciation of all of the investment, insurance, lending and estate planning solutions most clients will ever need.
Meet the Team
Chris Witoski - chris.witoski@newoutlook.ca
Chris started his career in the electronics manufacturing and engineering field, he transitioned to the finance industry and hasn’t once looked back.
Chris’ goal as a financial advisor with NOW is to compliment his client’s lives and needs, not to complicate them. He accomplishes this by listening and building his client relationships. Never assuming he knows it all, Chris reaches out to learn all he can about clients and takes each individual into consideration.
Working hard and caring for the people that have entrusted Chris with their financial planning is a quality that stands out with Chris. Eric Grabner - eric.grabner@newoutlook.ca
Eric is located in Winnipeg and believes that “Overnight successes are years in the making.”
Eric didn’t always have plans of being an advisor. He originally wanted to work internationally in IT. “I was given an opportunity to work in finance when I moved back to Canada, and have loved being an advisor ever since.”
The most rewarding part of Eric’s job is helping clients to realize their goals and relieve financial stress in their lives.
A common value with NOW advisors, Eric lives by “Try not to become a man of success. Rather become a man of value.” -Albert Einstein. Eric’s success with his clients is because he believes to always be learning and improving and to listen more than you speak. He also thinks there should be a National Take Your Dog To Work Day!
- Tamara Fehr
Sheryl Saari - sheryl.saari@newoutlook.ca
Sheryl is excited about sharing the NOW platform with her clients while continuing to build new relationships in Manitoba and Calgary Alberta.
If Sheryl could tell her teenage self some advice it would be to slow down and enjoy all the great things in your life. Spend more time building memories with your family and not to take the special people in your life or your health for granted.
Sheryl always wanted to help people and run her own business so this career path has given her the best of both worlds. The friendships she has built with her clients and being able to help them navigate through all stages of life by providing advice and a solid foundation for their life-long needs has been the best part of her career and looks forward to building more solid connections.
Paying it forward is a mantra of Sheryl’s and she is a great part of the team as she believes in hard work and to celebrate success while remaining humble and kind. Tamara Fehr - tamara.fehr@newoutlook.ca
Tamara is located in Winnipeg, and tells people to “Practice a balanced lifestyle and save money, but also have fun.”
Tamara originally had plans of being a hair stylist before entering the financial field! One thing Tamara loves about her job is helping her clients navigate the financial world and finding solutions to their unique goals and dreams
If she could invent one holiday it would be Girlfriend and Wine Day! Tamara’s life mantra is, “Don’t sweat the small stuff-focus on what you can control.”
She is successful and a great part of the NOW team because she works hard and focuses on the WHY of what she does. Tamara says this is crucial to success in any career and lives by that mantra.
- Emily Mayoralgo
Emily Mayoralgo - emily.mayoralgo@newoutlook.ca
Located in Winnipeg, Emily has always been in the financial field and couldn’t imagine doing anything else. The best piece of advice from Emily is to take the time to rest, but never quit. Stay focused on the path of your goal and you will achieve success.
Always learning as an advisor and alongside her colleagues, Emily’s clients appreciate her skills, experience and the effort she gives towards each client. Emily is a firm believer that in order to achieve our dreams we must take action. She tells everyone that we could dream all that we want, but it is our determination and action that will lead us to our goals. James Rodgers - james.rodgers@newoutlook.ca
Born in the United Kingdom, James grew up in Brandon, Manitoba. He now lives in Winnipeg spending time in Morden during the summer.
The best advice James has ever received and loves to pass on is, “Don't be afraid to try. Don't be afraid of rejection. Don't be afraid to fail.”
James did not know or plan to be working in the financial field, but once he started, he found it was a perfect fit. His goal is to always try to change someone’s life for the better, and continually works towards that goal. If James could invent a new holiday in Canada it would be called Immigration Day. A special day to honour immigrants who chose Canada as their new homeland.
“Not everyone will like you,”, he says, “but those that do should be treated like gold.” He believes that you get into his field of work for the betterment of the people, you will achieve success, much like any career that you may choose.
A Taxing
Time
BY MICHAEL VAN LIEROP, NEW OUTLOOK WEALTH
As unprecedented as the federal and provincial response has been from a fiscal and financial perspective, the taxation side of the Covid-19 equation is going to be creating headaches and concerns for tax preparers and accountants everywhere in the months (and years) to come. Without delving into the more controversial topics of monetary and fiscal stimulus, risks of inflation, and the arguments for and against a wealth tax, you can rest easy knowing that there are some tried and true strategies you can start to implement this year if you haven’t before, or to fine-tune if you’ve been doing these things all along.
Tax Planning Tips for 2021
1 | Covid-19 relief programs.
If you took advantage of any of these programs, it’s important to understand their tax consequences. For example, the
Canada Emergency Response Benefit (CERB) and its second iteration, the
Canada Recovery Benefit (CRB), the
Canada Recovery Caregiving Benefit (CRCB) or the Canada Recovery Sickness
Benefit (CRSB), are to be treated as taxable income. For many, this will be modest (indeed, CRB is like EI in that 10% is withheld at source for tax purposes) but it remains something to consider and as income, must be declared.
2 | New tax credits, deductions and benefits.
Familiarize yourself with the various new Covid19-inspired federal tax deductions and credits. For example, a new simplified home-office expense deduction option has been created to address the relatively simple but very wide-spread issue of employees working from home for a large portion of 2020. Canadians who worked from home can now claim up to $400 ($2 a day for up to 200 days) through this simplified process. Even the more robust home-office expense claiming process, which should continue to be used for those with more complicated situations, has been streamlined and simplified. 3 | RRSPs. Registered Retirement Savings Plans remain a hallmark of two critical components of financial planning – tax planning and retirement preparedness. In a practical sense, RRSP contributions should be an ongoing concern throughout the year rather than a last-minute decision days before the March 1 deadline. While RRSP contributions can generate significant income tax deductions – giving people that muchdesired “refund” from the government (which is essentially the government returning some of the excess income taxes you paid throughout the calendar year) they do not always make sense. Remember this: the principle idea of RRSPs is to
contribute when you’re at a high tax bracket to maximize the benefit of the deduction, and plan to withdraw your RRSP income in retirement when your income bracket is supposed to be lower. If you have a lot of unused RRSP room an RRSP loan can help you catch-up. This is a strategy that can help if used properly and as part of a broader financial plan. RRSP contribution limits are 18% of income or $27,230 for the 2020 tax year. 4 | The TFSA. Take time to reflect on your Tax-Free Savings Account (TFSA). This is arguably the most powerful “tax shelter” available in Canada, with the fewest strings attached. The perennial issue is most Canadians don’t use it properly, no thanks to banks who willingly cram low-interest guaranteed investments (GICs, for example) into TFSAs when they don’t belong there at all. Because the TFSA is a tax-free zone, it makes sense to
use the TFSA for investments that generate a high rate of return and as such, a potentially high tax cost or burden. Inside the TFSA they do not. In short, you’re wasting our TFSA room by using it to stash low-interest bearing savings like GICs or high interest savings accounts. Initially started in the 2009 tax year, there is an annual amount added to your cumulative TFSA room every year. For this tax year it’s $6,000. For anyone (and there are many out there) who have never made use of their TFSA, your total contribution room could be as high as $75,500 by now.
5 | DIY Online Tax Filing. If you’re a regularly employed, salaried individual – with or without a gig or small business on the side – and you have income from one, maybe two sources combined with some common deductions (like dependent children, RRSP contributions, home office expenses) don’t hesitate to use online tax filing software. TurboTax and Ufile are great, user friendly, and aside from data entry, manage the entire tax filing process from start to finish. They even help send your tax return via NetFile directly to the Canada Revenue Agency (CRA). The Canadian online tax filing platforms are safe, secure, and robust.
6 | Talk to an Accountant. If things feel like they are too complicated, they probably are. Most professionals and small business owners, especially incorporated ones, should be seeking advice on at least an annual basis from an Accountant who has the necessary expertise to guide you. They can provide valuable recommendations and help file your taxes properly. Filing personal tax returns is not a huge money maker for most accounting firms so don’t be surprised if you don’t get a pile of advice because advice takes time, and time is money. Shop around if need be.
7 | The best advice is to seek it. A Certified Financial Planner (CFP) or any highly experienced Financial Advisor in Canada will be able to provide useful tax planning guidance. The fact is, tax planning should not be a last-minute panic-driven priority. As part of a holistic financial plan, tax issues can often be planned around and foreseen with reasonable foresight. While it’s true the government, both federal and provincial, can play games come budget time and introduce new taxes, roll back old deductions, or introduce new ones, it is also true that the tax regime in Canada is a pretty stable framework upon which people can plan.
Michael van Lierop is President & Founder of New Outlook Wealth, a Manitoba-based wealth & advisory firm that brings financial planning and low investment management fees to all Canadians, regardless of their wallet size. Visit their website at www.newoutlook.ca to learn more and to find an advisor!
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