1. 2:30pm How the Rich Manage Their Finances
Presented by:
Kurt Rosentreter
Chartered Accountant
Senior Financial Advisor, Manulife Securities Incorporated
Certified Financial Planner, Manulife Securities Insurance Inc.

2. About Kurt Rosentreter
Chartered Accountant
Twenty years of experience in personal finance.
Past co-founder of the national wealth management practice at one of Canada’s big four accounting firms.
National best selling personal finance author; six published books in Canada.
More than 500 published articles and interviews for The Globe and Mail, National Post, CBC, Canada AM, Canadian Business and Maclean’s.
Personal Finance Course Instructor, Ontario Institute of Chartered Accountants
Senior Financial Advisor, Manulife Securities Incorporated* in Toronto (*Member CIPF)
Certified Financial Planner, Manulife Securities Insurance Inc.

3. Complete a Draw Ballot!
Draw for four books at the end of this 30 minute presentation
Draw ballots available at front of room
Drop in basket at front of room
Only completely filled out ballots will be winners.

4. What is Wealth Management?
Definition of Wealth Management
Process not a product
Many definitions in the marketplace…
What services are included?
What fees are typical?
Conclusion: no standard in Canada yet.

5. Who are the Wealthy? Definition of a Wealthy person Define by income
Define by total assets
Or family assets
Define by future potential
Define by portfolio securities
Conflict
Define by state of mind

6. Wealth Management Services
Primary
Investment Management
Banking
Cash management
Tax Planning
Legal advice
Secondary
Tax return preparation
Bill payment
Insurance
Debt
Business services
Charitable giving and legacy planning
Estate planning
Children’s financial planning
Real estate
Concierge services

7. Wealth Management Advisors
Wealthy Friends
Company CFO
Accountant
Tax accountant with int’l tax expertise
Lawyer (estate, business, divorce, int’l law)
Book keeper
Money Manager (broker, agent, counsellor, portfolio manager) Private Banker
Insurance Agent
Real estate agent

8. Wealth Management Fees
Four types:
Hourly rate or flat fee
Investment advisory fees
Investment commissions
Investment custody
Insurance commissions
Fewer: petty administration fees (e.g. cheque charges, RRSP trustee fees, etc.)
Options: one fee for all or unbundled pay as you go fee approach.

9. Do Wealthy People Need A Financial Plan?
Definition of a financial plan
Reasons they don’t…
Reasons they do:
Better financial decisions through integrated planning
Less time on finances
Lower fees through synergies
Better overall control / management of the big picture
Better coordinated advisor team

10. Elements of a Financial Plan
One integrated plan.
More effective results.
Time savings.
Cost savings.
Pre-retirement Financial Plan
Career Compensation & Benefits Planning
Tax Return Preparation & Tax Planning
Estate Planning & Estate Wind-up Services
Use of Debt
Legal Risk Management
Personal Insurance Strategies
Post Retirement Income Design
Elder Care
Real Estate Strategies
Children
Financial Planning
Philanthropic and Legacy Planning
Personal Investment Program

11. High Net Worth Financial Strategies

12. Which are not High Net Worth Investment Solutions?
Purchasing mutual funds and GICs at the bank counter
Purchasing mutual funds with a mutual fund agent
Trading your own stocks in a discount brokerage account (depends on the person)
Purchasing segregated funds with an insurance agent
Purchasing hybrid products with a financial planner (income plus, PPN’s, closed end products, labour funds)
Purchasing a mutual fund wrap program with a mutual fund agent.
These are retail, mass market products.
Once you reach $500,000 of savings, the door opens to new solutions suited to high net worth.

13. Investment Wealth and Choices
Below $200,000 of savings
Products: Mutual funds purchased no load; Exchange traded funds (ETFs); Stock dabbler only
How to buy: On your own; Stock broker, bank counter staff.
$200,000 to $1 Million
Products: Blended solution of mutual funds (F series only), ETFs, individual stocks and bonds
How to buy: IMA wrap program; Stock broker, Portfolio Manager, on your own
$ 2 Million or more
Products: Individual stocks and bonds; occasional F series fund for global equity or specialized mandates, ETFs
How to buy: IMA wrap program; Portfolio Manager directly (2 at least); Stock broker; on your own.

14. Investing Planning Strategies Of The Rich
Six Dimensions of Tax Smart Investing:
Relevant for Taxable Savings (not rrsps)
Taxation of people matters
Taxation of assets matters
Taxation of income matters
Holding period of the asset matters
Domestic or a foreign asset matters
Legal ownership of the asset matters.

15. Tax Planning Strategies Of The Rich
Focus on tax planning – see beyond your tax return
Sophisticated accountants as advisors
Using good debt and eliminating bad debt
Holding companies for U.S. assets & and to avoid Canadian probate fees on death
Pay investment Fees, not investment commissions
Income splitting with family
Business Owners not employees
Maximizing tax writeoffs
Business owners not employees
Tax shelters
Offshore business ventures and investing

16. Estate Planning Strategies Of The Rich
Usually get advance planning done properly
Two Wills
No do-it-yourself Wills
Family Trusts
Intervivos
Testamentary
Family are not used as Executors or Trustees
Foundations to leave a legacy
Life insurance to provide liquidity in estate

17. Career Choices Of The Rich
Primary:
Business Owners
Not employees working for someone else
Own one business through generations and through thick and thin
E.g. Warren Buffett approach
Growth industry and growth company
They own the business but don’t work in it
Secondary:
Senior executives of public companies
Company stock and stock options
Third:
Some careers: dentists, lawyers

18. How The Rich Select Their Financial Advisors
General:
Professionals, not sales people
Specialists in high net worth issues and solutions
International expertise, not just local
Arms length business relationship not clouded by personalities and friendships
Investments:
Relationship free of limited product choice, hidden fees and poor service / communication
Asset based fees, not commissions
Financial Planning:
Four key documents from the advisor: engagement letter, written financial plan, written investment plan, written annual investment portfolio analysis.
Key: evolution of advisors as you evolve / grow.

19. Summary No standard rule about what wealth management is.
Comparison shopping is best way to find out what you want.
Industry continues to evolve fast – products, services and people are changing.
Your life long advisors may no longer be suitable to help the wealthier you.

20. Please Complete the Draw Ballot and win a best selling book
Please Complete the Draw Ballot and win a best selling book! Draw ballots at the front of the room. Ballot must be completely filled out to win.

21. Thank You. Kurt Rosentreter,
Senior Financial Advisor & Certified Financial Planner
CA, CFP, CLU, TEP,FMA, FCSI, CIMA, CIM
Manulife Securities Incorporated;
Manulife Securities Insurance Inc.,
Phone Ext 238
Kurt’s books are available in bookstores across Canada.

22. Disclaimers
Manulife Securities Incorporated is registered as an Investment Dealer, or its equivalent, with the provincial securities commissions and as such our Advisors are entitled to sell mutual funds, stocks, bonds and other securities as permitted under our registration. They may also be able to provide other services or products to you through their own business. As a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), Manulife Securities Incorporated is obligated to disclose to you that you may be dealing with companies other than Manulife Securities Incorporated when purchasing services or products from your Associate (remuneration to your Associate may also come from various sources depending on the services or products purchased). For example, your Associate may offer any one or more of the following through a separate business, which would not be the responsibility of Manulife Securities Incorporated: * Income Tax Preparation; * Insurance: Life, Accident, Sickness, Disability, General. Please be sure that you have a clear understanding of which company you are dealing with for each of your services and products. Your Associate would be happy to provide any clarification you require.
Insurance products and services are offered through Manulife Securities Insurance Inc. (a licensed life insurance agency and affiliate of Manulife Securities) by Manulife Securities Advisors licensed as life agents.
The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Incorporated and/or Manulife Securities Insurance Inc.