Jackie and her family are free from financial worries
THE SITUATION
Jackie is a businesswoman from Beloeil. She successfully operated pet food and care stores that she inherited from her father. His main store in Montérégie also offered products for livestock and was located on the family farm land, which he himself had inherited from his parents.
Jackie managed to save tens of thousands of dollars a year without feeling like a millionaire. She has always lived below her means. Yes, she did see the valuations of her buildings and land on her tax notices or of her companies in the retained earnings, but she never had millions in cash in her bank accounts. Too busy managing her inventories and her staff, she had absolutely no idea of the market value of her businesses.
At 61, exhausted by nearly 40 years of hard work, she ended up accepting one of the many unsolicited offers she received each year from envious competitors or business people impressed by her sense of organization. When sales negotiations began 7 years ago, she realized that her life was going to change completely. For his stores, he was offered 7.2 million and for agricultural land, $43 million. When all the papers were signed and the work of the lawyers, planners and tax specialists was completed, he was left with $33.4 million net of taxes. Jackie has joined the select club of the ultra-rich.
Objectives
Preserve accumulated capital and manage it prudently. Limit taxes on investments and establish mechanisms to preserve the future inheritance of his 3 children and 2 grandchildren.
Key figures
- House: $850,000
- Condo in Florida: $900,000
- RRSP: $425,000
- TFSA: $110,000
- Cash account: $8,565,000
- Management company: $24,835,000
Our solutions and results
The amounts entrusted by Jackie were invested in a diversified private management portfolio including Canadian and international equities, real estate trusts, infrastructure investments, private investments and government and corporate bonds. Its asset allocation therefore includes 65% in fixed income and 35% in equity securities. The various mandates that make up its portfolio are in advantageous tax categories. That is to say, they do not generate highly taxable interest payments but rather deferred capital gains and Canadian eligible dividends. After 5 years of professional relationships, the annual growth of her portfolio has brought her an average of more than 6% annually, which corresponds to the target she had set, namely between 3 and 7% annually.
When his investment accounts were created, we started a complete integrated wealth planning process in 5 modules, namely;
- Retirement planning
- Risk planning
- Business planning
- Tax planning
- Estate planning
Since the delivery of the plans, we have regularly reviewed the evolution of Jackie’s assets, to ensure that they still meet her needs. Also, at the end of each fiscal year, we produce a tax kit to facilitate the compilation of data used to prepare financial statements and annual tax returns.
