When we have families, we want to leave a legacy – not only history and traditions, but financial. And getting your financial house in order takes some work. But Jack Lumsden, MBA and CFP, is here to give you some tips in this exclusive excerpt from his book Preserving Wealth: The Next Generation. Be sure to follow the tour for more. Best of luck in the giveaway!
“If you deposit the money at your bank or trust company in a savings or
“Toronto-based research firm Strategic Insight projects that approximately $1 trillion in personal wealth will be transferred from one generation to the next in Canada between 2016 and 2026, with roughly 70% of that in the form of financial assets.” – Advisors Edge January 30, 2018
“70 % of Wealth Transfers fail.” – The Future of Estate Planning. Trusts and Estates June 2010
“65% of Canadians say it’s likely they will leave an inheritance to their heirs or estate but only 46% of Canadians have a will.” – Sun Life Canadian UnretirementTM Index, 2015.
Experts estimate that $1 trillion of inheritances will pass from one generation to the next within a decade in Canada. In addition, many individuals are selling their businesses, resulting in substantial gains. Accordingly, the ability to effectively manage one’s wealth and prepare and implement a proper estate plan is no longer just prudent. It’s crucial.
Jack Lumsden is an experienced financial advisor who uses an easy-to-read narrative style to clarify financial planning concepts that everyone needs to know. Preserving Wealth explains:
•Investment strategies to provide for growth and protection of capital,
•How to develop an effective estate transfer plan to reduce estate costs and taxes,
•Strategies to preserve wealth and safeguard an inheritance or gift for the next generation,
•How to select an executor, and what to do if you are an executor,
•The critical discussions to have with your family, and
•How to assemble a financial team.
Read an exclusive excerpt:
I went across the bay in our tin boat to borrow the tools from our parents’ good friend, Uncle Wayne. Uncle Wayne met me at the dock and helped tie the boat so we could go up to his cottage for our customary beer. We talked about my father for a while, and how much we’d both miss him. Uncle Wayne laughed and said he’d especially miss golfing with Dad, since he was the only person he could beat every time at the Honey Harbour Golf & Country Club. I brought up our dilemma, that we all didn’t know what to do with our new-found wealth. Uncle Wayne said, “I thought you might ask me about this, and I’ve done some thinking about it. Do you three still plan to get together with Mark for breakfast every Saturday morning this summer?” “How did you know Mark needs financial advice too?” I asked. He mentioned his conversation with Aunt Lorraine and suggested that we use our Saturday morning breakfast ritual to discuss strategies for our inheritances. I felt that was a good idea, since weekends were designated as family time when everyone could use the cottage. We knew we eventually had to sell it in order to divide up its value for the estate, but in the meantime, we had agreed to share all the weekends and take individual weeks for our holidays during the summer. Next, Uncle Wayne wanted to know what everyone had done with their inheritance so far. I answered that we’d each received some cash, and that mine was sitting in the bank. I didn’t know about the others. “I see I have my work cut out for me,” said Uncle Wayne. “Okay, first make sure that none of you say a word to anyone about inheriting. People will come out of the woodwork with all sorts of business schemes, and they may possibly want to borrow money. In a worst-case scenario, you may become a target for criminals who think that you are better off than you really are. Today, modesty can be a virtue, and it’s certainly the safest way to go. “Next,” he continued, “be sure to tell David, Sally, and Mark that for the short term, until we come up with individual long-term plans for each of you, they should be looking both at the safety of the money and at the interest rates they can earn. “If you deposit the money at your bank or trust company in a savings or chequing account, it’s guaranteed by the Canada Deposit Insurance Corporation (CDIC), but only to a limit of $100,000 per person per financial institution (bank or trust company). That means if you wind up putting $120,000 into a bank account and the bank fails, you will lose $20,000. So banking your entire inheritance in a traditional account is not necessarily safe. Also, the interest rates paid on these accounts are notoriously low, in the range of 1/4%.”
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JACK LUMSDEN, MBA, CFP®, is a financial advisor with over twenty years of experience. He has enjoyed building a strong career and loyal client base. In addition to helping clients preserve and transfer their wealth, he focuses on those who are or will be making the transition from their working years to retirement with the need to develop a lifelong income and cash-flow strategy from the financial assets they have accumulated.
A lifelong resident of Burlington, Jack dedicates much of his spare time to staying active and coaching high school football. Spending time with family is another of his core values. He enjoys attending sports events with his son, Connor, and country music concerts with daughter, Paige, while he and his wife, Sandi, like to travel with friends and explore new destinations.
Jack’s education includes a BBA from Wilfrid Laurier University (where he met Sandi), and an MBA from McMaster University. He is also a CERTIFIED FINANCIAL PLANNER® or CFP® professional.
Connect with Jack Lumsden
Financial Planning: jacklumsden.com
Author website: preserving-wealth.ca
The publisher is running a Goodreads giveaway in conjunction with the tour: 10 print-copies. Anyone in Canada on Goodreads can enter https://www.goodreads.com/giveaway/show/343225-preserving-wealth-the-next-generation
Jack Lumsden, MBA, CFP® will be awarding a $15 Amazon or B/N GC to a randomly drawn winner via rafflecopter during the tour.a Rafflecopter giveaway