Financial Management

Have you recently received an inheritance, settlement, sale of property, financial buyout, or other windfall? Are unsure what to do with it? A financial windfall can set you up financially for years to come.  Don’t spend your money all at once—instead hire a financial advisor who “thinks outside of the box” and get the most out of your money long-term.  I’ll help you secure your investments, grow your net worth and earn money long-term.  I’m never short on creative ideas and strategies to manage your finances.   

Key Benefits of Hiring a Financial Advisor

  • Take a small income off this investment for the rest of your life, or for a set period of time.   For example, you could pay part of your mortgage every month with this lump sum without, ultimately, giving up control of the money.   
  • Grow your non-registered investments over time
  • Create tax-efficient cash flow strategies (providing you with cash flow every month in return for investing a lump sum) 
  • At the same time, we’re always looking at taxation and estate planning advantages

Investment Advice: Arron’s Tip

Don’t’ leave large amounts of cash in your bank account.   You will spend it! We only come into a large sum of money maybe once or twice in our lifetime.   Don’t make the mistake of blowing it all at once, like so many before you. I’ll help you develop a financial management strategy, and make your money work long-term for you.  For investment advice you can trust, contact me today.

Financial Management: Top 3 benefits of investing in an open account

  1. Increase your net worth over time
  2. Have cash money available with four business days
  3. The ability to buy large ticket items later in life (for example, a condo in Mexico, cottage, rental property, boat, etc.).   

Investment Advice Service FAQs

  • What are the main advantages to OPEN investing for me, the client?

The two biggest advantages to you, the investor, are liquidity and control over what you hold— when and where. When you have registered assets there are many more restrictions (e.g. how much you can contribute, when you can redeem, and pension legislation, etc.). And, there are larger tax consequences if you decide to redeem early.  CRA plays a stronger role when you hold registered investments.  For me, the less control CRA has over my money the better. 

  • Are the returns on investment better with an OPEN plan than an RRSP?

There is no difference on the return on investment.  Rate of return is dependent on your tolerance to risk, and your individual goals and objectives.

     

  • What happens if I die with a $250,000.00 OPEN account?

When we set-up an OPEN CAN or US investment account we discuss options with the client if, God forbid, something was to happen to them.  We look at the situation from a number of different angles, most commonly tax and estate planning.  Ultimately, how we structure your finances will only serve to benefit you and your family (heirs).   

Financial Planning on Your Own can be Unsafe

Many of us who invest our open money alone believe we can make money easily through an online trading account with our local bank.  In my years of meeting clients, 8 out of 10 that have tried this route on their own have lost some or most of their cash savings this way.  Don’t risk losing your savings: hire a financial advisor.  A trusted financial advisor knows how to assess your financial risks and minimize them.  I’ll look at your goals, objectives, “where you want to be in 5 years,” tolerance-to-risk and develop a financial management plan to suit your needs.  Managing your financial risk factors is key.  When you know your money is secure, you’re free to enjoy your windfall with peace of mind.   

Financial Management: US currency investment accounts

Many Canadians own real estate in the United States, or travel there frequently.   I have clients who specifically set-up an open US account so that when they travel they have access to US currency, rather than having to convert money each time at their local bank.  I also have clients who are getting ready to buy or sell a property in the USA.  And, because of this, we keep their open US currency investment account active.  What are the benefits?  Your financial security, convenience, and easy access of your funds.

Investment Advice Service: A Success Story

I have a client who has an elderly mother.  The mother eventually had to sell her home and move into an assisted-living retirement community.  And, the cost to keep the mother in this home is about $3,200.00 a month.  What did we do?  The two daughters, both with Power of Attorney, made the decision to sell the home.   After careful consideration, they agreed to use the proceeds from the sale of home ($650,000 approx.) to set-up an open CAN investment account, co-owned by each daughter.  The account was set-up in such a manner to pay out an above average cash distributions with a focus on preservation of principal.  The goal: pay most of the mother’s cost of living without major erosion to her principal/capital.  This would mean that the Mother could live comfortably within the retirement home for years and years to come.  At the same time, we’re preserving the assets to the best of our ability.  This was accomplished.  It’s been an active account with me for the last 11 years.

Make the most of your financial windfall.  Contact us today.  Applestock & Associates is located in Markham, ON.  We service clients in Toronto, Scarborough, Etobicoke, East York, North York, Richmond Hill, Aurora, Newmarket, Vaughan, Maple, Woodbridge, Markham, Pickering, Whitby, Ajax, Mississauga, Brampton, Hamilton, Oakville, and Milton.  We also make house calls to individuals who cannot get to us.

 

Mutual funds provided through FundEX Investments Inc.