Case Studies

How Wealth Management has Helped Others Grow

Both personal financial planning and corporate financial planning take time and energy but it is well worth the effort. In addition, everyone’s needs are unique. Whether you are an Entrepreneur/Self Employed, a Recent Grad or are planning with your Family in mind, Elementus Wealth Management has the knowledge and experience to help you live your best life.  And below are three of many stories we wanted to share as proof.

 

Entrepreneur/Self Employed

Financial Planning is as much About Time as it is Money

Tim is a Realtor and Julia is a consultant. Tim’s realty business has grown substantially over the past few years. Julia is just as busy taking care of her expanding practice, their family dog and planning their active lifestyle. Tim and Julia had sizeable RRSP portfolios and a joint non-registered portfolio but wanted more from their investments. Neither of them were willing to spend precious spare time and lacked the knowledge to troubleshoot a financial plan for their future. They preferred to connect with a team of professionals who understood their entire financial picture and who could guide them in the right direction.

How Elementus Wealth Management Helped

At our first meeting, we identified their personal goals, ideal lifestyle and learned what investments they had in place and how they were structured.  We introduced them to our experienced accounting and legal team. Our accountant’s recommendation was for Tim to register as a personal real estate corporation to allow him to take a dividend income instead of a salary. This income split reduced Julia’s overall taxes by 20%.

We then examined their RRSP and non-registered portfolio. Upon further investigation, Elementus Wealth Management found that by simply restructuring their tax preferred investments into their non-registered portfolio and putting non-tax preferred (highly taxable) investments into their RRSP would give them an automatic retirement tax savings of 44%.

For future investments, we determined that investing within Tim’s new corporation would be ideal for maximizing tax deferral, planning and liquidity.  Using the corporation as an investment structure would give Tim the power to invest an extra 35% over investing the money personally.

During another meeting, Tim expressed concerns about the financial management strategies they did not have in place in their existing plan – mainly the chance of being unable to work as a result of sickness or injury. If such a situation did arise, Tim wanted to make sure that his wife would not be forced to work and that they would have enough income to sustain their current lifestyle plus continue to save for retirement.

We listened to Tim and found several ways to replace his income as well as, ensure that he would not have to work past his planned retirement age if such an illness or injury occurred. On top of that, we were able to secure a plan that would see 100% of his premiums returned in the event he never fell ill. Lastly, we designed ways for Tim and Julia to turn personal medical expenses into 100% tax-deductible business expenses.

Wealth Management Equals Time Management

Tim and Julia now relax knowing they have a sound financial plan with personalized strategies to help them reach their goals. To them, it was as easy as a meeting. To us, our team focused enabling them to live their best life through Integrated Wealth Management.

 

Recent Graduate

Financial Challenges Faced by New Grads

It is not uncommon for young professionals (i.e. lawyers, dentists, accountants, engineers, etc.) to struggle financially early in their careers. This is typically because they focus on paying their student loans as quickly as they can or perhaps because of the high financial costs associated with starting a practice. Elementus Wealth Management is well versed in helping young professionals improve their personal and professional financial planning.

It is understandable that under these conditions, young professionals feel that “wealth management” is not an immediate consideration. Doug, a recent dental graduate, was part of this group before working with Elementus. He grew up in a family of dentists who all identified how important it was for him to start a sound financial plan as soon as possible, Doug was aware of his need for a plan but could not see past his substantial student loan debt.

A Financial Plan Makes Achieving Goals Easier

Through our client assessment process, we helped Doug to understand how important it was for him to purchase a home. We created a plan to address saving for this goal while restructuring his debt and educating him on the power of time and compounding interest.

In addition, when Doug came to us, his wife was pregnant and Doug expressed some concern about his disability insurance. Did he have enough? Should he top up his current plan? Elementus’ integrated planning questionnaire showed Doug that he indeed required more coverage to insure his financial future. Elementus then worked with Doug to explore choices to better protect him and his family.

A More Secure Financial Future

Elementus helped Doug build a foundation for him to achieve his financial goals and be better prepared for any unexpected twists or turns the future may have.  Doug now knows that his family and his financial future are secure. And because of the financial education he received while working with Elementus Wealth Management to improve his financial security, his mindset is a long way from when we first met him.

 

Financial Planning for Families

There’s More to Financial Planning than RRSP’s and Life Insurance

Greg and Katy are an educated, professional couple whose busy life together is in many ways guided by the needs of their adorable four-year-old son, Luke.  Katy, a Chartered Financial Analysts, and Greg, an executive at an international media company, were seeking a specific type of personal attention for their financial planning needs. Although they had never had a financial advisor, they knew they wanted attentive service from an experienced Certified Financial Planner.

Both Greg and Katy had life insurance in place as well as active RRSP portfolios held by their bank and employers. However even with Katy’s background as a CFA, they didn’t know how to mesh these individual elements together into a disciplined financial plan. Furthermore, they were not achieving their full financial potential despite having a healthy discretionary cash flow and savings. While they were sure they wanted Greg to retire as early as possible, both Greg and Katy were completely unsure of how to plan to make that goal a reality.

Elementus Connects with You and Your Goals First

Once we identified the point at which Greg wished to retire, we completely redesigned their financial plan to effectively reduce risk and put more money in their pockets, net of taxes.  The retirement planning strategies we utilized will allow Greg to retire earlier than expected while reducing his investment risk and taxes payable.

Through our integrated approach, we created ways to maximize their tax deductions and employed personal tax strategies that they hadn’t considered. The results saw us reducing a portion of their retirement taxes payable by 24%. This substantial tax savings allowed them to choose a lower risk strategy that still has them finishing further ahead with more discretionary dollars – all by simply staying tax aware.

Finally, Greg and Katy wanted to leave a legacy behind for Luke without reducing their retirement income. Elementus Wealth Management solved this problem by employing a structured risk mitigation strategy, which lowered their risk, increased their discretionary retirement income and reduced their taxes.

A Financial Plan Provides Peace in Knowing

Since working with Elementus Wealth Management, Greg and Katy feel much better knowing they have a comprehensive personal financial plan designed specifically for them, their family and their legacy.