The Role of the Advisor

• Why an advisor?
• How do I choose one?
• Is it necessary to involve other professionals?

Why an advisor?

Financial Advisors are trained and educated to advise you on many things that may have a bearing on achieving your short and long-term financial goals. For example, capital gains taxes are federal taxes that must be included in the "final" tax return of a deceased on the increased value of possessions at death from their original cost base if left to someone other than a spouse. Not included are life insurance proceeds and the principal residence. Your advisor can help you choose the right product and the best way of buying that product to minimize the taxes and to ensure that what you have worked so hard to accumulate is preserved and distributed according to your wishes.

How do I choose one?

Ask friends, relatives and business associates for their recommendations of companies and their choice of advisor.

Life insurance agents must be licensed in the province where they sell. Most work hard to obtain one or several recognized designations. Two of the most respected include the Certified Financial Planner (CFP) and the Chartered Life Underwriter (CLU), both are offered by the Canadian Association of Insurance and Financial Advisors (CAIFA).

Choose someone that you and your family is comfortable with. If you aren't sure he or she is providing the services you want, interview other agents or financial planners.

Is it necessary to involve other professionals?

It depends on the size and complexity of your net worth. Some chartered accountants are specialized and have the knowledge and experience to assist in financial planning and critical business decisions, not just tax preparation. An estate lawyer guides you through the process of setting up your will, and any power of attorney forms necessary for your family and/or business to continue with their daily life or operations while your estate is undergoing probate.