Une meilleure gestion du patrimoine financierMarch 9, 2017

How to manage financial assets better

To properly manage your assets, it is not enough to choose the highest yield or most profitable investments in which to put all your savings. Instead, you have to look much broader – what is at stake here is your preparation for an eventual retirement of yourself or your partner, or making sure that your children and grandchildren are well provided for in the future. Each situation is unique, but the general advice we offer here would be useful in any case.

Build your future by defining your goals

A high-yield investment will not be a good choice for you if it does not match your financial objectives. Here are the main steps to good asset management:

  • Build: With the help of a financial advisor, you can analyze your assets (real estate and investments) and liabilities (debt, credit, etc.). Then, you will have the basis to design your strategy. Some unexpected questions may need to be considered. If you were to die, would your family be protected? Of course, the scope of wealth will determine how complex your strategy would be. You would need some guidance while thinking about responses.
  • Grow: Contribute as much as possible to your RRSPs, TFSAs, and RESPs. Working together with your financial advisor, you will distribute your assets efficiently to face the future.
  • Protect: Two documents will be your protection in the case of the inevitable or the unexpected – your will and your mandate in case of incapacity. These documents identify the attorney, the heirs, the liquidators, and the trustees. Insurance needs may also change, so you need to consider the available options. Make an appointment with a notary and a tax specialist to prepare these documents.
  • Hand down: Consult an advisor to make sure that the results of your life’s work are not completely lost to taxes. To achieve this, patrimony can be turned into an investment company or a trust created for a beneficiary. Such a format would allow the elderly to see their children enjoy the inheritance while they are still alive.

Patrimony management is more than just good investments

Of course, it is best when the assets grow due to smart investments. However, there are other aspects to consider, such as funding children’s education, planning the financial future of yourself or your spouse in the event of an accident or death, and estate preparation.

To help finance the education of your children, you should avoid investments that would take over your savings for a long period of time. After all, flexibility is important.

When considering the future of your family, if the savings you have accumulated may become insufficient over time, consider a life insurance policy with a disability option.

Finally, to ensure the future of your spouse, take the trouble to include the necessary arrangements in your will.

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