SPRING 2 0 1 8
A VANCOUVER Sun study 1
made waves in 2016, when
it revealed that 39 percent of
British Columbian millennial
children expect to inherit
$300,000 from their parents,
but only 12 percent of parents
anticipate being able to
match that amount. Thus, the
reality for the adult children
expecting this windfall may
actually fall quite short. Will
the long-forecast “great wealth
transfer” between generations
in Canada actually occur?
If you are one of these parents
with adult children, it can be
easy to feel imposed upon
by this expectation, and
with good reason. Your first
obligation may be to yourself
and your spouse or partner –
ensuring that your resources
are adequate to finance
twenty-five years of retirement
or more. This in itself is no
easy feat, although there are
steps one can take early on
to help ensure their financial
security later in life.
I’ve developed and refined
these steps into an approach
called the “Smart Risk
Investing Roadmap”. This
approach is designed to
provide a framework to help
you rationally and objectively
save for the future, includes
“5 P’s”: Purpose, People,
Plan, Perspective and Positive
Action. This approach works
by allowing you to assess
the probabilities of various
outcomes and compare risk
versus reward in a prudent and
disciplined way. By adhering
to this framework, you can
consistently stack the odds in
your favour and stay on the
path to long-term financial
1
WEALTH TRANSFER
success. Here is an overview
of the 5 P’s of the Smart Risk
Investing Roadmap in action.
Purpose. Define and
prioritize what you want
your wealth to do for you,
whether it is securing your
own financial future, helping
kids fund a down payment or
leaving a legacy beyond your
years.
27
and expectations.
factored in to your estate plan.
If you find yourself in this
position, you may still have
a lot of important decisions
to make; your best bet is to
get started early in building
your circle of trust – including
an experienced investment
professional – who can help
guide you along the way.
Once you have adequately
invested for your own future,
it makes sense to consider
what you may want to leave
others once you are gone.
You may have a large family
network or a favourite cause
or charity or tax minimization
goals that deserves to be
People. Surround yourself
with the trusted individuals
who can help you make smart
decisions moving forward,
especially in the event that
you become incapacitated.
WORK-
OPTIONAL
LIFE
Plan. Design a flexible
financial plan and investment
strategy that can withstand
unexpected marketplace
fluctuations, with appropriate
risk and reward targets that fit
your individual profile.
PERSPECTIVE
Perspective. Adopt an
open-minded attitude that
objectively weighs both the
risks and rewards of each
financial decision, and that
when necessary, is willing to
take corrective action, despite
emotional roadblocks that
may try to hold you back.
Positive Action. Start taking
steps to help move you
towards your financial goals
so you can anticipate this next
phase of life with a sense of
purpose, without indecision
or regret.
The single most important
key to success in using this
roadmap is to take smart risks
and refrain from making
investment decisions based
on pure emotion – your own
limiting perceptions, beliefs
POSITIVE
ACTION
PEOPLE
PLAN
PLAN
Create a wealth-cat-
alyzing financial and
investment plan.
PURPOSE
START YOUR
JOURNEY
HERE
PERSPECTIVE
Develop a healthy
mindset like the
ultra-wealthy.
PURPOSE
Define your end goal
& identify your big
“Why”. POSITIVE ACTION
Take actionable steps
to achieve your
purpose.
PEOPLE
Build a “Circle of
Trust” to achieve
your goals. WORK-OPTIONAL LIFE
Achieve and maintain
your desired lifestyle.
Maili Wong is a best-selling author, a leading Canadian
investment advisor and licensed portfolio manager whose
fresh, modern approach to investing for her high-net-
worth clients sets her apart from others in her field. Her
first book Smart Risk shares her personal story of resilience
as well as lessons learned and secrets gleaned from more
than 17 years of international investing experience.
. http://vancouversun.com/opinion/opinion-looking-at-your-kids-inheritance-rethinking-wealth-transfer