Smart Risk Magazine Spring 2018 | Page 27

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. .