Wealth Management Canada: How to Select an Excellent Firm in Canada
- Tiffany Woodfield
- Feb 9, 2021
- 6 min read
Updated: Jun 24
Written by Tiffany Woodfield, TEP, Associate Portfolio Manager, CRPC®, CIM® and John Woodfield Portfolio Manager, CFP®, CIM®
Wealth Management Canada: What Are Your Options?
When looking for a wealth management firm in Canada, it may be difficult to distinguish between the different options.
The main question is whether you should choose a bank, a financial advisor, or a brokerage firm.
A bank offers a multitude of banking services, but it likely doesn’t specialize in cross-border services. A brokerage firm can manage your assets and provide estate, insurance, and planning advice resources to help guide you towards your goals.
A brokerage firm specializing in assisting clients with niche issues such as cross-border financial planning will have the most resources and experience in that area.
If you go with an advisor who isn’t familiar with the cross-border issues and are a US citizen or resident, you may have some tax issues. You may inadvertently invest in common Canadian investments, which are considered a Passive Foreign Investment Company (PFIC) and cause extra costs and tax reporting.
Table of Contents
What Is Wealth Management?
Wealth management is about looking at the bigger picture of a client’s life goals and using strategies and expertise to help you achieve these goals.
Financial planning and retirement planning are two elements of wealth management. They are two of the tools an advisor uses to help you reach your goals. A wealth manager is like a quarterback who is directing your offensive strategy.
A wealth manager helps create and implement strategies that allow you to achieve your financial goals. A wealth manager also acts as a coach by helping you plan for retirement, preserving your wealth, and managing your estate.
Wealth Management vs Financial Advisors: What’s the Difference?
If your situation is more complicated, it might be better to go with a wealth management firm.
Complications can arise when you have assets on both sides of the border or because you have accumulated significant assets and need comprehensive estate planning.
Working with a team who can help manage your assets and provide estate services, financial planning, and trust services will save time and ensure you have the best wealth strategy.
A financial advisor is typically more concerned with returns and managing the investments than looking at your goals and the bigger picture. That is the main difference between working with a wealth manager and a financial advisor.
What You Should Ask a Wealth Management Firm Before Transferring Your Assets
Before you transfer your assets, especially if you are moving across the US/Canada border, ensure you ask the firm these questions:
What licenses do you have? Are you licensed in Canada and the US?
What designations do you have?
What type of clients do you work with?
Are you fiduciaries?
How knowledgeable are you when dealing with clients in my precise situation?
Do you have a team of experts who you can recommend for taxation and legal advice?
What other services do you offer?
Are you with an independent firm?
One of the most important questions to ask yourself is this: Do I feel comfortable discussing my fears and goals with this person?
Unfortunately, many people don’t feel comfortable asking questions, resulting in the communication breaking down. Be sure your advisor understands you.
Finally, if you are retiring to Canada from the US, make sure you find out if your wealth management team is dual-licensed, as this is critical.
Wealth Management vs Asset Management: Is There a Difference?
The investment industry has so many different labels that it is easy to get confused.
Sometimes these labels overlap or mean the same thing. It is always best to ask your financial advisor or wealth manager how they run their business, but here is a general breakdown.
Typically an asset manager is primarily focused on managing the assets and market movements. A wealth manager is a broader term and is an advisor who constructs a portfolio with a client’s long term goals in mind. A wealth manager takes into account retirement planning, legacy planning, estate planning, and charity considerations. They continually review the situation and use their expertise to help their clients reach their long-term goals.
By just focusing on market return or asset management, you may get off track and miss seeing threats to your long-term goals.
If you are a US citizen or resident and are moving to Canada, you will need to look for a dual-licensed financial advisor and wealth management team. Your wealth management team should be licensed and regulated in Canada and the US.
By working with a dual-licensed advisor, you can access financial planning advice for assets and pensions on both sides of the border. You can keep your IRA intact, have it managed from Canada, and avoid the common pitfalls a US person faces when moving across the border.
Should You Work with a Wealth Management Consultant?
A wealth management consultant is like a wealth management advisor. They work on the following:
Creating clarity around key planning issues you need to consider now and in the future.
Providing insight and perspective not just on the markets but on your individual situation and the situations that will impact it.
Working in partnership with you as life changes and provides strategies to protect your wealth.
Wealth Management Across Canada
Technology has enabled people to connect across the country, so your wealth management firm doesn’t have to be located where you plan to retire or live.
Working with your wealth management team remotely is an excellent option. It allows you to select the most qualified people to manage your assets rather than the people who happen to be closest to you geographically. Since many people move, choosing your wealth management team based on quality rather than location makes more sense.
So take time to make your decision and do research on who is best qualified and suited to help manage your wealth.
When you find the right fit, you should feel relief and be thinking, “finally!” Just know that it isn’t your job to know everything you need to do to manage your wealth. There are teams that specialize in helping clients like you.
Why Choose Raymond James for Your Wealth Management
At SWAN Wealth Management, we have chosen to work with Raymond James Ltd. and Raymond James USA.
They are a leading independent full-service investment dealer with a significant presence in Canada and the US. They have an outstanding reputation and a long-standing history of excellence.
As an independent firm, the advisors don’t have to sell proprietary products. This means we can do what is best for our clients.
We work with a team of experts who analyze the markets, offering estate planning and trust services.
Watch the Video: Working with an Advisor: What do you do with our money?
Summary of Key Points:
Ask if a wealth management firm works with clients in situations similar to yours.
Find out the wealth management firm’s level of expertise in the areas that matter to you.
Determine if the wealth management firm offers estate, insurance, and financial planning.
When you have assets on both sides of the Canada/US border it is important to work with an advisor who is licensed in Canada and the US.
After confirming a financial advisor or wealth manager’s qualifications, consider if you feel comfortable asking questions. Also, pay attention to whether they communicate in a way you understand.
Next Steps
If you’re a Canadian resident or are planning on moving to Canada or the US and need assistance with moving and optimizing your investments, estate planning, wealth management and portfolio management, please get in touch. At SWAN Wealth, we specialize in Canadian financial planning, cross-border financial planning and cross-border wealth management.
Read More
If you’re planning a cross-border move, these articles and guides will help simplify your move and ensure everything is covered.
About the Authors
TIFFANY WOODFIELD
Tiffany Woodfield is an Associate Portfolio Manager licensed in Canada and the USA, a Chartered Investment Manager (CIM), a Chartered Retirement Planning Counselor (CRPC), a Trust and Estate Practitioner (TEP) and the co-founder of SWAN Wealth Management, along with her husband, John Woodfield. Tiffany advises clients who live in Canada and the United States and want to simplify their cross-border financial plan, move their assets across the border, and optimize their investments to minimize their tax burden. Together, Tiffany and John Woodfield help their clients simplify their cross-border finances and create long-term revenue streams that will keep their assets safe whether they live in Canada or the U.S.
JOHN WOODFIELD
John Woodfield is a Financial Management Advisor (FMA), a Chartered Investment Manager (CIM), and a Certified Financial Planner (CFP), and in 2007 was inducted as a fellow of the Canadian Securities Institute (FCSI). As a portfolio manager and CFP®, he works with clients across Canada. John Woodfield’s clients are families, individuals and business owners who understand the importance of comprehensive wealth and investment plans driven by the lifestyle they want to lead.
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