Working with an Advisor: What Do You Do with Our Money?
John Woodfield, Senior Wealth Advisor, Portfolio Manager, B.Comm, CFP®, CIM®, FMA, FCSI®
Summary of Key Points
Swan Wealth Management reviews your full financial history and accounts, then builds a personalized portfolio designed to minimize tax and support your specific cross-border goals.
The SWAN Wealth Management Investment Philosophy focuses on client comfort, structured processes, and investing in profitable, well-managed businesses with consistent and growing dividends.
Holdings and recommended changes are reviewed together, with adjustments made to minimize taxes, optimize returns, and align each portfolio with each client's goals.
US dollars generally remain in US dollars, converting only when Canadian securities are purchased as part of an agreed investment strategy.
SWAN’s cross-border licensing and fiduciary portfolio manager status, combined with John’s CFP and Tiffany’s CRPC designations, help ensure compliance with planning requirements for moves between Canada and the United States.
Video Script
One of the most common questions we get from people who need a cross-border advisor but are nervous about making a change is, “What do you do with my money?”
Today, we’ll cover that as well as SWAN Wealth’s investment philosophy.
Stay to the end to find out which advisor designations matter and what you should look for when vetting a cross-border advisory team.
And if you need more cross-border guidance right away, download our Free Cross-border Financial Planning Guide, which you can find at swanwealthcoaching.com/guide.
As a Cross-Border Financial Advisor and the co-founder of SWAN Wealth Management, I’ve spoken with hundreds of people who are looking to make a move but are nervous about what comes next. It’s important to feel comfortable with your new wealth management team and to know how they’ll be managing your money.
Finding a team you can trust is key if you want to be able to sleep well at night.
So let’s get into it.
What do we do with your money when you become a SWAN Wealth Client?
Over the years, you’ve built up your nest egg. You have an IRA or RRSP as well as regular investments, and you want to make sure your investments are ideal for your situation.
Our first step is to analyze what you have and adjust the holdings to optimize them for your situation. We look at all your accounts and holdings and ensure they are balanced across asset types.
Most of our clients have accumulated enough wealth to live the life they desire. Now, it’s our job to position your holdings properly so that your returns are consistent and you’re not overpaying tax.
SWAN stands for sleep well at night, and that’s the foundation of our philosophy. We don’t want our clients to be worried about their finances. That’s why we have a very structured process based on our investment philosophy.
For 30 years, we have invested in safe and profitable places for our clients. The fundamentals of our investment philosophy at SWAN are diversification and focusing on companies with unique businesses with “deep moats and high walls” so competitors are kept at bay. Dividends and consistent sound management are also major drivers of our investment success.
Next, what happens after we’ve analyzed your holdings?
We then have a meeting with you to discuss the strategy and the changes we suggest. At this strategy meeting, we’ll review investment positioning and tax planning with you.
Once the strategy is set out, we begin the rebalancing process to optimize your holdings and ensure they are structured to meet your needs. Everyone has slightly different needs based on their assets, lifestyle goals and retirement or work-optional timeline. We don’t do cookie-cutter plans because we know that your needs are unique.
Another question that often comes up is about currency and how US holdings work if you’re moving to Canada.
It’s actually quite simple.
All Canadian-based investments remain in Canadian dollars and US-based investments are in US dollars.
There is no need to convert funds as you cross the border. This only happens if US holdings are sold in favour of Canadian holdings or vice versa.
Next, if you have cross-border wealth, you might be wondering if a Canadian resident can hold US tax-deferred plans such as an IRA while living in Canada.
At SWAN Wealth Management, we are dual licensed advisors. This means that we have all the necessary licensing and expertise to manage your investments in Canada and the US.
If you're a Canadian resident with an IRA, you don’t have to worry.
Your IRA will be held with SWAN on the US arm of Raymond James which will keep it intact and tax-deferred, so you won’t get a surprise tax hit.
Now that we’ve covered how our investment philosophy works and how we approach your financial planning, let’s talk about designations.
Who should you be working with and what should you look for in an advisory team?
All investors want to make sure that their financial advisor has their best interest in mind at all times. If you’re planning a move across the border or hold assets in the US and Canada, then you will benefit from working with an advisor who is licensed and vetted by both the Canadian and US regulators. Look for an advisory team that is dual-licensed.
Next, you may wish to work with a portfolio manager. In Canada, portfolio managers are among the few advisors that are fiduciaries. As portfolio managers, we have a legal obligation to do what is most beneficial for our clients at all times. Many financial advisors whether working at bank or investment firm do not have the same fiduciary duty that a portfolio manager has. So it is something you can ask about.
Finally, look for CFP and CRPC designations. These are the gold standard in Canadian and US financial planning.
Our clients can relax knowing that they are in the hands of a team with high designations and a long history of success. It’s common to meet a few advisors before deciding who to work with. So how should you evaluate a team?
When evaluating a financial advisor, we suggest you first look at their qualifications. What designations do they hold? Then take a look at their website. Do they provide valuable information that demonstrates expertise?
You can learn more about highly accredited and knowledgeable advisors generally by reviewing all the relevant details about their expertise on their websites.
Finally, if you’re planning on moving across the border or are living in Canada and need help managing your cross-border wealth, then please schedule an introductory call with a SWAN Wealth advisor.