Consolidate YourClients’ Assets

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Why Asset Consolidation?

When you have all of a client’s assets, you certainly can do a better job for the client and it creates a more loyal client

with a higher level of trust.““

David TurnerWellington West Capital Inc.

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Providing Comprehensive Advice

What type of advice can you provide? “George”• Small business owner• Age 49• Married• 13-year-old step-daughter• 25-year-old son

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Peak Earning Years

Building Wealth• Discuss tax savings strategies

• Contribute to an RSP• Minimize taxes on investments• Defer the receipt of taxable income

• Discuss strategies during retirement • Purchase an annuity• Reverse mortgage• Pay down debt or contribute to an RSP

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Profession/Career

The Business Owner• Discuss succession planning

• Arrange for a tax-efficient transferof ownership

• Maximize the business’s value before transition

• Structure retirement income• Protect against unforeseen events

• Provide tax-minimizing strategies• Estate freeze• Minimize probate fees

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George’s Wife

Building Wealth• Discuss income-splitting strategies

• Contribute to a spousal RSP• Open an RESP• Have the higher income earner pay

expenses, and lower earner invest

• Discuss estate planning• Updated Will and Power of Attorney• Appoint a legal guardian for minor child• Review registration and official

ownership of assets

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Intergenerational Planning

Shake the Family Tree

It’s estimated that $1 trillion will passfrom Canadians now over 55 to

younger generations.

““David K. Foot

Boom, Bust & Echo 2000 (Macfarlane Walter & Ross, 1998)

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George’s Step-Daughter

Hitting the Books• Discuss saving habits

• Allowance• Earning extra money• Establish a budget• Financial goals and objectives• Investing

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George’s Son

Getting Started• Discuss establishing good credit history

• Pay bills promptly • Borrow only what’s needed and is

affordable• Try to pay loans quickly and on time

• Discuss money management strategies• Create a household budget• Smart spending• Set up an automatic savings plan• Open an RSP

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George’s Parents

Preserving Wealth Seniors are one of the fastest growing groups in Canada.

By 2016 at the latest, Canada will have far more seniors

than children

“The Daily”, Population projections 2000 to 2026 Statistics Canada, March 13, 2001

““

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George’s Parents

Preserving Wealth• Discuss retirement income planning

• Draw on non-registered investments first• Hold interest earning investments in

tax-deferred accounts• Hold dividend and capital gain generating

investments in non-registered accounts• Apply for the GST credit, federal age tax

credit, and federal pension tax credit• Discuss estate planning

• Update Will, Power of Attorney,and beneficiaries

• Life insurance, trusts, gifts, and donations• Prepay funeral expenses

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Summary of Opportunities

Discussion Strategies

GeorgeGeorge’s

Wife

George’s Step-

Daughter

George’s Son

George’s Parents

• Succession planning

• Tax minimizing strategies

• Retirement planning

• Income splitting

• Estate planning

• Savings habits

• Credit history

• Money management strategies

• Retirement income planning

• Estate planning

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IdentifyingOpportunities

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Ideal Client

• What characteristics do your ideal clients share?• Are they in a particular age groupor life stage?

• Do they belong to a particular profession?• Do they have a specific income level?• What is their investment knowledge?

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Segment Your Client Base

Systematically assess the value and profitability of each client relationship

to ensure you are appropriately focusing your prospecting efforts.

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Saying Goodbye

When introducing a new advisor mention:• Why and how they’ll be able to help

the client• The advisor’s investment philosophy

and approach are more suitable• The advisor’s experience

and qualifications• They will be contacted to arrange

an initial appointment• Their files will be transferred

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Look for Opportunities

Ask questions about…• Pension or benefits coverage• Major life events• COI referral needs• Investment products• Insurance products• Financial concerns

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Conversation Insights

Ways to approach the topic of asset consolidation• Provide suggestions on assets held elsewhere and the

importance of comprehensive advice to ensure all assetsare complementary

• Highlight your services and demonstrate added value• Risk management• Tax planning• Estate planning

• Review the pros of asset consolidation • A “big picture” perspective• One source of reporting and advice

Ask for the business!

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Expand Your Rangeof Services

By looking beyond traditional COI partners, you’ll have more to offer your clients while improving your

business’s potential value.

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Getting Started

•Define your ideal client

•Segment your client base

•Eliminate unprofitableclient-relationships

•List services you offeror would like to

•Acquire appropriate licensing

•Hire an associate

•Expand your COI network

•Reach out to your clients’ family

•Establish goals

Use your worksheet!

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Business Building

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Thank You

The information contained in this presentation has been provided by TD Asset Management Inc. (“TDAM”) and is for information purposes only. The information has been drawn from sources believed to be reliable but is not guaranteed to be accuracy or complete. The information is not intended to provide financial, legal, tax or investment advice. Particular investment or trading strategies should be evaluated relative to each individual’s objectives. TDAM, The Toronto-Dominion Bank and any of its affiliates and related entities are not liable for any errors or omissions in the information or for any lossesor damage suffered.

TD Mutual Funds are managed by TDAM, a wholly owned subsidiary of The Toronto-Dominion Bank. Available through authorized dealers.

TD Mutual Funds is a trade-mark of The Toronto-Dominion Bank, used under license.

Questions?