Finance Monthly - May 2022

can be effective planning. We are working closely with estate lawyers and accountants to set up structures. Having investment accounts in corporations that have large corp loss carryforwards or shareholder owing allows for effective planning. Blended families is a real thing. Wealth and blended families can be a challenge but when you have blood children involved in the family business (or family farm) and new spouses (recent or long time). Ensuring there is estate equalisation is key. More time and communication should be spent by adviser teams to get deep into the motivators of founders and also the family members involved. Dr Tom Dean’s book, Every Family’s Business, is a must-read for all family-run businesses. At Serviss Wealth, we help clients with creating a one-page road map by using a software called Asset Map to provide a visual experience that displays all of a household’s members, entities, financial assets, liabilities, cash flows, and insurance policies. They need to consider our help with this because being successful and running a profitable business has many dynamics to it. Over the years, successful families accumulate a number of financial buckets, property buckets and insurance buckets. Keeping track can be done by some but many of our clients come to us handing us the keys and delegating, so they can live a certain lifestyle, under a certain premise of comfort knowing their wealth, health and dreams are being constantly checking in on. What are your top financial tips during uncertainty? • Invest something regularly if you are unsure there is a correction. • For strategic investors, one idea is to hold some money in a high-interest account and earmark it that if the market goes down more than X% in a month, you invest it. • Consider your “Wealth Edge” or figure out what your wealth edge is. For some, it is generating a large cash flow in their career. A handyman can add more value to a reno house that they flip or accumulate rental houses. Realtors watch the hot sheets for good buys. If you are a manufacturer, consider owning the property where you operate your business. • Buy permanent life insurance if you have a life insurance need. Consider having the insurance forever and then plan to spend and give away your wealth in your lifetime (way more fun than leaving all your buildings and stocks to your kids who likely will be 60+ when you die). • If unsure, pay down debt. Although interest rates are low, debt is debt. When you don’t have any debt, you are free. • Debt can be used very effectively to magnify wealth but if not deployed correctly it can limit lifestyle and attainment of goals if markets are correcting while you hold the debt. Be cautious here with this one. The best wealth preservation advice I can offer is to stay broad in your assets. There is so much conspiracy talk out there that XYZ will happen and if this happens, then that will happen so you should own all ABC assets if you want to be protected. Realty is no one knows what will happen and if you look back at history, some assets perform better than others. Some assets benefit from world events and others don’t. Having investment vehicles that are positively affected by inflation that have been around for decades and navigated through trying times has worked out fairly well in the past. Having some cash in high-interest accounts, doing some research on Bitcoin and Ethereum might be worth looking at for a host of reasons. Physical gold and a small amount of physical cash others say is prudent. Lending money to a quality source provides a different exposure and one asset class often overlooked and considered by some as risky is the Small Cap “The best wealth preservation advice I can offer is to stay broad in your assets.” Bank i ng & F i nanc i a l Se r v i ce s 38 Finance Monthly.

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