Standings Assessment
Emily, a married dual citizen with two children, started writing as a hobby due to her employer being shut down due to the COVID pandemic. Despite Emily’s writing beginning as a hobby, it caught the attention of a publisher and so started a life- transforming book deal.
When it came to her finances, Emily was now in a confusing new world. She had previously dealt with an advisor at another firm, they were very friendly during their meetings with Emily as they set up her investments and completed the transfer of funds. Once the transfers were complete, however, the advisor dropped off the face of the earth and stopped returning Emily’s calls.
Chris was an advisor to one of Emily’s family members prior to her dealings with him, and she saw how attentive he was in the support he gave them. When the book deal was set to happen, Emily knew she needed financial planning advice on a level she hadn’t had experience with before, and so she made the decision to reach out to Chris this time.
She wanted to ensure funds were put away to allow her kids the option to take their life in the direction they wanted after graduating from high school.
With dual citizenship in play, she knew she would need advice on taxation, as well as the limitations on utilizing a Tax Free Savings Account. Emily also knew she wanted to incorporate for the book deal. FocalPoint Financial was ready to help her tackle all these tasks and more.
The Strategy
Risk Management
Chris conducted a thorough review of Emily’s existing insurance policies to ensure adequate coverage. He identified gaps and recommended additional policies where necessary, such as increasing her life insurance coverage and adding business insurance. All of this, safe guarded her incorporated entity against risks such as legal liabilities and loss of income.
Wealth Accumulation
Emily’s financial situation evolved significantly with the unexpected success of her writing hobby turning into a lucrative book deal. This newfound income presented an excellent opportunity for wealth accumulation, along with Emily’s existing retirement savings, which Chris approached with a comprehensive strategy.
Recognizing Emily’s desire to use the lump sum proceeds from the book deal to provide her children with the freedom to choose their paths after high school, Chris established long term investment plans. He developed a detailed retirement plan for Emily and her husband, projecting their future financial needs and establishing a savings strategy to meet those goals.
Chris worked closely with Emily to diversify her investment portfolios to suit her risk tolerance and long term goals. Chris ensured that Emily’s assets were spread across various classes to minimize risk and maximize potential returns.
Tax Planning
Chris never acted like he knew everything. He knew when to partner with other professionals to get Emily accurate information, including a more qualified corporate accountant than she was previously dealing with, to further assist with the incorporation process.
Given Emily’s dual citizenship and the substantial income from her book deal, tax planning was a critical component of her financial strategy. Chris ensured that Emily’s tax obligations were managed efficiently and in compliance with the laws of both countries.
To simplify her tax situation, Chris assisted Emily in renouncing her dual citizenship. This required careful planning and collaboration with legal and tax experts to understand the implications and ensure all legal requirements were met.
The strategic move to incorporate her business was to take advantage of potential tax benefits. Chris, along with trusted corporate tax experts, guided Emily through the incorporation process and provided specialized advice along the way. This allowed Emily to manage her book deal earnings more effectively, minimizing her tax burden.
Transitions
Emily’s transition from a hobbyist writer to a published author represented a significant life change that required sensitive and comprehensive planning. Chris provided support beyond financial advice, addressing the emotional and practical aspects of this transition.
Chris made sure to include Emily’s husband in the planning process, recognizing the importance of family dynamics in financial decisions. This ensured that both Emily and her husband were aligned and felt secure in their financial future.
Understanding the broader implications of Emily’s new side career, Chris offered guidance on managing her public persona, potential future earnings, and the impact on her lifestyle. He also helped Emily prepare for other potential life transitions, such as changes in health, family needs, and career opportunities.
Achieved Outcome
Chris’s dedication and proactive approach built a strong trust with Emily. By providing dozens of hours of free work before any funds were even transferred, he demonstrated his commitment to her financial well-being. This unwavering support and thorough planning reassured Emily, transforming her financial outlook and securing her family’s future.
The experience that she had with Chris at FocalPoint was transformative to say the least. She now feels secure and optimistic about her current and future financial situation. She previously had insurance coverage as well as investments, but her financial landscape underwent a vast makeover to ensure a more secure and prosperous future.
“Chris goes above and beyond, he cares about relationships with his clients. I trust him to manage it all, there is no need to follow up with him, he has already thought about it before I have.”
Emily
Please note:
The name and certain characteristics of the client mentioned in this case study have been changed to protect their privacy and confidentiality. This case study is based on a third-party interview with the client, providing an authentic firsthand account of their experience.
Any strategies or outcomes discussed should not be construed as personalized advice, as they may not be suitable for your individual objectives, financial, or legal circumstances. FocalPoint Financial advisors are not lawyers or accountants, and any specialized advice provided to this client was obtained from trusted professionals in those fields.
