- How can I ensure that I can "trust" the firm or
advisor I am considering dealing with?
- Should all of my investment assets be
consolidated with one investment advisor or firm?
- Why are industry designations important?
- Are all investment advisors able to sell the same
products?
- What is the difference between a Discretionary
Portfolio Manager and an Investment Advisor?
- What does it cost to be a part of Life Span's
Managed Account Program?
- Do I have enough investment assets to effectively
utilize the services of a Portfolio Manager?
- Are your management fees charged in a
discretionary account tax deductible?
- What do I do to find help with my estate plan or
taxes?
- How do I determine the appropriate level of life,
disability or critical illness insurance?
- What is Discretionary Portfolio
Management?
- What is a CFP?
- What is CIM?
- What is FCSI?
- What is FMA?
- What is TEP?
- What is Wealth Management?
1. How can I ensure that I can "trust" the
firm or advisor I am considering dealing with?
Registration: It is of vital importance to
ensure that the individual with whom you are dealing is licensed by
the appropriate regulatory body in the province in which you live.
Our securities licenses are issued and monitored by the provincial
regulators of each province in which we are licensed. For instance,
for the Ontario Securities Commission, each of the
individual advisors in our office can be searched at the following
link, using the format "Last Name", <space> first name; ie:
Renaud, Gary, Geiger, Janet or Wilkins, Brenda.
Gary and Janet also maintain registrations in BC, Alberta,
Quebec, New Brunswick and PEI. This information can be accessed
through their respective websites
The Firm: Ensure that you are dealing with a
major firm. Further information about Dundee Securities Corporation
as a division of DundeeWealth Inc. can be found at the corporate website.
Registration information on all of the DundeeWealth companies
can be found by clicking through the links on the right hand side
of their website. Dundee Securities Corporation is a Member of the
Canadian Investor
Protection Fund, and a Dealer Member of the Investment Industry
Regulatory Organization of Canada (IIROC).
Supervision and Reporting: It is critical to
ensure that any advisor with whom you are dealing is supervised by
a separate "back office" (or Head Office) to oversee trading
activity to ensure that transactions are within acceptable risk
parameters and investments objectives, and that this Head Office
also sends reports directly to clients. Our investment partner, Dundee Securities Corporation which maintains
its Head Office in Toronto, provides trade confirmations and tax
receipts, and quarterly investments statements which are generated
and sent directly to our clients.
Cheques: Never make a cheque for investment
purposes payable in the name of any financial advisor personally or
their personal corporation. Cheques should always be made out in
the name of the dealer/financial institution the advisor is
registered with: ie. Dundee Securities Corporation.
Designations: You should be aware of all of the
financial planning designations held by any advisor you deal with.
The absence of a designation can indicate a lack of experience or
commitment to professional development. Our Team at Life Span Financial Strategies has
achieved high levels of industry certification which requires
on-going annual professional development in order to maintain the
designations.
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2. Should all of my
investment assets be consolidated with one investment advisor or
firm?
If the criteria from Question 1 are met within your chosen firm,
then the answer is a resounding yes.
Having your accounts dispersed across numerous investment firms
makes them more difficult to monitor and takes up more of your time
to explain your personal information to each advisor. Regulations
mandate that investment advisors "Know Their Client" and have a
full and complete understanding of a client's entire financial
picture. By selecting one advisor, it will provide the most
suitable solutions for you to achieve your financial goals and
ensure that you are getting the best possible advice for your
overall financial well-being when working with the right
advisor.
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3. Why are industry designations
important?
The attainment of industry designations indicates that an
advisor has made ongoing commitments to furthering his/her
knowledge and expertise. In addition to educational courses, many
designations also require the planner to adhere to specific codes
of conduct and ethics. At a minimum, you should seek out a CFP
designation - Certified Financial Planner. Our firm has four
individuals with this designation. Read about our extensive
qualifications and designations in About Us.
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4. Are all investment advisors
able to sell the same products?
The short answer is NO. It depends entirely on the licensing of
each individual. The typical types of licenses seen in the
investment industry are:
- Insurance license which allows individuals to sell life
insurance and segregated funds;
- Mutual funds license which allows individuals to sell mutual
funds;
- Securities license which permits the sale of individual stocks,
bonds or ETF's (Exchange Traded Funds).
- Discretionary portfolio management, the rarest license,
includes options licensing, which allows individuals to sell puts,
calls and deploy other derivative strategies. Our firm has three
individuals with this high level of designation. Read about our
extensive qualifications and designations in About Us.
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5. What is the difference
between a Discretionary Portfolio Manager and an Investment
Advisor?
The investment industry is based on a requirement for written or
verbal client permission prior to the execution of a trade. The
vast majority of investment advisors operate in this environment
which can lead to delays in implementing portfolio adjustments on a
timely basis. Depending on the size of an advisor's client base
and/or the size of a client account, contact can be infrequent, if
at all. On the other hand, a discretionary portfolio manager is
provided with full discretion to transact on client accounts within
a specified investment mandate. This ensures a more rapid reaction
time, to changing market conditions or investment opportunities.
Life Span Financial Strategies offers this unique discretionary
solution to offer our private clients the best care possible for
their finances, while fostering an ongoing, collaborative
relationship to ensure you are always kept updated and informed.
Read more about our solution in Our Wealth Management
Approach.
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6. What does it cost to be a
part of Life Span's Managed Account Program?
Money management fees vary depending on the type of investments
held. Mutual fund management fees range from 1-3.5% per annum and
are typically embedded within the fund return. This is in addition
to any commission charged on the purchase of the fund, whether it
is a percentage up front or a declining "deferred sales charge",
payable upon premature redemption of the holding.
In the Managed Portfolio environment, the majority of
investments are bought and sold into your account without
commission and typically will not have any fees to redeem the
funds. Depending on the types of investments in your portfolio, the
management fees charged by Life Span Financial Strategies start at
2.5% per annum diminishing to 1% on a graduated basis.
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7. Do I have enough investment
assets to effectively utilize the services of a Portfolio
Manager?
Our managed program at Life Span Financial Strategies is ideally
suited to higher net worth individuals. Investment assets of at
least $500,000 are required to get the optimal benefit from our
private client managed portfolio solutions.
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8. Are your management fees
charged in a discretionary account tax deductible?
Currently only management fees charged on non-registered (ie Non
RRSP) accounts are tax deductible.
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9. What do I do to find help
with my estate plan or taxes?
Your investment advisor has access to a network of other
knowledgeable professionals to assist you with the non investment
related aspects of your financial plan. Our team works with several
accountants and lawyers in order to guide you through the process
of proper will creation, tax planning and reporting. With your
written permission, we are able function as a liaison between you
and the chosen professional.
Read more about our tax planning
services.
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10. How do I determine the
appropriate level of life, disability or critical illness
insurance?
The first step would be to sit down with an insurance licensed
professional to review your current and future insurance needs and
determine a plan to meet the needs effectively. Insurance,
especially disability and critical illness coverage, can be very
confusing due to the sheer number of plans and options available in
the marketplace. Through the use of a professional licensed as an
insurance broker, you are able to not only ascertain what coverage
you need, but where best to obtain it. Our firm has four
advisors that are Level II insurance licensed. Learn more about our
designations in About Us.
Read more about our insurance
services.
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11. What is Discretionary
Portfolio Management?
Discretionary Portfolio Management is when an investment manager
handles your investment portfolio without having to receive
permission to make individual investment decisions.
Discretionary Portfolio Management is traditionally for high net
worth individuals or families that are looking to graduate to the
next level of financial planning. These services permit a faster
response rate to market changes and a fully disclosed fee structure
that is not based on individual transactions.
Read more about our Discretionary Portfolio Management solution
in Our Wealth Management
Approach.
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12. What is a
CFP?
The CFP designation is offered by the Financial Planners
Standards Council (FPSC), which is a not-for-profit organization
established in 1995 to benefit the public by leading the evolution
of the financial planning profession in Canada. The FPSC develops,
enforces and promotes the highest competency and ethical standards
in financial planning as defined by CERTIFIED FINANCIAL PLANNER™
(CFP™) professionals.
Learn more about our designations in About Us.
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13. What is CIM?
The CIM or Canadian Investment Manager designation is attained
through the Canadian
Securities Institute. Advisors wishing to attain this
designation must complete three high level courses through the CSI,
covering such topics as portfolio construction and maintenance,
securities analysis, risk assessment, taxation and the use of
managed products. The CIM designation is also a required step
towards attaining the licensing to become a Portfolio Manager.
Learn more about our designations in About Us.
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14. What is
FCSI?
The FCSI is offered through the Canadian Securities Institute and is considered
to be one of the most respected designations available. It is
awarded to professionals who have not only achieved unrivalled
knowledge and experience, but who also represent the highest
ethical values.
The FCSI designation is awarded to industry professionals whose
superior training and experience exemplify excellence. It is
recognized as the highest honour in the financial services
industry.
Learn more about our designations in About Us.
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15. What is FMA?
The Financial Management Advisor designation is attained through
the Canadian
Securities Institute. Holders of the FMA designation have
acquired the knowledge and expertise to handle complex wealth
management issues and counsel high-net-worth clients. The FMA
provides mastery level knowledge of wealth management strategies,
well beyond the scope of basic financial planning.
Learn more about our designations in About Us.
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16. What is TEP?
The TEP designation is acquired through the Society of Trust and
Estate Practitioners (STEP). STEP members believe estate planning
and estates and trusts practice is a profession in and of itself.
Trusts and estates practice is a complex and growing field, and
practitioners need a way to formally identify themselves as
qualified practitioners and distinguish themselves from
non-specialists who occasionally deal with trusts and estates. STEP
is the world's foremost international organization for such
professionals, and the TEP designation identifies members as the
most senior and skilled practitioners in their field.
Learn more about our designations in About Us.
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17. What is Wealth
Management?
Wealth management is a process that allows a qualified advisor
to take care of affluent clients, their families, and their
businesses as part of a long-term relationship. Clients who qualify
for this level of planning are those with investable assets of
high-income earners: entrepreneurs, business owners and high net
worth individuals. The wealth management process provides clients
with all aspects of financial planning, including investment
management, cash and debt flow management, financial and retirement
planning, and estate and tax planning.
Read more about our Discretionary Portfolio Management solution
in Our Wealth Management
Approach.
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