Wealth Management for
 Professionals

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Wealth Management for Professionals
Gregory and his wife Sandy*, both 43, are successful, self-employed professionals – Gregory as one of two lawyers in partnership, and Sandy as an IT consultant.

They haven’t contributed recently to their investment account – worth $175,000 – because they’ve just bought a house and are funnelling excess funds into furnishing their new home. Both have self-directed RRSPs, which they’ve built through regular contributions. Gregory’s is valued at $235,000, and Sandy – who often works and pays tax in the US – has $275,000 in RRSPs and Individual Retirement Accounts (IRAs). Combined, these accounts represent their total retirement savings. Gregory’s income is relatively stable at $220,000 per year, but Sandy’s can vary considerably. In 2003, she earned $175,000.

Gregory and Sandy have always worked hard, but they’ve also believed in treating themselves. They own their home outright, and own additional personal assets valued at roughly $240,000. They estimate their lifestyle expenses to be $195,000 per year, which includes the alimony that Gregory pays to his first wife and private school costs for his daughter from his first marriage. Gregory and Sandy both enjoy supporting their community and make charitable donations of $20,000 annually.

While pleased with the client bases they’ve built in the last few years, Gregory and Sandy sometimes worry that they’ve neglected other aspects of their businesses and lives. Neither has reviewed their insurance coverage recently or considered what would happen if one or both of them were unable to work. As well, Sandy has given minimal thought to the issues inherent in her working in the US.

Addressing the Situation
If you are a professional, like Gregory and Sandy, you may face a unique set of financial concerns. Let’s take a look at solutions that investors like you and Gregory and Sandy may want to consider.

* Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.