Author: drifinancial

The Dri Financial Group motivates entrepreneurs and their families to enhance their financial life. Our team of experienced entrepreneurs, personalized financial planning tools and proprietary investment strategies are the cornerstone of our program’ s success

Should you agree to be someone’s executor?

drifinancialLeave a comment

Being named the executor of someone’s estate can be a great honour, but it comes with many practical and emotional challenges.

Family dynamics, complex legal responsibilities and grief can make managing an executorship a daunting task—but it is something you can prepare for.

On top of the emotional distress of losing someone dear, you will be expected to deal with legal and financial issues.

What things should you consider?

Ask yourself these questions—whether you’re considering the request or have already been named an executor.

1. Do you live in the same city as the person who has made the request?

Many executor duties need to be completed in person. It is a lot more costly, time-consuming and inconvenient if you have to travel.

2. Do you have the time?

Being an executor takes a lot of time. Familiarizing yourself with the various duties of executorship will help you better understand what and when things need to happen.

Based on our experience, an executor can expect a simple estate settlement to take approximately 250 hours of direct involvement. A more complex estate could take more than 400 hours, typically over the course of at least a year—and it is not unheard of to have matters continue for much longer than that.

3. Do you know what to do?

Here is a comprehensive checklist of executor duties. Generally, the responsibilities can be summarized as follows:

  • Gather the required information and documents, including the Will, and make funeral arrangements.
  • Assess the estate’s assets and liabilities, including settling and paying any outstanding debts and claims against the estate.
  • Take care of administrative details, such as filing all income tax returns (current and outstanding).
  • Distribute the estate’s assets.

What if you can’t manage all the duties of an executor?

During what is likely to be an emotionally stressful time, missteps can occur. This can result in delays in the execution of the Will and could also lead to fractured family relationships, inefficient strategies for dealing with taxes on the estate, and less value for beneficiaries. As an executor, you might also be personally liable for your actions.

The good news is that if you’ve been made the executor of an estate, you don’t have to face these responsibilities alone. Scotiatrust offers professional executor services and can act as an agent for your executorship, allowing you to take some of the responsibilities off your shoulders, while still retaining your decision-making authority. Our specialists at Scotiatrust have experience in administering and managing estates and trusts of varying complexity. Our Estate Assist® service can be invaluable to Executors who are uncertain about what the role entails, face time or distance challenges, are concerned about personal liability or the potential for beneficiary issues.

Scotiatrust has been assisting Canadians for over 100 years with their estate planning needs and can provide you with professional guidance during a time filled with emotional distress.

Making an informed decision

Your choice of executor—or your acceptance of the role—is a decision that should not be made lightly. For many Canadians who have prepared a Will, the choice of executor was likely one of the least considered parts of their plan. Most testators pick a family member or friend, without giving much thought to what the role entails. Likewise, many individuals take on the role of administering an estate without fully appreciating what they are getting into. There’s no doubt that being an executor can be difficult, but with some thoughtful planning and a little help, the challenges you’ll face can be overcome.

Contact us to help you with your Will and estate planning needs.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

source https://richarddri.ca/should-you-agree-to-be-someones-executor/

Making Your Passion Your Business with Marc Wilson

drifinancialLeave a comment

Marc Wilson, Founder and Lead Advisor at Athletic Venture Advisors, a firm supporting the sports & sports technology industry by focusing on emerging startups, small business and investors, joins me on the podcast today.  Marc describes his company, the work in which it engages, including a case study of one of its clients, and the path he’s taken to get where he is now. He also shares what has surprised him the most over his career, the low points and how he has rebounded from them, his income management and his definition of financial independence as well.

He concludes our conversation by offering his thoughts on angel investing and investing in start-ups. Building a successful business in an area for which he so obviously has a passion, Marc’s story here today is filled with information, advice, and inspiration for all.

Listen to the Podcast – Download the Transcript

Highlights:

  • Reviewing sports related deals for investors has turned into a big part of Marc’s business.
  • His company tries to focus on strategic partnerships and business development opportunities that will ultimately lead to more revenue generating capital.
  • What has surprised Marc in this past two years is how open people are to the opportunity for a third party to come in and do this type of work with them.
  • Marc’s definition of financial independence is, if he needed to make a big purchase, he wouldn’t have to worry about how much is in the bank account to do it.
  • Marc believes that, if people do have enough capital to invest in start-ups, there’s a good opportunity there, and if they can’t do the due diligence themselves, there are other people that can do that for them.

Quotes:

“Recently we’ve started really working with agencies, wealth managers in the sports industry where they may get pitched opportunities for their athletes or for their high net worth individuals that maybe are not within their wheelhouse. So we can review things in that scenario and do our own SWAT analysis to figure out is there something here for it.”

“This sort of allowed me to focus on what I like to do, what I’m good at and also be able to jump around and keep myself interested in the sports industry.”

“Leadership needs to be, to some degree, the ability to delegate the tasks to the right people.”

“Kudos to my wife for putting up with the highs and lows…when the highs are high, they’re great, but when the lows are low, they can be very low.”

Follow us on social:

Listen to more podcasts by Richard Dri:

The Formidable Combination of CPA and Tax Law Expertise with Josh Kumar

Starting a Law Firm to Serve Corporations and Individuals Alike with Sara Erskine

Corporate Dispute and Financial Planning Resolutions with Garth Dingwall

source https://richarddri.ca/making-your-passion-your-business-with-marc-wilson/

Why you don’t want to die without a Will

drifinancialLeave a comment

Having a Will is arguably one of the most important things you can do for yourself and your family. Not only can a Will legally protect your loved ones and assets, but it can also outline exactly how you would like your affairs handled after you have passed on.

Here are five of the biggest reasons you don’t want to die without a Will.

1. You decide who gets what, rather than leaving it in the hands of the provincial government.

Your Will enables you to control how and when your assets are transferred to your loved ones. If you die without a valid Will (known as dying “intestate”), your assets will be distributed according to your province’s legislative formula. And that formula might be very different from what you would have hoped.

2. You decide who handles your affairs.

The personal representative named in your Will—also known as the executor1—is the person or trust company who manages and administers your estate when you die. Among many tasks, your executor is responsible for making funeral arrangements, obtaining probate, where required, locating and protecting your assets, valuing and distributing your assets to your beneficiaries, filing all income tax returns for your estate, and obtaining clearance certificates from the Canada Revenue Agency.

If you do not have a Will or have not named a personal representative who is prepared to act, it will generally take longer to administer your estate. If no relative (or other eligible person) steps forward to take on the task, then the court will appoint the Public Trustee2 to be the administrator.

If you’re unsure who should be the executor of your Will, you can name Scotiatrust® as your professional executor. If you choose this service, the people you care about will be spared the challenge of settling your estate during an already difficult time.

3. You want to leave specifics about how your family is looked after.

Without a valid Will, you have no control over how assets are distributed to your family or how estate money is managed.

For example, in your Will you can create trusts for your children, so funds are held for their benefit until they are mature enough or experienced enough to decide what to do with the money. Without these trusts in your Will, your children will receive all the estate money as soon as they reach the age of majority—whether they’re ready to deal with it or not.

It is also important to consider who should be responsible for the care of any children who are minors. Your Will is the ideal place to express who you believe is best for that important task, and a great way to ensure the duties and responsibilities of the guardian(s), executor and trustee of the trusts you have established in your Will are all aligned in the best interests of your children.

Grandparents, step-parents, adult siblings, other adult family members, and even adults who aren’t family members are all eligible to apply as guardian of your children, even if you named someone in your Will. It is up to the court to choose a guardian from among the applicants; if you didn’t name a guardian in your Will, the court has no way of knowing your wishes.

4. There may be others you want to provide for.

If you have elderly parents you are caring for, or family members with special needs, you won’t be able to properly provide for them or plan for their care without specific instructions in your Will. Also, if there are charitable organizations, friends, or other family members to whom you want to leave money, assets or heirlooms, then you need to do this in a valid Will.

5. You leave more for your beneficiaries.

Upon your death, all your personally owned accounts will be “frozen” by the financial institution, meaning that no one can write cheques or pay bills from such accounts.

There may be a couple of exceptions (depending upon the financial institution), such as paying for your funeral and paying your outstanding taxes to the Canada Revenue Agency.

It can generally take anywhere between six and nine months for your executor to obtain probate, so that they are authorized to deal with transactions on your personally owned accounts. Having a current Will and naming an executor in your Will avoids unnecessary costs, delays, and a possible decline in value of your assets.

When drafting your Will, be sure to consider the tax implications. A Scotiatrust Estate and Trust Consultant can help you understand this.

Taking the time to prepare a Will goes a long way toward ensuring your assets are distributed in the way you wish—and it will certainly minimize the burden on your loved ones after you pass away.

To learn more about creating an estate plan, contact the professionals at Scotiatrust® or a Scotia Wealth Management relationship manager.

1 An “executor” is called a “liquidator” in the province of Quebec and an “estate trustee” in the province of Ontario.

2 In the province of Quebec, the “Public Guardian and Trustee” is called the “Public Curator.”

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

source https://richarddri.ca/why-you-dont-want-to-die-without-a-will/

The Formidable Combination of CPA and Tax Law Expertise with Josh Kumar

drifinancialLeave a comment

Joining me on the podcast this week is Josh Kumar, Partner at Aird & Berlis LLP. A member of the firm’s Tax Group, Josh’s practice focuses on litigation and dispute resolution with the Canada Revenue Agency and Department of Justice, and also includes tax planning for private companies and individuals.  He has extensive experience representing taxpayers in the Tax Court of Canada, the Federal Court of Canada, the Federal Court of Appeal and the Ontario Superior Court of Justice, and he also holds a Chartered Professional Accountant designation.

In today’s interview, Josh shares what drives him to complete his goals, his current practice, the most common issues he encounters that require his tax expertise, and the expectations of a junior partner. He also describes a typical week for him, some traditional and alternative methods of charging clients, current challenges for the legal profession, and a low point in his professional journey. Our conversation draws to a close with Josh offering his advice for new lawyers, as well as reviewing his income management, financial planning, and his definition of financial independence.

Listen to the Podcast – Download the Transcript

Highlights:

  • Josh’s journey to become both an accountant and a lawyer was influenced by the good advice and examples of people in his life.
  • Josh feels the role of a junior partner is to establish your practice through making connections and community engagement as well as to help service the existing client base.
  • One of the current challenges in the legal profession is determining the role of AI within it.
  • Josh saves an impressive percentage of his income, and, due to his work, there are some limitations on his ability to invest.
  • Josh’s current definition of financial independence is having the ability to save and plan for future big purchases like real estate

Quotes:

“The journey was long, but was aided by a lot of people that provided really good advice, and honestly stumbling too into different practice areas and getting exposure to tax early on.”

“It’s important I think to get some professional involved early on, whether it’s an accountant, your trusted advisor, or if you think that this could go all the way to a tax court hearing, it’s important to get a lawyer involved and early.”

“You’re typically touching maybe five to ten files, right, in any given week, where there’s some step or some process that needs to be done that you’re focusing on.”

“I think the best advice is to try to get exposure to as many areas as possible in the general field that you think you want to practice in, because that’s the best way to figure it out.”

“So, looking forward, I mean, to your point about modeling and planning, and thinking that out, I think it means to me still being able to do the traveling, and the dining, and the experiences that you want to do.”

Follow us on social:

Listen to more podcasts by Richard Dri:

Starting a Law Firm to Serve Corporations and Individuals Alike with Sara Erskine

Corporate Dispute and Financial Planning Resolutions with Garth Dingwall

Tax Law and Preserving Wealth with Mahyar Makki

source https://richarddri.ca/the-formidable-combination-of-cpa-and-tax-law-expertise-with-josh-kumar/

We started our retirement savings plan late, can we still catch up?

drifinancialLeave a comment

Have you ever been so connected to a task that you don’t realize how much time has passed? Well, if you haven’t checked in with your investments or a Financial Advisor lately (has it been more than 6 months? 12 months? 10 years?) this is your reminder to check-in this month!

Story time!

You most likely know that I’m an entrepreneur, business owner and financial advisor based in Toronto but, you probably don’t know that I’m an avid cyclist. I love doing group rides on the weekend to blow off steam, socialize and exercise.

The other day, I was on a long bike ride with our group made up of four strong riders and one good rider. The strong riders set the pace and waited at each light until the weaker rider caught up to the group.

After about an hour of riding and stopping, we were all frustrated and angry.

Riding has a firm rule that no rider is left alone (for safety reasons), so I decided to stay with the weaker rider so the faster group could ride at their pace. I didn’t mind riding slower, because I had completed a long ride the day before and I could use an easy one.

Well, a ride that usually took three hours to complete took almost 5 1/2 hours. But what an interesting time! I had so much fun riding, resting, and taking pictures of the scenery that I completely lost track of the time and was shocked when I looked at my watch.

I bring this up not just because I love riding but to illustrate how life works: we often get lost in our daily/monthly activities and fail to notice how much time has lapsed.

We spend our teens growing up, our 20s completing our education and finding jobs, our 30s raising a family and, when the kids are finally in Grade 12 or university, we’re in our 40s or maybe 50s.

In the mid or late 40s, some folks finally realize that decades have passed while they have been very busy with life and that they have saved very little…

At this later stage, people reach out to their financial advisor and ask, “We haven’t saved very much. Are we too late?”

1. Admit you have a problem.

The first step in addressing a lack of savings is to stop believing or hoping that everything will be okay.

Your financial future is too important to rely on HOPE or LUCK.

Admit you have a problem and become laser focused in addressing it.

For example, I often meet couples who are within 10 -15 years of retirement and have saved very little in their RRSPs and/or within their employer’s group savings plans.

They realize they’re late to the game and are often looking for a “get rich quick” scheme or some sure way to win a lottery.

If you find yourself late to the savings plan, don’t look for a wealth advisor with a “crystal ball.” Focus on developing a realistic solution.

2. Prepare a retirement projection

Good retirement calculators may be found online or through a wealth advisor who runs a detailed retirement projection.

The retirement projection will start with current savings (if any) and make assumptions about the future investment return, inflation rate, year of death and government/employer pension.

Ultimately, the retirement projection will determine how much savings will be required in order to achieve the desired retirement income.

The later you start saving, the higher the amount you’ll need.

3. Track your spending and earnings

From my experience, the inability to save is usually connected to one of the following problems:

a) Not enough income

b) Too much spending

c) Not enough income and too much spending

Unfortunately, many individuals or couples are unaware of their monthly spending. In my 25+ years as a wealth advisor, I have met only a handful who have prepared and followed a realistic budget.

For some, the exercise of reviewing monthly expenses is too time consuming. As a result, they avoid it or delay it indefinitely.

I’ll admit myself that until recently, I found the process of setting a budget and evaluating every single expense to be very cumbersome and time consuming.

But not anymore.

Many apps have been developed that make tracking expenses very simple, even for those who have no experience with budgets.

For example, Mint.com is an app built by Intuit that integrates all transactions from each bank account into budget items (such as car lease, groceries, utilities, and so on).

When properly set up, it takes about 30 minutes per month to track expenses and income against your budget.

For example, I have a budget item for everything I buy, including coffee. On a weekly basis, I update the program and can quickly see how much money I have spent on coffee (and everything else) and can easily determine if I will overspend, given the portion of month left. This information allows me to adjust my spending, if necessary.

Personally, the app has changed my financial life because it allows me to track my expenses in real time and without the need of complicated and time-consuming spreadsheets.

Another app I have reviewed is called You Need a Budget. It is also highly effective in tracking expenses without spreadsheets.

Once you run an app like one of these for a few months, I believe you will determine if you have a spending or an earnings problem (or both).

4. Do you have a spending problem?

From my experience, most people have a spending problem and not an earnings problem. Unfortunately, we are blasted with advertisements every second of the day, and it takes an iron will to avoid temptations.

American financial advisor David Ramsey once said that we buy things we don’t need, with money we don’t have, to impress people we don’t like (or, I would say, people we don’t know).

Do you connect to this idea?

Once you have tracked your expenses for a few months, I suggest dividing those expenses into two groups: discretionary and nondiscretionary.

For example, while mortgage payments or property taxes are usually fixed and cannot be changed, other expenses such as travel, coffee, food, clothing, and so on are controllable.

Armed with the two lists, set up a budget for nondiscretionary expenses first, create a savings budget of at least 15% of take-home pay, then allocate remaining earnings to nondiscretionary expenses.

Once the monthly budgets are set, you should frequently update the app and make it your mission not to overspend.

5. Do you have earnings problem?

To be honest, the easier problem to correct is the spending problem. We have direct control over how much we spend, while our earnings are not something that can be easily adjusted upward.

However, if you started saving late, I suggest an aggressive approach to the problem that involves decreasing discretionary expenses and increasing earnings.

Improving skills or education level, asking for a raise, and changing employers are all viable options to increase one’s income.

But I think one overlooked and potentially rewarding option is starting your own side hustle. Examine your passions. Can one of them be turned into a part-time income?

Here’s a few examples of side hustles:

  • Teaching French, piano, swimming, golfing, etc.
  • Writing/editing
  • Selling surplus goods online
  • Dog walking
  • Podcasting
  • Accounting/law/consulting services
  • Home repairs

If you’re looking to increase your income, ask yourself whether you can monetize one of your hobbies or skills.

6. Are your fixed expenses too high?

In some cases, lowering expenses and earning more money will not completely solve the financial problems associated with starting a savings plan later in life.

From my experience, some people have fixed or non-discretionary expenses which are just too high.

For example, some people’s housing cost is too large in relation to their earnings or earnings potential. This is a common problem in the GTA which could get worse if the economy weakens or interest rates rise to a more historical level.

In this case, I would run detailed cash flow projections and may advise downsizing the home and reducing housing costs. This is a hard pill to swallow but may be necessary to right size someone’s financial picture.

Conclusion

Starting to save late doesn’t need to be financially fatal, but it will require a laser focus on the mission and, possibly, making and living with difficult decisions like delaying retirement or downsizing the principal residence.

If you’re in this situation, don’t despair. Call my office. We’ll start with a retirement projection and then help you lower your expenses, increase your income and catch up.

Never Retire Profile

Murray Sinclair

Former member of the Canadian Senate, First Nations lawyer, and chair of the Indian Residential Schools Truth and Reconciliation Committee, 77-year-old Murray Sinclair has been on message for years: the purpose of residential schools was to eliminate Aboriginal cultures and racial identity. As a result, says the TRC Report, Canada has committed cultural genocide. While this is a conclusion many Canadians are only coming to understand today, Sinclair’s personal history as an Ojibway, career as a judge and senator, and civic service on community boards have earned him a tremendous capacity for insight as well as 14 honorary degrees. Heeding his words will help all Canadians to heal, repair and move forward: “Reconciliation is not an Indigenous problem. It is a Canadian one.”

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

source https://richarddri.ca/we-started-our-retirement-savings-plan-late-can-we-still-catch-up/

A Financial Advisor answers the top questions about estate planning

drifinancialLeave a comment

Estate Planning is about ensuring that your assets are distributed in the way you wish and minimizing the burden on your loved ones after you pass away.

As you go through the planning process, there are many questions to consider in order to create an estate plan that best meets your needs.

1. Do I need a Will?

Having a Will is arguably one of the most important things you can do for yourself and your family. Not only can a Will legally protect your loved ones and assets, but it can also specify exactly how you would like your affairs handled after you have passed away. Furthermore, if you have minor children, your Will can dictate how they will be cared for upon your passing.

There are many reasons people fail to prepare a Will. These include thinking they don’t have enough assets, having joint assets that automatically go to their spouse, or thinking they are too young to worry about it. If you pass away without a Will (intestate), it can lead to further complications and delays for your loved ones during an already challenging period. Taking the time to prepare a Will ensures your loved ones are looked after by allowing you to tailor the distribution of your assets to their specific needs instead of leaving your affairs in the hands of the provincial government.

2. How often should I update my Will?

It’s good practice to review your Will at least every three years or whenever a significant change occurs in your life, such as getting married or divorced, having your first child or grandchild, retiring, or experiencing a significant health event.

3. What type of Power of Attorney do I need?

A Power of Attorney (POA) is a legal document that gives someone of your choosing, your “Attorney” (not to be confused with a lawyer), the right to act for you when you cannot do so yourself. There are two types of Powers of Attorney – one for property and one for personal care. To ensure your affairs are properly taken care of, you should have both agreements in place.

Your Attorney for Property has the power to make financial decisions on your behalf, such as dealing with banking, investments, or selling a property. Should you lose mental capacity and failed to appoint an Attorney for Property, a family member or friend must apply to the court to be named your “guardian” before they can act for you. This can result in significant delays.

A POA for Personal Care, sometimes known as a Living Will, gives the designated Attorney the power to make decisions regarding your medical treatment when you are unable to. The issues that the Attorney can address include hospice care, change of physicians, use of experimental therapies, nutrition, and the use of ‘heroic measures’ to prolong life. In the absence of this arrangement, the concept of patient/doctor confidentiality may mean your loved ones can’t make fully informed decisions regarding your health. Ideally, your appointed Attorney(s) for Property and Personal Care should act in tandem to ensure your affairs are managed properly.

4. Who should I name as Executor?

Although being named an Executor on a Will is often considered an honour, it can actually be a burden. If there is any complexity to your financial affairs, or if there is a complicated or sensitive family situation to deal with, the role of Executor can be both time-consuming and demanding. Most people pick a family member or friend without giving much thought to what the role entails. Given the complexities and fiduciary responsibilities associated with the role, ensure that your chosen Executor is willing and able to take on this role upon your passing. An option is to name a Trust Company, such as Scotiatrust®, as Executor of your estate.

5. Does it matter if my assets are jointly owned?

Holding assets jointly with rights of survivorship can be convenient and practical. Since joint assets pass outside of your estate and go to the surviving owner, this can save time and money in the administration of your estate. However, before taking this step, you should consider factors such as loss of control, exposure to creditors, and unintended tax consequences.

Summary

While answering the questions above is a great starting point for creating an estate plan, the conversation shouldn’t end here. To create a comprehensive plan customized to your specific situation, you should engage a professional with expertise in Will and estate planning.

Contact us to find out how we work together with an Estate and Trust Consultant at Scotiatrust to help you with your Will and estate planning needs.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

source https://richarddri.ca/a-financial-advisor-answers-the-top-questions-about-estate-planning/

Starting a Law Firm to Serve Corporations and Individuals Alike with Sara Erskine

drifinancialLeave a comment

Sara Erskine, Partner at Weintraub Erskine Huang LLP, is my guest on the podcast this week.  Sara discusses starting her own firm, the type of cases they will handle, and her vision for it over the coming years. She also shares details about their marketing strategy to attract new business, the systems and processes she’s developed, what an average day and week look like for her, and how they charge their clients.

The current challenges facing the legal profession, Sara’s advice for new lawyers, her financial planning and income saving, investing, and protection are also addressed, and our conversation concludes with Sara’s definition of financial independence.  Armed with extensive professional knowledge and familiarity with the entrepreneurial experience of starting her own firm, Sara has so much to offer listeners here today.

Listen to the Podcast – Download the Transcript

Highlights:

  • The combination of the impending retirement of a senior partner and mentor at her previous firm and the changes brought about by COVID formed the impetus for Sara to start her own firm.
  • The way her firm charges clients depends a lot upon the client and their needs, and is based on an hourly fee.
  • Sara’s advice to new lawyers is to soak up all of the experiences that they are offered, to learn their profession and their craft, and seek out great mentors to help them learn both the profession of law and the business side of law.
  • Sara saves a base amount of her income each year and works with a financial advisor for her investments and her financial planning for her future.
  • Her definition of financial independence involves the ability to work if she wants to, but not have to work to be able to sustain her family’s modest lifestyle.

Quotes:

“You’re not going to have to pay for one of the large national firms but you’ll get the same level of service from us.”

“If you’re an individual client going to speak to a lawyer, it’s intimidating. And I think that you would feel more comfortable going and speaking to a lawyer that you can look across the table at, and they look like you, and they understand the challenges and the difficulties you face, and can help you, versus just being a cookie cutter corporate lawyer that doesn’t have that same feel.”

“I still am quite risk averse when it comes to my own money. I don’t even buy lottery tickets because I think I’m just throwing money away, even though I might win millions of dollars one day.”

“To be able to live our lifestyle, which I find to be a comfortable lifestyle, be able to enjoy time with my husband, for us to be able to take trips and explore the world and enjoy spending time together without feeling that we are missing out, that we did not plan enough for our future so that we are unable to enjoy our retirement.”

Follow us on social:

Listen to more podcasts by Richard Dri:

Bringing a Cosmopolitan Mindset to Trade Law with Robert Glasgow

Corporate Dispute and Financial Planning Resolutions with Garth Dingwall

Tax Law and Preserving Wealth with Mahyar Makki

source https://richarddri.ca/starting-a-law-firm-to-serve-corporations-and-individuals-alike-with-sara-erskine/

Can I catch up if I only started saving in my 30s?

drifinancialLeave a comment

Have you ever been so connected to a task that you don’t realize how much time has passed? Well, if you haven’t checked in with your investments or a Financial Advisor lately (has it been more than 6 months? 12 months? 10 years?) this is your reminder to check-in this month!

Story time!

You most likely know that I’m an entrepreneur, business owner and financial advisor based in Toronto but, you probably don’t know that I’m an avid cyclist. I love doing group rides on the weekend to blow off steam, socialize and exercise.

The other day, I was on a long bike ride with our group made up of four strong riders and one good rider. The strong riders set the pace and waited at each light until the weaker rider caught up to the group.

After about an hour of riding and stopping, we were all frustrated and angry.

Riding has a firm rule that no rider is left alone (for safety reasons), so I decided to stay with the weaker rider so the faster group could ride at their pace. I didn’t mind riding slower, because I had completed a long ride the day before and I could use an easy one.

Well, a ride that usually took three hours to complete took almost 5 1/2 hours. But what an interesting time! I had so much fun riding, resting, and taking pictures of the scenery that I completely lost track of the time and was shocked when I looked at my watch.

I bring this up not just because I love riding but to illustrate how life works: we often get lost in our daily/monthly activities and fail to notice how much time has lapsed.

We spend our teens growing up, our 20s completing our education and finding jobs, our 30s raising a family and, when the kids are finally in Grade 12 or university, we’re in our 40s or maybe 50s.

In the mid or late 40s, some folks finally realize that decades have passed while they have been very busy with life and that they have saved very little…

At this later stage, people reach out to their financial advisor and ask, “We haven’t saved very much. Are we too late?”

1. Admit you have a problem.

The first step in addressing a lack of savings is to stop believing or hoping that everything will be okay.

Your financial future is too important to rely on HOPE or LUCK.

Admit you have a problem and become laser focused in addressing it.

For example, I often meet couples who are within 10 -15 years of retirement and have saved very little in their RRSPs and/or within their employer’s group savings plans.

They realize they’re late to the game and are often looking for a “get rich quick” scheme or some sure way to win a lottery.

If you find yourself late to the savings plan, don’t look for a wealth advisor with a “crystal ball.” Focus on developing a realistic solution.

2. Prepare a retirement projection

Good retirement calculators may be found online or through a wealth advisor who runs a detailed retirement projection.

The retirement projection will start with current savings (if any) and make assumptions about the future investment return, inflation rate, year of death and government/employer pension.

Ultimately, the retirement projection will determine how much savings will be required in order to achieve the desired retirement income.

The later you start saving, the higher the amount you’ll need.

3. Track your spending and earnings

From my experience, the inability to save is usually connected to one of the following problems:

a) Not enough income

b) Too much spending

c) Not enough income and too much spending

Unfortunately, many individuals or couples are unaware of their monthly spending. In my 25+ years as a wealth advisor, I have met only a handful who have prepared and followed a realistic budget.

For some, the exercise of reviewing monthly expenses is too time consuming. As a result, they avoid it or delay it indefinitely.

I’ll admit myself that until recently, I found the process of setting a budget and evaluating every single expense to be very cumbersome and time consuming.

But not anymore.

Many apps have been developed that make tracking expenses very simple, even for those who have no experience with budgets.

For example, Mint.com is an app built by Intuit that integrates all transactions from each bank account into budget items (such as car lease, groceries, utilities, and so on).

When properly set up, it takes about 30 minutes per month to track expenses and income against your budget.

For example, I have a budget item for everything I buy, including coffee. On a weekly basis, I update the program and can quickly see how much money I have spent on coffee (and everything else) and can easily determine if I will overspend, given the portion of month left. This information allows me to adjust my spending, if necessary.

Personally, the app has changed my financial life because it allows me to track my expenses in real time and without the need of complicated and time-consuming spreadsheets.

Another app I have reviewed is called You Need a Budget. It is also highly effective in tracking expenses without spreadsheets.

Once you run an app like one of these for a few months, I believe you will determine if you have a spending or an earnings problem (or both).

4. Do you have a spending problem?

From my experience, most people have a spending problem and not an earnings problem. Unfortunately, we are blasted with advertisements every second of the day, and it takes an iron will to avoid temptations.

American financial advisor David Ramsey once said that we buy things we don’t need, with money we don’t have, to impress people we don’t like (or, I would say, people we don’t know).

Do you connect to this idea?

Once you have tracked your expenses for a few months, I suggest dividing those expenses into two groups: discretionary and nondiscretionary.

For example, while mortgage payments or property taxes are usually fixed and cannot be changed, other expenses such as travel, coffee, food, clothing, and so on are controllable.

Armed with the two lists, set up a budget for nondiscretionary expenses first, create a savings budget of at least 15% of take-home pay, then allocate remaining earnings to nondiscretionary expenses.

Once the monthly budgets are set, you should frequently update the app and make it your mission not to overspend.

5. Do you have earnings problem?

To be honest, the easier problem to correct is the spending problem. We have direct control over how much we spend, while our earnings are not something that can be easily adjusted upward.

However, if you started saving late, I suggest an aggressive approach to the problem that involves decreasing discretionary expenses and increasing earnings.

Improving skills or education level, asking for a raise, and changing employers are all viable options to increase one’s income.

But I think one overlooked and potentially rewarding option is starting your own side hustle. Examine your passions. Can one of them be turned into a part-time income?

Here’s a few examples of side hustles:

  • Teaching French, piano, swimming, golfing, etc.
  • Writing/editing
  • Selling surplus goods online
  • Dog walking
  • Podcasting
  • Accounting/law/consulting services
  • Home repairs

If you’re looking to increase your income, ask yourself whether you can monetize one of your hobbies or skills.

6. Are your fixed expenses too high?

In some cases, lowering expenses and earning more money will not completely solve the financial problems associated with starting a savings plan later in life.

From my experience, some people have fixed or non-discretionary expenses which are just too high.

For example, some people’s housing cost is too large in relation to their earnings or earnings potential. This is a common problem in the GTA which could get worse if the economy weakens or interest rates rise to a more historical level.

In this case, I would run detailed cash flow projections and may advise downsizing the home and reducing housing costs. This is a hard pill to swallow but may be necessary to right size someone’s financial picture.

Conclusion

Starting to save late doesn’t need to be financially fatal, but it will require a laser focus on the mission and, possibly, making and living with difficult decisions like delaying retirement or downsizing the principal residence.

If you’re in this situation, don’t despair. Call my office. We’ll start with a retirement projection and then help you lower your expenses, increase your income and catch up.

Never Retire Profile

Murray Sinclair

Former member of the Canadian Senate, First Nations lawyer, and chair of the Indian Residential Schools Truth and Reconciliation Committee, 77-year-old Murray Sinclair has been on message for years: the purpose of residential schools was to eliminate Aboriginal cultures and racial identity. As a result, says the TRC Report, Canada has committed cultural genocide. While this is a conclusion many Canadians are only coming to understand today, Sinclair’s personal history as an Ojibway, career as a judge and senator, and civic service on community boards have earned him a tremendous capacity for insight as well as 14 honorary degrees. Heeding his words will help all Canadians to heal, repair and move forward: “Reconciliation is not an Indigenous problem. It is a Canadian one.”

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

source https://richarddri.ca/can-i-catch-up-if-i-only-started-saving-in-my-30s/

Bringing a Cosmopolitan Mindset to Trade Law with Robert Glasgow

drifinancialLeave a comment

Joining me this week on the podcast is Robert Glasgow, Partner in the International Trade and Disputes Group at McCarthy Tetrault. In this role, Robert regularly provides advice to clients regarding the application of Canadian trade and customs law, and also provides valuable service to clients across a wide range of matters, from sanctions to controlled goods to anti-dumping and countervailing trade remedy disputes.

In our conversation today, Robert shares the many places in the world in which he has lived, the lessons learned through this experience, as well as details regarding his practice today and what a typical week entails. He also discusses his team at McCarthy, the biggest challenges facing the legal profession today, the ways in which he and his family manage their income, and the steps he has taken in estate planning. Robert draws our interview to a close by offering his definition of financial independence and his perspective on achieving it.

Listen to the Podcast – Download the Transcript

Highlights:

  • Robert grew up in a number of different cities around the world, of which he feels Brussels is the most underrated.
  • In Robert’s mind, his team at McCarthy is one of the top trade departments in Canada, if not the very top.
  • His wife has instilled a lot of fiscal discipline in him and they are very good at saving their income.
  • Since the birth of their daughter, Robert and his wife have put a lot of thought into their estate planning and guardianship.
  • His definition of financial independence involves being able to live comfortably without needing to grind.

Quotes:

“It’s the old ‘if you prick me, do I not bleed’ sort of concept of all of us at our core are people and there’s far more that can unite us than could divide us.”

“I’d wake up and I’d start meetings and conferences at 6:00 in the morning, Toronto time. I’d either be doing meetings or prep meetings or interviews all the way through until midnight or 1:00 in the morning.”

“It quickly became evident to me that for as much as I’m a very intelligent guy, I’m highly educated, I’m in a highly educated profession, I knew enough to know I didn’t know enough.”

“Since the birth of our daughter…the number one thing we’ve been thinking about is identifying a potential guardian for our daughter.”

“I really think that really is what financial independence means. It’s having the freedom to do what you would like when you would like to do it.”

Follow us on social:

Listen to more podcasts by Richard Dri:

Corporate Dispute and Financial Planning Resolutions with Garth Dingwall

Tax Law and Preserving Wealth with Mahyar Makki

The Legal and Personal Aspects of Estate Administration with Susannah Roth

source https://richarddri.ca/bringing-a-cosmopolitan-mindset-to-trade-law-with-robert-glasgow/