What is financial planning and why it is important for high-net-worth investors

Canadians are generally diligent in money matters. We focus on paying down debt and saving for retirement. But when it comes to estate planning, something’s been holding us back.

Research shows nearly one in four Canadians are uncomfortable talking about money, even with their spouse.¹ But according to a recent MIM survey the pandemic has been a game changer for some, with:

  • one in five saying it’s prompted them to have more conversations about wealth transfer and/or estate planning, or to review/update their wills and beneficiary designations.²
  • fewer people believing it’s an inappropriate time to talk about their inheritance.³

We’re here to help with the hard conversations   

Pandemic issues aside, we know estate planning isn’t an easy conversation to have. So we’ve invited Carol Foley, Tax and Estate Planner at Manulife Private Wealth, to highlight why defining a financial plan is important for high-net-worth investors, how to get started, tax considerations, and how it can help with charitable giving.

$1 trillion+

is expected to move between generations in Canada from 2020 to 2030.⁴

46%

of Canadians do not have any of the following: a financial advisor; a written financial plan; a formal estate plan. The number who report having all three is only 13%.²

58%

of Canadians are not discussing inheritance with their heirs.⁵

1 FP Canadaᵀᴹ, The Discomfort Index — Financial Planning for Canadians, February 2020. 2 Source: Manulife State of Estate Planning Survey 2021 whitepaper. 3 “There has been a sharp decrease in the proportion who believe they’re too far away from the time of inheritance to discuss the matter (24%; -9 pts) a figure which might be somewhat attributable to the pandemic, which has sadly resulted in many deaths” Source: Manulife State of Estate Planning Survey, 2021, page 2. 4 Investor Economics Household Balance Sheet Report—Canada, 2021. 5 Wealthy Canadians not discussing inheritance with heirs, Advisor’s Edge, 2018

This communication was prepared solely for your information and is not intended as an offer, or a solicitation of an offer, by Manulife Private Wealth to any person to buy or sell any investment or other specific product and is no indication of trading intent. Although all information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, no representation or warranty, expressed or implied, is made as to its accuracy or completeness. All information and opinions as well as any figures indicated herein are subject to change without notice. Neither Manulife Private Wealth nor any other companies in the Manulife Financial Corporation (“Manulife”) group are acting as an adviser or fiduciary to or for any recipient of this report unless otherwise agreed in writing. Should you have any questions, please contact or ask to speak to a member of Manulife Private Wealth. Manulife Private Wealth is a division of Manulife Investment Management Limited and Manulife Investment Management Distributors Inc. Investment services are offered by Manulife Investment Management Limited and/or Manulife Investment Management Distributors Inc. Banking services and products are offered by Manulife Bank of Canada. Wealth & Estate Services are offered by Manulife Investment Management Limited. Manulife Investment Management Limited, Manulife Investment Management Distributors Inc., Manulife Bank of Canada and The Manufacturers Life Insurance Company are wholly-owned subsidiaries of Manulife Financial Corporation.

Manulife Private Wealth

Manulife Private Wealth

Manulife Private Wealth

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