Case Studies

Mr. and Mrs. P, both 52-year-old business owners, found themselves in a unique position after selling their company for $5 million. Despite having ample retirement savings prior to the sale, they were faced with the question of how to best utilize their newfound wealth to make a significant positive impact on their community. However, this decision came with its own set of challenges. They needed to navigate how to involve their adult children in the decision-making process, despite potential implications for their inheritance.

We approached the situation methodically, ensuring Mr. and Mrs. P had a comprehensive understanding of their financial landscape. Through a sensitivity analysis, we provided them with the assurance that even with generous donations and conservative financial planning, their lifestyle could be comfortably funded until age 90.

Furthermore, we facilitated open discussions with their children, engaging them in the decision-making process. By fostering a dialogue around shared values and the importance of giving back, we transformed potential tension into a united family mission. Additionally, we guided the selection of a financial structure that maximized tax benefits and provided flexibility for future philanthropic endeavors.

With our guidance, Mr. and Mrs. P transformed their wealth into a tool for meaningful change. By establishing a donor-advised fund as recommended, they not only minimized tax liabilities but also channeled their resources towards deserving causes. Importantly, involving their family in the decision-making process led to a shared commitment to philanthropy, fostering unity and purpose within the family.

This strategic approach not only aligned with Mr. and Mrs. P's values but also ensured that their wealth could positively impact countless lives in their community. By turning a potential source of familial tension into a catalyst for collective action, the outcome was a win-win for Mr. and Mrs. P, their family, and the broader community they sought to support.

G & L, residents of Edmonton, appeared to have a solid financial foundation at first glance. They owned their home and three thriving businesses, with diligent savings for retirement. However, upon closer inspection by our team, a crucial risk emerged: their entire net worth was heavily tied to the oil and gas sector. Their businesses, home value, and investment portfolio were all intertwined with the fluctuations of this volatile industry. Recognizing the potential threat to their retirement aspirations, the aim was clear: mitigate investment risk to ensure a worry-free future.

We embarked on a comprehensive assessment of G & L's investments, highlighting the vulnerability posed by their concentrated exposure to oil and gas. Through detailed analysis, we illustrated the potential impact of a prolonged downturn in the sector on their portfolio. The plan involved diversifying investments into sectors unrelated to oil and gas, such as businesses in transportation, like railroads, which could benefit from lower fuel costs. Additionally, we advocated for diversifying internationally to reduce exposure to Canadian banks heavily tied to oil and gas loans.

Armed with this strategic insight, G & L began to reimagine their financial landscape. We provided historical data demonstrating the resilience of the recommended diversified portfolio during periods of oil price volatility, contrasting starkly with the significant downturns experienced by their previous concentrated investments. Since partnering with Value Partners, G & L's net worth has rebounded, instilling confidence in their retirement prospects. Now, even if the housing market fluctuates or their businesses face challenges, their wealth remains protected, offering them the peace of mind they deserve as they approach retirement.

T & S, having humble beginnings themselves, worked diligently to provide a better life for their children. T's entrepreneurial spirit led to the creation of a successful business, affording their family opportunities they never had. However, they grappled with the challenge of discussing wealth with their children. While they desired to support their children's success, they also wanted to instill the value of hard work and independence, fearing the inadvertent stifling of their children's ambitions.

Collaborating with T & S, we facilitated open conversations with their children to explore their perceptions of family wealth, understand their aspirations, and impart essential financial literacy. These discussions aimed to cultivate financial acumen and a sense of responsibility, ensuring the children could navigate their own financial journeys irrespective of any inheritance. Rather than focusing solely on monetary details, the discussions centered on family values, the responsibilities tied to wealth, and potential roles within the family business.

Recognizing that wealth conversations are ongoing, T & S laid the groundwork for future discussions as their children mature. By fostering transparency around family values and wealth, they nurtured stronger familial bonds and mitigated potential resentment or misunderstandings. This approach not only deepened their children's appreciation for financial responsibility but also sparked a greater interest in achieving success on their own merits. Moreover, it cultivated respect for T & S's philanthropic endeavors, ensuring a legacy of shared values and mutual understanding within the family.