How the Affluent
Manage Their Money
Key Strategies That You Can Use
Kurt Rosentreter,
CA, CFP, CIMA, TEP, FMA, FCSI, CLU, CIM
Senior Financial Advisor,
Manulife Securities Incorporated
Kurt Rosentreter,CA
 CA, CFP, CLU, TEP, FMA, CIMA, FCSI, CIM
 Twenty years finance industry experience; personal
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finance course instructor, Ontario CA Institute
Specialized in wealth management Canada wide.
Past co-founder of the billion dollar national wealth
management practice at one of Canada’s Big 4
Accounting firms.
Best selling personal finance author, seven books in stores
More than 500 published articles and interviews for The
Globe and Mail, National Post, CBC, Canada AM,
Canadian Business and MacLean's.
Senior Financial Advisor, Manulife Securities
Incorporated.
Certified Financial Planner, Manulife Securities Insurance
Inc.
Complete a Draw Ballot!
 Draw for four books at the end of this 45
minute presentation
 Draw ballots available on your chair
 Drop in basket at front of room
 Only completely filled out ballots can be
winners.
Defining a Wealthy Person
Different Ways:
 As little as $500,000 of savings (excluding
personal real estate)
– Rather some may consider $1 Million to be
wealthy…
 $150,000 of annual income or more
 Net worth of $2.5 Million or more
 Wealthy can be a state of mind
Tax Planning of the Wealthy
 Focus on tax planning – see beyond your tax return – have
a pro-active accountant (CA) focused on tax strategies
 Small businesses – tons of write offs
 Spousal and family income splitting yearly
 Using good debt and eliminating bad debt
 Corporations and trusts for U.S. assets, avoid Canadian
probate fees on death, annual planning
 Investment fees not investment commissions
 Estate trusts for tax breaks
 Legitimate offshore planning
Estate Planning of the
Wealthy
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Planning done well in advance
Lawyer is regular advisor and on the team
Two Wills
Family Trusts
• Intervivos
• Testamentary
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Family are not used as Executors or Trustees
Foundations to leave a legacy
Life insurance to provide liquidity in estate
Pre-death planning (e.g. business succession)
Investing & the Wealthy
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Portfolio managers, not brokers or agents
Very little “do it yourself” investing
Asset based fees, no commissions
More Investing outside of RRSPs/RRIFs. Why?
Discretionary money managers vs. nondiscretionary
 One to three money managers – not 12 mutual
funds!
 More focused on preservation than growth.
 Tax smart investing
 Private equity
Investing & the Wealthy
 Yes to stocks & bonds, pooled funds, ETFs and F class
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funds
No to retail mutual funds, load fees of any kind
No RRSP trustee fees
No Labour funds
No seg funds
No Wrap programs
Fewer hedge funds than you have been told
Global diversification
More real estate than their house
 How many clients does your advisor have?
Investing & the Wealthy
 Pay Attention to the “Six Dimensions of Tax
Smart Investing” Why?
– Taxation of people matters
– Taxation of assets matters
– Taxation of income matters
– Holding period of the asset matters
– Domestic or a foreign asset matters
– Legal ownership of the asset matters.
Financial Advisors & the
Wealthy
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Always have an accountant or lawyer
Very wealthy use family offices
Professionals, not sales people – know the diff!
Specialists in high net worth issues and solutions
Arms length business relationship not clouded by
personalities
 Used to paying bigger fees for value
 Use of an engagement letter.
 What matters: expertise, experience, brand,
results.
Summary
 If you are high net worth, are you being treated
that way?
 Are you paying lower fees because of your elite
status? (should start at $250,000 of savings)
 Are your current advisors experts in high net
worth? (broker, insurance agent, accountant)
 If you have a million dollars of investment money,
you are high net worth. Are you being treated the
way you should?
About Kurt Rosentreter, CA
 Give Kurt your phone number or email for:
– Copy of these slides
– Wealth planning review in Kurt’s office
– To learn about Kurt’s services as your Family
CFO.
– To sign up for Kurt’s popular e-newsletter on
cutting edge wealth management strategies
Learn more at: www.kurtismycfo.com.
Questions & Answers
Thank you for attending!
Kurt Rosentreter, CA, CFP, CLU, TEP, FMA, CIMA,
FCSI, CIM
Senior Financial Advisor,
Manulife Securities Incorporated
Kurt.Rosentreter@ManulifeSecurities.ca
Kurt’s Seven books available at www.kurtismycfo.com.
Disclaimer:
 The opinions expressed are those of the
author and may not necessarily reflect those
of Manulife Securities Incorporated.
Manulife Securities Incorporated is a member CIPF