Audrey had been a client of Vanessa’s for some time. Audrey wanted financial help for her mother Mrs. D as she was concerned that her mother wasn’t getting the same level of service that she was getting with Vanessa. Mrs. D was 84, widowed , mother of two adult children and grandmother of five, and she was living in their original family home since 1963. She had lived a conservative life and had never indulged in exotic trips, fancy cars or even a kitchen renovation.
Mrs. D was a long time client of RBC. Her late husband had been buying GIC’s and Savings Bonds with RBC for over 40 years and he had kept their Stocks in Stock Certificate form. He made these investments on his own without a dedicated, certified Wealth Advisor to oversee and manage their portfolio. After he passed, investment information continued to come in the mail from many, many sources and Mrs. D tried to figure things out on her own but was quickly and understandably overwhelmed.
Mrs. D was worried that she did not have enough money to live on. Her advisor at RBC had limited knowledge and resources and could only offer Mrs. D GIC’s and bank Mutual Funds. Mrs. D assumed that was too risky, she didn’t really know what Mutual Funds were. RBC said they could not help her with the Stock Certificates. Her Power of Attorney and Wills were not up to date and her Stock Certificates were sitting in a safe deposit box.
- Mrs. D wanted an Estate Plan
- to understand her Investments
- to know why her taxes declared that she made too much money yet she felt she didn’t have enough to live on
- to stay in her home and needed to know if necessary, could she afford to go into a Retirement home
- to be independent, to not need financial help from her family and to be free to make her own decisions
Six years ago, Audrey and Mrs. D met with Vanessa. They talked about Mrs. D’s concerns about a living income, high income taxes, and the claw back with OAS. After their second meeting Mrs. D consolidated her investments to be managed by Vanessa – GIC’s, Mutual Funds and all the Stock Certificates. Vanessa told them that Mrs. D could continue banking with RBC and that she would look after the Wealth Management side of preserving their capital, Estate Planning, would create a plan to provide income in a tax efficient manner and would look after all her various Investment types.
- Mrs. D consolidated $1.4 million total investments in 2011 (Mrs. D was shocked, floored, gobsmacked by that number!)
- She received $2500 a month for 5 years (total of $150,000) in addition to her CPP , OAS and a pension from her late husband .
- Gave $90,000 to her children and grandchildren, then kept another $30,000 aside for her younger 2 granddaughters.
- Vanessa arranged a meeting with a lawyer for Mrs. D and a new POA (living and financial) and Will was created
- Mrs. D has $1.3 million
- She now has dementia and the POA created 6 years ago is now being implemented
- Her income is now increased to $4000 a month from her investments for a full time private care giver so her wish of staying in her own home could be respected
- Has semi-annual reviews with Vanessa with her daughter who is the financial Power of Attorney