iA Securities & HollisWealth* are now iA Private Wealth

We are excited to introduce our new company name, iA Private Wealth. The new name is designed to better reflect the essence of what our advisors do – provide holistic wealth management solutions tailored to the unique needs and goals of investors across Canada.

Please take a few moments to browse our newly redesigned and updated website to learn about the many benefits of working with an iA Private Wealth Investment Advisor.

*Refers solely to the Investment Industry Regulatory Organization of Canada licensed advisors within HollisWealth.

Your Wealth, Our Passion

Building, growing and preserving wealth takes planning and a comprehensive, holistic vision. When you work with an iA Private Wealth Investment Advisor, you have a trusted partner who is fully dedicated to your success at every stage of your lifelong financial journey.

Holistic planning for every facet of your life

We believe comprehensive personal wealth planning, supported by unbiased advice, collaboration and transparency, is the key to meeting your needs and helping you achieve your goals. Our advisors focus on six main priorities to create a plan that’s tailored to you:

Investing

A proven wealth management philosophy is one that takes emotion out of the equation and relies on a disciplined, long-term approach. Your objectives, risk tolerance, return expectations and time horizon will be the key factors your Investment Advisor takes into account in designing a plan that can help meet your retirement and other goals.

Saving & borrowing

Your Investment Advisor will help you set and achieve saving goals aligned with your needs and objectives, and develop a borrowing and debt management strategy for your unique circumstances.

Education planning

Whether you’re looking to fund a child’s education or returning to school to upgrade your credentials, your Investment Advisor can help you understand your options and maximize the value of a Registered Education Savings Plan (RESP).

Tax planning

Your Investment Advisor will conduct a thorough assessment of your circumstances to determine the most tax-efficient way of building your portfolio.

Risk management

Your Investment Advisor will develop a risk management plan that addresses the full range of factors that could affect your financial well‑being.

Will & estate planning

To plan for the preservation and transfer of your assets, your Investment Advisor can help you keep an eye on the horizon by understanding your situation and wishes, including tax-efficient legacy planning.

Latest insights

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How to Pass on the Family Cottage

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By iA Private Wealth, May 4, 2022

Canadians adore their escapes from the city. And what’s not to love? Not only is a cottage a great getaway, bringing joy to families and friends for generations, it’s also proven to be a profitable investment for many who purchased their property decades ago.

It may be hard to believe, but this cherished home away from home that has brought your loved ones together over the years can also cause strain on family relationships in the future. When you pass away, an inherited cottage often becomes a source of sibling friction as disagreements arise about how to share it, whether to sell it and what to do about the capital gains that’s accrued on it. That’s because, unlike a principal residence, which isn’t subject to capital gains, second homes are considered investment properties, and capital gains tax is owed when an estate is transferred from parents to children.

The only way to avoid the tax — and only for a finite amount of time — is to roll over the deed to a spouse, as you would with an RRSP or RRIF. That’s not possible to do with children, so eventually, taxes must be paid.

There are four main strategies for passing a secondary property like a cottage to the next generation:

Gift it now instead of later

A popular way to deal with the capital gains tax conundrum, especially if you only have one child, is to gift the cottage to them while you’re still alive. Doing so means you can pay capital gains based on the property’s value today, which makes sense if its value keeps rising.

To minimize the capital gains tax burden from the transfer, you may want to consider stretching out the gift over five years. Keep in mind that doing so might push your annual income into a higher tax bracket each year, instead of just once. And that means the government may claw back income support like Old Age Security.

Don’t forget about renovations

Capital gains tax is calculated based on the adjusted cost base of the property. That means you can count any major renovations you’ve made to the property over the years. This raises your “starting” purchase price and reduces the gain you’ve made, so you may be able to reduce your taxes. As always, it’s best to speak with an advisor and a tax professional to decide if this option makes the most financial sense.

Consider life insurance

Purchasing a life insurance policy that covers future capital gains your heirs will have to pay once you’re gone is another option. The policy may even be set up to cover other taxes — like those payable on the disposition of your RRSP, RRIF and other taxable investments. Finally, with enough life insurance, your children could also have enough to fund ongoing maintenance on the property.

Sell it

It’s worth having a frank discussion with your children about what they may want to do with the cottage after you pass on. Parents often assume their kids will want to keep it in the family, but the reality is that many children would either prefer to buy one for their own spouse and children or aren’t interested in the upkeep once the property becomes their responsibility. Another possibility is that one child may be more attached to the cottage and want to preserve its legacy while another may prefer instead to inherit some other portion of your estate.

If you decide to sell, you may choose to do so while you’re still alive or you can stipulate in your will that the property be sold after your death, with taxes and transaction costs paid by your estate and the remaining funds shared by your heirs. While selling it may be emotionally difficult for you and your family, it may also be the most straightforward solution.

Interested in finding out more? Contact us for seasoned advice on all your estate planning questions.

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Stay in Control of Your Future Through Powers of Attorney

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By iA Private Wealth, April 29, 2022

Being prepared for whatever life circumstances you may experience is at the core of a comprehensive wealth plan. This includes making plans for potential mental or physical incapacity. Once your wishes are formalized, it can bring you, and your family, peace of mind knowing that your decisions will endure if you are unable to communicate them.

What is power of attorney?

Most adults are responsible for making their own decisions about key aspects of their lives, such as personal finances, health care and living arrangements. When needed they might consult family members, trusted friends or professionals with proficiency in certain fields, but generally they are in control of their own choices.

No one likes to think about the possibility of having to give up control of these responsibilities, however, if there is a significant deterioration to mental or physical health, who would you want making these decisions for you? This person (or people) will act as a substitute decision maker, and is officially called a power of attorney (POA).

A POA document specifies the decision-making authority that a person (typically referred to as the “grantor” or “donor”) gives to a third party (known as the “attorney”). Note that the attorney doesn’t need to be a lawyer, but can be if the grantor so chooses. While the attorney is legally obligated to act in good faith and in your best interests (otherwise known as “fiduciary duty”), careful thought must go into choosing this person. They will have the ability to make highly impactful decisions on your behalf.

It is important to note that a POA document is different from a will. A POA is only valid while you are alive. After death, your will dictates how your estate should be handled and distributed.

Types of POAs

Depending on your personal circumstances, you may choose to make different types of POA arrangements. The most common are:

  • POA for property. This allows the attorney to make decisions regarding your financial matters, such as managing your investments and other financial accounts, paying your bills, renewing policies, implementing estate planning strategies and selling property.
  • POA for personal care. This allows the attorney to make decisions regarding your health care, such as medical treatments, hygiene, personal safety and long-term care or other housing arrangements. It helps ensure continuity of care, guided by your principles and preferences.

A POA for property only gives the attorney powers when the grantor is mentally capable. If you want this arrangement to continue should you become mentally incapacitated, then opt for an enduring POA (also known as a continuing POA). A POA for personal care takes effect only if the grantor becomes mentally incapacitated, as determined by a thorough assessment by a qualified evaluator or medical professional.

For any POA, you have the ability to place limits on the attorney’s powers, such as restricting them from selling your home. Also note that an attorney is not allowed to designate or change beneficiaries for your registered plans or insurance policies.

Importance of beneficiary designations

Since your chosen attorney cannot designate beneficiaries, it’s important to do it while you maintain adequate mental capacity. This way, you’ll have the comfort of knowing that your assets will be distributed to the people you have specifically selected. Through your will, you may also decide how your assets are distributed (for example, it’s common to set up trust accounts for minors).

Without named beneficiaries, your assets will go to your estate and the court may decide how to allocate them. This might be a slow and expensive process, plus there’s no guarantee your assets will be distributed as you desire. It’s in everyone’s best interest to designate beneficiaries on insurance policies and registered plans like RRSPs, RRIFs and TFSAs.

Similarly, if you don’t have valid POA documents, the court will appoint someone to manage your assets if you become incapacitated, which can also be time consuming, costly and not aligned with your wishes.

Ready to incorporate POAs in your wealth plan? Contact us today.

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Client Focused Reforms: Putting Clients First

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By iA Private Wealth, April 25, 2022

Finding an Investment Advisor who provides unbiased, professional advice is foundational to a successful relationship. Securities regulators recognize this important aspect of the investor experience and continue to enhance regulations that focus on building trust.

Over the years, improved disclosure, reporting and fee transparency have refined the overall client experience. In 2021, Client Focused Reforms (CFRs) were introduced to help ensure that clients are the top priority in a client-advisor relationship. As the Canadian Securities Administrators (CSA) continues to implement new rules that put clients’ best interests first, we welcome these efforts to uphold a consistent and high standard of care for clients.

Conflicts of interest

Reforms implemented last year require registered dealers and the advisors who work for them to inform their clients of any conflicts of interest that may arise. The CFRs place the onus on dealers and advisors to explain in clear and straightforward language what these conflicts of interest might be and how they will address them in the best interests of their clients.

An example of a potential conflict of interest would be if an advisor is in a position to earn higher compensation for selling a certain type of product, or where the dealer might stand to receive a greater benefit, such as “proprietary” mutual funds managed and operated by the firm.

With the rollout of the CFRs, the advisor needs to prove the chosen product is truly in a client’s best interests and is most appropriate for their particular circumstances – even if a similar, lower-cost solution is available. The advisor must document this discussion and any decisions emanating from it, with justification as to why the recommended product is most appropriate. Many advisors have already been doing this in their practice, but now there’s a universal framework to formalize the process.

Suitability of investments

Advisors continue to be responsible for determining if an investment is suitable for a given client, and the CFRs help them accomplish this important task. The advisor can gain greater insights into each client through an enhanced Know Your Client (KYC) document. An advisor uses the KYC to gather an expanded range of information about a client’s financial situation, risk tolerance, time horizon and investment objectives, while making a reasonable effort to keep the KYC updated in a timely manner as a client’s circumstances change.

Also, the Know Your Product (KYP) requirement ensures that advisors maintain strong knowledge of any securities they recommend and buy/sell on behalf of their clients. Factoring into an advisor’s recommendation is the robust understanding of a product’s primary characteristics, risk potential and total costs (and how, over time, those costs may impact a client’s return on investment). The dealer firm is required to implement specific procedures and controls to properly assess and monitor any investment security available to clients.

Enhanced disclosures

Upon opening a client account, dealers and advisors must deliver enhanced information to give clients a sound understanding of their overall offering. This information includes disclosing which products and services might be available (or unavailable) to the client, how advisors are compensated, what types of costs the client may incur through their ongoing relationship, and what specific responsibilities the dealer and advisor have when serving clients and managing their accounts.

The measures contained within the CFRs help to educate clients, inform their investment decisions and keep their interests at the forefront. While it involves additional time and effort for the dealer and advisor, there isn’t any action required on the part of the investor. For iA Private Wealth, the CFRs are a welcome development as they reaffirm our longstanding commitment to meeting the highest standards of integrity, transparency and professionalism.

We’re proud to focus on our clients’ best interests as we help them achieve their financial goals. If you have any questions about these changes, reach out to your advisor directly or contact us today.

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A career at iA Private Wealth

Looking for a rewarding career in financial services? We have a wide range of opportunities for talented, committed professionals, and offer attractive compensation and benefits.

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Investment Advisor opportunities

More and more advisors are looking to iA Private Wealth as the partner of choice for building and growing an independently owned and operated business with an unwavering focus on client success.

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