SESSION OVERVIEW:

For most investors, money is no longer something to touch and feel. Electronic transactions have largely replaced traditional use of currencies, and because of this, the accessibility of personal advice. Yet, there are real issues in managing financial transactions, understanding their costs, and hedging tax and currency risk as part of a sound wealth management strategy. Advisors can add value in helping clients understand how to build and manage wealth in a digital environment, including managing investments in Canada and around the world with sound investment solutions for specific client objectives.

APPROACH:

Digital financial transactions are now the norm, but this paperless environment presents new stresses and risks for clients. Do they understand how to manage passwords and security? Are they satisfied with their understanding of cost structures? Are they able to manage currency fluctuations to fund the costs of owning property abroad or taxes as a result of their global investment activities? Advisors need to how to answer these questions. Further, with the Canadian dollar losing significant value recently, clients may need new financial planning help, especially if they own assets abroad.

WHAT YOU WILL LEARN:

• The risks that clients are exposed to in a digital environment, including in terms of transactional costs
• Currency fluctuations can change financial plans, especially for Canadians with properties in the US or abroad. Advisors must present strategies to proactively anticipate and hedge those risks, and alternatives for funding resulting shortfalls
• Advisors need to manage investments to ensure that fees and currency fluctuations are covered in investment returns

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.