Having been a lawyer myself and helming my own law firm, I know that lawyers are among the most difficult clients.

They are intelligent, particular, exacting, and busy. They often want a high degree of control over their portfolio, yet don’t have the time to take part in approvals or discussions. Firm partners may face independence restrictions.

I have the experience and empathy to provide strategies that can help you manage these challenges and succeed financially at all stages of your legal career. I’ve been incorporated and know how to invest within a professional corporation and how to maximize tax advantages.

Rely on me for assistance with debt management, tax-conscious portfolio management, integrated wealth planning, bespoke banking, tax planning, consulting regarding incorporation, real estate and practice valuations, cash flow management, children’s education planning, retirement and estate planning, and general financial advice.

 

Individual Pension Plans (IPPs)

If you are a professional who owns and operates your own practice, an IPP can be a beneficial strategy to provide financial security in retirement.

An IPP allows you to:

  • Contribute more tax-deductible assets annually than an RRSP,
  • Adjust your annual contribution amounts according to available capital,
  • Enjoy the highest degree of creditor protection in Canada,
  • Invest in asset classes that are not allowed in an RRSP,
  • Deduct your investment, pension management and other IPP fees,
  • Enjoy the assurance of having fiduciary oversight from the pension committee and compliance officers, and
  • Transfer wealth to your loved ones without triggering a tax event.

 

Cash flow management

Lawyers earn significantly higher incomes than most people, yet they often spend more, too. Your busy lifestyle and high-pressure profession may prompt you to spend on expensive conveniences and entertainment.

I will help you budget to balance your short-term lifestyle needs with your long-term life and legacy goals; manage cash flow between your corporate, personal and trust accounts; and advise you on the best way to use the extra cash flow when your practice starts generating growing revenues.

 

Debt resolution

Law school tuition has increased significantly, so your wealth plan may include a student loan repayment strategy to shorten the time spent making payments instead of contributing to your portfolio to benefit from long-term compound interest. On top of your student loans, you may also have a mortgage, car loan, or other debts to repay.

I will develop a plan to pay down your debt and create a wealth plan that includes a repayment schedule for all that you owe.

 

Tax minimization

Beyond contributing to a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) and/or Individual Pension Plan (IPP), I can offer a wealth of tax planning strategies you can use to further mitigate tax.

When you are incorporated, you can pay yourself through your corporation, which is taxed at lower rates than personal income tax rates. As well, your corporation enables you to own stocks directly rather than owning them through a mutual fund or pooled fund. This brings you much greater tax efficiency. As an incorporated professional you can opt to receive your income through dividends, which are taxed at a much lower rate than income or capital gains.

I will work with the expert tax planners at BMO Private Wealth to ensure your corporation and portfolio are structured to maximize every allowable tax advantage.

 

Retirement planning

I will help you determine what you need to accumulate to enjoy the lifestyle you envision for your retirement and then build a prudent, income-generating portfolio to fund the steady stream of needed liquidity. Lawyers often have above-average expenses from dues, insurance and other fees, and often start investing later in life than most investors, so diligent retirement planning is extra important. I will work with High-Net-Worth Wealth Planners to ensure you meet your goals without running the risk of outliving your savings.

 

Estate planning

Crafting a thoughtful and tax-conscious estate plan that ensures your wealth will be distributed according to your precise wishes is a high priority. I will consult regarding your Will, beneficiaries, and Powers of Attorney and ensure all the details are correct and up to date. I can also introduce you to professionals from BMO Trust Company to help administer your estate and provide trusts in complex situations.

 

Insurance

Your wealth plan should include insurance coverage to protect you, your loved ones, and your practice should unforeseen crises occur, such as illness, injury or a malpractice suit. Insurance can also be a very effective and tax-wise estate planning tool. If an added measure of sophistication is required, I will introduce you to trusted BMO Private Wealth Estate and Insurance Advisory specialists.