FREQUENTLY ASKED QUESTIONS
Q: Why do I need a wealth advisor?
A: Your money has the potential to help you realize your dreams, if managed correctly. Like a well-built home, it can provide comfort and protection throughout your life. But without good plans and knowledgeable builders, a poorly built home might be unsafe, unsuitable and uncomfortable; even lose value over time. Just as there are contractors or architects that may be able to build their own homes, some people may be qualified to and interested in managing their own investments. For those who might not have the specific know-how, time or inclination to undertake the design and administration of a well-constructed investment portfolio, a wealth advisor can be the crucial link between you and your life’s goals. A trusted wealth advisor creates a personalized strategy for your financial situation that protects and grows your assets, builds long-term value and gives you peace of mind about your future. They supply the expertise, objectivity and discipline needed to successfully navigate the financial markets using time-proven proactive processes rather than reactive emotions. Our clients are farmers, accountants, contractors, business owners, retirees, engineers, widows, doctors, couples, employees and individuals of all types. In other words, people just like you; people who benefit greatly from the value and guidance we provide.
Q: Why do I need a whole team of professionals?
A: The Kirkby Group is made up of individuals with a broad range of experience, expertise, talents and temperaments. Like you, we are not all cut from the same cloth, which enables us to bring a more complete set of skills to the table. We have seven teammates: three wealth advisors, two senior administrators and two planners. Working as a team helps us provide a better client experience, build stronger relationships and ensure you have a comprehensive and collaborative assessment of your needs that is not dependent on a single perspective. We share a fundamental belief in investment strategy and client service that ensures you get consistent high-quality advice, timely service and personalized support for all your needs. In addition, our family office approach provides access to an even broader range of professionals that extend the abilities of our team for your benefit. It costs no more for you to have a team, and we believe it provides the highest level of client service and consistent results.
Q: What does “holistic” wealth management mean?
A: At the heart of our business philosophy, we believe that holistic wealth management means more than just money management. In fact, we see money as merely the tool that helps our clients achieve true comfort, happiness and overall fulfillment in life; in other words, peace of mind. We view each client as a whole person with a variety of important individual needs, not just as an investment account. A holistic approach to wealth management helps our clients address the broader needs of life in areas such as legal matters, accounting, fitness, recreation, mental health, travel and much more. By facilitating access to, and working with, a network of reputable professionals, we ensure that each client’s wealth strategy is fully integrated with the other important aspects of their life.
Q: What do you mean by “peace of mind”?
A: ‘Peace of mind’ means different things to different people. To the Kirkby Group, it means our clients live their lives without unnecessary worry about their financial matters because we’ve taken the time to know their full situation and made sure the important issues are addressed in a way that meets their needs. Having a relationship of trust with our clients, and truly understanding their needs, concerns and goals, lets us bring them a complete solution that serves them today and for the future. Our clients know that we’ve considered and planned for all facets of their lives today, tomorrow and to the end, so they can fully enjoy living without the stress of the unknown and unnecessary worry. They focus on the things that bring them joy today while reaping the benefits of their hard work and savings. This is what we call peace of mind.
Q: Why should I consolidate my investments with one advisor?
A: Some investors believe that spreading their investments among several institutions makes them less vulnerable because “their eggs are not in one basket”. The reality is that their portfolios typically suffer from greater risk and lower performance because they lack a coordinated strategy and an efficient cost structure. Consolidating investments with one trusted advisor creates the greatest opportunity to have a properly designed and diversified portfolio that provides the appropriate level of security, growth potential and tax efficiency at a reasonable cost. It allows an investor and their advisor to develop a deeper relationship so that the strategy can be personalized and most effective for the investor’s circumstances. It also simplifies their financial matters, making it easier for them to understand the results they are getting. And when the time comes, a well-planned and consolidated investment portfolio enables an investor’s spouse or family to deal with their financial estate in the simplest and most tax-efficient manner.
Q: How often should I meet or be in contact with my advisor?
A: In most cases, it is sufficient to have a complete face-to-face portfolio review with your advisor at least once a year, though some clients prefer to meet semi-annually, and we are happy to do it. In all cases, your advisor is available to you by phone or in person (by appointment) if you have questions or concerns about your investments at any time. As well, CIBC Wood Gundy provides regular statements of your investment account(s) throughout the year, so updated information is never far away. You can receive your statements by mail or access them online. At any time, should you have a material change in your personal situation, i.e. marriage, divorce, career change, move, inheritance or major health issue, it is a good idea to contact us so we can update your information, discuss your needs and ensure that your portfolio addresses your new situation.
Q: What is a model portfolio?
A: A model portfolio is a collection of securities, i.e. stocks and bonds, selected according to specific criteria and used as a template – or model – for developing the investment portfolio of each client. Our model portfolio consists of high-quality securities that provide effective diversification of asset classes, industry sectors and geographic regions while enabling us to adjust the weighting of each asset class according to the client’s specific needs and investment temperament. Our model portfolio was developed in 2002, and has been tracked and analyzed as an ongoing benchmark of portfolio performance since 2003. It provides real life, long-term data under actual market conditions. By using this model portfolio, we are better able to provide accountability for the long-term achievement of our clients’ investment objectives.
Q: How do you choose the securities in the Kirkby Group's model portfolio?
A: The securities in our model portfolio are chosen to meet specific objectives. First, to provide an appropriate allocation of asset classes such as cash (or equivalents), fixed income, real estate and equities. This broad level of diversification is critical as asset allocation is the primary driver of overall long-term portfolio performance. Second, to provide a reasonable level of diversification within the asset classes without becoming unwieldy. We accomplish this by using a mix of individual securities and exchange traded funds (ETFs). The individual securities and the ETFs are selected for their underlying quality, long-term performance expectation, yield and liquidity. Bond ETFs are based on high-quality government and corporate issues, providing appropriate levels of capital protection and reasonable interest yields. Equity ETFs are based on high-quality companies that provide diversification, solid dividend yields, liquidity and long-term growth potential. Individual equities are high-quality (“blue chip”) companies from a range of industries that provides solid dividends, liquidity, growth potential and an appropriate level of correlation. Correlation means that the equities are selected for their different business cycles that offset each other; in other words, if some things go down in value, others go up. This provides a hedge against broad movements caused by natural business cycles. Our model portfolio is based on a conservative ‘buy and hold’ approach for long-term growth and predictability, and does not include speculative positions that depend on the use of unpredictable market timing.
Q: What is a “family office”?
A: Typically, a family office is a wealth management firm that serves the overall financial needs of one or more ultra-high-net-worth (very wealthy) families, acting as their CFO (Chief Financial Officer) – so to speak – on all money issues. In a similar way, our family office also delivers a complete range of wealth advisory, financial management and related professional services; however, we make it available to all our clients, not just the ultra-wealthy. In addition to our in-house services around investments, financial planning, estate planning and insurance, we collaborate with a network of professionals on services like personal banking, law, accounting, health care, travel planning and recreation to deliver even higher value to our clients’ lives. We regularly host round table meetings with our clients and their chosen professionals to proactively work together. These meetings save our clients telephone tag between their professionals, time and money while producing actionable results.
Q: I think my financial affairs are in order; why do I need a financial plan?
A: There are many reasons it might be prudent to create a financial plan, even when you think your affairs are in order. To start, getting an objective second opinion of your financial situation is never a bad idea. As well, things may have changed in your life that might affect the outcome of your existing strategy. Or, things may have changed in the world of finance or economics that make your existing strategy no longer ideal for your circumstances. We believe it is such a critical part of determining your best investment strategy that we encourage the creation of a financial plan for all our clients, and recommend they revisit and update it on a regular basis. Additionally, what we ultimately create through the planning process is a document we call your BluePrint. This document is essentially a database of all your relevant information secured in one place and updated regularly to maintain its relevancy as your life evolves. Our clients always find value in financial planning and tell us the process helps them consolidate and clarify their thoughts on a wide range of deeply personal issues. In the words of Simon Sinek, “Success always takes help. Failure is done alone.”
Q: How much does it cost to get a financial plan?
A: While financial plans can cost hundreds or even thousands of dollars at some companies, the Kirkby Group alongside the advisors have Certified Financial Planners® on the team that can create a comprehensive personal financial plan as a complimentary value-added service for all our clients. We believe that thorough financial planning is an essential part of understanding our clients’ needs and long-term goals, so that we can implement the most appropriate and effective investment strategy.
Q: What is entailed in getting a financial plan done?
A: For the client, the process is fairly simple. Creating a meaningful financial plan begins with a questionnaire that guides them through the process of gathering key information such as tax statements, bank statements, insurance policies, wills and balance sheets (for business owners). The more complete and accurate the information we receive, the more relevant and useful the output of our powerful planning software. We create a document we call a BluePrint, which is essentially a database of all your relevant information secured in one place. Your BluePrint is a living document that we update and monitor over so it remains relevant as your life evolves. After the information is gathered, we examine all facets of the client’s financial picture such as lifestyle needs, income streams, net worth, estate structure, tax implications, insurance coverage and personal risk tolerance to develop an accurate snapshot of their current situation and a realistic projection of their financial future. The information and the planning outcomes are presented in a comprehensive face-to-face presentation and accompanying set of documents for the client’s personal records.
Q: Why do you require so much personal information for a financial plan?
A: A financial plan is only as good as the data used to create it. Generic plans generated with only basic information cannot address the true complexities that come with real life; situations like mixed families, business ownership, foreign real estate, family trusts, multiple pensions and potential inheritances, to name a few. To make sure a client’s investment strategy is based on their best interests, we need to fully understand their life situation, priorities, deepest concerns and most cherished goals. A comprehensive financial plan is their personal roadmap for the big decisions of life and, as such, needs to reflect the reality of their situation if it is to help them reach their goals. Rest assured, all information provided is handled with the utmost sensitivity and confidentiality, for the client’s benefit and their benefit only.
Q: How do your financial plans differ from competitors’ financial plans?
A: Unlike the typical generic plans produced by many financial institutions, our financial plans are as unique as our clients. They are deeply relevant to their specific circumstances and consist of two important components. The first part is an extensive ‘snapshot’ we create of their life situation including personal data, family tree, earnings, net worth, business holdings, insurance summary and estate information. The second part is driven by our powerful CIBC Goal Planner by Voyant (GP) software, in which we load their complete financial data along with historically accurate – though conservative – assumptions on investment returns, inflation and interest rates. In the hands of our experienced planners, GP has the power to analyze and present realistic projections of the key drivers that will affect financial decisions going forward, examine multiple “what if…” scenarios, as well as highlight any gaps that might exist in cash flow, tax planning or estate preparation. "What if I decided to retire early?"
Q: What do I do with my financial plan when we are done?
A: Once we’ve assembled and analyzed all aspects of a financial plan, we meet with the client to review and explain the results. Together, we examine different “what if…” scenarios in real time and provide invaluable input into major life decisions, such as “When can I retire?” or “Can I afford to…?” The financial plan is a living document that can be reviewed and updated as needed to incorporate major changes in the client’s life. It becomes a relevant benchmark for how they are progressing toward their goals. We also provide a snapshot summary of a client’s family and financial situation in one document we suggest be kept with their will, which provides a concise overview of their financial details for executors and family members who may eventually have to deal with their estate.
