Your Advisor.ca/Advisor's Edge Millionaire Archives And Web Resource Cheat Sheet

(July 2002) If you are prospecting and advising wealthy clients, it is essential to be prepared with myriad information and resources. Here are some direct links to some past Advisor.ca and Advisor's Edge articles concerning challenges and opportunities associated with the high net worth or millionaire market in Canada, along with some links to useful Web-based resources and tools:

Cultivating HNW Clients All About Vision, Duplication And "Painless" Referrals: An advisor's ability to attract "premier" or high net worth clients boils down to three factors: a focused target market, a duplicable system and a strategy for generating "painless referrals," according to U.S.-based consultant and author Paul Karasik.

Give Wealthy Canadians What They Want — Advice For The Family: Financial advisors should always remember that rich Canadians see wealth as a "family affair," says Keith Sjögren, a research leader with Taddingstone Consulting Group. This attitude towards wealth reveals a need for advisors to offer counsel to not only a wealthy individual, but also his or her family.

Canadian Millionaires Send More Business To Fee-Based Counsellors: Fee-based investment counsellors appear to have grabbed some of the market share of advising Canadian millionaires from full-service brokers and financial planners. A survey of 400 millionaires in 2001 found that the number dealing with fee-based counsellors increased, while planners and full-service brokers lost ground. Most millionaires worked with more than one advisor.

A Wealth Of Information — Stenner's New Book Unveils The Mind Of The HNW: What do rich people want and need in their wealth management plans? How do the affluent think about money? Those are a couple of the questions Thane Stenner, first vice-president and senior investment advisor with CIBC Wood Gundy, answers in his book about high net worth individuals, True Wealth: An Expert Guide For High Net Worth Individuals (And Their Advisors).

Book Excerpt: True Wealth By Thane Stenner: Wealth isn't simply a number on a quarterly investment statement — it's a state of mind. And while money certainly can't buy happiness, when one accumulates a certain amount, it can change the way one thinks. Anyone hoping to provide advice to a high net worth individual (HNWI — a person with at least $1 million in investable assets) or an ultra high net worth individual (U/HNWI — a person with at least $10 million in investable assets) needs to understand how he or she actually thinks about wealth.

Analyzing Canada's Millionaire Market: Millionaires in Canada have a common complaint about financial advisors. Simply put, advisors tend to focus only on the liquid assets of the wealthy and don't offer enough advice about the non-liquid assets. That's one of the conclusions of a study of Canadian millionaires produced by the Toronto-based research and consulting firm Taddingstone Consulting Group, Inc.

Wealthy Canadians Advice-Dependent — Survey: The majority of high net worth Canadians are heavily reliant on financial advisors, according to a recent survey. Nearly three-quarters of HNW Canadians questioned by Ipsos-Reid rated professional financial advice as their most important source of investment information and 85% said they had used an advisor in the last year.

More Sweet Opportunities...

Mining The Millionaire Market The Rich Client's Malady: Affluenza Insuring Wealth - And Your Edge With Millionaires Instant Wealth: The Challenges And Opportunities Of Advising "Sudden Money" Clients Are You Millionaire Market Material? Try Our Online Workout Over-The-Top Appreciation Events For Your Top Clients Your Advisor.ca/ Advisor's Edge Millionaire Archives And Web Resource Cheat Sheet

Higher Ground — The Lowdown On High Net Worth Investors: Whether it's a look at Canada's growing HNW market, a client template letter dealing with "sudden wealth" or a mini-kit to help you host your own HNW dinner event, it's worth your while to get the lowdown on dealing with the high net worth investor.

On Cloud One Million — Strategies For Attracting & Retaining HNW Clients: It's every advisor's dream. A wealthy client strolls through your office door, looking to you to tell him what to do with his money. Not only does he bring his investable assets, but he also brings a gaggle of other high net worth friends with him. Can this dream come true? Yes, but only if you build and nurture effective relationships with your clients. Advisor.ca gathered tips from three financial advisors on how to both enhance relationships with clients and build your HNW client base through client appreciation strategies.

Set Sail: Want to rub elbows with the high net worth? Think open water. If you've never considered braving the waves and taking up boating or sailing as a recreational activity, consider this: It is the second most popular recreational activity among high net worth Canadians.

Hedge Fund Distributor Says HNW Clients Charting Own Course: High net worth clients are more open and knowledgeable than most advisors when it comes to alternative investment products such as hedge funds, says the head of Excalibur Investment Strategies. Denise Castonguay says HNW clients prefer a proactive approach, contacting firms directly about products, and having their advisor complete the transaction.

Growth Of HNW Market Will Drive Demand For New Financial Services: Canada's market of high net worth individuals is predicted to grow by 9% each year to exceed $4 trillion by 2010. One study also concludes that the net worth of many of these Canadians will rise through inheritances. This wealth transfer could prove to be a "turning point" in the client's relationship with their financial advisor.

Pulling The Tax Trigger: The wealth management industry in Canada is booming, and will get much larger yet. I have spent my career advising high net worth diems and have found these clients to be long past maximizing RRSPs and have accumulated significant taxable wealth where saving tax within the investment portfolio matters. Focusing on after-tax investing can be a powerful differentiator in your advisory services as you compete in the new wealth management industry for affluent clients in Canada.

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Your Millionaire Market Web Resource Cheat Sheet

Allenbridge's Advisory Practice: Articles and insights on the effects of wealth and "affluenza."

The Affluenza Project: Information on the symptoms, causes and cures of affluenza.

Bill Gates Net Worth Page: The ultimate ultra high net worth perspective check.

Altamira Net Worth Calculator: Just how high is your client's net worth? Figure it out with this free online calculator.

Millionaire Calculator: Have clients who are aspiring millionaires? Find out how long it will take them with this calculator.

Canadian Business' Rich 100: The ultimate prospecting list of Canada's 100 wealthiest citizens.

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07/02/02