High Net Worth individuals represent a strong and growing demographic in Canada. However, there’s no question that the Mid Income Market is by far the largest and fastest growing sector in the Canadian Market. In fact, Canada has among the richest Middle Class in the world, and it’s only going to get stronger.

 

The banks, brokerage firms, and financial planning firms have been using endless efforts in trying to attract and keep the High Net Worth and the Ultra High Net Worth clients. However, during that process, they have all severely under-represented and under-served the Middle Class.

 

It used to be that a client would need a substantial amount in assets and net worth if they wanted to get some sort of personalized Financial Plan that came with a superior level of individual service from their Advisor. Also, some of the strategies and concepts that were being used by the High Net Worth market were not available to the Middle Class, mostly due to lack of education in that market and the very high minimum account sizes.

 

Banks and Advisors would lump all their clients into packaged products, like the traditional Mutual Fund or Segregated Fund, which resulted in clients not getting full value out of their hard earned income. This also meant a much lower level of service, higher fees and no individual account management. Private Wealth Management was a foreign concept to the Middle Class, and it’s essentially remained that way until recent years.

 

What is Private Wealth Management?

 

Private Wealth Management is a Financial Planning discipline that incorporates Investment Portfolio Management, Estate Planning, Tax Planning as well as a number of other financial services. This requires the coordination of Financial Planners, Tax Professionals, Legal Professionals and other various Professionals that would take part in the Financial Planning process.

 

It used to be, if clients wanted to get into Private Wealth Management, they would need $500,000, $1 Million or multiple Millions in investible assets, before an Advisor would even sit down with them. However, over time, with the advancements in technologies and the opening of other markets around the world, the Private Wealth concept has become something that is not just for the Wealthy.

 

Although with smaller accounts, the Financial Planning process might not be as complicated or have as much an in-depth array of strategies, the fact remains that there should always be a team of professionals working with each client.

 

In today’s marketplace, Private Wealth Management can be accessed with a $100,000 account, or even lower, which makes it much more accessible to the overall market. With this type of management comes: lower fees, discretionary portfolio management services, tactical money management, a higher level of service, as well as much more transparency.

 

The world and markets have changed drastically over the last few decades, and probably will continue to change more over the coming decades, so it is much more important in today’s world to have a full team of qualified and knowledgeable professionals working together on a solid and sound Financial Plan.

 

The strategies and services that were once only available to the Wealthy are now becoming more and more available to the Middle Class, and it’s important for every client’s financial well-being that they take advantage of them. It’s time for client’s to evolve past the traditional packaged products and the Buy & Hold strategies that have been pushed to us over and over again, and start working with a team of Elite Advisor Professionals. This is where you will get the true value of your hard earned money.