Does your investment strategy include philanthropy?
by Will Mactaggart
Richardson GMP
As Canadians celebrate our sesquicentennial, I think about being a Canadian in terms of how I feel connected to our community. Helping people to have the best possible quality of life is a quintessential part of the legacy that I want to leave for my kids and future generations. This goal is the basis of my personal philanthropy, and is a perspective that we bring to conversations with our clients’ about their own goals.
The first step is to help people understand that with smart planning, they can realize their personal goals and still invest in their community. It’s usually a deeply personal discussion: Did a charity help you or your family get where you are? Are there certain causes that matter to you? Do you prefer to give quietly, or build a well-known legacy in the community?
We layer these goals into the client’s larger investment picture: understanding the right balance between personal needs now and in the future, professional or entrepreneurial goals, family needs such as education, and these broader philanthropic interests. We are then able to explore the different asset allocations that work together to deliver the best returns and are aligned with our client’s values.
Of course, as with anything involving money, the devil is in the details. A legacy gift of insurance needs to be set up and managed correctly to maximize the benefit. A direct gift to charity is more effective if you pick the right security from your portfolio. Helping clients make the right decisions allows them to make a bigger philanthropic impact.
Fundamentally, these strategies are all about tax minimization; by setting up the charitable gift in the right way, we can reduce our client’s tax burden today and in the future. In essence, some of the money that might otherwise go to taxes can be redirected to charity.
Talk about win-win.
