Fee For Service Financial Planning

Advisory Services Agreement - Parallel Wealth Financial Group Inc.

 

Approach

At Parallel Wealth, we understand the importance of thorough retirement planning. That's why we adopt a customized approach, starting from scratch for each plan, without relying on templates or preconceived assumptions.

Our primary focus is to align your retirement goals and objectives, leveraging our extensive experience to optimize your income and minimize tax liabilities. Our plans are designed to be both data-driven and goal-oriented. This means that while we integrate your specific goals and retirement objectives into each plan, we also rely on a data-driven methodology. By meticulously working with the numbers in the system, we strive to maximize the benefits of each plan for our clients. Our ultimate aim is to provide you with higher after-tax income and minimize tax payments to CRA throughout your retirement (and, if applicable, before retirement as well).

Scope

To address your financial planning needs effectively, we will deliver the mandate in the following phases:

Phase 1: Discover

Data Gathering: In this phase, our team will collaborate with you to collect the necessary information for building and designing an optimized plan.

To initiate the process, we will send you a questionnaire in the form of a Word document. This questionnaire will focus on gathering data related to your assets and liabilities, without requiring any personal information. Additionally, we will explore your retirement goals, objectives and concerns. Please provide all relevant details in the notes section of the questionnaire.

To facilitate the secure transmission of supporting documents, we will provide you with a secure vault for uploading. It is important that you have access to your CRA (Canada Revenue Agency) account online and My Service Canada account to obtain your CPP, OAS, and tax numbers. If you require assistance in accessing or navigating these platforms, kindly inform our office, and we will be glad to provide instructions.

Once you submit the completed questionnaire, our planning team will review the document and may reach out to you for further clarification or additional questions.  Please note: any missing information and/or errors in your questionnaire that are not corrected two weeks prior to your plan presentation (see Phase 3 below), may incur additional charge of $750 to recalculate any tax planning changes, etc. 

Upon receiving your questionnaire, you will receive an email inviting you to schedule your plan delivery via Zoom.

Phase 2: Develop

Plan Buildout: With the data, goals, and objectives you have provided, we will commence constructing your plan using Snap Projections, our trusted financial planning software.  Please note that any updated information is required 2 weeks prior to plan delivery to be implemented into the plan.

During this phase, a dedicated CERTIFIED FINANCIAL PLANNERÂŽ professional from our team will be assigned to you. This planner will guide you throughout the process, ensuring a seamless experience.

As your planner works on building your plan, they may reach out to you if any clarifications or additional information are required. Their objective is to ensure that your plan is finalized and ready for delivery by the date you scheduled your Zoom call. Please note that you may not hear from your planner between Phase 1 and Phase 3, as they will be focused on diligently crafting your plan.

Phase 3: Deliver

Plan Delivery: Your plan will be presented to you via Zoom in a dedicated one-hour session with your assigned CERTIFIED FINANCIAL PLANNERÂŽ professional. During this session, your planner will guide you through each step of the plan, explaining the rationale behind it and how it effectively maximizes your after-tax income while minimizing your overall tax burden. They will ensure that the plan aligns with your income and retirement goals.

The Zoom meeting will also provide you with the opportunity to ask any questions, seek clarifications, and make necessary adjustments to the plan to ensure your complete understanding and satisfaction.

As part of the delivery and implementation package, you will receive a copy of the Zoom call recording. Please note that we do not provide printed copies of the plan.  Within one week of the Zoom delivery, you will receive a comprehensive delivery and implementation package, detailed below in ‘Deliverables’.

Please note: any changes after the plan presentation meeting, unless agreed upon with your CERTIFIED FINANCIAL PLANNER, may incur an additional charge of $750 to recalculate any tax planning changes, etc.

Software Used

Parallel Wealth relies on Snap Projections, a renowned financial planning software in Canada, to support our services. With Snap Projections, our team can construct comprehensive plans that consider crucial factors such as tax rates, credits, deductions, and other significant information affecting your tax and income strategy. This software empowers us to adapt the tax plan to your specific circumstances, regardless of the Canadian province or territory in which you currently reside or plan to retire.

Delivery

In order to enhance the impact and effectiveness of our service, we have opted for a remote delivery method for this advisory mandate. Your plan delivery presentation will be conducted through the platform Zoom. This approach allows for seamless and convenient communication, ensuring that you receive the necessary information and guidance from the comfort of your own location.

Deliverables

Our services offer a range of benefits to maximize your retirement outcomes. These include:

  • Plan Presentation scheduled as soon as your completed Questionnaire is received
  • Communication throughout the process, including any clarification required before your Plan Presentation
  • Short “Plan Preview” Video about one week prior to Plan Presentation
  • 1-hour Plan Presentation with a CFPÂŽ Professional
  • Plan Delivery within one week of the Plan Presentation, with the following documents:
  • Complete Plan in PDF format,
  • Complete Plan in Excel format,
  • Executive Summary highlight the key milestones,
  • Recorded Video Walkthrough of key areas in the three documents above, and
  • 3-month email support for any questions arising from the delivery
  • Expert guidance

Parallel Wealth can look at 2-3 ‘what-if’ scenarios based off the default scenario (no tax planning). An example of this would be if one spouse passed away early. These can be provided in excel or PDF, let your planner know.

Objectives

Our services offer a range of benefits to maximize your retirement outcomes. These include:

  • A clear plan designed to optimize cashflow while minimizing taxes throughout your retirement.
  • A comprehensive retirement cashflow plan that provides a year-by-year breakdown of each account.
  • Expert guidance on when to take CPP (Canada Pension Plan) and OAS (Old Age Security) benefits.
  • Estate planning to reduce your tax liabilities upon death.
  • The implementation of our RRSP Meltdown and Laddered Income strategies, which aim to create an optimal retirement scenario.
  • Tax management strategies for investment accumulation and decumulation, aligning with your estate and retirement plans.
  • Optimization of spousal income splitting, if applicable, to maximize tax efficiency.
  • Stress tests to ensure the longevity of the plan in the event of an early passing of one spouse/partner.
  • Balancing average tax rates between spouses to achieve optimal tax efficiency.
  • Defined Benefit Pension planning, providing guidance on what to do if you choose to commute your pension.
  • A personalized spending plan that considers the different stages of retirement, including go-go, slow-go, and no-go phases.
  • Three months of post-delivery support, offering assistance with any questions or discussions related to financial planning topics that may arise.

If you purchased a corporate or rental plan, your plan will also include:

  • Corporate tax and income planning.
  • Capital Dividend Account planning and utilization.
  • Transitioning your assets from corporate to the personal side both tax efficiently and timely.
  • Rental assessment and best options around your rental/investment properties

By incorporating these elements into our service, we strive to provide you with a comprehensive and effective retirement strategy tailored to your specific needs and goals.

Out of Scope

The financial planning service does not include the following:

  • Additional scenarios not listed in the Scope section above (outside of your main plan with full tax planning, and ‘what if’ scenarios based off the default)
    • If you would like more than one scenario with full tax planning, please let your advisor know. The cost for each additional scenario is $750 plus GST
  • Deliverables for more than 1 (one) scenario discussed on the zoom presentation
  • Significant changes in plan information provided later than two weeks before the presentation, including significant changes provided during the Plan Presentation meeting or before Plan Delivery.
  • International tax planning (including retiring outside of Canada, and/or dual citizenship with another country, etc.)
  • Guaranteed Income Supplement (GIS) scenarios
  • Passive Investing Advice
  • Accounting or Legal Services
  • Investment Recommendations or Instructions
  • Review of a financial plan not created by Parallel Wealth, or review / interpretation of any spreadsheet tools used or created by the client (please fill out our Financial Planning Questionnaire from any information / spreadsheets you may have)
  • Drafting of your Will
  •  Updates / information change after plan delivery
  •  More than one tax planned scenario as part of the plan delivery

Your Role

  • Your active participation is crucial in providing accurate and complete information about your financial situation, goals, and objectives.
  • You are responsible for reviewing the Questionnaire thoroughly, providing any requested documentation and promptly responding to any inquiries or clarifications from our team.
  • During the plan delivery session, you are encouraged to actively engage, ask questions, seek clarification, and provide feedback.
  • It is important to review and understand the plan, its recommendations, and any suggested adjustments or implementation steps.
  • You, or your financial team (accountant, advisor, financial institution, etc.) are responsible for implementing the plan, utilizing the provided resources and materials, and taking the necessary actions to achieve your financial goals.
  • Implementing the recommendations outlined in the plan, either personally or with the assistance of your financial team (accountant, advisor, financial institution, etc.). Failure to implement the recommendations may impede the achievement of your stated goals and objectives.
  • Note that if you hold dual citizenship and/or plan to retire outside of Canada, our financial plans are based on the Canadian tax system and may not fully reflect the taxes that include non-Canadian aspects. While our team can provide a general idea of taxes and income planning, for more specific and detailed information regarding taxes and retirement planning in your specific country of retirement/citizenship, it is advisable to consult with a cross-border tax accountant and lawyer, as tax laws and planning strategies can vary significantly between countries.

Estimated Timeline

Once we have received your fully completed questionnaire, our aim is to present the completed plan to you via Zoom within a timeframe of 6-12 weeks. Please note that the exact timeline may vary based on availability, but our intention is to complete the entire planning process within 12 weeks from receiving your completed questionnaire.

After the plan has been delivered following the Zoom session, you will have the benefit of 3 months of email support. This support period allows you to reach out with any questions or seek clarification regarding the plan. Our team will be available to assist you and provide the necessary guidance to ensure your understanding and satisfaction with the plan.

Professional Fees and Expenses

The professional fees for our advisory services are based on the services you have selected - Individual ($3,500), Household ($4,000), Rental/Corporate ($6,000), Custom ($6,000+) plus taxes.

The payment will be divided into two equal installments. The first payment is due at the time of purchase, and the remaining balance is to be paid 30 days later.

In the event that you need to cancel any scheduled meetings, please notify us at least 48 hours in advance of the agreed-upon time. Failure to provide a cancellation notice within this timeframe may result in the application of a cancellation fee.

Cancellation of our services once we have collected your Financial Planning Questionnaire will result in a full refund less $500 plus taxes.

If you would like more than one scenario with full tax planning, please let your advisor know. The cost for each additional scenario is $750 plus GST. Please note that stress testing scenarios (rate of return, inflation, life expectancy) noted above are included in the initial fee.

Disclosure

Insurance Licensing: Our team consists of individuals who are licensed by reputable regulatory bodies, including the BC Insurance Council, Alberta Insurance Council, and the Financial Services Commission of Ontario. These licenses enable them to sell various insurance products such as life insurance, critical illness insurance, disability insurance, annuities, and related insurance products, including segregated funds. Additionally, we work in partnership with HUB Financial (HUB), which serves as our life insurance Managing General Agent (MGA) or wholesaler. Through HUB, we represent renowned companies such as Manulife, Canada Life, Empire Life, Equitable Life, Ivari, Desjardins, Industrial Alliance, and Sun Life.

Professional Designation: Some members of our team have obtained professional designations from the FP Canada Standards Council™. These include the CERTIFIED FINANCIAL PLANNER® designation and the QUALIFIED ASSOCIATE FINANCIAL PLANNER™ designations. These credentials attest to their expertise and adherence to professional standards in the field of financial planning.

Privacy & Confidentiality

In order to facilitate our financial planning relationship, it will be necessary for you, as the client, to provide various personal financial information. We want to assure you that any information you provide will be treated with the utmost confidentiality by the financial planning team at Parallel Wealth Financial Group Inc. We will not disclose this information to another third party without your written permission, except as required by law.

By entering into this agreement, you authorize us to retain personal and private information that is relevant and necessary for the provision of financial advice. This information will be kept in your files and will be maintained until you request in writing for it to be destroyed.

To ensure the security of your documents, Parallel Wealth utilizes Zoho WorkDrive for secure document sharing. Additionally, client documents are securely stored in Zoho WorkDrive, further safeguarding your sensitive information.

Communication with the Parallel Wealth office may be recorded.

Conflict Of Interest

Throughout the advisor-client relationship, it is possible that situations may arise where a conflict of interest could potentially occur. As your advisor, we are committed to being transparent and will promptly disclose any conflicts of interest that arise, whether they are actual conflicts or perceived conflicts. Our goal is to maintain the highest level of integrity and ensure that your best interests are always prioritized.

Conflict Resolution

In the event that any complaints or disputes arise during our professional relationship and cannot be resolved directly with the advisor, we want you to be aware that there are options available to you for voicing your concerns and seeking resolution. As your advisor, we are committed to informing you about the complaint process and providing you with the appropriate contacts to address your concerns.

Please note that any future changes to the terms outlined in this engagement letter will be communicated to you in writing. Our intention is to ensure that all parties involved have a clear understanding of the nature of our mutual commitments as stated in this agreement.

Consent

Parallel Wealth Financial Group will periodically send newsletters to clients via email. These newsletters will contain valuable information related to investments, insurance, financial articles, and recommended products. If at any point clients wish to stop receiving these emails, they can easily unsubscribe by selecting the "unsubscribe" option located at the bottom of the email.

By agreeing to receive emails from Parallel Wealth Financial Group and its team members, you acknowledge your consent to receive these newsletters.

Furthermore, I confirm that I have read, understood, and accepted the terms outlined above. I am aware that the calculations, projections, advice, and recommendations provided are based on mutually agreed-upon assumptions. I also understand that these projections serve as estimates and the actual results may vary depending on numerous factors and future events.

For plans that include a spouse or partner:

By agreeing to the term of service, the undersigned client acknowledges and agrees that this agreement is binding upon both the undersigned and their spouse or partner. The undersigned confirms they have the authority to enter into this agreement on behalf of their spouse or partner.

Download the Advisory Service Agreement