Stewart & Kett as featured in
Globe and Mail

While broaching the subject with clients can be tricky for advisors as they run the risk of appearing opportunistic, discussing life insurance has more merit than ever before, says Cynthia Kett, principal at Stewart & Kett Financial Advisors Inc. in Toronto.

A principal of Stewart & Kett Financial Advisors, Ms. Kett says there are many estate-planning strategies to simultaneously benefit individuals and the Foundation.

Permanent life insurance is a big financial commitment compared to term insurance. Cynthia Kett, principal at Stewart & Kett Financial Advisors Inc. in Toronto, says advisors must discuss with clients the need to be able to commit to paying premiums for at least 10 years if they choose the permanent life insurance option.

Cynthia Kett, a certified financial planner and CPA, says “giving” shares to children who are not adults by law is tricky. “Children under the age of majority can’t hold shares in their own name because they lack legal capacity to [enter into a] contract,” says Ms. Kett, a trust and estate practitioner with Stewart & Kett Financial Advisors Inc. in Toronto.

“Wealth is a factor of not only how much you make, but how much you keep,” says Cynthia Kett, an advice-only financial advisor and principal at Stewart & Kett Financial Advisors Inc., in Toronto.

Because lawsuits exceeding $2-million are commonplace nowadays, even less-wealthy individuals need substantial personal liability coverage, says Cynthia Kett, principal at Toronto’s Stewart & Kett Financial Advisors Inc.

Cynthia Kett from Toronto-based Stewart & Kett Financial Advisors Inc. says much of that market risk is offset by the company's contribution. A four-to-one share plan, for example, can be considered a 25-per-cent guaranteed gain before the shares even trade.

One advantage that will remain in place, however, is the Individual Pension Plan (IPP). "Contributions are deductible by the operating company, and income accumulates tax-free in the plan until benefits are paid to the owner as pension income," says Cynthia Kett, an accountant and financial advisor with Stewart & Kett Financial Advisors in Toronto. Also, its income is eligible for income splitting.

"I would say that it's time to move on when clients no longer trust their advisor or when their needs change," says Ms. Kett. "An advisor who was suitable in the past may not be the best choice for the client's current circumstances."

Plagued by crippling household debt, millions of Canadians are torn between saving...