How we talk about money: part two of a series of conversations

In part two of our series, Hazel Bowen, Senior Wealth Planner and Harry Schofield, Investment Director, explain how we at Canaccord Wealth Management speak to our clients about their money and how we try and make financial planning as accessible as possible.

In both your experiences, do you think there are still some taboos regarding speaking about wealth? Are there certain things that your clients feel like they can't discuss with you?

Harry Schofield (HS): I think there's an element of everyone wanting to live as independently as they can - especially the older generation. One question to ask is if your family home is still the right size for you or if you might need to downsize - a decision which has a lot of emotion attached to it. It’s a difficult conversation to have for the whole family.

The other thing is intergenerational wealth. We're very lucky to look after successful people. And they often have driven themselves to success: it's not always family money. And for those people, they’re considering how to introduce their children or grandchildren to wealth, giving them every opportunity, but not disincentivising them from pursuing their own career.

Hazel Bowen (HB): Also on intergenerational wealth, I meet clients who don't want to pass on wealth directly to children. But there are many options that we can talk through to help them provide for and educate their children. They can set up trusts or charities,in which their children are involved, that support people from a similar background to their parents: a lower socio-economic background, for example. That's a great way to start educating younger generations on wealth, generally, on the value of money and how investing works.

We have such an important role as financial advisers and investment managers to guide our clients, share ideas and talk them through the pros and cons of different ways of approaching things. We often see people who don't want to talk about their money with their children and they don't want their children to know what they're worth, but by having that conversation while you're alive you can help manage the emotional impact, rather than wait until a child suddenly inherits wealth when they’ve lost a family member.

HS: That can be a gradual process too. It can involve gently easing them into the understanding of the family situation and the full wealth. I've seen this done through charitable means too, as well as setting up education trusts, in which the parents retain some control if they're not totally comfortable gifting the whole amount at once.

HB: The other thing that I see as well, in terms of independence, is a household where you have a relationship between two people and they may have been married for 10-20 years and manage their finances independently, because that was a choice they made when they were younger. So, while clients want to keep their independence for emotional reasons, sometimes as life evolves, if one person needs more support than the other, suddenly, they do need to look at their wealth collectively. Again, a good financial planner can guide clients through the reasons why this matters to make it an easier transition.

This is the second part of a series of conversations with Hazel Bowen and Harry Schofield on the accessibility of financial planning and how to talk professionals about your money. The series aims to provide both a financial planning and investment management perspective. If you’re interested to discuss any topics covered in this article, or others in the series, please do not hesitate to get in touch. We promise we are friendly, open, and honest, no matter what your objective or vision.

You may also be interested in:

• How we talk about money: part one
• How we talk about money: part three
• Beyond 60/40: rethinking portfolio construction

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