Mailbag Questions from Clients and Prospective Clients

Each month, we select a handful of questions that were asked by clients or soon-to-be clients. We like to post our answers online because others may have that same question as well. Here are a few of the things we were asked about most recently.

What is the account opening process like?

The account opening process begins with a prospective client completing a “Required Information” questionnaire to help the firm understand their unique personal circumstances . Before any trading can occur, the Portfolio Manager will meet with the individual, either in person or virtually, to conduct a discussion of those circumstances.

Several key documents must be signed via Docusign, including a National Bank Independent Network application (our custodian of your assets), an Investment Management Agreement, a Know-Your-Client form, an Investment Policy Statement, and a Relationship Disclosure Information form.

If there are assets to transfer from another financial institution, we simply need your most recent account statement to facilitate the transfer.

Within 30 days of the account opening, we will send you login credentials to access information about your portfolio value online any time you desire.

Can we ask that certain companies not be included in our portfolio?

Yes, you can request that specific companies be excluded from your holdings. We maintain a “Restrictions List” designed to prohibit certain clients from participating in specific investments. Before making any trades on a client account, we review this list.

What can I do to minimize estate taxes like probate?

To minimize probate and estate taxes, some individuals choose to gift assets to their heirs while still alive, effectively removing that capital from their future estate. Additionally, establishing a joint account with an heir typically allows for the “right of survivorship,” ensuring that upon your passing, the spouse’s interest in the account simply expands to full ownership without the assets passing through a will.

Can I open an RESP for my granddaughter or does it have to be opened by the parents?

Yes, a grandparent can open an RESP for their grandchildren.

Do I pay taxes on trades even if I leave the money in my account?

Trades executed in a registered account, such as an RSP, RESP RRIF, or TFSA, are not subject to taxes, at least not right away. For trades executed in a non-registered account, the capital gains and dividends are subject to tax the same calendar year.

We track each client’s realized capital gains and losses on a monthly basis. To help mitigate your tax liability, the Portfolio Manager will perform “tax-loss selling” for each client account wherever possible prior to the end of the calendar year.

Please contact us with any questions at info@schneiderpollock.com or 416-646-0756

-written by Jeff Pollock