BMO Financial Group - Regeneration

Case Study 5: Creating a legacy

Robert and Chantal Labelle are in their early seventies. Both are retired civil servants and still live in the same home in Ottawa that they first bought thirty years ago. The Labelles have always been savers. Over the years, they have quietly amassed a considerable nest egg that would look after their retirement years. “We have never been big spenders”, says Chantal. “Neither one of us likes to travel, buy big cars or go to restaurants, so we haven't run up a lot of debt.”

Robert and Chantal currently volunteer their time at a local charity and have been very active in their church group. In addition, they delight in their five grown children and eight grandchildren. They are leading the kind of life that they want and feel lucky to be in the position they are. They both feel that they are slowing down, however. Robert used to delight in working in his yard, but he finds that it is tougher each time he has to run the lawnmower.

Ten years ago, Chantal underwent cancer treatments. She has been cancer-free for the past six years; while she remains optimistic, she also knows that health challenges can threaten their lives at any time. The Labelles are looking seriously at their current financial situation and have decided that they need to use their resources more effectively to benefit both their lives and others.

Their financial situation

The Labelles have accumulated a nest egg of over $150,000 to augment their government pensions. They are long-time BMO customers, though Margaret's nephew works at a financial planning company and Margaret has placed her mutual funds (approx. $60,000) with him. She has worried a lot lately about the losses in these funds and the fact that she thinks that her money is locked in. She doesn't really understand how her investment works and simply lets her nephew handle things. In addition, Robert and Chantal own their own home, valued at $275,000. They have no debt. Their Government pension has looked after them well and provides them with a complete benefit package.

While the Labelles have regularly reviewed their wills, they also have talked about making some changes so that they can give their children some money today.

Their Family

Robert and Chantal's children are all married and live in the Greater Toronto area. While the Labelles see their grandchildren regularly, they find the drive to be more taxing as they get older.

The grandchildren range in ages from 4 to 28. Recently, their oldest grandchild was married and his wife is expecting later this year.

A concern that they share is that two of the children are working at low paying jobs and are struggling to make ends meet.

Their concerns about the future

Can we help our children if need be?
Can we set up a regular charitable giving program, and how much can we contribute comfortably?
Can we get information that will help us understand the investments that we have with Chantal's nephew?
Should we look at selling our house and downsizing?

What needs to be thought out

The Labelles, while seemingly in good financial shape, still have some issues that will require sound advice from a Financial Planner.

The following will give you a sense of the types of considerations that would be addressed when the Labelle's meet with a BMO Investment Professional:

Do they need to live in Ottawa and how open would they be to moving closer to family?
What do they see as their lifestyle needs in the short-run, and how much would they feel comfortable using to help others?
What is the level of their knowledge of their investments and how much of an issue is the uncertainty surrounding monies held by Chantelle's nephew?


	Case Study 5: Creating a legacy Robert and Chantal Labelle are in their early seventies. Both are retired civil servants and still live in the same home in Ottawa that they first bought thirty years ago. The Labelles have always been savers. Over the years, they have quietly amassed a considerable nest egg that would look after their retirement years. “We have never been big spenders”, says Chantal. “Neither one of us likes to travel, buy big cars or go to restaurants, so we haven't run up a lot of debt.” Robert and Chantal currently volunteer their time at a local charity and have been very active in their church group. In addition, they delight in their five grown children and eight grandchildren. They are leading the kind of life that they want and feel lucky to be in the position they are. They both feel that they are slowing down, however. Robert used to delight in working in his yard, but he finds that it is tougher each time he has to run the lawnmower. Ten years ago, Chantal underwent cancer treatments. She has been cancer-free for the past six years; while she remains optimistic, she also knows that health challenges can threaten their lives at any time. The Labelles are looking seriously at their current financial situation and have decided that they need to use their resources more effectively to benefit both their lives and others. Their financial situation The Labelles have accumulated a nest egg of over $150,000 to augment their government pensions. They are long-time BMO customers, though Margaret's nephew works at a financial planning company and Margaret has placed her mutual funds (approx. $60,000) with him. She has worried a lot lately about the losses in these funds and the fact that she thinks that her money is locked in. She doesn't really understand how her investment works and simply lets her nephew handle things. In addition, Robert and Chantal own their own home, valued at $275,000. They have no debt. Their Government pension has looked after them well and provides them with a complete benefit package. While the Labelles have regularly reviewed their wills, they also have talked about making some changes so that they can give their children some money today. Their Family Robert and Chantal's children are all married and live in the Greater Toronto area. While the Labelles see their grandchildren regularly, they find the drive to be more taxing as they get older. The grandchildren range in ages from 4 to 28. Recently, their oldest grandchild was married and his wife is expecting later this year. A concern that they share is that two of the children are working at low paying jobs and are struggling to make ends meet. Their concerns about the future Can we help our children if need be? Can we set up a regular charitable giving program, and how much can we contribute comfortably? Can we get information that will help us understand the investments that we have with Chantal's nephew? Should we look at selling our house and downsizing? What needs to be thought out The Labelles, while seemingly in good financial shape, still have some issues that will require sound advice from a Financial Planner. The following will give you a sense of the types of considerations that would be addressed when the Labelle's meet with a BMO Investment Professional: Do they need to live in Ottawa and how open would they be to moving closer to family? What do they see as their lifestyle needs in the short-run, and how much would they feel comfortable using to help others? What is the level of their knowledge of their investments and how much of an issue is the uncertainty surrounding monies held by Chantelle's nephew?