Case Study 9: Comfortable and confident

Daniel Nirmal is a 66-year old retired dentist who lives on the West Coast of Canada. He sold his practice to his son about six years ago, though he continues to consult in the practice about four days a month.

Retirement has been hard for Daniel. While he is comfortable financially, he often feels bored because he is not as active as he wants to be. Daniel is still in good health, but over the past two years he has noticed that he has stopped doing a lot of the things that he used to do to enjoy himself. For example, when he first retired Daniel was at the golf course four days a week; lately, he has cut his golf down to twice a month.

He still goes in to the office each month, just as a way to stay active. He has joked to his friends that he is going to have to find a part-time job or go stir crazy in retirement.

The financial situation

Daniel has been a long-time Bank of Montreal client and has also placed his investment assets with BMO Nesbitt Burns. He has considered himself a student of investment markets and has always taken great interest in how his money was invested. Daniel has two other investment accounts with advisors at other firms in addition to his holdings at the Bank of Montreal and BMO Nesbitt Burns.

In total, Daniel's current net worth is well over $1million. It would have been much higher, but his investments have not always panned out the way that he expected. As a result, he is now determined that he will become much more conservative in the future and stop trading in speculative securities.

Daniel is carrying a large mortgage on his home and currently has just $100,000 in equity. He has no other debt. He receives approximately $4,000 per month from the sale of his practice as well as his consulting fees. His wife Roxanne would be well looked after should anything happen to Daniel, thanks in part to a large insurance policy.

Daniel's retirement is financially comfortable. He doesn't worry about the future, though he is not sure that he is using his money to its best advantage. While Daniel has paid attention to investment returns and tax planning, he has not spent much time thinking about how to pass on his assets to those he cares about.

The Family

Daniel's wife Roxanne is a cancer survivor and has been cancer free for the past seven years. One of Daniel's motivations for leaving dentistry was to spend more time at home with his wife.

Daniel and Roxanne have three sons and seven grandchildren that they dote on. All of their sons live in the same city. Family is extremely important to the Nirmals; in fact, Daniel and Roxanne would like to take their next trip to visit Roxanne's family in South Africa.

Their concerns about the future

• Are they using their assets in the best way to benefit their lives?
• Can they use their resources to help others?
• Are they carrying too much debt?
• Are they getting the most out of their lives?
• Will Daniel get bored in retirement and his health suffer?

What needs to be thought out

The Nirmals need to create a plan that leverages their assets against an enjoyable and enriching life together.

The following will give you a sense of the types of considerations that would be addressed when the Nirmals meets with a BMO Investment Professional:

• Have the Nirmals looked at restructuring their assets (particularly the house) and perhaps downsizing?
• What kinds of things would they like to do together as a couple and what plans do they have in place to accomplish those?
• Is Daniel managing his money in the most effective way possible or would he be better consolidating his assets with one advisor?
• Is there a risk to the Nirmal's financial comfort if Daniel's investment strategies didn't pan out?
• What kind of plan do the Nirmals have in place to pass on their assets to their children and grandchildren?
• Are there things that the Nirmals would like to do today to help their children or grandchildren