Case Studies
Meet Dr. Jones and Mrs. Jones
Are we on the right track?
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Dr. Jones, an ER doctor, and Mrs. Jones (HR manager) have children aged 12 and 8
They own a detached home worth $1.4M with a $170k mortgage
Dr. Jones has a MPC, holds a $1M 20‑yr term life (expires in 3 yrs), a $300k universal life policy, and $180K cash
They self-invest $810k via QTrade and Wealthsimple (had a bank advisor before COVID) and hold $115K cash
Dr. Jones has disability insurance paying $7.5K/month to 65 with a future income option; Mrs. Jones has no insurance
They lack wills and powers of attorney
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Financial freedom for Dr. Jones at 65 with $100k net annual cash flow until Mrs. Jones's expected death at 97
Mrs. Jones retires in 4 years to volunteer
Three international vacations per year $80k each for sons’ post‑secondary education
$100k each to sons at age 28 for down payments
Significantly increase charitable giving now and at death
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If Dr. Jones has an early injury or illness, the disability plan won’t cover their current lifestyle
If Dr. Jones dies early:
Money won’t last until the youngest is 22
Both RESP accounts would go into the estate.
MPC shares would be tied up in probate
If Mrs. Jones dies early, Dr. Jones might need to hire a nanny until the boys are in their mid-teens
They can’t reach financial freedom with current savings and balanced portfolios (1,000 stress tests were below the 80% target)
Current savings and portfolios don’t match their latest goals and risk profiles
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Increase disability insurance benefits
Apply for more term life and critical illness coverage
Create a Health & Wellness Spending Account
Consider an Individual Pension Plan for tax-efficient retirement income
Consider a spousal RRSP
Use a fiduciary investment manager and align portfolios to current risk profiles
Open a joint family RESP
Establish a donor-advised fund for planned giving (include in-kind securities if appropriate)
Consider a second permanent life policy for charitable gifts
Complete wills (including a backup will) and powers of attorney; consider a corporate executor
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They feel very confident with a robust plan, can see the finish line, and know they will get there regardless of one of them getting really sick, hurt or passing away too soon
Meet the Rossi Family
We don’t want to make the same mistake.
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Brothers Michael and Dan own a successful manufacturing business, both drawing a salary and taking dividends
Michael is married to Maria, and have a son Gabriel who is a senior manager in the business, and a daughter Mia who is a nurse
Dan is divorced with a daughter named Jennifer
They also have a holding company that owns commercial buildings and residential rental properties worth 120M, with 58M in mortgages, 7M in rental income per year, and 1.8M in cash
They also own 10+ rental properties each in their own names
Have delayed tax planning for many years
Father passed away 2 years ago with 7 rental properties (with Mother on title) and no planning
No investable assets (no TFSAs)
No life insurance on Michael, Dan, or Maria
No wills, powers of attorney or trusts
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Michael and Dan want to plan their estate after seeing what will happen when Mom passes with zero planning
Pay the exact amount owed to the CRA when they require it
Both want to buy more properties, but don't want to tie up capital
Both brothers agree to pass on manufacturing business to eldest son in 5 years
Pass on all real estate properties to the children tax-efficiently
Equalize the estates with the surviving children
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Overall net worth is extremely concentrated in one asset class
Mother is too old to qualify for life insurance to pre-pay her eventual tax bill on her properties
No insured buy-sell agreement between brothers, if Michael passes away prematurely, Dan will have no choice but to work with his brother's wife Maria as co-owners of the business
There's a good chance the operating company shares will continue to grow like the tax bill after Gabriel takes over
Operating company is not purified
Other children will be upset with Gabriel gets the company and they get a lot less
Properties will be deemed disposed at last death, which trigger high 8-figure tax bills, and more properties will need to be sold quickly to pay the tax bill
Corporate shares, and personally owned properties will both be stuck in probate for a long time
Uninvested corporate cash means missing out on potential growth
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Complete valuations and corporate reorganization
Complete estate freeze, family trust and estate memo
Apply for a permanent life insurance policy on Michael to pre-pay the tax bill for the frozen value of the operating company, the benefit will create a tax-free Capital Dividend Account credit which will then pay the CRA
Apply for a permanent life insurance policy on Michael and Maria with the holding company as owner and beneficiary to pre-pay the tax bill on their half of the real estate holdings, the benefit will create a tax-free Capital Dividend Account credit which will then pay the CRA
Apply for a permanent insurance policy on Dan with the holding company as owner and beneficiary to pre-pay the tax bill on his half of the real estate holdings
Apply for a loan (Immediate Financial Arrangement) using the insurance policy as collateral to borrow back annual premiums to buy more real estate
Shift a large portion of the cash to a high interest savings account
Consider setting up a Individual Pension Plan for both brothers for tax-optimized retirement income
Complete wills (including a secondary) and POAs, and assign a corporate executor
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The brothers learned that the best way to pass on their thriving business and real estate portfolio tax efficiently is to trust their team of specialists using a combination of financial, tax and insurance strategies.
Frequently Asked Questions (FAQs)
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Yes, Crimson Financial is totally independent, and has access to many of the major insurance carriers and investment managers. However, we only partner with a select few to provide the best outcomes for our valued clients.
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We prioritize a planning-first comprehensive wealth management approach to effectively help clients achieve their unique financial goals.
It all starts with careful analysis of cash flow and risk management needs, and providing the proper solutions to optimize them.
Then we leverage the latest advancements in financial science, where we recommend low-cost, globally diversified, daily rebalanced portfolios tailored to your beliefs, individual risk tolerance and long-term objectives. This strategy is designed to ensure sustainable cash flow to live your best life if you live too long.
Lastly, we provide tax-efficient wealth transfer strategies aimed at maximizing the value of your legacy for the next generation.
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Under Canadian common law, the highest standard of care is what’s known as a fiduciary obligation.
It’s an obligation to put the best interests of another person, the beneficiary, ahead of any other consideration.
Just like a doctor and patient, or lawyer and client.
However, unlike those two professions, this only exists for discretionary portfolio managers in the financial industry. The rest follow what is called a best interest standard.
And this is why Herman took the pledge and joined the Financial Planning Association of Canada (FPAC). He pledges to act as a fiduciary in all dealings with clients and always putting their needs first.
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We have the privilege of working with clients in Ontario, British Columbia and Nova Scotia.
We provide the most value to established medical professionals (doctors, physicians, specialists with MPCs), and real estate investors (with or without corporations) with families and who love them dearly.
We also believe our network is your network, and our mission is to partner with your team of professionals (tax, mortgage, real estate, home & auto, etc) or recommend you work with ours.
Most importantly, we want to create lifelong, fulfilling relationships with our clients.
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A real financial plan is a document made just for you based on your current situation and goals. It points out problems and concerns and gives clear recommendations with steps to follow.
Common situations include balancing family travel and children’s education, while reaching financial freedom earlier without limiting your lifestyle, protecting your lifestyle in the event of a major illness/injury, redesigning your future post-separation, deciding to keep/sell/buy more rental properties, or passing assets to loved ones in the most tax-efficient way.
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Yes, we offer one-time advice-only financial planning for a competitive flat fee. The offering includes cash flow analysis, insurance review, investment management analysis, retirement planning, estate planning, and charitable planning.
We believe a well-designed plan is only as good as its execution so 4 months of implementation support is included as well. And hopefully by then, earned your trust to fill your insurance gaps and manage your assets.
Financial planning is not an event, but a journey, and one that is much better with a trusted guide by your side.
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The term ‘Investable Assets’ includes all liquid and near-liquid assets, including brokerage accounts, RRSPs, TFSAs, corporate open accounts, trusts, etc.
It does not include the value of your home, properties, equity in a business, etc. They represent assets we can invest in on your behalf.
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Our household minimum amount is $100,000, but we aim to work with clients who appreciate our philosophy and processes.
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We take great pride in offering highly personalized financial solutions that carefully balance both protection and growth.
By leveraging proven strategies alongside advanced Canadian-built fintech, we deliver tailored approaches designed to meet your unique needs.
We also prefer to partner with your existing team, or work with some of ours for the best results.
Additionally, we provide valuable perks aimed at ensuring your complete satisfaction both immediately, and well into the long term.
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The program is designed for professionals up to age 74 (and their spouse, and children) who really care about their health and their families.
There is no termination age, so long as the policy is renewed and insured is eligible.
There are no health questions in order to qualify for membership as well.
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The private medical care benefit has restrictions related to pre-existing conditions. Please contact us for more information.
There are no restrictions relating to pre-existing conditions for the annual executive medical assessment, the CT/MRI access, and Teladoc Medical Experts portion of the program. -
We offer single, couple and family packages.
It’s a flat monthly premium (plus applicable taxes) for the program.
If you have a corporation, the premiums are tax-deductible.
Please contact us for the latest pricing.
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