Wealth Protection

Have a plan that protects your personal and business wealth.

Case Study

Wealth Protection

Wealth Protection

The Opportunity

Glen and Linda live in Western Canada and have three adult children. At first glance, their investments all appeared to be in order. They own their home, own three successful businesses and have been saving for their retirement for many years. However, when they came to VPI, our team was able to identify the one thing that could prevent them living the life they’ve worked so hard for. Without realizing it, their entire net worth was tied up in one sector…Oil and Gas. Firstly, the maintenance and trucking businesses they own are all directly related to Oil and Gas. Secondly, their home, because the housing market in Edmonton follows Oil and Gas prices. And lastly, their investments, because the Broker they worked with was comfortable in that sector and have over 70% of their assets there. Our aim was to help them realize the importance of mitigating their investment risk so that they could reach their ultimate goal – a worry free retirement.

The Plan

Our team sat down with Linda and Glen and carefully went through each of their investments, helping them understand the far-reaching effects to their current portfolio if there was a prolonged downturn in Oil and Gas. We explained the need to start investing in a) companies that are completely unrelated to Oil and Gas and b) companies that would actually benefit from lower Oil & Gas prices. For example, businesses like Railroads, where one of the biggest input costs is Diesel Fuel. We also demonstrated the importance of diversifying out of Canada – because many of the Canadian Banks have exposure in loans to small businesses that service the Oil and Gas industry.

The Outcome

With this knowledge and guidance, Glen and Linda were able to start thinking very differently about their overall net worth. Our team was able to show data from two years ago, during a time when Oil prices went negative and you had to pay people to get rid of your oil, VPI’s US Dividend Growth Portfolio was positive. This was during a period that all the rest of their net worth was down between 60-80%. Since coming over to VPI, their net worth has recovered, which is fantastic, but even more importantly, they now have the confidence to trust that they can retire without worry. In the event that the housing market fluctuates, or their businesses go through a period of struggle, Glen and Linda’s wealth is protected…and they have peace of mind.

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