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How to Prepare for a Smooth Family Business Succession

Written by Bloom Investment Counsel, Inc. on September 13, 2021. Posted in Life Events. No Comments on How to Prepare for a Smooth Family Business Succession

A majority of businesses in Canada are family businesses—privately owned companies where one or more family members of the owner (usually children) work in the business. In many cases, the question of succession planning and whether the children will eventually take over ownership of the business often arises.

Passing on a family business to the next generation is a major life event of which many owners dream. Realistically, this does not magically happen and requires carefully mapping out a family business succession plan. This article looks at the challenges of family business succession and highlights preparations to make for a smooth transition.

Why Closet Indexing Matters and How You Can Protect Yourself as an Investor

Written by Bloom Investment Counsel, Inc. on September 13, 2021. Posted in Investing. No Comments on Why Closet Indexing Matters and How You Can Protect Yourself as an Investor

Closet indexing is a strategy in which an active portfolio manager closely mimics the portfolio’s benchmark index. This can be unfavourable for investors because they are paying higher management fees for a portfolio that achieves a return profile similar to the benchmark index.

This article takes a closer look at closet indexing and discusses why it matters as well as useful methods to protect yourself, as an investor, from active portfolio managers who are closet indexers.

Important Considerations Before Replacing Philanthropic Contributions with Impact Investing

Written by Bloom Investment Counsel, Inc. on September 7, 2021. Posted in Philanthropy. No Comments on Important Considerations Before Replacing Philanthropic Contributions with Impact Investing

Impact investing, an investment approach that aims to generate specific positive social and/or environmental impacts, while seeking some level of financial return, has been a hot topic and is not a new subject for family offices which play an important role in its growth. Additionally, impact investing has significant appeal among younger generations, such as Millennials, who have an increased desire to push for environmental improvements or social changes that align with their personal values. This momentum is likely to increase as Millennial investors gain market influence. This article takes a look at what impact investors do, takes a deep dive into impact investing and discusses important considerations when thinking about replacing philanthropic contributions with impact investing.

Are Traditional Investment Managers Outdated in 2021?

Written by Bloom Investment Counsel, Inc. on September 7, 2021. Posted in Investing. No Comments on Are Traditional Investment Managers Outdated in 2021?

The internet is oversaturated with articles that tout the advantages of robo-advisors. And yet, high net worth Canadians continue to entrust their wealth to traditional investment managers. This article discusses why traditional investment management firms are here to stay, and the benefits of actively managed portfolios.

Financial Advice for Millennial Entrepreneurs

Written by Bloom Investment Counsel, Inc. on August 30, 2021. Posted in Wealth Planning. No Comments on Financial Advice for Millennial Entrepreneurs

In the last two decades, many Millennials have bypassed the corporate ladder and achieved success through entrepreneurship.

Millennial entrepreneurs include the founders of Facebook, Tumblr, Snapchat, Pinterest, Mashable, Quora, Asana and more. Even famous YouTube, Instagram, and TikTok personalities have emerged as entrepreneurs by developing their personal brands and becoming influencers, making millions, if not billions, in their 20s.

While countless financial articles offer personal finance advice, few are tailored towards Millennial entrepreneurs who are making or have accumulated significant wealth at an earlier stage of life, and who may be retiring years before normal retirement age with a need to protect and grow their wealth. This article fills that gap and offers up-to-date financial advice for Millennial entrepreneurs.