High net worth Canadians are shifting their focus to protecting their wealth due to market uncertainty, geopolitical turmoil and tax changes, found a recent survey sponsored by RBC Wealth Management.
The survey showed that the richest Canadians rank protecting wealth for the future highest (53%) in a list of financial goals, above increasing their wealth (34%). When asked what factors most concern them when it comes to preserving wealth, Canadian tax changes were highest on the list (48%) followed by global economic uncertainty (46%) and increased cost of living (45%).
"While investment and portfolio management remain a priority, increasingly, we find that our high-net-worth clients are asking us for guidance and support in the areas of tax strategy, wealth preservation, estate planning and philanthropy," said Tony Maiorino, Head, RBC Wealth Management Services.
While only a third of wealthy Canadians are concerned about market uncertainty in Canada (34%), two thirds (63%) said they are far more attentive to their portfolios now than in the past because of the current economic cycle and 76 per cent agreed that today's market requires investors to be more flexible and more responsive.
The generations differ greatly in their comfort level with various asset classes, found the survey. While stocks are still the main asset of all high net worth Canadians, the older cohort much more likely to hold them (80%) versus the younger group (56%).