The principals of Winnipeg-based Blackwood Wealth Planning are hoping their market niche will help them leave a substantial legacy in their home town.

Targeting high net-worth clients — such as business owners, doctors, dentists and lawyers — the newly christened firm takes a planning approach, not a product one, says co-founder Pat O’Connor. A major component of that approach on the part of its four advisors will revolve around philanthropy.

When many investors add up their pensions, RRSPs and the value of their houses, it doesn’t take long to figure out they have at least a $1-million estate, O’Connor says. But too many of them assume they need to build up millions of dollars in their RRSPs before they can consider making contributions to their favourite causes.

“Our belief is there are plenty of people in Winnipeg and across the country who can create a social legacy on a very modest estate. We can help them do some cool things,” O’Connor says.

Specialized Planning

For example, he says, many adult Winnipeggers can relate to organizations such as the Boys and Girls Clubs of Canada, Big Brothers Big Sisters of Canada and the United Way.

“A lot of our clients feel they’ve arrived when they can look back at having had a Big Brother, for example, and how he might have helped them through some tough times. In addition to giving back some time, they can also make an impact financially. A $100,000 donation to one of these organizations is huge. It could pay for a year of administration or to help set up a new program,” he says.

Mike Couture, the other co-founder of fee-based Blackwood, says leaving a legacy involves specific financial considerations and specialized planning. He says the firm’s planning process first seeks to ensure the clients’ retirement needs are met, followed by those of their children and grandchildren. If, after that, there’s money left over, Blackwood plays the philanthropy card.

“Some retired clients we have today have a net worth around $600,000 and they’re not going to spend everything they have in their lifetime. Their house is paid for and their spending habits are modest,” he says.

“You’re going to create a legacy no matter what. The question is, are you going to control it? You can either leave some of your estate to roads and infrastructure or somewhere more specific,” Couture says.

And while O’Connor may not have the $100 million in his chequing account to donate to the Winnipeg Foundation, as media mogul Randy Moffat and his family did in 2001, that doesn’t mean he can’t have just as big an impact through his clients, he says.

“If through other people’s financial planning we can achieve $100 million in donations to different groups, we’ll have made a difference in Winnipeg,” he says.

Clients In Ontario

Blackwood is a privately held company that handles more than 2,200 clients. While the Winnipeg office is its first location, O’Connor says, the firm hopes to expand to Alberta and Ontario, where it has a substantial number of clients, in the next few years.

O’Connor says he and Couture are committed to remaining a boutique. The extra cost of setting up their own firm is a small price to pay for the flexibility they enjoy, he says.

“When you’re calling your own shots, you only have yourself to blame if something isn’t going well. You can’t complain about the company and how they’re treating you,” he says.

O’Connor and Couture earned their stripes at London Life Insurance Co. and, more recently, were partners in Onyx Advice and Counsel in Winnipeg for five years. IE