Bringing a client who became a millionaire back to earth

In the last year, Pascal Larivière received in his office a new client who found himself almost three times a millionaire thanks to an investment of a few tens of thousands of dollars – representing the majority of his savings – in crypto coins

The best advice I could give was to recover the sum and diversify your assets to protect yourself against the high volatility of virtual currencies. However, the client did not immediately buy into this idea, saying that he was rather eager to get even more earnings.

“The person didn’t realize how lucky they were,” says Pascal Larivière, division director and financial planner at IG Wealth Management. Moving everything on cryptocurrencies is like a lottery winner who decides to bet his ticket at the casino in the hope of collecting even more. This is taking a very big risk. »

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Still not convinced it was the right thing to do, the client started asking around – a good reflex, after all.

“Everyone told him to secure his assets, continues Pascal Larivière. He also realized that the return on his investments was starting to decrease, being around $2 million. It was from this moment that he agreed to diversify his investments.”

In a case like this, where a person is not used to managing such a large sum, the role of the financial planner takes on its full meaning.

“Becoming a millionaire overnight is a shock,” explains Pascal Larivière. There are many decisions to be made about how to manage this money. It is necessary to take into account the personal situation of the client, his age, make or take over the retirement forecasts. Financial planning then takes on a new dimension. It is important to support your client properly so that he makes the best possible decisions. »

Among the decisions the young man had to make was whether to pay the tax claimed on his capital gains. The tax bill was rather high, amounting to an amount in the six figures.

In the face of greed, it is easy to be carried away. However, it is necessary to measure the risks, which this man was able to do thanks to the advice received. Now it remains for him to grow a tidy sum. A secure future.

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