When an investor would rather go to jail…

“He said that since this money was never deposited in his bank account, he felt that the government wanted to steal it. He also said that he was ready to go to jail for this,” says the division manager and financial planner of IG Wealth Management.

The conversation turned on a red light for Pascal Larivière.

VULNERABLE CUSTOMERS

“The client was over 80 years old. I wonder if he was still experienced in managing his money well. Also, we were in full confinement. The man lived alone in his house and was left to his own devices. It could affect him his judgment,” he explains.

“In the past, he had been taxed on his investment income, but since the bill had never been so high – about $50,000 – he paid without hesitation. According to him, the government was more voracious than ever,” he adds.

His attitude could be the sign of a cognitive disorder, asks Pascal Larivière. The fact that the man was able to follow the discussion made it clear that this was not the case. That said, when faced with a client in a potentially vulnerable situation, he had to act with tact more than ever.

The financial planner first made sure to explain to him the tax rules surrounding the investment income. He also reminded them that he was there to help them make the best decision possible.

“Once the client was more confident, we had to find someone who could help solve his tax file, be it a caregiver or an accountant. He needs to be accompanied to make his tax declaration. I tell you, he did it always on paper with the pretext that implanting it in the computer softens the brain”, says Pascal Larivière.

Once the tax schedule has been established, the financial planner plans further discussions with his client to determine strategies to minimize his future tax bills.

Not everything was settled, but the client finally listened to reason and paid his taxes. He thus avoided even greater inconveniences.

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