Multi-Family Office
Introduction
Business Owners
Business owners often have substantial wealth tied up in illiquid assets, such as business equity or real estate. This limits access to cash during emergencies, such as tax settlements, shareholder buyouts, or unexpected operational demands.
Approximately 85% of business owners’ wealth is held in illiquid assets, creating potential vulnerabilities in liquidity management. (Source)
During the 2008 financial crisis, liquidity shortages were a key factor in the sale of 60% of family-owned businesses at below-market valuations.
As business valuations increase by an average of 15% annually in North America, liquidity demands are projected to rise, creating a greater need for accessible cash reserves.
Inefficient tax planning can lead to significant liabilities during business transitions or intergenerational wealth transfers, reducing the value retained by heirs or reinvested in the business.
In Canada, estate transfers can incur tax rates as high as 53% without effective tax strategies. (Source)
In 2020, inefficient tax structures contributed to the loss of an estimated $17 billion in generational wealth in Canada.
With an estimated $1 trillion in assets expected to transfer between generations by 2040, tax-efficient structures will become increasingly critical to preserve wealth.
Many business owners lack formal succession plans, which can result in operational disruptions or business failure during ownership transitions.
70% of family-owned businesses fail to transition beyond the first generation, with lack of succession planning cited as the primary cause. (Source)
In 2021, 40% of Canadian business owners over 55 reported having no formal succession plan despite approaching retirement.
As baby boomers retire, over $2 trillion in business assets will require succession planning to ensure continuity and minimize economic disruption.
Limited use of corporate-owned insurance or investment tools can result in higher tax liabilities and reduced growth potential for businesses.
Businesses that implement corporate-owned financial tools save an average of 22% in taxes compared to those relying on traditional methods.
Corporate financial strategies have consistently enabled business leaders to compound wealth more efficiently, a model emulated by many global organizations.
Stable yet high corporate tax rates are expected to increase the demand for optimized financial tools among businesses seeking to maximize after-tax growth.
Inadequate employee benefits can lead to higher turnover rates, increased recruitment costs, and difficulty retaining top talent.
In 2024, the average cost of employee turnover in Canada is over $30,000 per person, with the primary reasons being better pay and benefits offered elsewhere (37%). (Source)
75% of Canadian employees have reported they would leave their current job for one offering better benefits, emphasizing the importance of competitive benefits packages.
As younger generations prioritize workplace flexibility and comprehensive benefits, businesses will need to enhance their offerings to remain competitive in the labor market.
Executives
High-income earners are subject to top-tier tax rates, reducing the proportion of income that can be invested or saved. Without strategic tax planning, a significant portion of earnings is lost to federal and provincial taxes.
In 2025, Canadians earning more than $253,414 annually pay a combined federal and provincial tax rate of up to 53.53%, depending on the province. (Source)
Between 2015 and 2021, top marginal tax rates in Canada increased by 4%, with additional surtaxes introduced in provinces like Ontario, further eroding disposable income for high-income earners.
With potential increases in taxation to address fiscal deficits, high-income earners will face growing pressures to optimize their tax strategies to preserve wealth.
Substantial income often leads to diversified portfolios, including real estate, equities, and private investments. Managing these assets without a cohesive strategy can result in inefficiencies, increased risk exposure, and missed growth opportunities.
High-net-worth individuals typically allocate 27% of their wealth to real estate and 54% to equities, creating a need for integrated asset management strategies. (Source)
Inadequate portfolio diversification during the 2008 financial crisis resulted in significant losses for many high-income investors, underscoring the importance of proactive wealth management.
With market volatility expected to persist, high-income earners will need to adopt dynamic investment strategies to balance risk and growth.
High-income earners often exceed RRSP and TFSA contribution limits, leaving them without sufficient tax-advantaged vehicles to save for retirement.
The RRSP contribution limit for 2024 is $31,560, a cap that fails to meet the savings potential of high-income earners. (Source)
A 2018 study found that 25% of Canadians earning $150,000 or more are not saving enough to maintain their standard of living in retirement.
As life expectancy continues to rise, the need for alternative savings vehicles, such as individual pension plans (IPPs) and permanent insurance, will grow to address retirement funding gaps.
High-income earners often face challenges transferring wealth efficiently to the next generation, risking significant erosion due to taxes and legal fees.
In Canada, the deemed disposition rules on death can result in capital gains taxes of up to 27% on non-registered investments. (Source)
A lack of estate planning has resulted in millions of dollars being tied up in probate and legal battles, as seen in the estates of public figures such as James Gandolfini and Prince.
With $1 trillion in wealth expected to transfer between generations by 2040 in Canada, proactive estate planning will be critical to preserving family wealth.
Higher incomes often lead to lifestyle inflation, where increased spending erodes savings potential. Over-leverage through excessive credit use can further strain financial health.
In 2022, Today, Canada has the highest household debt to disposable income ratio in the G7, at 185% compared with an average of 125% for all G7 countries. (Source)
During the 2008 financial crisis, individuals with high debt levels were disproportionately affected, facing higher foreclosure and bankruptcy rates.
With interest rates rising, high-income earners who are over-leveraged will face increased financial strain, necessitating a focus on debt management and budgeting.
Athletes & Entertainers
Unlike traditional professions, athletes and entertainers often earn significant income in short, unpredictable bursts. This irregularity creates challenges in budgeting and planning for the future.
The average professional athlete’s career spans only 5-10 years, with 60% of NBA players and 78% of NFL players reported to be financially distressed within five years of retirement. (Source)
Athletes such as Antoine Walker have highlighted the risks of income mismanagement, with Walker losing $110 million due to poor financial decisions and lack of planning.
As contracts and endorsement deals continue to grow in size, effective wealth management strategies will be critical to sustaining financial health beyond peak earning years.
Athletes and entertainers often earn income across multiple states, provinces, or countries, exposing them to complex tax requirements and potential double taxation.
NHL players for example face significant tax burdens, with "jock taxes" requiring them to pay in every city and state where they play, potentially resulting in up to 50% of their salary being deducted when combining jock and income taxes. (Source)
Entertainers such as Shakira have faced legal challenges for allegedly failing to comply with complex international tax laws, leading to millions in fines and reputational damage.
As global entertainment and sports markets expand, managing multi-jurisdictional tax liabilities will require specialized strategies to avoid penalties and overpayment.
Athletes and entertainers must plan for significantly shorter careers compared to other professions, while maintaining their standard of living post-retirement.
According to a 2015 report by the National Bureau of Economic Research, approximately 16% of retired NFL players file for bankruptcy by their 12th year of retirement, highlighting the financial challenges many professional athletes face after their playing careers end (Source)
Many high-profile entertainers, such as MC Hammer, faced financial ruin post-career due to a lack of planning, despite earning over $30 million during his prime.
With the average lifespan increasing and career durations remaining short, alternative savings vehicles like Individual Pension Plans (IPPs) and annuities will be essential for long-term security.
Athletes and entertainers are often subject to intense social and industry pressures to spend excessively, leading to lifestyle inflation that outpaces their income.
According to a 2009 Sports Illustrated report, 78% of NFL players face financial distress or bankruptcy within two years of retirement, while 60% of NBA players encounter similar issues within five years of leaving the sport, highlighting the widespread problem of overspending among professional athletes. (Source)
Mike Tyson, once worth over $300 million, filed for bankruptcy in 2003 due to excessive spending, including luxury items and poorly managed investments.
As social media amplifies the visibility of wealth, education on budgeting and controlled spending will play a crucial role in mitigating lifestyle-driven financial challenges.
Athletes and entertainers often face unique risks such as lawsuits, bad investments, and exploitation by advisors, friends, or family.
According to a 2018 Ernst & Young study, professional athletes alleged nearly $500 million in fraud-related losses from 2004 to 2017, highlighting the significant financial risks faced by high-earning sports professionals. (Source)
Kareem Abdul-Jabbar sued his business manager after losing millions in fraudulent deals, highlighting the importance of oversight and accountability in financial planning.
With growing wealth and visibility, creating robust asset protection strategies, including trusts and insurance solutions, will become essential to mitigating external risks.
Doctors & Physicians
Physicians typically begin their careers with substantial student debt, often exceeding $200,000, which can delay financial independence and long-term wealth building.
The median debt for Canadian medical school graduates is $90,000, with 34% of students reporting debt of $120,000 or more upon completion of their studies (Source).
High debt levels often force newly practicing doctors to prioritize short-term cash flow over retirement savings, compounding financial stress.
As tuition fees and interest rates continue to rise, structured debt repayment plans and financial coaching will be critical for early-career physicians to achieve financial stability.
Physicians often earn income from multiple sources, such as private practice, hospital work, and investments, creating significant tax planning challenges.
Physicians earning in the top tax bracket in Canada face a combined federal and provincial tax rate of up to 53.5%, depending on their province of residence (Source).
Tax inefficiencies have led many physicians to pay tens of thousands more in taxes than necessary due to lack of proactive planning.
Incorporation, corporate-owned insurance, and other tax-efficient strategies will become increasingly important as tax laws for high-income earners evolve.
The demanding schedules of physicians often leave little time for managing finances, leading to missed opportunities in investments, savings, and retirement planning.
A 2023 survey revealed that 70% of doctors throughout all specialties felt their graduate education had not provided them with the necessary tools for personal financial success (Source).
Many physicians delay retirement savings, with many reporting that they didn’t begin investing until five years into their practice.
Delegating financial planning to trusted advisors will become essential for doctors seeking to optimize wealth while maintaining a manageable work-life balance.
Without access to employer-sponsored pensions, many physicians struggle to build sufficient retirement savings within traditional vehicles like RRSPs and TFSAs.
The RRSP contribution limit for 2025 is set at $32,490, which may be insufficient for high-earning physicians to adequately save for retirement, especially considering their typically later career start and higher income levels (Source).
Physicians who delay retirement planning often face challenges maintaining their standard of living post-retirement.
Tools like Individual Pension Plans (IPPs) and permanent insurance will play a crucial role in enabling physicians to bridge retirement savings gaps effectively.
Physicians are uniquely exposed to malpractice lawsuits, career interruptions, and rising liability insurance premiums, which can threaten their financial stability.
Malpractice insurance premiums for Canadian dentists in 2025 range from $1,737.51 to $2,505.65 annually for member pricing, with coverage limits varying from $3 million to $25 million per claim, depending on the chosen deductible (Source).
Physicians without adequate asset protection strategies have faced significant financial losses due to lawsuits and career-ending health issues.
Comprehensive risk management, including disability insurance, trusts, and legal protection strategies, will be essential to safeguard physicians’ wealth.
Business Advisory
Introduction
Small to Large Private Businesses
Private businesses often struggle with inconsistent cash flow due to delayed payments, cyclical demand, or large upfront expenses. Without sufficient liquidity, these businesses risk operational disruptions and missed growth opportunities.
According to a recent report by the Canadian Federation of Independent Business (CFIB), nearly a third (32%) of Canadian small businesses expect their capital investments to decrease over the next two years, with 69% citing equipment costs as a major deterrent to investing in capital (Source).
During the 2008 financial crisis, over 50% of private businesses reported liquidity shortages as the primary reason for scaling back operations or shutting down.
As inflation and interest rates remain elevated, liquidity management will become increasingly vital to maintaining operational stability and funding expansion efforts.
Complex tax regulations for private businesses, especially those with diverse revenue streams or multinational operations, can lead to overpayment, fines, or missed savings opportunities.
Canadian businesses face significant tax burdens, with combined federal and provincial corporate tax rates reaching up to 26.5%, which is higher than the OECD average and can potentially hinder business competitiveness and economic growth (Source).
Inefficient tax planning has resulted in an average overpayment of $30,000 per year for small businesses and significantly higher for larger firms, particularly those with international dealings.
With increasing government scrutiny and potential tax reforms targeting corporations, private businesses will need proactive tax planning to minimize liabilities and optimize after-tax earnings.
A significant number of private businesses lack succession plans, putting their future at risk during ownership transitions or unforeseen leadership changes.
A 2023 report by the Canadian Federation of Independent Business (CFIB) found that only 9% of small business owners have a formal succession plan in place, despite 76% of them planning to exit their businesses within the next 10 years (Source).
Over the past decade, 70% of private businesses have failed to transition to the next generation, with the primary reasons being poor succession planning and inadequate leadership preparation.
With over $2 trillion in private business assets expected to transfer ownership by 2040, creating comprehensive succession plans will be essential for continuity and long-term success.
Competitive labor markets make it increasingly difficult for private businesses to attract and retain top talent, especially without robust benefits and compensation packages.
According to a recent survey, the average cost of employee turnover for Canadian companies is $30,674 annually per employee, with 15% of businesses reporting turnover costs exceeding $100,000 per year (Source).
Businesses offering comprehensive group benefits and retirement plans have reported 30% lower turnover rates compared to those without such offerings.
As workforce demographics shift, private businesses will need to enhance employee value propositions to remain competitive in attracting and retaining skilled workers.
Expanding operations, entering new markets, or investing in innovation often requires significant capital, which can be difficult to secure without compromising ownership or taking on excessive debt.
According to data from the Biannual Survey of Suppliers of Business Financing, the value of credit outstanding to Canadian businesses increased by 5% to $1,346.1 billion in the second half of 2023, while the value of disbursements decreased by 1.5% to $184 billion (Source).
During the early 2000s tech boom, many mid-sized private firms were unable to scale due to limited access to financing, missing out on lucrative growth opportunities.
With evolving capital markets and rising interest rates, private businesses will need to adopt innovative financing strategies to fund expansion without eroding equity or profitability.
Tax Advisory Firms
While tax advisory firms excel in calculating liabilities, many struggle to implement effective insurance solutions that provide liquidity to pay taxes without disrupting a client’s financial plans.
According to a 2023 article, collaboration between financial advisors and CPAs leads to better understanding and more thoroughly crafted financial plans for clients, especially given the constantly changing tax laws and retirement distribution rules (Source).
The use of insurance in estate planning has reduced tax burdens by up to 40% in cases where assets are illiquid, such as family-owned businesses or real estate holdings. However, firms without insurance expertise often miss these opportunities for their clients.
With $1 trillion in intergenerational wealth transfers projected in Canada by 2040, partnerships between tax advisors and insurance professionals will become essential to meeting client needs.
Clients often underestimate their tax liabilities or fail to recognize the need for liquid assets to settle large tax obligations, leaving tax advisory firms to manage unrealistic expectations.
According to a 2023 RBC Wealth Management study, 72% of high-net-worth individuals across age groups feel they need guidance on taxation and efficient planning, indicating a significant knowledge gap in tax regulations among this demographic (Source).
Inadequate liquidity planning has led to cases where families were forced to sell key assets, including businesses or real estate, to cover unexpected tax bills.
As awareness of tax implications grows, firms that proactively integrate insurance solutions to ensure liquidity will stand out as trusted advisors.
Frequent changes in tax legislation complicate the process of liability estimation and require firms to stay continuously updated to provide accurate guidance.
According to a 2024 survey conducted by the Canada Revenue Agency (CRA), Canadians expressed significant frustration with the tax system's complexity, highlighting the ongoing challenges tax professionals face in navigating and explaining intricate regulations to their clients (Source).
Major tax reforms, such as those in 2018 and 2021, created substantial challenges for firms, particularly in integrating new rules into long-term financial strategies for clients.
Partnerships with insurance providers who specialize in tax-efficient solutions will help firms navigate regulatory changes while optimizing outcomes for clients.
Tax firms often lack direct access to a partner like Mansha Plan who can customize solutions such as corporate-owned life insurance (COLI) or leveraged whole life insurance to meet client needs.
According to a 2024 report by HUB International, the strategic use of life insurance offers a cost-effective way to alleviate the burden of an estate's tax bill for inheritors, yet many tax professionals may not be fully leveraging this tool in their estate planning strategies for clients (Source).
Collaborative tax and insurance strategies have proven effective in high-profile cases, ensuring clients avoid asset liquidation while meeting tax obligations efficiently.
As more firms recognize the value of integrating insurance solutions, the demand for reliable, expert insurance partners will grow.
Industry Associations
Many industry associations struggle to negotiate cost-effective and comprehensive group benefits for their members, often resulting in limited coverage or high premiums that fail to meet member needs.
According to Benefits and Pensions Monitor, group insurance plans offer associations significant advantages, including up to 25% lower rates and specialized services that enhance membership value and community engagement (Source).
Associations without access to pooled resources have faced significant difficulties in keeping group benefit costs manageable, leading to decreased participation and satisfaction among members.
With rising healthcare costs, associations will need to leverage economies of scale and innovative group benefit structures to remain competitive and valuable to their members.
Implementing pooled retirement or insurance plans can be challenging due to regulatory complexities and the need to balance contributions equitably among diverse member organizations.
Pooled plans can reduce administrative costs significantly compared to individual plans, making them a key tool for associations looking to increase efficiency.
Industry associations that adopted pooled plans reported improved member satisfaction, as these models allowed smaller businesses to access resources typically reserved for larger corporations.
As more associations adopt pooled plans, the ability to structure and administer these plans effectively will be a key differentiator for attracting and retaining members.
Associations often lack the infrastructure or partnerships to implement Costco-style bulk buying models, which could provide significant cost savings for their members on essential products and services.
According to E&I Cooperative Services, group purchasing organizations typically produce cost savings of 10 to 15% for members through collective buying power, with smaller institutions potentially seeing even higher savings (Source).
Associations that partnered with trusted suppliers to create bulk purchasing programs saw increased member engagement and retention rates, as members realized tangible financial benefits.
As businesses prioritize cost-efficiency, associations offering robust bulk buying options will position themselves as indispensable partners to their members.
Members often look to associations for expert guidance on regulatory changes, industry trends, and financial strategies, but many associations lack the internal resources to deliver tailored advice at scale.
According to a 2024 report by Raybourn Group International, associations increasingly recognize the value of strategic counsel for their members. The report highlights that providing expert advice and guidance on industry trends, best practices, and emerging challenges has become a key differentiator for associations seeking to enhance member value and retention (Source).
Associations that invested in strategic advisory services reported a 20% increase in new member enrolment, highlighting the importance of this offering in demonstrating value.
As industries face rapid change, associations will need to invest in expert partnerships and advisory capabilities to remain relevant and supportive of their members.
Managing the costs of administering benefits, pooled plans, and other member services can strain an association's resources, particularly when member needs evolve rapidly.
Associations that streamline operations using technology and strategic partnerships can reduce administrative costs substantially, freeing up resources for member-focused initiatives.
Associations without efficient administrative frameworks often faced financial constraints, leading to reduced service offerings and declining member satisfaction.
Technology-driven efficiencies and scalable partnerships will be critical for associations seeking to balance operational costs with the delivery of high-value services.
Enterprises
Enterprises often encounter difficulties navigating Canada’s intricate tax system, including corporate tax rates, multi-jurisdictional tax compliance, and evolving legislation. Ineffective tax planning can lead to significant financial inefficiencies.
According to MNP, the constant stream of complex regulatory and legislative changes in Canada's tax system, combined with the added administrative burden outside of tax, is creating a climate of uncertainty for business owners, negatively impacting competitiveness, innovation, investment, and productivity (Source).
In 2018, changes to the small business tax deduction and passive income rules created confusion for many enterprises, resulting in compliance errors and missed opportunities for tax optimization.
With ongoing federal and provincial reforms, enterprises will need to adopt proactive tax strategies and leverage expert guidance to minimize liabilities and ensure compliance.
Increasing labor costs, combined with a competitive job market, make attracting and retaining skilled employees a significant challenge for enterprises.
According to Statistics Canada, average hourly wages in Canada increased by 3.7% year-on-year to 36.64 CAD in December of 2024, adding pressure to enterprise payroll budgets (Source).
Enterprises with robust employee benefits and professional development programs have consistently reported lower turnover rates and higher productivity levels.
As workforce expectations evolve, enterprises will need to invest in tailored benefits, flexible work arrangements, and continuous learning opportunities to remain competitive.
Balancing cash flow between daily operations and long-term investments in innovation and expansion is a persistent challenge for Canadian enterprises.
According to a 2024 survey by Canadian Western Bank (CWB), 60% of small and medium-sized enterprises (SMEs) in Canada reported ongoing challenges in managing their cash flow, with 26% specifically citing difficulties in managing accounts receivable and payable (Source).
During the COVID-19 pandemic, over 50% of Canadian enterprises reported cash flow shortages, with many relying on emergency loans to stay operational.
As inflationary pressures persist, effective cash flow management and innovative financing options will be critical for enterprises to maintain growth trajectories.
With increased focus on environmental, social, and governance (ESG) standards, enterprises face pressure to implement sustainable practices while managing associated costs.
According to PwC's 2024 Canadian ESG Reporting Insights, 73% of companies don't fully disclose how they've analyzed and incorporated ESG issues into their long-term strategy, indicating that while ESG compliance is a priority, many enterprises still face challenges in implementation (Source).
Enterprises that successfully integrated ESG strategies, such as reducing carbon emissions, reported improved investor confidence and long-term cost savings.
ESG compliance will continue to shape investment and operational decisions, requiring enterprises to adopt innovative strategies that align profitability with sustainability.
Canadian enterprises face pressure to adopt advanced technologies to remain competitive, yet many lack the resources or expertise to implement digital transformation effectively.
According to a 2023 survey by Salesforce, the proportion of revenue for business-to-business (B2B) entities in Canada generated through digital channels rose from 32% in 2021 to 42% in 2023, with projections indicating this will increase to 53% by 2025, highlighting the growing importance of digital transformation for Canadian enterprises (Source).
Enterprises that failed to embrace e-commerce, data analytics, or automation during the 2010s struggled to compete, particularly during the COVID-19 shift to remote work and digital operations.
With global enterprises rapidly adopting AI and automation, Canadian businesses will need to prioritize technology investments to enhance productivity and competitiveness.