Just as successful investing in real estate depends on location, so Kim Danielsen believes that successful financial planning depends on customization. Every client has different circumstances and different needs. For a couple with no children that likes to travel and has no debt, he’ll design a very different plan from the one he’d create for a couple with four children, one of whom has special needs, and an elderly father living with them in a house on which they still have a substantial mortgage.

Customization means that Kim is always on the lookout for new approaches and opportunities. If a client is attracted to an investment that Kim thinks is too risky for their profile, he advises against it, or suggests investing an amount that lessens the risk. Wherever possible, he offsets risk with tax efficiency, so that even if the risk is higher than he would normally advise, there’s a tax savings that brings the risk down to a manageable level.

To achieve a high rate of return, one has to take a similarly high level of risk. Sometimes clients hear others boast of doing really well with a particular stock. Kim reminds his clients that the risk to their overall portfolio as a result of that same investment may not be suitable for them. He always discusses risk and reward in-depth with his clients at the outset. Once a client’s particular risk tolerance is determined, Kim’s advice is tailored to that client’s risk tolerance.

The comments contained herein are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.