In December 2018, Gerald Cotton passed away, succumbing to the effects of Crohn’s disease. Gerald was the Founder and CER of a company called QuadrigaCX, a trading platform for various cryptocurrencies. Shortly after his passing a critical issue came to light for QuadrigaCX and those who used its services. The company held the majority of the cryptocurrencies in “cold storage” which is a method of moving the coins offline to prevent them from being stolen by hackers. The problem? Gerald was the only person who knew how to access the cold storage. As of the writing of this report, there is still no viable solution to unlocking access to the storage and an estimated $250 Million CAD worth of cryptocurrencies are stranded as a result.
How does this relate to your financial plan?
Quite often, we work with a family where one member is dominant in all conversations. This individual is the main driver in nearly all discussions, with the other family members taking a “back seat” and just agreeing with the final decisions. Most Advisors work solely with that dominant family member ensuring that they are comfortable with the recommended strategies and investments, trusting that the rest of the family members will simply follow along.
But what happens if that individual becomes seriously ill or passes away:
- With the main person no longer able to participate in meetings, who else in the family will step up and take responsibility?
- Are the strategies in place suitable for the remaining family members?
- Were the wishes of the main person actually aligned with those of the rest of the family?
At Nicol Sanchez Wealth, we believe in the power of hosting family meetings. Each member of the family should be given the opportunity to discuss his or her concerns and financial goals. Once we gather this input from each family member, we can develop a strategy that should help achieve a successful long-term result, both for the family as a whole as well as for each individual member.
Perhaps the family is still most comfortable with one person being the main contact. But an annual family meeting is critical to ensuring the continuity and longevity of your financial plan. Contact us to learn more about how this process can benefit you and your loved ones.
Our goal at Nicol Sanchez Wealth is to understand our clients’ unique goals and continually provide unbiased advice designed to help them achieve those goals.