In today's society, many people dream of being rich. And why shouldn't we? There are over 200,000 Canadians with at least $1 million in financial assets and the number is quickly growing. Studies suggest that by the year 2010, we will have 900,000 millionaires in Canada. Considering our country's relatively small population, this means that very soon you could be part of the Canadian affluent population (if you're not already!).

So what was the source of the money and what are the concerns facing millionaires? Canada's millionaires typically come from one of four groups: old money, corporate business leaders, family and small business owners, and new money. Old money refers to families who have accumulated their wealth over several generations. These folks want to preserve and grow their wealth. They do not want to take big risks and chance large losses. They want to minimize tax and may have significant philanthropic interests.

Business leaders include CEOs, presidents and vice-presidents of major corporations. They often make multi million dollar decisions for their company on a daily basis, but lack the time necessary to attend to their personal finances. Much wealth is often tied up in stock and stock options to the extent that diversification becomes a problem.

Family and small business owners are also time-strapped. The biggest threat to small business owners is the lack of a detailed succession plan to ensure that wealth will be available for future generations.

Finally, new money represents entrepreneurs - from various fields - who have earned their fortune within one generation. These people are looking to lower their taxes and protect themselves from liabilities.

The concerns of millionaires sound a lot like the concerns of every Canadian. Whether you are talking about investment growth, risk, estate planning, taxes or diversification, it doesn’t matter how much money you have, there will always be challenges. The key to achieving financial success is to have a comprehensive plan that will give you peace of mind and the ability to realize your life goals.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.