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David Lloyd

David Lloyd is a founding partner and Managing Director of Newport Partners. David focuses on providing individuals and families with investment and wealth management services. He has built a thriving wealth management practice over more than 25 years serving many of Canada’s leading entrepreneurs. David serves on Newport Partners’ Investment Committee developing strategy and overseeing external money managers.Prior to starting Newport in 2001, David co-founded Merchant Private Trust in 1991 growing it from a vision of Canada’s first exclusive private banking firm through to its successful sale to RBC in 1999.

As a Chartered Accountant (1983, Clarkson Gordon), David has specialized in all areas of financial planning throughout his career, particularly saving and deferring tax for clients. He is a member of the Canadian Tax Foundation and has appeared on numerous radio and television business programs discussing insights into managing wealth and financial issues unique to entrepreneurs. He is also on the Board of Directors of several of Newport Partners’ private investments.

How much is enough to retire on?

Posted on April 28, 2010 by David Lloyd

hands cradling retirement egg image One of the most common questions we hear from people is, “how much do I need to retire comfortably?” And from those who are already retired, “do I have enough to support my spending for the rest of my life?”

It’s our job as wealth advisors to run the sophisticated and detailed analysis that provides the assurance -- or occasionally, the cold water dousing that says savings and spending habits need to be changed.

But for those who may be approaching retirement and wondering ‘how much is enough’, here is a very – and I'll stress very – rudimentary illustration of the amount of capital you'll need.

Tags: Capital Needed for Retirement, Retirement Planning, Retirement Projections, Spending Levels During Retirement

Winning the lottery - a dream for all; a nightmare for some

Posted on March 22, 2010 by David Lloyd

I was given a lottery ticket as birthday gift at a dinner with friends on the weekend. The condition was that we would all share the pot. It was great value to dream for even a few hours of how life could change with $41 million.

Sudden wealth via the lottery, inheritance or selling a business can be life changing. In our business we see this first hand nearly every day. Unfortunately, for some people, the dream of financial freedom can actually turn into a nightmare.

Search the internet and you’ll find story after story of cash windfalls turning into personal downfalls, with some estimates that one third of all lottery winners are in serious financial difficulty or bankruptcy within just five years of winning!

Tags: Investing, Lottery Winners, Retirement Planning, Tax Planning, Wealth & Happiness

A window of tax savings opportunity -- for how long?

Posted on March 12, 2010 by David Lloyd

CRA announced this week that it will maintain its 1% prescribed rate through to June 30th.

While that news didn’t make headlines, from a tax point of view it should have.

After RRSPs and tax deductibility of interest, I think a prescribed rate income splitting loan is the most effective way for wealthy high income earners to reduce their tax bill.

And a 1% interest rate offers an unprecedented window of opportunity.

Tags: CRA, Income Splitting, Interest Rates, Tax Planning, Tax Savings

2010 federal budget - an entrepreneur's perspective

Posted on March 5, 2010 by David Lloyd

Maybe I’m basking in the Olympic glory and caught up in the national optimism, but I thought the federal budget(pdf) provided the right balance of belt tightening, cautious optimism and few tax changes.

The government recognizes the uncertainty of a sustained recovery, especially given the relative weakness in the U.S. The objective of balancing the budget over five years appears to be based on realistic GDP growth estimates. So much is dependent on the re-emergence of the private sector -- as government spending wanes and shifts from bricks and mortar to technological innovation.

Canadian entrepreneurs should welcome a move towards a “tariff-free zone” (the removal of all tariffs on production inputs for manufacturing) designed to bolster productivity although manufacturing would have liked an extension of accelerated tax write-offs on plant and equipment.

Tags: Business Ideas, Government of Canada 2010 federal budget, Registered Disability Savings Plans, Retirement Planning, Stock Options, Tax Planning

Does wealth bring happiness?

Posted on March 2, 2010 by David Lloyd

Only if you stop to smell the roses.

An interesting study by the University of British Columbia, reported in Wency Leung's Globe & Mail article, "If that chocolate tastes 'meh,' you may be too rich", found that wealth can alter one’s ability to savour the little things in life. Things like enjoying a waterfall while on holiday, spending a romantic weekend with a partner, etc.

“Hedonistic adaption – the idea that people get used to whatever they have” is an obstacle to happiness, Leung writes.

Tags: Goal Setting, Selling Your Business, Wealth & Happiness

No shortcuts to building wealth

Posted on February 24, 2010 by David Lloyd

For almost thirty years of my career, I’ve gained immense satisfaction from helping our clients develop sound tax and wealth management strategies. And I’ve been blessed to watch them enjoy the rewards of their disciplined habits through greater wealth, health and happiness.

So I was struck when I read the Globe & Mail piece on ‘the nine milestones of a financially sound life’ according to Moshe Milevsky, a university finance professor. While a good deal of what Milevsky has to offer is sound, I would caution against adopting some of the recommendations in the article. Two subjects in particular caught my attention: income taxes and saving:

Tags: CRA, Retirement Planning, Saving for Retirement, Wealth & Happiness