Additionally, Ranson pointed to the trend that a large percentage of assets leaving the counselor channel come from parents giving money to their children. He added, “Here’s a way to do it differently and ensure that advisors can manage the assets under management.
“In general, retired people have three pools of wealth – registered assets, unregistered assets, and their home. The general idea seems to be to mine all of your unregistered assets, then mine your registered assets, and the last thing you do is sell your home. We just don’t think this is the most tax efficient way to do it.
“If we can educate people about different ways the product can be used to help people manage their after-tax income, these are the types of investments teachers can make to help us do that.”
After 25 years in business, Ranson said, it remains the only product that does what it does – “People never have to make a payment, the mortgage is never extended, and they can stay home for as long as they want.” The other tailwind the strategy has is the impact of COVID-19, where people are realizing they really don’t want to move to any care facility of any kind.
“They think moving is expensive. In the past, you could sell your house, downsize it into a condo, and actually take some money off the table. But condo prices have risen so much that this isn’t a great option. Is that a COVID effect? Or just a real estate effect? I’m not so sure, but it definitely helps our business and it has helped us quite a bit since the fourth quarter of last year. “