Mark Lotocky, CPA, CFPThe Canadian financial planning firm has been framing the conversation around what people are retiring to, rather than simply what they are retiring from, since 1988. Its planning process explores what a worthwhile retirement looks like day to day and week to week, from travel and gifting to children to the interests clients want to pursue, while showing the financial trade-offs behind those choices.
Dixon Davis approaches that process as a thought partner through an advice-only model. The firm does not manage investments or sell insurance, keeping its planning work focused on the client's needs rather than a particular financial product.
“The plan should come first,” says Mark Lotocky, CPA, CFP. “The investments should match that.”
Lotocky brings his accounting background and experience from thousands of financial plans to the conversation, while clients bring their priorities. Together, they work through the numbers, test possibilities and identify adjustments, connecting decisions to investments, taxes, spending and sustainable retirement income.
Focused Planning for Better Financial Decisions
Every engagement begins with a planning project. Some clients need a focused answer, such as choosing between pension options months before retirement. Others need to examine what they want retirement to look like and what it will take financially to support it.
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The plan should come first. The investments should match that.
The broader path unfolds through about four meetings over 90 days. Dixon Davis gathers information, explores the client's priorities, models possibilities and works through the trade-offs before settling on a course of action.
The final plan pairs specific actions with the reasoning behind them, whether that means gifting more to children, adjusting spending or making a different pension decision. Clients leave with a clear understanding of the choices they have made and the steps required to put them into practice.
That process also determines where investments fit. Risk tolerance, risk capacity and income needs are established first, then investment decisions are assessed against the plan.
Clients can implement the completed plan themselves, return every three to five years for a refresh or receive ongoing support as tax rules, markets, spending needs and life circumstances change. Dixon Davis reviews the plan throughout the year, typically through two formal meetings, and coordinates with investment managers, accountants and other professionals when needed.
The Real Return on Planning
One client approaching retirement held multiple real estate properties inside and outside a corporation and had moved into one of the properties held inside the corporation, creating additional costs and cash-flow uncertainty. Dixon Davis modelled the holdings alongside property transfers, pension choices and government benefits, developing recommendations projected to save more than $800,000 in lifetime taxes despite upfront transfer and accounting costs.
But not every outcome of planning can be captured on a balance sheet. One couple arrived on the verge of retirement with millions saved, but were hesitant to spend. They were considering taking CPP and OAS immediately for a fixed income and were unsure how much they could comfortably use while protecting their later years. Dixon Davis modelled scenarios showing they could travel and enjoy their savings without compromising long-term security.
They retired and spent the next 14 months travelling and pursuing experiences together. But the wife died unexpectedly. Her husband later shared his gratitude for having the confidence to spend that time together because of the clarity the plan provided.
