Economic uncertainty has some clients wondering if the next generation can enjoy the prosperity they once had, Gene Kim helps them find answers
Client reactions to the ongoing trade war lie on a spectrum. The economic uncertainty surrounding Canada’s relationship with the United States leaves some clients largely unbothered, while others find themselves questioning the future for themselves and their families. Gene Kim, Branch Owner & Portfolio Manager of the Summit Private Wealth team within Mandeville Private Client Inc. says he has heard some clients ask about the long-term impacts this trade war might have on their estates, their families, and the future prosperity of their children. While he can’t answer questions about when or how this trade conflict gets resolved, Kim says he can address those generational concerns through his planning work.
Kim outlined how he’s adapting client plans now, from adjustments in risk tolerance to the prospect of sending children or grandchildren to university abroad. He adds context to these conversations to ensure that some of these goal revisions or new decisions aren’t purely driven by heightened emotion.
“The demographic of our clientele is generally affluent. So there is an overarching concern about enduring family wealth, and we do manage generational wealth. So I think that when you have major targeted goals such as education in the US, which can be very expensive, we earmark all of those goals in the plans,” Kim explains. “we can model out scenarios. So what if they go to school in the US? What if they go to school internationally? What if they needed to buy a new car for the kid? What if they need to help with the down payment? This is becoming more and more of a reality for Canadian families to help the next generation with major purchases.”
Keeping emotions in check
While issues like this trade war may prompt some clients to insist their children need to go to school abroad, or make them want to buy their children a house to give them more financial security, Kim also tries to assess the extent to which these decisions are being driven by emotion. He has seen a correlation between clients who watch more news and clients who tend to show more sensitivity to negative headlines. While he encourages clients to stay current, he also emphasizes that they should take things with a grain of salt and root their financial decisions in the best rational approach.
That emphasis on the rational is best demonstrated when clients consider downsizing or eliminating their US asset exposures. While Kim is sympathetic to the patriotism of the moment, he reminds clients that too heavy a weight to the Canadian market leaves them deeply overexposed to certain sectors and underexposed to others. Broad diversification mandates a healthy exposure to the Untied States and he believes that no form of bad headline or bellicose rhetoric from the Trump administration should change that.
Kim has been emphasizing that message since the onset of tariffs at the start of 2025. Over the past 20 months he has highlighted the importance of diversification to his clients, outlining other risks such as the growing concentration in certain equity indices due to the growth of AI-linked mega-caps. By keeping these conversations about market realities and preparing for market or macro events, Kim says he’s managed to help ensure his clients’ emotions don’t drive their financial decisions.
Renewing efforts as the news turns bleak
Despite all that coaching and reason-rooted communication, Kim acknowledges that the latest flare-up in the trade war demands a renewed period of outreach. He is prioritizing communication with business owner clients, especially those with businesses impacted by the new tariffs. He’s also reaching out to clients approaching retirement or those who have recently retired. That period can be so sensitive and volatility spikes or poor decisions in those moments can have lasting consequences, so Kim believes that contacting those clients is key.
While younger clients tend to have the time horizon needed to manage these moments, Kim also accepts that there can be a tone of fatalism when yet another ‘generational’ shock occurs. While the response by some young people has been to participate in riskier activities like crypto and sports betting, Kim offers a dose of context. He reminds them of the ways life continues to improve, and demonstrates the power of compounding over time. With all clients, he emphasizes a need for perspective and a degree of reflection on how our own perspectives, and even our own aesthetic sensibilities, impact our reactions to global events.
“We can’t lose perspective on what’s happening right now, but the world does get better. Amplifying what we see in the news or on social media, I think, can do a lot of harm. It’s good to get news from all sides, to understand intent and positioning, but we know that the news can portray things in a sensationalist way to trigger people’s emotional responses,” Kim says. “It’s important to rationalize that and ask how it applies to you, how it affects your investments, how you can protect yourself, and whether there are still opportunities for your future. Because there are.”
