Active Peace: Why "Set and Forget" is Dangerous for Sudden Wealth

Rolf Issler
4 days ago
4 min read

The Short Answer (For the impatient)

Is "Set and Forget" a good strategy for sudden wealth?

No. While we avoid frantic trading, total passivity is dangerous. We call this "Passive Avoidance." In Canada, tax liabilities (CRA) and estate complexities do not sleep just because you do.

The wisest approach is Active Stewardship: not moving the money constantly, but actively verifying that your "Sanctuary" cash reserves are funded and your spending aligns with your values. You must be a Gardener, not a Tourist.

The December Freeze

December in the Okanagan is beautiful, but for families navigating a recent windfall—whether from an estate, a business exit, or a settlement—it is often a season of silent anxiety.

The financial industry screams at you to "Maximize!" before December 31st. They push tax-loss harvesting, RRSP top-ups, and aggressive rebalancing. It feels like noise.

So, the natural reaction is to shut down. You freeze. You decide to "deal with it next year." You tell yourself you are taking a "passive" approach.

But there is a critical difference between being a Patient Steward and a Passive Avoider. One leads to peace; the other leads to decay.

The Gardener vs. The Tourist

At ProsperWise, we distinguish between two types of wealth owners.

The Tourist

The Tourist visits their wealth like a vacation home once a year. They hope the weather (the markets) will be good. They ignore the leaking roof (fees and spending) because they "don't want to think about it."

The Mindset: "I hope it works out."
The Result: Entropy. Unchecked burn rates, surprise tax bills from the CRA, and rising anxiety.

The Gardener

The Gardener knows they cannot control the weather (market returns). They don't try to scream at the rain. But they do tend the soil. They check the fences. They prune the dead weight.

The Mindset: "I am verifying that I am safe."
The Result: Sanctuary.

Does the CRA Take a Holiday?

In British Columbia, "doing nothing" is an active decision with legal consequences.

If you received an inheritance this year, you may assume taxes were handled by the estate. Often, they were. But what about the income that capital has generated since it landed in your account? What about the T3 slips you will receive in spring?

We see many "frozen" clients leave cash in low-interest chequing accounts because they are afraid to make a move. In doing so, they lose thousands to inflation—the silent tax.

Active Stewardship in December doesn't mean trading stocks. It means answering three simple questions:

Is my liquidity safe and earning yield? (The Sanctuary Account).
Do I know exactly what I spent in the last 90 days? (The Burn Rate).
Are my documents organized for the accountant? (The Order).

The 3 Steps to Active Peace

You don't need to become a day trader. You just need to break the paralysis.

Step 1: Verify Your "Sanctuary" Cash

Before you worry about "growth," worry about sleep. Do you have 6-12 months of lifestyle expenses in a high-interest, principal-protected account?

The Check: Log in. Look at the number. Is it enough to cover you if the markets close tomorrow? If yes, breathe. You are safe.

Step 2: The "Intentional Pause" on Spending

December is a high-pressure spending month. We don't ask you to be a miser. We ask you to be conscious.

The Check: Review your "Burn Rate" for October and November. Did you spend from income, or did you erode capital? "Passive Avoidance" ignores this number. "Active Stewardship" looks it in the eye without judgment.

Step 3: Centralize the Paperwork

Nothing creates anxiety like a cluttered desk.

The Check: Create one physical folder or one digital file named "2025 Tax Sanctuary." Put every relevant slip, letter from the lawyer, and notice from the CRA in there. That's it. You don't need to process it yet; you just need to corral it.

Your Wealth Needs a Constitution

The reason most Sudden Wealth recipients freeze is that they haven't defined the purpose of the money. They have a pile of bricks, but no blueprint for the house.

We call this blueprint The Financial Charter. It’s not a budget; it’s a constitution. It defines what "enough" looks like for you and your family here in Kelowna.

When you have a Charter, you don't need to "hope" the markets are good. You have a plan that works even when they aren't.

Frequently Asked Questions

I just received an inheritance. Should I invest it before Dec 31 for tax reasons?

Likely not. In Canada, rushing into investments to "save tax" often leads to a poor long-term strategy. The wisest move is usually to park funds in a high-interest savings account (Sanctuary) while you build a plan.

What is the difference between a Financial Advisor and a Personal CFO?

An advisor typically focuses on investment returns (growing the money). A Personal CFO focuses on the entire picture—taxes, estate laws, family dynamics, and your peace of mind. We protect the person, not just the portfolio.

Do I need a complicated trust for my estate in BC?

Not always. While trusts can offer protection and privacy, they add complexity and cost. For many families, a clear Will and a well-structured Financial Charter are sufficient. Simple is usually better.