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Why do you need a Financial Plan?

Think of it like this: a smart business operates with a sound business plan. A comprehensive personal financial plan is like a business plan for your life. It involves much more than recommending investments. The plan helps you prepare for and achieve your many diverse needs and goals, such as:

  • managing your cash flow
  • planning for your children’s education
  • achieving your own education goals
  • planning your retirement
  • risk management "all your insurance needs"
  • tax planning
  • estate planning
  • career changes
  • investment strategies
  • planning during and after a divorce
  • dealing with a severence package

Basically, a plan helps you prepare for anything in your life that affects your finances and the accomplishment of your goals. Read these examples of how financial planning has helped our clients.

Example One

Joe and Mary Smith (pseudonyms) came to us because they needed some help in re-arranging their financial picture. Their kids had finished university and were now independent. This left Joe and Mary with more disposable income and they wanted to know how to best invest this money so that they could reach their goal of retirement in fifteen years time.

After analysing their situation, we advised on how to position their investments to obtain the yield required to build their retirement funds. We also indicated how much they would need to invest to achieve their goal of retirement. We introduced them to monthly RRSP contributions. We also rearranged their unregistered investments to make these more tax efficient.

Joe and Mary will be retiring this year with the portfolio size needed to fund their yearly income.

Example Two

Jane Adams (pseudonym), a recent widow, contacted us because she wanted help in dealing with three issues: she needed to ensure that she had continuous income, that she was able to support certain charities at death and that she would leave her four children with an intact estate.

We were able to help Jane by advising her to reposition her investments so that her return exceeded taxes and inflation. We also advised her to donate the bulk of her RRSPs and RRIFs to charities. This would provide her estate with a charitable tax credit. We also suggested that she buy a life insurance policy that would replace the taxes her estate would have to pay upon her death.

She now has peace of mind knowing that she can meet her lifestyle costs, support her favorite charities and have her children inherit her estate intact.

....Planning Pays!
 
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