What is a financial plan?

Let’s start by saying what a financial plan is not!

A financial plan is not: a two page document that you get after spending 15 minutes sitting with someone at the bank that tells you how much you have to put away every month into the banks balanced mutual funds. AT BEST this may be considered a retirement goal plan – but not really.

A financial plan is not: spending an hour or two with an investment advisor at a brokerage firm review the investments you have and building a new investment portfolio strategy after answering a two page questionnaire to determine your ‘risk profile’. AT BEST this may be considered an investment plan – but not really.

A financial plan is not: sitting with an accountant to figure out how to reduce your taxes this year. AT BEST this is a tax plan – but not really.

A financial plan is not: working with a life insurance agent to get a bunch of different insurance policies and segregated funds that claim to give you retirement at 55. AT BEST this may be a combination of an investment plan, and a protection plan – but is REALLY not!

A financial plan is not: dealing with an advisor whose only solution is to offer you investments in mutual funds and GIC’s and talks of big returns! AT BEST this is an investment plan – but not really.

A financial plan is definitely not: buying lottery tickets, getting advice from Dad, hoping to sell a business, flipping real estate, gambling at the casino, or trying to pick the next Google stock! AT BEST this is entertainment – but not really.

Financial Planning is a process where you and a Register or Certified Financial Planner (RFP, CFP) go through many aspects of your life and your finances to identify and change areas to improve and achieve the goals set-out.

Through preparing a financial plan you will:

  • Identify and understand where and what you spend your money on
  • Understand, organize, and structure debts efficiently
  • Understand where and what your money is invested in
  • Set goals that are specific, measurable, attainable, realistic, and time limited
  • Learn effective way to reduce your taxes every year and over your lifetime
  • Develop solutions to further reduce taxes and increase personal wealth
  • Identify areas of personal risk and develop solutions to protect against them
  • Determine investment returns needed and structure asset allocation
  • Identify and structure income efficiently to reduce taxes
  • Develop solutions to protect and reduce liability
  • Learn and understand effective ways to donate to charity
  • Learn how and when to draw income from various sources such as RRSP, CPP, trusts, etc.
  • Develop income splitting strategies to reduce taxes and avoid government benefit clawback.
  • Learn ways to get money out of RRSP’s effectively tax free

Most importantly: Achieve peace of mind through having a solid understanding and confidence in your finances!

To achieve your peace of mind for a better quality of life please contact us.

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