or the third year in a row, the Value of Finan-cial Planning study has

shown compelling evidence that Canadians who engage in com-prehensive financial planning feel better about their finances and do better at meeting their financial goals. Commissioned by Financial Planning Standards Council (FPSC) and independent-ly conducted by The Strategic Counsel, the study found that nearly twice as many people with a comprehensive financial plan feel on track with their financial affairs than those who don’t plan, and nearly three times as many said they were “very on track.”

That isn’t surprising news to Canada’s Certified Financial Plan-ner professionals (CFP). “Finan-cial planning provides a roadmap that outlines a path from where you are today to where you want to be in the future,” says Marlena Pospiech, CFP, a senior manager of BMO’s Retirement Institute. “It’s personalized to your specific

situation, and it is designed to work with your life, balancing your short-term goals with your long-term goals.”

The result, she adds, is a sense of comfort and control over your financial future. In fact, the FPSC study found that Canadians who engage in comprehensive finan-cial planning are more than twice as likely to report feeling peace of mind, and feel significantly more contented with their financial well-being, ability to reach life goals, their lifestyle and even their personal relationships.

There is a common miscon-ception that financial planning is only for the wealthy, or for those about to retire. But financial planning is beneficial for all ages and income levels, says Ms. Pospiech.

For example, higher housing prices, tuition costs and youth unemployment mean that the odds are stacked against young Canadians in a way that wasn’t generally true for their parents.

“These unique challenges make it even more important to have a fi-nancial plan that addresses those issues and reflects the particular situation younger people are fac-ing,” she stresses.

The stakes are even higher for women than for men, says Crys-tal Wong, CFP, a senior regional manager with TD Waterhouse Financial Planning. “The average boomer widow in Canada will outlive her husband by 16 years, and many women have had interrupted careers due to family responsibilities.”

While that makes preparing for retirement even more chal-lenging, many women report that they don’t know where to begin, she says. Taking the time to inter-view financial planners in order to find the right emotional fit, as well as the right credentials, can help women get on track to meet their goals, says Ms. Wong.

Women and men, young and old, are facing a more uncertain future. Even as the shift from de-fined benefit to defined contribu-tion pension plans transfers risk from employers to employees, the recent Old Age Security re-form is also sending the message that Canadians are increasingly on their own when it comes to saving for retirement, says Ms. Pospiech.

While it’s natural to try to ignore that reality, comprehen-sive financial planning is the key to creating a secure future, says Al Nagy, CFP, regional director at Investors Group. “Taking the time to lay out a roadmap for your future provides clarity, and clarity is motivating. Creating a financial plan is the step that clears the pri-mary hurdle – procrastination.”

The world has become far more complex: tax rules are com-

plicated and constantly changing, people’s lives are busier than ever and there are more products and services out there than ever before, he adds. “Sorting it out is confusing for anyone, but having a financial plan in place estab-lishes that clarity that people need in order to achieve their goals.”

Conversely, says Mr. Nagy, try-ing to do it on your own can lead to costly and sometimes irrevers-ible mistakes.

Until three years ago, when FPSC released the first year’s results of the five-year longitu-dinal Value of Financial Planning study, there had been very little research done on the correlation between financial and emotional well-being and engagement in comprehensive financial plan-ning, says Cary List, president and CEO of FPSC.

While this year’s data is still be-ing compiled, early indicators re-inforce substantive evidence that Canadians with a comprehensive financial plan meet the goals they set for themselves, whether those goals are retiring with the lifestyle they want or taking an annual vacation, he notes.

“In some cases, people pro-crastinate on financial plan-ning, because they’re afraid of what they’ll find out,” says Mr. List. “The results of this study tell us that the opposite is true: knowing is the first step toward achieving.”

or the third year in arow, the Value of Finan-cial Planning study has

shown compelling evidence thatCanadians who engage in com-prehensive financial planningfeel better about their financesand do better at meeting theirfinancial goals. Commissionedby Financial Planning StandardsCouncil (FPSC) and independent-ly conducted by The StrategicCounsel, the study found thatnearly twice as many people witha comprehensive financial planfeel on track with their financialaffairs than those who don’t plan,and nearly three times as manysaid they were “very on track.”That isn’t surprising news toCanada’s Certified Financial Plan-ner professionals (CFP). “Finan-cial planning provides a roadmapthat outlines a path from whereyou are today to where you wantto be in the future,” says MarlenaPospiech, CFP, a senior managerof BMO’s Retirement Institute.“It’s personalized to your specific

situation, and it is designed towork with your life, balancingyour short-term goals with yourlong-term goals.”The result, she adds, is a senseof comfort and control over yourfinancial future. In fact, the FPSCstudy found that Canadians whoengage in comprehensive finan-cial planning are more than twiceas likely to report feeling peace ofmind, and feel significantly morecontented with their financialwell-being, ability to reach lifegoals, their lifestyle and eventheir personal relationships.There is a commonmiscon-

ception that financial planning isonly for the wealthy, or for thoseabout to retire. But financialplanning is beneficial for allages and income levels, says Ms.Pospiech.For example, higher housingprices, tuition costs and youthunemployment mean that theodds are stacked against youngCanadians in a way that wasn’tgenerally true for their parents.

“These unique challenges make iteven more important to have a fi-nancial plan that addresses thoseissues and reflects the particularsituation younger people are fac-ing,” she stresses.The stakes are even higher forwomen than for men, says Crys-tal Wong, CFP, a senior regionalmanager with TDWaterhouseFinancial Planning. “The averageboomer widow in Canada willoutlive her husband by 16 years,and many women have hadinterrupted careers due to familyresponsibilities.”While that makes preparing

for retirement even more chal-lenging, many women report thatthey don’t know where to begin,she says. Taking the time to inter-view financial planners in orderto find the right emotional fit, aswell as the right credentials, canhelp women get on track to meettheir goals, says Ms. Wong.Women andmen, young andold, are facing a more uncertainfuture. Even as the shift from de-fined benefit to defined contribu-tion pension plans transfers riskfrom employers to employees,the recent Old Age Security re-form is also sending the messagethat Canadians are increasinglyon their own when it comes tosaving for retirement, says Ms.Pospiech.While it’s natural to try toignore that reality, comprehen-sive financial planning is the keyto creating a secure future, saysAl Nagy, CFP, regional director atInvestors Group. “Taking the timeto lay out a roadmap for yourfuture provides clarity, and clarityis motivating. Creating a financialplan is the step that clears the pri-mary hurdle – procrastination.”The world has become farmore complex: tax rules are com-

plicated and constantly changing,people’s lives are busier thanever and there are more productsand services out there than everbefore, he adds. “Sorting it out isconfusing for anyone, but havinga financial plan in place estab-lishes that clarity that peopleneed in order to achieve theirgoals.”Conversely, says Mr. Nagy, try-ing to do it on your own can leadto costly and sometimes irrevers-ible mistakes.Until three years ago, whenFPSC released the first year’sresults of the five-year longitu-dinal Value of Financial Planningstudy, there had been very littleresearch done on the correlationbetween financial and emotionalwell-being and engagement incomprehensive financial plan-ning, says Cary List, president andCEO of FPSC.While this year’s data is still be-ing compiled, early indicators re-inforce substantive evidence thatCanadians with a comprehensivefinancial plan meet the goalsthey set for themselves, whetherthose goals are retiring with thelifestyle they want or taking anannual vacation, he notes.“In some cases, people pro-crastinate on financial plan-ning, because they’re afraid ofwhat they’ll find out,” says Mr.List. “The results of this studytell us that the opposite is true:knowing is the first step towardachieving.”

Financial planning brings proven peaceof mind and sense of control

SpecialFinancial Planning Week

TUESDAY, NOVEMBER 20 , 201 2 FP 1

AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC)

Myth and realities. Are misunderstandings about financial planningstanding between you and your goals? FP 2

Buyer beware. A lack of clarity and regulation mean that Canadiansmust be discerning when choosing a financial planner. FP 3

Creating a savings culture. An inability to save is a barrier tofinancial and emotional well-being. FP 6

INSIDE

ABOUT

Financial Planning Week

Now in its fourth year,Financial Planning Stan-dards Council (FPSC) andthe Institut québécois deplanification financière(IQPF) have jointly declaredNovember 19-25, 2012, asCanada’s Financial PlanningWeek. During the week, eachorganization will be spear-heading industry events andpublic outreach activitiesin their respective markets.Financial Planning Week ispart of an ongoing effort byboth organizations to makefinancial planning a corner-stone of Canadians’ soundfinancial management. Thisyear, Financial PlanningWeek is a dedicated weekwithin Financial LiteracyMonth. Stay up-to-date atwww.financialplanningweek.ca,Twitter@FPWeek, and onLinkedIn and Facebook.

79%74%

81%*Value of Financial Planning study results comparing mindsets of those who undertake comprehensive planning (CP) versus no planning (NP). See full study highlights on page 6. ISTOCKPHOTO.COM

My finances areon track

My goals areachievable

I don’t just dreamabout vacations, I take

one every year

* *

*

This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com.

eather Mills’s transitionfrom student life to full-fledged working adult-

hood has been a bumpy ride,with a few detours along the way.Unable to find a job after earningher English degree from Queen’sUniversity in Kingston, Ont.,Ms. Mills subsequently taughtEnglish in China for six months,before going back to school inToronto to learn public relations.“It was harder than I’d thoughtto find work in my field after Ifinished university,” says Ms.Mills, now associate director ofsponsorships at an international

charity called Free the Children.“It took longer than I had ex-pected to get my career started.”Ms. Mills, 30, is part of a demo-graphic known as the MillennialGeneration. Born between 1981and 2000, and also referred toas Generation Y, the Echo Boomand the Net Generation, Canada’sroughly nine million Millenni-als are now in the early stages ofbuilding their careers and livingas independent, self-sufficientadults. And like Ms. Mills, theyface a host of financial chal-lenges.

GENERATION Y

Challenging times spurMillennials to look ahead

Millennials, Page FP 8

ONLINE?

For more information, visitwww.fpsc.ca.

Plan to invest.

™Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations. Investment products and services are offered through Investors Group Financial Services Inc. (in Québec,a Financial Services firm) and Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund.

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Financial planning brings proven peace of mind and sense of control

SpecialFinancial Planning Week

t u e S DAY, n ov e m b e r 2 0 , 2 01 2 FP 1

An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc)

Myth and realities. Are misunderstandings about financial planning standing between you and your goals? FP 2

Buyer beware. A lack of clarity and regulation mean that Canadians must be discerning when choosing a financial planner. FP 3

Creating a savings culture. An inability to save is a barrier to financial and emotional well-being. FP 6

INSIDE

about

Financial Planning Week

Now in its fourth year, Financial Planning Stan-dards Council (FPSC) and the Institut québécois de planification financière (IQPF) have jointly declared November 19-25, 2012, as Canada’s Financial Planning Week. During the week, each organization will be spear-heading industry events and public outreach activities in their respective markets. Financial Planning Week is part of an ongoing effort by both organizations to make financial planning a corner-stone of Canadians’ sound financial management. This year, Financial Planning Week is a dedicated week within Financial Literacy Month. Stay up-to-date at www.financialplanningweek.ca, Twitter @FPWeek, and on LinkedIn and Facebook.

79%74%

81%*Value of Financial Planning study results comparing mindsets of those who undertake comprehensive planning (CP) versus no planning (NP). See full study highlights on page 6. istockphoto.com

my finances are on track

my goals are achievable

i don’t just dream about vacations, i take

one every year

* *

*

this report was produced by RandallAnthony communications inc. (www.randallanthony.com) in conjunction with the advertising department of the Globe and mail. Richard Deacon, National Business Development manager, rdeacon@globeandmail.com.

eather Mills’s transition from student life to full-fledged working adult-

hood has been a bumpy ride, with a few detours along the way. Unable to find a job after earning her English degree from Queen’s University in Kingston, Ont., Ms. Mills subsequently taught English in China for six months, before going back to school in Toronto to learn public relations.

“It was harder than I’d thought to find work in my field after I finished university,” says Ms. Mills, now associate director of sponsorships at an international

charity called Free the Children. “It took longer than I had ex-pected to get my career started.”

Ms. Mills, 30, is part of a demo-graphic known as the Millennial Generation. Born between 1981 and 2000, and also referred to as Generation Y, the Echo Boom and the Net Generation, Canada’s roughly nine million Millenni-als are now in the early stages of building their careers and living as independent, self-sufficient adults. And like Ms. Mills, they face a host of financial chal-lenges.

GENEratIoN Y

Challenging times spur Millennials to look ahead

Millennials, Page FP 8

oNlINE?

For more information, visit www.fpsc.ca.

s comedian Steve Martin introduced actor Gael Garcia Bernal at the 2003

Academy Awards, he said, “I’d do anything to look like this guy – except exercise and eat right.”

It’s a philosophy that too many Canadians adopt when it comes to their financial well-being as well as their health. “We under-stand that financial planning is good for us, in the same way we know we should eat more vegetables and exercise – but we are busy, balancing lots of different commitments,” says Tamara Smith, vice president of marketing and consumer affairs at Financial Planning Standards Council (FPSC).

But a number of common myths and misunderstandings about financial planning also contribute to its low place on our priority lists. “Many people think financial planning is just about in-vesting or just about retirement,” she explains. “But it’s so much more than that – we know from our research that individuals who are engaged in financial planning feel significantly more optimistic about their personal well-being.”

Another myth that contributes to financial planning procrasti-nation is the idea that financial planning is only for the wealthy or for retirement. But according to Kurt Rosentreter, CFP, a senior financial advisor at Manulife Securities, financial planning may be even more valuable for those who haven’t yet been able to ac-cumulate significant wealth. “Fi-nancial planning is goal-driven,” says Mr. Rosentreter, who is also a chartered accountant and the best-selling author of Wealthbuild-ing: Lifelong Financial Strategies for Success with Your Money. “If you

want to retire some day, put your kids through school, be debt-free, have

a nice car or save for a vacation, that’s

the starting point. If

you have income, bills to pay and goals or dreams, you could benefit from some counselling from an objective expert.”

It can be difficult to share personal financial information, which may lead to procrastina-

tion, he says. “We’re going to talk about how much money they make, how they spend it, how much they have in debt. It can be intimidating.”

That’s why it is important to interview as many financial planners as necessary to find one you’re completely comfortable with, says Crystal Wong, CFP, a senior regional manager with TD Waterhouse Financial Planning. “There has to be a personality fit. They have to work with you, understand what your goals are, not make you feel intimidated, make you feel part of that plan-ning process, listen to you and understand you.”

Regardless of your current financial situation or how much money you expect to have, there will always be a financial planner willing to concentrate on ensuring that you succeed in reaching your financial goals, she adds.

When tempted to procrastinate, consider the payoff for acting now, urges Ms. Smith. The FPSC study found that even if two families had an equal amount of assets, the one engaged in finan-cial planning was almost twice as likely to say they feel prepared to manage through tough economic times and significantly more likely to feel that their goals and aspirations are achievable.

“Those who don’t have a finan-cial plan, even with considerable assets, don’t know if they’re going to be okay. They don’t know if they’ll get through tough times, or through retirement, because they haven’t done the homework to evaluate their needs,” she notes. “When you can identify a lot of those unknowns, life just gets a lot easier.”

FP 2 • An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

trENDS

“If you want to retire some day, put your kids through school, be debt-free, have a nice car or save for a vacation, that’s the starting point. If you have income, bills to pay and goals or dreams, you could benefit from some coun-selling from an objective expert.”

Kurt Rosentreter, is a CFP professional and a senior financial advisor at Manulife Securities

Common misconceptions can stand in the way of personal well-being

rECoGNItIoN

Financial Planning Standards Council proudly an-nounces the 2012 recipi-

ents of the FELLOW OF FPSC distinction. These individu-als are recognized for their outstanding contribution to furthering FPSC’s vision and for advancing the financial planning profession:

Sterling Rempel, Alberta

David Salloum, Alberta

George Athanassakos, Ontario

Steven Bang, Ontario

Gerry Bissett, Ontario

Coleen Clark, Ontario

Tina Di Vito, Ontario

Heather Holjevac, Ontario

Deborah Kraft, Ontario

James Kraft, Ontario

Marc Lamontagne, Ontario

D. Tony Mahabir, Ontario

David Nicholson, Ontario

Susan Stefura, Ontario

Frank Wiginton, Ontario

66%

i’m living the lifestyle

i choose

see page 6

While financial planning is important for the wealthy as well as those approaching retirement, it is equally if not more valuable for those who are just embarking on their adults lives. istockphoto.com

s comedian Steve Martinintroduced actor GaelGarcia Bernal at the 2003

Academy Awards, he said, “I’d doanything to look like this guy –except exercise and eat right.”It’s a philosophy that toomanyCanadians adopt when it comesto their financial well-being aswell as their health. “We under-stand that financial planningis good for us, in the samewaywe knowwe should eat morevegetables and exercise – butwe are busy, balancing lots ofdifferent commitments,” saysTamara Smith, vice president ofmarketing and consumer affairsat Financial Planning StandardsCouncil (FPSC).But a number of commonmyths andmisunderstandingsabout financial planning alsocontribute to its low place on ourpriority lists. “Many people thinkfinancial planning is just about in-vesting or just about retirement,”she explains. “But it’s somuchmore than that – we know fromour research that individuals whoare engaged in financial planningfeel significantly more optimisticabout their personal well-being.”Anothermyth that contributesto financial planning procrasti-nation is the idea that financialplanning is only for the wealthyor for retirement. But accordingto Kurt Rosentreter, CFP, a seniorfinancial advisor at ManulifeSecurities, financial planningmaybe evenmore valuable for thosewho haven’t yet been able to ac-cumulate significant wealth. “Fi-nancial planning is goal-driven,”says Mr. Rosentreter, who is alsoa chartered accountant and thebest-selling author ofWealthbuild-ing: Lifelong Financial Strategies forSuccess with Your Money. “If you

want to retire someday, put your kidsthrough school,be debt-free, havea nice car or save

for a vacation, that’sthe starting point. If

you have income, bills to pay andgoals or dreams, you could benefitfrom some counselling from anobjective expert.”It can be difficult to sharepersonal financial information,whichmay lead to procrastina-

tion, he says. “We’re going to talkabout howmuchmoney theymake, how they spend it, howmuch they have in debt. It can beintimidating.”That’s why it is importantto interview asmany financialplanners as necessary to find oneyou’re completely comfortablewith, says Crystal Wong, CFP, asenior regional manager with TDWaterhouse Financial Planning.“There has to be a personalityfit. They have to work with you,understand what your goals are,not make you feel intimidated,make you feel part of that plan-ning process, listen to you andunderstand you.”Regardless of your currentfinancial situation or howmuchmoney you expect to have, therewill always be a financial plannerwilling to concentrate on ensuringthat you succeed in reaching yourfinancial goals, she adds.When tempted to procrastinate,consider the payoff for actingnow, urges Ms. Smith. The FPSCstudy found that even if twofamilies had an equal amount ofassets, the one engaged in finan-cial planning was almost twice aslikely to say they feel prepared tomanage through tough economictimes and significantly morelikely to feel that their goals andaspirations are achievable.“Those who don’t have a finan-cial plan, even with considerableassets, don’t know if they’re goingto be okay. They don’t know ifthey’ll get through tough times, orthrough retirement, because theyhaven’t done the homework toevaluate their needs,” she notes.“When you can identify a lot ofthose unknowns, life just gets alot easier.”

FP 2 • AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC) the globe and ma il • tUeSdaY, november 20 , 201 2

FINANCIAL PLANNING

TRENDS

“If you want to retiresome day, put your kidsthrough school, be debt-free, have a nice caror save for a vacation,that’s the starting point.If you have income,bills to pay and goalsor dreams, you couldbenefit from some coun-selling from an objectiveexpert.”

Kurt Rosentreter,is a CFP professional and asenior financial advisor atManulife Securities

Common misconceptions can stand in theway of personal well-being

RECOGNITION

FinancialPlanningStandardsCouncilproudly an-nounces the2012 recipi-

ents of the FELLOW OF FPSCdistinction. These individu-als are recognized for theiroutstanding contribution tofurthering FPSC’s vision andfor advancing the financialplanning profession:

Sterling Rempel, Alberta

David Salloum, Alberta

George Athanassakos, Ontario

Steven Bang, Ontario

Gerry Bissett, Ontario

Coleen Clark, Ontario

Tina Di Vito, Ontario

Heather Holjevac, Ontario

Deborah Kraft, Ontario

James Kraft, Ontario

Marc Lamontagne, Ontario

D. TonyMahabir, Ontario

David Nicholson, Ontario

Susan Stefura, Ontario

FrankWiginton, Ontario

want today, puthrougbe deba nice ca

for a vacatithe starting

66%

I’m livingthe lifestyleI choose

See page 6

While financial planning is important for the wealthy as well as those approaching retirement, it isequally if not more valuable for those who are just embarking on their adults lives. ISTOCKPHOTO.COM

®/™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. ©2012 Royal Bank of Canada. Financial planning services and investment advice are provided byRoyal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated.RMFI is licensed as a financial services firm in the province of Quebec.

IT’S TIME TO DEFINE YOUR RETIREMENT. DIFFERENTLY.

Start the conversation today.Call 1-866-220-3918 or visitrbc.com/define

You approached life differently from yourparents then, and still do today. Now it’s timeto define the rules again in your retirement.It all starts with a one-of-a-kind experiencecalled Your Future By Design™. Through a

number of eye-opening questions, we takea look at the next 20+ years of your futureand your finances – then help you figure outhow to make that future happen. Think of itas your next defining moment.

40 YEARS OF CHALLENGING THE STATUS QUO.HERE YOU GO AGAIN.

1969

1971

1973

1976

2012

1975 1984

1989

TM

By Cary ListPresident and CEO of the Financial Planning Standards Council

ndependent research com-missioned by the Financial Planning Standards Coun-

cil, a five-year longitudinal study now in its third year, provides substantive, convincing evidence of the value of comprehensive financial planning.

Canadians who engage in financial planning are more than twice as likely to report peace of mind about their financial affairs, compared with those who have comparable assets but no financial plan. They are significantly more likely to reach both short-term goals, such as saving for their chil-dren’s education and paying off debt, and long-term goals, such as being prepared for retirement.

Contrary to the common misapprehension that financial planning is only for the wealthy, this research reveals that the real and perceived benefits identified by Canadians are perhaps even greater for people who are not affluent. In terms of successfully meeting their financial objec-tives throughout life, charting a path through a comprehensive financial planning process makes a dramatic difference. Conversely, the average Canadian who is not undertaking financial planning reports extreme financial pressure and uncertainty.

Given the widespread concern about record-high household debt and low levels of retirement sav-ings in Canada, it is clear that the services of Certified Financial Plan-ner professionals have never been more important to the overall well-being of Canadian families, as well as to our collective prosperity

as a country. It is perhaps understandable,

then, that our research also indicates that Canadians believe that financial planning in Canada is a regulated profession. A study independently conducted for FPSC found that about 70 per cent of Canadians believe that you must be licensed in order to call yourself a financial planner in Canada.

Regrettably, with rare exception, this is simply not true. Quebec is in fact the only province that regu-lates the use of the term “financial planner.”

Given this misconception, Ca-nadians are less likely to do their own due diligence to ensure that the “financial planner” they’re see-ing has appropriate qualifications, such as Certified Financial Planner (CFP) certification. Yet they have no assurance whatsoever, outside of Quebec, that they are receiving advice from an individual who has any financial planning training, experience, education, ethical standards or legitimate creden-tials.

Our organization continues to advocate for the adoption of higher regulatory standards, including minimum certifica-tion requirements for those who purport to be financial planners. In the meantime, we work to edu-cate Canadians about their first line of defence in an unregulated environment: ensuring that the individual who is providing finan-cial planning advice has met an appropriately high standard, by checking his or her professional credentials.

Does the planner, for example, have CFP certification? If so, Cana-dians can be confident that he or she has successfully completed a rigorous certification process, which includes an extensive edu-cational training program with two levels of examinations. On an annual basis, CFP professionals are required to attest to the fact that they meet ongoing profes-

sional obligations, including put-ting their clients’ interests ahead of their own and acting with care, diligence and good judgment. If complaints are levied against them, they must subject them-selves to investigation, review and professional oversight. Maintain-ing CFP certification also requires a commitment to continuing education and professional devel-opment.

Canadians are facing an un-certain future. Baby boomers, tasked with saving for looming retirement in an environment of low returns and fewer guaranteed pension benefits, are increasingly squeezed between pressure to assist aging parents and support adult children.

With many competing de-mands on our time and income, it is tempting to take a piecemeal, reactive approach to these and other decisions. Take, for ex-

ample, the many Canadians who rush to make or top up their RRSP contributions each year on Febru-ary 28. Only a comprehensive ap-proach to financial planning can effectively answer the many ques-tions that should be addressed before making such a contribu-tion. Should I be making an RRSP contribution at all, or paying off debts first? Is it better for me to maximize my TFSA contribution or my RRSP contribution? If I’m saving for my children’s educa-tion, how does this enter in to my RRSP decision?

A CFP professional will look at the entirety of your financial needs and goals, and help you make the most effective and ap-propriate use of your resources. As our research proves, only a holistic financial planning approach will ensure that you are on track to meeting your unique personal objectives.

Services of credentialed financial planners critical to Canadian families – and the country

An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) • FP 3t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

ExpErt opINIoN

By Cary ListPresident and CEO of the FinancialPlanning Standards Council

ndependent research com-missioned by the FinancialPlanning Standards Coun-

cil, a five-year longitudinal studynow in its third year, providessubstantive, convincing evidenceof the value of comprehensivefinancial planning.Canadians who engage in

financial planning are more thantwice as likely to report peace ofmind about their financial affairs,compared with those who havecomparable assets but no financialplan. They are significantly morelikely to reach both short-termgoals, such as saving for their chil-dren’s education and paying offdebt, and long-term goals, such asbeing prepared for retirement.Contrary to the common

misapprehension that financialplanning is only for the wealthy,this research reveals that the realand perceived benefits identifiedby Canadians are perhaps evengreater for people who are notaffluent. In terms of successfullymeeting their financial objec-tives throughout life, charting apath through a comprehensivefinancial planning process makesa dramatic difference. Conversely,the average Canadian who is notundertaking financial planningreports extreme financial pressureand uncertainty.Given the widespread concern

about record-high household debtand low levels of retirement sav-ings in Canada, it is clear that theservices of Certified Financial Plan-ner professionals have never beenmore important to the overallwell-being of Canadian families, aswell as to our collective prosperity

as a country.It is perhaps understandable,

then, that our research alsoindicates that Canadians believethat financial planning in Canadais a regulated profession. A studyindependently conducted for FPSCfound that about 70 per cent ofCanadians believe that you mustbe licensed in order to call yourselfa financial planner in Canada.Regrettably, with rare exception,

this is simply not true. Quebec isin fact the only province that regu-lates the use of the term “financialplanner.”Given this misconception, Ca-

nadians are less likely to do theirown due diligence to ensure thatthe “financial planner” they’re see-ing has appropriate qualifications,such as Certified Financial Planner(CFP) certification. Yet they haveno assurance whatsoever, outsideof Quebec, that they are receivingadvice from an individual who hasany financial planning training,experience, education, ethicalstandards or legitimate creden-tials.Our organization continues

to advocate for the adoptionof higher regulatory standards,including minimum certifica-tion requirements for those whopurport to be financial planners.In the meantime, we work to edu-cate Canadians about their firstline of defence in an unregulatedenvironment: ensuring that theindividual who is providing finan-cial planning advice has met anappropriately high standard, bychecking his or her professionalcredentials.Does the planner, for example,

have CFP certification? If so, Cana-dians can be confident that he orshe has successfully completeda rigorous certification process,which includes an extensive edu-cational training program withtwo levels of examinations. On anannual basis, CFP professionalsare required to attest to the factthat they meet ongoing profes-

sional obligations, including put-ting their clients’ interests aheadof their own and acting with care,diligence and good judgment.If complaints are levied againstthem, they must subject them-selves to investigation, review andprofessional oversight. Maintain-ing CFP certification also requiresa commitment to continuingeducation and professional devel-opment.Canadians are facing an un-

certain future. Baby boomers,tasked with saving for loomingretirement in an environment oflow returns and fewer guaranteedpension benefits, are increasinglysqueezed between pressure toassist aging parents and supportadult children.With many competing de-

mands on our time and income,it is tempting to take a piecemeal,reactive approach to these andother decisions. Take, for ex-

ample, the many Canadians whorush to make or top up their RRSPcontributions each year on Febru-ary 28. Only a comprehensive ap-proach to financial planning caneffectively answer the many ques-tions that should be addressedbefore making such a contribu-tion. Should I be making an RRSPcontribution at all, or paying offdebts first? Is it better for me tomaximize my TFSA contributionor my RRSP contribution? If I’msaving for my children’s educa-tion, how does this enter in to myRRSP decision?A CFP professional will look

at the entirety of your financialneeds and goals, and help youmake the most effective and ap-propriate use of your resources. Asour research proves, only a holisticfinancial planning approach willensure that you are on track tomeeting your unique personalobjectives.

Services of credentialed financial planners criticalto Canadian families – and the country

AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC) • FP 3the globe and ma il • tUeSdaY, november 20 , 201 2

FINANCIAL PLANNING

EXPERT OPINION

“Canadians who engagein financial planning aremore than twice as likelyto report peace of mindabout their financial af-fairs, compared with thosewho have comparable as-sets but no financial plan.”

The importance of services provided by Certified Financial Planners is rising as Canadians awaken to widespreadconcerns about record-high household debt and low levels of retirement savings in Canada. ISTOCKPHOTO.COM

ALBERTAAmonson, TaylorAssad, HashmatullahAun, EdwinBennet, ChristopherBritos, MaximoCameron, HughCarson, RobynCattoni, AndreaChevalier, JoelChoufi, JehannChrones, GeorgeCopot, ChristopherDaniel, DustinDrozduk, MarshallFaubert, JaredFeddema, JodieFeigs, ThomasFong, JennaFoster, ElenaFriesen, ChristopherFulton, ColeenGhuman, ShivcharanGuderyan, JohnHague, DanielHartsook, JamesIppolito, ChristopherJockims, SandraKulczynski, SlyKwan, PaulineLawson, BlairLoong, BrandonLough, VictorLu, FeiMah, EdmundMarx, LesMcKnight, BryceMercer-Guest, DanaMohammadi, NoushinMorris, MichaelNelson Bernard,Kourtney

Ninkovich, PredragPickard, Michael

Schrempf, JudySereda, GarrettSiemens, RogerSoutière, StacySteinman, BenjaminTraynor, JasonTsang, AbelVerma, AmitVidhi, GentianaVidhi, RenatoWachter, JensWang, KanfuWei, StanleyWilliams, GrantZhao, Dongxia

BRITISH COLUMBIAAng, CarmenArruda, LuciaBansal, YogeshBarker, ColleenCalpakis, GregoryChan, Tim Tak LamChen, Ching YunChiung, Peter I-TingChoi, ByronClark, JamesCross, KylieEvans, MatthewFairbotham, JamesFairhurst, EdwardFastabend, SherriFlockton, VanessaGilbert, RobertGilchrist, RichardGilman, ThomasGleig, ThomasHarries, DanielHedao, ShashankHill, MariannHo, KellyHolt, BenjaminHovey, EmilyHowson, Susie

Larsen, BrittanyLee, Chia-ChienLee, Paul (Jong)Lewis, BrentLiang, Yin WahLouttit, StacieMacrae, PeggyMangat, AmandeepMollica, MichaelNam, Hyun Sung (David)Ng-A-Fook, RobertNorthey, LawrencePearce, BarbaraRempel, LindaRodriguez, DanielSandhu, AvtarShen, VeronicaShoker, GurpreetSider, MichaelSmillie, RyanStewart, MichaelTay, Chun-YiTso, AndyVenier, RobertWang, JiaWhite, ChristianWiese, AndrewWilson, DebbieWu, Mang Hei JaclynWu, Wei-Hai RoyYang, DavidYoshizawa, MaroYu, JoannZak, TiffanyZhao, JonathanZhuang, Jin YunZimmerman, Erin

MANITOBABrimoh, OlayinkaBye, BryanCarpick, IanChau, DennyChimuk, Jordan

Friesen, JodiRempel, AlbertSellors, CurtisShawn, MichaelWoodcock, Shaun

NEW BRUNSWICKDionne, EricLéger-Sexton, NadineMaston, StephanieNeild, Robert

NEWFOUNDLAND& LABRADORShort, Kimberley

NOVA SCOTIABarteaux, StevenBeazley, RyanLacas, AndrewMatheson, TyroneStover, NeilWorrell, Robert

ONTARIOAcquaah, V. MarthaAlbayrak, SemraAlexander, RosannaAlly, SaeedAppleby, CourtneyArnold, PaulAston, MatthewAube, AlAyers, StuartBacchus, JoshuaBaeta, JulienBakshi, PepeBansal, PunitaBaseggio, KimberleyBégin, Melissa KathleenBellissimo, KristenBertrand, JeremyBevan, JanetBewick, Jeff

Blanch, RhondaBraithwaite, AndrewBritton, WilliamBrooks, MelissaCalvert, IanChan, VanessaChiu, KennethChou, Kevin Chin-HueiChugh, AtamColantonio, SaraColbert, KarinCoombs, KennethCraig, CatherineCushion, PatrickDa Silva, RicardoDaley, CynthiaDaniel, KevinDaniel, SoniaDao, Hungde Hart, ChristopherDeith, BenjaminDemore, Jean-FrançoisDhansoia, MahendraDi Diodato, AlessandroDionne, StevenDjossa, FrenelDolstra, CherieDudek, DavidDuffy, LaurenDziarski, GeorgeEicher, ScottEnright, BrendanFaghihi-Rezaei, NikooFallenbuchl, RobertField, DennisFormuziewich, MichaelFoster, JohnFothergill, LindsayFoulis, MattFranchino, AnthonyFrech, AndrewFreedman, NormanFryling, Charles MitchellFu, Angela

Gaudino, DavidGeminiuc, TiaGennings, TonyaGlenn, MaureenGravelle, JeannineGupta, NeeruHamilton, JustinHarvey, BrendanHennebury, MattHickey, SylkeHodgins, ChrisHreljac, JonHughes, JamesHull, ThomasJanssens, KenJean-Pierre, JamesJenkin, TaylorJones, GlenJuliano Mercado,Emerita

Julien, MichelKalsi, RajvinderKang, SukhwinderKearns, TrevorKhalifa, AmiraKirk, DonnaKorzynska, EwelinaKrishnamoorthy, VikramLacelle, LucLam, JeffLane, JoshuaLato-Tershana, NevilaLavery, NicoleLavigne, StevenLee, JeannetteLeuba, SandraLeung, GeorgeLockie, RobertLopez, OrlandoLyons, BarrettLysohirka, RobertMahlberg, ChristopherMahmud, RimonMaikawa, Sandra

Mantzios, AngeloMarques, RichardMartin, KevinMaxwell, DamianMaynard, TimMcCloskey, DavidMcFadden, ShaneMcKerracher, AshleyMcLean, EvgeniaMilczarski, MichelleMinasians, ArinMurton, VinceNaylor, NathanNekourouh, MelodyNotis, SteveO’Donnell, BernardO’Driscoll, KeriOliver, DennyPakeman, JamesPavey, EdwinPerren, MeredithPiroli, StephanieQueija, BarakQuinlan, J. PeterRadic, SlavenReekie, LydiaReid, RoxanneRennie, HeatherRipley, NathanRohani, RezaRutgers, ScottRyder, SeanSenécal, PierreSheridan, JamesSiegel, LindsaySlemko, JohnSmears, BlairSmith, NigelSmith, PaulStandon, MichaelStapley, JasonTata, DonTaylor, S JillTenorio, MyAnh

Tonge, PhilipVelenosi, TonyVerret, ReneeWalsh, DanielWang, ChenWay, MichealWhitty, StephanieWink, NorbertWitanto, FransiskaWoitowicz, KimberleyYoannou, GeorgeYu, FengYu, Yong GaoZenta, Patrick

PRINCE EDWARDISLANDNeary, Patrick

QUEBECEl Achkar, GeorgesOliver, WilliamTalbot, Jean-François

SASKATCHEWANAbou-Mechrek, MichelAmundsen, ZenaArguin, MaryBarss, AllanDickie, TylerHarder, BrianHolden, RyanKowalchuk, CarolLucyshyn, DouglasMcVicar, RobertPatterson, KevinRawson, MichelleSchettler, CoreyThacyk, MeaganTurner, KyleWelch, PatriciaCairney, Benjamin

Financial Planning Standards Council (FPSC®) is proud to recognize the following 326 individuals who have obtainedCFP® certification between October 1, 2011 and September 30, 2012.

The 17,500 CERTIFIED FINANCIAL PLANNER® professionals represent the largest identifiable body of financial planners inCanada. CFP certification provides assurance that the planner is committed to internationally-recognized professionalstandards of competence, ethics and practice as set and enforced in Canada by FPSC.

FINANCIALPLANNINGSTANDARDSCOUNCIL®FP

SC

®

It’s the value of professional advice.www.fpsc.ca

More CFP®

professionals forCanadians to count on

CFP®, CERTIFIED FINANCIAL PLANNER® and are certification trademarks owned outside the U.S. byFinancial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the markslicensing authority for the CFP marks in Canada, through agreement with FPSB. All other ® are registeredtrademarks of FPSC, unless indicated. ©2012 Financial Planning Standards Council. All rights reserved.

®

“Canadians who engage in financial planning are more than twice as likely to report peace of mind about their financial af-fairs, compared with those who have comparable as-sets but no financial plan.”

The importance of services provided by Certified Financial Planners is rising as Canadians awaken to widespread concerns about record-high household debt and low levels of retirement savings in Canada. istockphoto.com

Tuesday , November 20, 20 1 2 • The globe aNd mailaN iNformaTioN feaTure

Special

How to achieve financialsuccess Creating a financial plan with the help of a qualified planner helps

balance short-term wishes against long-term aspirations

Choosing a qualified financialplanner who is right for you iscritical. “Take the time to inter-view a few planners. Make sureyou choose somebody who youfeel comfortable with. The moreinformation you share aboutyour financial life, the better yourfinancial plan can be.”

A financial planner, usually avail-able free of charge through banksand financial institutions, beginsby having a conversation with anew client about that individual’sgoals. “The first stage is gettingto know you and to understandyour situation and what you’re

“The moreinformation youshare aboutyour financiallife, the betteryour financialplan can be"

Thekey to financial success isnot that there's one way toachieve it - but several im-

portant steps that require somework, says Lee Bennett, SeniorVice-President, TDWaterhouseFinancial Planning. It’s creatinga financial plan with the helpof a qualified financial planner,and reviewing and adjusting itthrough all life stages.“I don’t think there’s one

secret to financial success,” Ms.Bennett says. “There are a num-ber of different steps you shouldtake. One, start sooner than later.Two, look for a financial plannerto help you. Three, really pushyourself to think about what isimportant to you and what youneed to save to be successful inthe long term.”The biggest financial regret

many people have is that theydidn’t start early enough, shesays. “When you ask retiredpeople what would be the onething they’d change, many say,‘I wish I had started sooner.’ It’seasier if you’ve got time on yourside to save and there’s less pres-sure to try to meet your retire-ment needs.”

Lee Bennett, Senior Vice-President, TD Waterhouse Financial Planning:There are several key steps on the road to financial success.

planning to do in the next five, 10and 15 years,” Ms. Bennett says.The planner would develop a

proposed plan for saving, spend-ing and investing in the short-,medium- and long-term thatcould include how to save forchildren’s education, for a house,for travel or for retirement, shesays. Another meeting with theclient follows to discuss eachelement in the proposed plan.“Does the plan feel realistic?

Do you think you can put thatkind of money away? Are yourgoals achievable based on yoursituation?” From there, yourplanner will have a third meetingwith you to finalize the plan anddecide what investments are ap-propriate to meet your financialgoals.Plans should be considered

flexible, as needs, circumstancesand goals change through dif-ferent life stages. “One of themistakes we see is from peoplewho don’t follow through andmonitor their plan on an annualbasis. A financial planner will bethere to periodically review andadjust the plan. That’s the greatthing about a financial plan. It’svery flexible to adjust to whatyou’re looking for and what yourneeds are.”

Each life stage has its ownchallenges and opportunities,she says. For 18- to 35-year-olds,one of the keys is just to beginsaving. The financial plan allowsyou to start thinking about whenyou’re ready to buy a house, getmarried, travel, or even returnto school, she says. It allows youto make informed decisionsabout your life as you’re movingthrough the different agecategories.For those between 36 and 54,

“life gets a lot more complicated,”Ms. Bennett says. “You probablyare working full-time. You maybe married and have a family.You may have a house. The planbecomes more robust, becausenow you’re not only planning foryour future but you’re dealingwith debt and mortgages. Youhave a number of different peo-ple in your life you need to thinkabout.” Planners spend a fair bitof time on how to save for yourchildren’s education, she says. Aspeople reach 45, the discussionturns to retirement needs. Thefinancial planner plays a crucialpart to keep you on track andadjust the plan as you get olderand your needs change.

For those 55 and over, a keyissue is how to manage debt asthey move toward retirement.“What we know is that a numberof Canadians go into retirementwith debt. How do they continueto manage the debt and paydown the debt in retirement?This is where managing cashflow becomes the key compo-nent of our conversation – howthey’re going to get income fromtheir investments and from thegovernment and match it to theirlifestyle. We help themmanagethat in a tax-efficient manner.”A frequent question from

people at this age, is “will Ioutlive mymoney?” With longerlife expectancy today, people inor nearing retirement shouldconsider working with certifiedfinancial planners to ensure thattheir money lasts as long as theyneed it to, Ms. Bennett says.

“Choosinga qualifiedfinancial plannerwho is right foryou is critical"

“A frequentquestion is ‘willI outlive mymoney?‘”

While retirement may be years away, you take pride in striving to balance today’s financial goalswith tomorrow’s dreams. So do we. At TD Waterhouse, our retirement planning advice can helpyou make the most of your financial life, whether it’s paying down a mortgage, contributing toRSPs or securing your children’s future. And you can feel good knowing that one-on-one advice,backed by a team of investment professionals, is behind you every step of the way, year after year.The result? Call it the right balance between confidence and peace of mind.

The first step to the retirement you want starts with contacting us today.Call 1-866-638-5321 or visit www.tdwaterhouse.ca

Talk to TD Waterhouse. Together we’ll help turn yourretirement dreams into reality.

She’s always been a free spirit.Why should it be any different in retirement?

TD Waterhouse

TD Waterhouse Financial Planning is a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank. TD Waterhouse Canada Inc. – Member Canadian Investor Protection Fund. ®/ The TD logo and other trade-marks arethe property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries.

n the 2009 Canadian Fi-nancial Capability Survey by Human Resources and

Skills Development Canada, Cana-dians achieved an overall score of almost 70 per cent, providing the correct answer to about nine out of 14 questions.

But according to the latest financial statistics, even a 70 per cent score in financial literacy may not translate into financial well-being. According to the latest figures from Statistics Canada, Ca-nadians’ household debt is now at a record level, representing more than 163 per cent of their dispos-able income. And many Canadi-ans continue to be burdened with debt after they retire; StatsCan says that one in three retirees holds some form of debt, amount-ing to $60,000 on average.

“Financially literacy is very important,” says Gary Rabbior, president of the Canadian Foun-dation for Economic Education, a Toronto-based non-profit organi-zation that works to improve the financial capabilities of Canadi-ans. “But what history has shown us is that simply educating people about finances does not necessar-ily change their behaviour.”

While having a sound under-standing of finances can help people make better decisions, it doesn’t always translate into money-wise actions, says Mr. Rabbior. For example, knowing the implications of excessive credit card debt doesn’t stop people from pulling out the plastic to make a purchase when they haven’t taken the time to figure out how much debt they can afford.

“And how many Canadians work with a budget?” says Mr. Rabbior. “Having a personal or household budget is widely con-sidered as a sound financial prac-tice, yet a lot of Canadians don’t have a budget, or even know where their money is going.”

To transform Canadians from being financially literate to financially capable, governments, organizations and individuals need to work together to change the way we engage Canadians to

teach them money skills, says Mr. Rabbior. Connecting Canadians with resources such as budget templates, applications that track spending and educational simulation programs can help re-shape thinking and improve poor money habits and decisions.

“There’s also a need for pro-grams that reward and inspire good financial behaviour,” he says. “People are motivated by in-centives, and through the creative use of incentives, you can start to impact behaviour.”

Stephen Rotstein, vice-presi-dent of policy and enforcement as well as general counsel at Financial Planning Standards Council, says that one of the best ways to instill healthy financial habits is to teach them at a young age.

“As early as possible,” he says, noting that the council has urged the federal and provincial gov-ernments to integrate financial literacy into school curricula. “It’s one of those life skills, like read-ing and writing, that you want to form at a young age, so it stays with you for life.”

Mr. Rotstein says financial planners also have an important role to play in improving Canadi-ans’ financial capabilities.

“A Certified Financial Plan-ner professional can help you examine your financial decisions and work with you to develop a plan for your future,” he adds. “We know through research that people who engage in financial planning feel happier and ulti-mately more comfortable about their financial affairs.”

Translating financial literacy into sound decisions

An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) • FP 5t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

StratEGY

n the 2009 Canadian Fi-nancial Capability Surveyby Human Resources and

Skills Development Canada, Cana-dians achieved an overall score ofalmost 70 per cent, providing thecorrect answer to about nine outof 14 questions.But according to the latestfinancial statistics, even a 70 percent score in financial literacymay not translate into financialwell-being. According to the latestfigures from Statistics Canada, Ca-nadians’ household debt is now ata record level, representingmorethan 163 per cent of their dispos-able income. Andmany Canadi-ans continue to be burdened withdebt after they retire; StatsCansays that one in three retireesholds some form of debt, amount-ing to $60,000 on average.“Financially literacy is veryimportant,” says Gary Rabbior,president of the Canadian Foun-dation for Economic Education, aToronto-based non-profit organi-zation that works to improve thefinancial capabilities of Canadi-ans. “But what history has shownus is that simply educating peopleabout finances does not necessar-ily change their behaviour.”While having a sound under-standing of finances can helppeople make better decisions,it doesn’t always translate intomoney-wise actions, says Mr.Rabbior. For example, knowingthe implications of excessivecredit card debt doesn’t stoppeople from pulling out theplastic to make a purchase whenthey haven’t taken the time tofigure out howmuch debt theycan afford.“And howmany Canadianswork with a budget?” says Mr.Rabbior. “Having a personal orhousehold budget is widely con-sidered as a sound financial prac-tice, yet a lot of Canadians don’thave a budget, or even knowwhere their money is going.”To transform Canadians frombeing financially literate tofinancially capable, governments,organizations and individualsneed to work together to changethe way we engage Canadians to

teach themmoney skills, says Mr.Rabbior. Connecting Canadianswith resources such as budgettemplates, applications thattrack spending and educationalsimulation programs can help re-shape thinking and improve poormoney habits and decisions.“There’s also a need for pro-grams that reward and inspiregood financial behaviour,” hesays. “People are motivated by in-centives, and through the creativeuse of incentives, you can start toimpact behaviour.”Stephen Rotstein, vice-presi-dent of policy and enforcementas well as general counsel atFinancial Planning StandardsCouncil, says that one of the bestways to instill healthy financialhabits is to teach them at ayoung age.

“As early as possible,” he says,noting that the council has urgedthe federal and provincial gov-ernments to integrate financialliteracy into school curricula. “It’sone of those life skills, like read-ing and writing, that you want toform at a young age, so it stayswith you for life.”Mr. Rotstein says financialplanners also have an importantrole to play in improving Canadi-ans’ financial capabilities.“A Certified Financial Plan-ner professional can help youexamine your financial decisionsand work with you to develop aplan for your future,” he adds.“We know through research thatpeople who engage in financialplanning feel happier and ulti-mately more comfortable abouttheir financial affairs.”

Translating financial literacy into sound decisions

AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC) • FP 5the globe and ma il • tUeSdaY, november 20 , 201 2

FINANCIAL PLANNING

STRATEGY

LESSONS

“Teachablemoments”help next generation achievefinancial well-being

Those who are taught thevalue of a dollar at a youngage tend tomaintain healthypersonal finance habits. CFPprofessionals from acrossCanada share some teachablemoments for various stages ofchildren’s lives:

Elementary school age andyounger:• Set up piggy banks or jarsand have them allocatesavings toward differentcategories: “neat stuff,”longer-term goals like newtoys, charitable giving, etc.

• Take kids grocery shoppingand comparison shop toevaluate price and value.

High school years:• Have teenagers shareresponsibility for someregular costs like gas, cellphone bills and “extras”likemusic downloads.

• Encourage them to thinkahead by saving to pay atleast part for long-term pur-chases: a car, going away toschool, a trip, etc.

Post-secondary:• Teach young adults variousforms of credit, how to useit responsibly and what toavoid. Make sure they’reaccountable for credit cardbills and loans.

• Ensure they know tocover priorities like tuition,books, shelter and foodbefore buying discretionaryitems.

Be an example to your childandmodel everything youteach them. Findmore than40 teachablemoments atwww.financialplanningweek.ca.

“A Certified FinancialPlanner professional canhelp you examine yourfinancial decisions andwork with you to developa plan for your future. Weknow through researchthat people who engagein financial planning feelhappier and ultimatelymore comfortable abouttheir financial affairs.”

Stephen Rotstein,is vice-president of policy andenforcement as well as generalcounsel at Financial PlanningStandards Council

Helping a child earn money and save for a prized possession is one way toincent him or her to embrace financial literacy. ISTOCKPHOTO.COM

Helping a chincent him o

Should somethingunexpected happen to me,

my loved ones arecovered

73%See page 6

fpsc.ca

83%of Canadians report thatthey are on the right trackin terms of their personalfinancial affairs.

It’s the value of professional advice.

can change your life.adviceThe right kind of professional

Visit www.fpsc.ca to find a CFP professional in your area.

FINANCIALPLANNINGSTANDARDSCOUNCIL®FP

SC

CFP®, CERTIFIED FINANCIAL PLANNER® and are certification trademarks owned outside the U.S. byFinancial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the markslicensing authority for the CFP marks in Canada, through agreement with FPSB. All other ® are registeredtrademarks of FPSC, unless indicated. ©2012 Financial Planning Standards Council. All rights reserved.Statistics from FPSC®’s Value of Financial Planning study 2012. Copyright 2012 Financial Planning Standards Council. All rights reserved.

®

lESSoNS

“Teachable moments” help next generation achieve financial well-being

Those who are taught the value of a dollar at a young age tend to maintain healthy personal finance habits. CFP professionals from across Canada share some teachable moments for various stages of children’s lives:

Elementary school age and younger: • Set up piggy banks or jars

and have them allocate savings toward different categories: “neat stuff,” longer-term goals like new toys, charitable giving, etc.

• Take kids grocery shopping and comparison shop to evaluate price and value.

High school years:• Have teenagers share

responsibility for some regular costs like gas, cell phone bills and “extras” like music downloads.

• Encourage them to think ahead by saving to pay at least part for long-term pur-chases: a car, going away to school, a trip, etc.

Post-secondary:• Teach young adults various

forms of credit, how to use it responsibly and what to avoid. Make sure they’re accountable for credit card bills and loans.

• Ensure they know to cover priorities like tuition, books, shelter and food before buying discretionary items.

Be an example to your child and model everything you teach them. Find more than 40 teachable moments at www.financialplanningweek.ca.

“A Certified Financial Planner professional can help you examine your financial decisions and work with you to develop a plan for your future. We know through research that people who engage in financial planning feel happier and ultimately more comfortable about their financial affairs.”

Stephen Rotstein, is vice-president of policy and enforcement as well as general counsel at Financial Planning Standards Council

Helping a child earn money and save for a prized possession is one way to incent him or her to embrace financial literacy. istockphoto.com

should something unexpected happen to me,

my loved ones are covered

73%see page 6

ou finally sit down and map out where you’ve spent your money and it

hits you like a slap on the forehead. “It’s the epiphany moment,

and everyone has one,” says Dave Salloum, CFP, a portfolio manager and vice-president at RBC Domin-ion Securities in Edmonton. “You discover something small – the cappuccino or latté you get each

morning on the way into work – actually costs you over $100 per month. Suddenly, it’s not such a little thing. It’s money you could have saved or spent on something more important.”

Canadians were once a society of savers. Now, we’ve become a nation of debtors. The average Canadian household has just 63 cents of dis-posable income for every dollar of

debt, according to figures released in October by Statistics Canada. That debt-to-income ratio is the highest ever recorded in Canada and is comparable to levels in the United States before housing mar-kets there collapsed four years ago.

“Everybody would like to put money aside for savings, but many people don’t think it’s possible,” says Tamara Smith, vice-president

of marketing and consumer affairs for Financial Planning Standards Council. “That’s because they aren’t in control of their finances. Instead, they reluctantly live from one paycheque to the next, not really understanding where the money has gone.”

Gaining control of your finances often isn’t difficult, says Mr. Sal-loum. “What it takes is discipline.

You need to make a plan and stick to it.”

The first step, he says, is to figure out exactly where you’re spending your money. Review your credit card and bank statements, cash register receipts and other financial records to make a detailed list of your monthly purchases. (This is when your epiphany moment may occur.)

The next step is to figure out which expenditures are essential things you can’t do without and which are wants, luxuries that are fun to have but not vital.

“Money you save by not spend-ing on wants can be banked instead,” Mr. Salloum says.

Using this information, you can build a plan that outlines what you’ll spend your money on, and how much, and what can be saved for a future purchase, such as your retirement, a vacation, a new car or something else.

“Your plan needs two key ele-ments – an amount and a dead-line,” says Mr. Salloum. “If you’re saving for a car, for example, you need to know how much you need to have saved up by the date you’ll make the purchase. That, in turn, will tell you how much you have to put aside each month to reach that goal.”

Making a financial plan that sets out your life goals is often just as important as actually putting the money aside to reach that goal, ac-cording to Ms. Smith.

“Planning and budgeting takes discipline to learn, but they are skills that benefit you throughout your lifetime,” she adds.

aDVICE

Saving doesn’t just happen, it has to be planned

FP 6 • An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

SurVEY hIGhlIGhtS

In a five-year longitudinal study commissioned by the Financial Planning Standards Council (FPSC), The Strategic Council began interviewing Canadians for the Value of Financial Plan-ning study in 2009. The third-year results of the study are now available, with 8,546 Cana-dians surveyed in 2012. Some of the highlights are below.

The study compares financial and emotional well-being of Canadians who engage in com-prehensive financial planning to the financial and emotional well-being of those who do not. For more information, visit www.fpsc.ca.

ON TRACK WiTH FiNANCiAL AFFAiRS:Nearly twice as many people with CP feel on track with their financial affairs than those who don’t plan. And nearly three times said ‘very on track.’81% (CP – comprehensive planning) feel on track with their financial affairs vs. only 44% (NP – no planning)• True for all net worth groups• “Very on track” for 32% CP

vs. only 12% NP

MORE CONTENTED VS. 5 yEARS AGO:Those who have comprehensive plans feel significantly more contented with their financial well-being, ability to reach life goals, their lifestyle and even their personal relationships (in some instances almost twice as much).Financial well-being• 63% CP vs. 37% NPAbility to achieve life goals• 63% CP vs. 36% NPLifestyle• 66% CP vs. 45% NPPersonal relationships• 64% CP vs. 47% NP

LONG-TERM FiNANCiAL WELL-BEiNG:Over last 5 years i have im-proved my ability to save:• 62% CP vs. only 40% NPif anything should happen to me the people i care about would be financially looked after:• 73% of those with compre-

hensive plans vs. only 41% who do no planning

i am on track to reach my desired lifestyle in retirement:• 55% CP vs. 21% NPi feel prepared in the event of an unexpected financial emergency:• 60% CP vs. 28% NPi feel prepared to manage through tough economic times:• 65% CP vs. 36% NPi feel my goals and aspirations are achievable:• 79% CP vs. 51% NPi am content with the way my life is going:• 67% CP vs 40% NPi have peace of mind:• 64% CP vs. 39% NP

ou finally sit down andmap out where you’vespent yourmoney and it

hits you like a slap on the forehead.“It’s the epiphanymoment,

and everyone has one,” says DaveSalloum, CFP, a portfoliomanagerand vice-president at RBC Domin-ion Securities in Edmonton. “Youdiscover something small – thecappuccino or latté you get each

morning on the way into work –actually costs you over $100 permonth. Suddenly, it’s not such alittle thing. It’s money you couldhave saved or spent on somethingmore important.”Canadians were once a society of

savers. Now, we’ve become a nationof debtors. The average Canadianhousehold has just 63 cents of dis-posable income for every dollar of

debt, according to figures releasedin October by Statistics Canada.That debt-to-income ratio is thehighest ever recorded in Canadaand is comparable to levels in theUnited States before housingmar-kets there collapsed four years ago.“Everybody would like to put

money aside for savings, but manypeople don’t think it’s possible,”says Tamara Smith, vice-president

of marketing and consumer affairsfor Financial Planning StandardsCouncil. “That’s because they aren’tin control of their finances. Instead,they reluctantly live from onepaycheque to the next, not reallyunderstanding where themoneyhas gone.”Gaining control of your finances

often isn’t difficult, says Mr. Sal-loum. “What it takes is discipline.

You need tomake a plan and stickto it.”The first step, he says, is to figure

out exactly where you’re spendingyourmoney. Review your creditcard and bank statements, cashregister receipts and other financialrecords tomake a detailed list ofyourmonthly purchases. (This iswhen your epiphanymomentmayoccur.)The next step is to figure out

which expenditures are essentialthings you can’t do without andwhich are wants, luxuries that arefun to have but not vital.“Money you save by not spend-

ing on wants can be bankedinstead,” Mr. Salloum says.Using this information, you can

build a plan that outlines whatyou’ll spend yourmoney on, andhowmuch, and what can be savedfor a future purchase, such as yourretirement, a vacation, a new car orsomething else.“Your plan needs two key ele-

ments – an amount and a dead-line,” says Mr. Salloum. “If you’resaving for a car, for example, youneed to know howmuch you needto have saved up by the date you’llmake the purchase. That, in turn,will tell you howmuch you have toput aside eachmonth to reach thatgoal.”Making a financial plan that sets

out your life goals is often just asimportant as actually putting themoney aside to reach that goal, ac-cording to Ms. Smith.“Planning and budgeting takes

discipline to learn, but they areskills that benefit you throughoutyour lifetime,” she adds.

ADVICE

Saving doesn’t just happen, it has to be planned

FP 6 • AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC) the globe and ma il • tUeSdaY, november 20 , 201 2

FINANCIAL PLANNING

SURVEY HIGHLIGHTS

In a five-year longitudinal studycommissioned by the FinancialPlanning Standards Council(FPSC), The Strategic Councilbegan interviewing Canadiansfor the Value of Financial Plan-ning study in 2009. The third-year results of the study arenow available, with 8,546 Cana-dians surveyed in 2012. Some ofthe highlights are below.The study compares financial

and emotional well-being ofCanadians who engage in com-prehensive financial planningto the financial and emotionalwell-being of those who do not.For more information, visitwww.fpsc.ca.

ONTRACKWITH FINANCIALAFFAIRS:Nearly twice asmany peoplewith CP feel on track with theirfinancial affairs than those whodon’t plan. And nearly threetimes said ‘very on track.’81% (CP – comprehensiveplanning) feel on track withtheir financial affairs vs. only44% (NP – no planning)• True for all net worth groups• “Very on track” for 32% CPvs. only 12% NP

MORE CONTENTED VS.5 YEARS AGO:Those who have comprehensiveplans feel significantly morecontented with their financialwell-being, ability to reach lifegoals, their lifestyle and eventheir personal relationships (insome instances almost twice asmuch).Financial well-being• 63% CP vs. 37% NPAbility to achieve life goals• 63% CP vs. 36%NPLifestyle• 66% CP vs. 45% NPPersonal relationships• 64% CP vs. 47%NP

LONG-TERM FINANCIALWELL-BEING:Over last 5 years I have im-provedmy ability to save:• 62% CP vs. only 40%NPIf anything should happen tome the people I care aboutwould be financially lookedafter:• 73% of those with compre-hensive plans vs. only 41%who do no planning

I am on track to reachmydesired lifestyle in retirement:• 55% CP vs. 21% NPI feel prepared in the eventof an unexpected financialemergency:• 60% CP vs. 28%NPI feel prepared tomanagethrough tough economictimes:• 65% CP vs. 36%NPI feel my goals and aspirationsare achievable:• 79% CP vs. 51% NPI am content with the waymylife is going:• 67% CP vs 40%NPI have peace ofmind:• 64% CP vs. 39%NP

Most Canadians receive a regularly timed paycheque throughout their working lives, but that can change after retirement. Jason Round, a Certified Financial Planner professional and head of financial planning support at RBC, answers questions about how financial planning can maximize the value of your income in retirement.

What is a retirement income plan, and how does it relate to other financial planning?Financial planning is a process that looks at all aspects of a per-son’s financial situation, as well as their life goals and priorities. It’s much more than an investment plan or an insurance plan, which tells you what kind of coverage

you need to protect yourself and your family. It incorporates all of that and much more, to ensure that your planner understands your goals from a “life priority” perspective, and then works with you to put plans in place to help you achieve them.

Retirement income planning is the next phase of an all-encom-passing process. It requires item-izing the non-negotiable expens-es that you’ll have in retirement, and the expenses that are more lifestyle-oriented and may be more negotiable, as required.

The next step is putting assets and income streams in place to cover those needs. It’s a continu-ation of the financial planning concept: you’re no longer figur-ing out how to best accumulate assets towards retirement, but how to make the best use of all of your retirement resources and maximize your income to ensure your goals are achieved during retirement.

How does one go about creating a retirement income plan?Think about your goals, and then have the conversations with your financial planner that are necessary to make sure that both you and he or she understand what those goals mean to you. That requires taking the discus-sion beyond the numbers. How do you envision spending your time? How important is it for you to, for example, travel across the country to visit family on a regu-lar basis? The financial implica-tions flow from those goals.

Most Canadians have secure types of income, such as employ-er pension benefits, Canada Pen-sion Plan and Old Age Security benefits, payments that will be consistent throughout retire-ment. Your planner will help you align those to the greatest possible extent with your non-

negotiable needs, and then put financial planning strategies and solutions in place to help close any gaps.

Are there other issues Canadi-ans should consider when creat-ing their retirement income plan?You should think of longevity and the stages of retirement. Based on your family history and your health, how long do you think you need to plan for? If you expect to be living in retire-ment for 20 or 30 years, it’s likely that your needs are not going to remain the same for that entire period.

It’s important to think about the various phases: the early, more active and therefore more expensive phase; middle retire-

ment, when you will likely slow down and spend less money; and then the later phase, when the expenses may go back up again as a result of increased health-care costs. What might it mean to you and your spouse if you require additional levels of care at some point down the road? Those potential expenses should be incorporated into your retire-ment income plan.

Inflation is another important consideration. The income that you receive now may be more than enough, or at least sufficient to cover all of your needs. But if you’re receiving the same income 10 years from now, you may not be as comfortable. It’s important to protect the purchasing power of the assets you’ve accumulated through appropriate investment decisions.

Finally, there’s your home. In the back of their minds, a lot of people feel that they could use their home as a source of income, because there is equity built up in it and the property value is in-creasing. It seems an easy answer sometimes, but when you think about social networks, proximity to family and friends, it may not be a realistic option for you.

What are the benefits of plan-ning early for your retirement income?Many of the traditional rules of thumb for retirement don’t apply anymore. Planning early helps ensure you don’t fall into the common hazards: not saving enough; spending too much early in retirement, or too little to enjoy life; or becoming too conservative with assets that need to last you through perhaps 30 years of retirement.

The plan itself gives you some certainty, an idea of what things will look like throughout the course of your retirement. And every year or two, you can revisit the plan to see what’s changed and what might need to be ad-justed. You’ll continuously have a greater level of comfort about where you’re at and where you’re going to be in the future.

Creating your retirement paycheque

An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) • FP 7t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

ExpErt opINIoN

Most Canadians receive a regularlytimed paycheque throughout theirworking lives, but that can changeafter retirement. Jason Round,a Certified Financial Plannerprofessional and head of financialplanning support at RBC, answersquestions about how financialplanning can maximize the valueof your income in retirement.

What is a retirement incomeplan, and how does it relate toother financial planning?Financial planning is a processthat looks at all aspects of a per-son’s financial situation, as well astheir life goals and priorities. It’smuchmore than an investmentplan or an insurance plan, whichtells you what kind of coverage

you need to protect yourself andyour family. It incorporates all ofthat andmuchmore, to ensurethat your planner understandsyour goals from a “life priority”perspective, and then works withyou to put plans in place to helpyou achieve them.Retirement income planning isthe next phase of an all-encom-passing process. It requires item-izing the non-negotiable expens-es that you’ll have in retirement,and the expenses that are morelifestyle-oriented andmay bemore negotiable, as required.The next step is putting assetsand income streams in place tocover those needs. It’s a continu-ation of the financial planningconcept: you’re no longer figur-ing out how to best accumulateassets towards retirement, buthow tomake the best use of allof your retirement resources andmaximize your income to ensureyour goals are achieved duringretirement.

How does one go about creatinga retirement income plan?Think about your goals, and thenhave the conversations withyour financial planner that arenecessary to make sure that bothyou and he or she understandwhat those goals mean to you.That requires taking the discus-sion beyond the numbers. Howdo you envision spending yourtime? How important is it for youto, for example, travel across thecountry to visit family on a regu-lar basis? The financial implica-tions flow from those goals.Most Canadians have securetypes of income, such as employ-er pension benefits, Canada Pen-sion Plan and Old Age Securitybenefits, payments that will beconsistent throughout retire-ment. Your planner will helpyou align those to the greatestpossible extent with your non-

negotiable needs, and then putfinancial planning strategies andsolutions in place to help closeany gaps.

Are there other issues Canadi-ans should consider when creat-ing their retirement incomeplan?You should think of longevityand the stages of retirement.Based on your family history andyour health, how long do youthink you need to plan for? Ifyou expect to be living in retire-ment for 20 or 30 years, it’s likelythat your needs are not going toremain the same for that entireperiod.It’s important to think aboutthe various phases: the early,more active and therefore moreexpensive phase; middle retire-

ment, when you will likely slowdown and spend less money; andthen the later phase, when theexpenses may go back up againas a result of increased health-care costs. What might it meanto you and your spouse if yourequire additional levels of careat some point down the road?Those potential expenses shouldbe incorporated into your retire-ment income plan.Inflation is another importantconsideration. The income thatyou receive nowmay be morethan enough, or at least sufficientto cover all of your needs. But ifyou’re receiving the same income10 years from now, you may notbe as comfortable. It’s importantto protect the purchasing powerof the assets you’ve accumulatedthrough appropriate investmentdecisions.Finally, there’s your home. Inthe back of their minds, a lot ofpeople feel that they could usetheir home as a source of income,because there is equity built upin it and the property value is in-creasing. It seems an easy answersometimes, but when you thinkabout social networks, proximityto family and friends, it may notbe a realistic option for you.

What are the benefits of plan-ning early for your retirementincome?Many of the traditional rulesof thumb for retirement don’tapply anymore. Planning earlyhelps ensure you don’t fall intothe common hazards: not savingenough; spending too muchearly in retirement, or too littleto enjoy life; or becoming tooconservative with assets thatneed to last you through perhaps30 years of retirement.The plan itself gives you somecertainty, an idea of what thingswill look like throughout thecourse of your retirement. Andevery year or two, you can revisitthe plan to see what’s changedand what might need to be ad-justed. You’ll continuously havea greater level of comfort aboutwhere you’re at and where you’regoing to be in the future.

Creating your retirement paycheque

AN INFORMATION FEATURE WITH THE FINANCIAL PLANNING STANDARDS COUNCIL (FPSC) • FP 7the globe and ma il • tUeSdaY, november 20 , 201 2

FINANCIAL PLANNING

EXPERT OPINION

“You should think of lon-gevity and the stages ofretirement. Based on yourfamily history and yourhealth, how long do youthink you need to planfor? If you expect to beliving in retirement for 20or 30 years, it’s likely thatyour needs are not goingto remain the same forthat entire period. ”

As first step in retirement planning, individuals and couplesshould consider future income needs and sources as well as lifestylegoals. ISTOCKPHOTO.COM

plesll as lifestyle

ti bl d d th

I am contentwith the way my

life is going

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Financial Planning Standards Council would like to thank the following sponsors of our fourth Financial Planning Weekand Financial Planning Vision2020 Symposium for their financial support. It is only through the generous gifts fromorganizations and businesses like these that we are able to raise the awareness of the importance and value offinancial planning to Canadians and bring together industry stakeholders and planners from across the country totalk about the issues facing the financial planning profession. Visit financialplanningweek.ca for more information.

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“You should think of lon-gevity and the stages of retirement. Based on your family history and your health, how long do you think you need to plan for? If you expect to be living in retirement for 20 or 30 years, it’s likely that your needs are not going to remain the same for that entire period. ”

As first step in retirement planning, individuals and couples should consider future income needs and sources as well as lifestyle goals. istockphoto.com

i am content with the way my

life is going

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hen is the right time in life to think about financial planning?

“Any time is a good time, but the earlier the better,” says Biljana Manojlovic, a CFP professional with RBC Wealth Management in Vancouver. Nevertheless, more often than not it is “life events” that encourage Canadians to get some help when it comes to set-ting financial goals and putting in place plans to achieve them. Major milestones include mar-riage, the birth of a child, divorce, death, illness, sabbaticals, a home purchase and a career change, to name a few.

“The birth of a child is a big one,” says Ms. Manojlovic. “When you become responsible for an-other human being, perspectives change.”

She says a lot of Canadians are apprehensive about financial planning, because they have diffi-culty identifying their core values. “People tend to put their money where their values are; identify-ing what is most important to them is the first task,” she says. “Is it lifestyle, is it relationships, is it work? This is the key going forward; starting with the ‘soft side’ and then moving on to the numbers.”

She adds that it’s not necessary to envisage your entire life arc in order to get the ball rolling. “I like to start with three to five years from now; it’s easier to focus on that than to try and look 15 or 20 years down the road.”

Jason Casagrande, a CFP pro-fessional with Bank of Montreal in Toronto, says sooner is better when it comes to financial planning. But he agrees that life events are very often the

catalysts that bring new clients through his door.

“Marriage is a big one, and here financial planning can really

help,” says Mr. Casagrande. “I try to tell my clients

that they have to work together and treat their household like a busi-ness, always ensuring that the budget actually balances, and includes everything, including the things a lot of people often leave out, like Christmas

gifting, vacations or even gym memberships.”

The financial plan needs to be revisited with additional

life events, such as the arrival of children, he adds. “There’s both pre- and post-childbirth plan-ning,” he says. “Make sure you pay off your debt, because unexpected expenses are going to come up. Review your insurance needs, and maybe consider bundling life, house, car and disability insurance together.” He strongly encourages clients to set up Regis-tered Education Savings Plans for their children.

“It’s one of the best programs out there; the government of Canada contributes 20 per cent of the first $2,500 in annual contri-butions,” he explains.

But it’s also never too late to benefit from financial planning, says Mr. Casagrande. “We have a number of strategies designed to release money from client port-folios in a tax-efficient manner, which can significantly reduce the clawback of Old Age Security.”

John Moakler, a CFP profes-sional and chartered life under-writer with Investors Group in Brampton, who specializes in small businesses and complex es-tate planning, says he likes to see clients begin financial planning as soon as they start working. But sometimes it is impending retire-ment that brings in first-timers.

“There are a lot of discussions

around estate planning,” says Mr. Moakler. “Baby boomers are about to inherit a trillion dollars. A good financial planner can help them protect their inheritance from creditors, and in the case of heirs already in higher income tax brackets, keep them from getting hit with a lot of taxes.”

Mr. Moakler often helps clients set up trusts to leave money to the next generation, but with strings attached in cases where heirs may have a tendency toward financial mismanagement. “I do a lot of trusts, because while a lot of financial planning is about assets, it’s also about putting bumper guards around wealth to both preserve and protect it,” he says.

Regardless of the milestone that motivates people to engage in financial planning, it’s clear that those who do are more optimistic about their financial future and can better articulate their goals, says Tamara Smith, vice-president of marketing and consumer affairs for the Financial Planning Standards Council.

“Financial planning is a bit like having children,” she says. “It seems like a huge commitment, and if you wait for the right time it may never happen. But if you jump in and start, you realize it’s wonderful.”

tImING

Life’s milestones sharpen focus on financial goals – and how to achieve them

FP 8 • An informAtion feAture with the finAnciAl PlAnning StAnDArDS council (fPSc) t h e g lo b e a n d m a i l • t U e S daY, n ov e m b e r 2 0 , 2 01 2

fiNANciAl plANNiNG

from fp 1

Millennials: insurance assessment is critical

“They’re graduating from school or starting their careers in rather difficult situations,” says Seth Mattison, an expert on gen-erational dynamics based in Los Angeles. “Many are carrying huge student loans and are having problems getting work in their field, or any work at all."

Born and raised in decades marked by economic prosperity, Millennials are now coming of age in times of financial uncer-tainty, says Mr. Mattison, who is speaking today at the Financial Planning Vision 2020 Sympo-sium, a one-day event in Toronto that brings together representa-tives of government, financial planners and other stakehold-ers in the financial planning industry.

A still-shaky economy, inflated housing prices and a tight job market are preventing many Millennials from achieving their career, financial and personal goals, says Mr. Mattison.

“All the milestones of adult-hood – getting a good job, starting a family, buying a home – all that is getting pushed back because of current economic conditions,” he says. “It can be easy for this generation to feel negative about their situation.”

Still, Millennials are hardly a lost generation. With their technology smarts, collabora-tive nature and greater global awareness, they’re well equipped to handle the challenges ahead of them. In fact, almost 60 per cent of financial experts surveyed earlier this year by PerkStreet

Financial, a U.S. online bank, said that Millennials are better prepared than the generation before them to successfully manage their finances, in large part because of the tough lessons they’re learning now.

Anthony Tadros, a Certified Financial Planner professional with Raymond James Ltd. in Surrey, B.C., says it’s important for Millennials to have a financial strategy, even if they don’t have much extra money.

“It may not be something they want to think about now, but they do need to start putting money away for retirement, even if it’s the smallest amount each month,” he says. “Doing this will help them get used to the idea of saving.”

An insurance assessment is also critical for Millennials, especially those with young families and new mortgages, says Mr. Tadros. “You’re looking at a group that’s just starting their lives, so they should be thinking about creating a financial plan, a roadmap for their future.”

That’s exactly what Ms. Mills is doing. With plans to get married and buy a house, she’s frequently on the phone with her financial planner.

“Some of my friends make fun of me because of that; they think there’s no point to working with a financial planner when you don’t really have that much money right now,” she says. “But I feel so much better, because I have someone helping me plan for my future.”

Combined with their technology smarts, collaborative nature and global awareness, Millennials who add financial planning to their strengths are even better equipped to handle challenges ahead of them. istockphoto.com

2012 fpW ChallENGE WINNErS

ALBERTA

Kelley Doerksen, CFP “Family Financial Wellness Event”November 20, 7:00 pm – 9:00 pmFantasyland Hotel, Edmonton, AB

ATLANTiC CANADA

Deborah Jean young, CFP“The Retirement Rules Have Changed, What Now?”November 22, 7:00 pmDeer Lake Express Hotel, Deer Lake, NL

Redge Deg, CFP“Planning Your Financial Future”November 20, 7:30 pmEnfield Volunteer Fire Depart-ment, Halifax, NS

BRiTiSH COLuMBiA

Alexandra Gilgunn, CFP“Financial Planning for Young Families”November 19, 10:15 am – 11:45 amYoung Parents Support Network, Victoria, BC

Stephanie Dean, CFP“Financial Planning for All Abilities”November 24, 10:00 amElizabeth Buckley School, Victoria, BC

Tom Markham, CFP, and Dave Petrie, CFP“Business Succession Planning”November 19, 5:00 pm – 7:00 pm City Centre Library, Surrey, BC“Understanding Money Matters and Having Fun With It” November 20, 9:00 am – 3:00 pmDelview Secondary School, Delta, BC

MANiTOBA

Jewel Reimer, CFP“The Fuss about Fees”November 21, 7:00 pm – 8:00 pmHeadingley Library, Headingley, MB

ONTARiO

Nancy Edmison, CFP“Financial Strategies for Caring for a Loved One with a Disability”November 20, 7:15 pmNovember 23, 10:15 amMilton Sports Centre, Milton, ON

Paul Beck, CFP“It’s About Your Financial Life”November 21, 7:00 pm – 9:00 pmRoyal Canadian Legion, Hamilton, ON

Roger Touw, CFP“Students: Plan for Your Succe$$”November 21, 3:45 pm – 5:30 pm Marc Garneau Collegiate Institute, Toronto, ONNovember 24, 9:30 am – 11:45 amThorncliffe Neighbourhood Of-fice, Toronto, ON

Vanessa Chan, CFP“Parents Helping Kids Help Themselves”November 21, 6:30 pm Sir John A. Macdonald Public School, Markham, ON

SASKATCHEWAN

Jay Stark, CFP; Stuart Sutton, CFP; Tim Hansen, CFP; and Andrea Hansen, CFPCONNECT 2012: Workforce Finances to Personal Family Finances”November 20, 6:30 pn - 9:00 pmNovember 23, 9:30 AM - 12:00 pmGlobal Gathering Place, Saskatoon, SK

In 2011, FPSC initiated the Financial Planning Week Challenge, which encourages CFP professionals across Canada to promote financial planning in their communities. The following 12 indi-viduals from across Canada are the winners for 2012. Financial planning events (including these) are held across Canada during Financial Planning Week. For more information on these events and others, please visit www.financialplanningweek.ca.

“Financial planning is a bit like having children. It seems like a huge com-mitment, and if you wait for the right time it may never happen. But if you jump in and start, you realize it’s wonderful.”

Tamara Smith, is vice-president of marketing and consumer affairs for the Finan-cial Planning Standards Council

“It may not be something they want to think about now, but they do need to start putting money away for retirement, even if it’s the smallest amount each month.”

Anthony Tadros, is a Certified Financial Planner professional with Raymond James Ltd.

Setting up an RESP early in life will help ensure that parents can support their children’s future educational pursuits and life goals. istockphoto.com

Even if the economy doesn’t improve, i can

deal with it

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