Making a Financial Plan Making a Financial Plan and Finding an Advisorand Finding an Advisor

Investment and Finance 12Investment and Finance 12

Ms. StewartMs. Stewart

Why do I need a financial Why do I need a financial plan?plan?

You wouldn’t take a long road trip You wouldn’t take a long road trip without a map. In the same way, you without a map. In the same way, you need a road map for your financial need a road map for your financial future. future. 

A financial plan looks at where you are A financial plan looks at where you are today and where you want to go. Then it today and where you want to go. Then it leads you through all the steps you leads you through all the steps you need to take to get there. need to take to get there.

Five Dangers of Not Having a Five Dangers of Not Having a Financial PlanFinancial Plan

1) You get what you want today but not be able to get what you want a few years down the road.

Ex. If you purchase a new car now will you have the funds to purchase a home a few years into the future?

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Five Dangers of Not Having a Five Dangers of Not Having a Financial PlanFinancial Plan

2) 2) You may do the wrong thing with You may do the wrong thing with your money or get caught up in a your money or get caught up in a scam. Worst of all, you may end up scam. Worst of all, you may end up doing nothing and never reach your doing nothing and never reach your goals. goals.

Five Dangers of Not Having a Five Dangers of Not Having a Financial PlanFinancial Plan

3) You may not see the big picture.3) You may not see the big picture.

Ex. You may grow your savings, but then Ex. You may grow your savings, but then pay more tax on your money than pay more tax on your money than you need to you need to

(If you invest in RRSP’s, this is not (If you invest in RRSP’s, this is not taxable income).taxable income).

Five Dangers of Not Having a Five Dangers of Not Having a Financial PlanFinancial Plan

4) When you get into 4) When you get into relationships with relationships with other people and other people and you have no you have no financial plan you financial plan you could end up could end up making different making different choices in terms of choices in terms of spending and spending and saving money.saving money.

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Five Dangers of Not Having a Five Dangers of Not Having a Financial PlanFinancial Plan

5) You’ll likely have more money 5) You’ll likely have more money worries. You may not know where worries. You may not know where you are today or how to plan ahead. you are today or how to plan ahead. You could even lose control of your You could even lose control of your money and not be able to pay bills.money and not be able to pay bills.

Remember!Remember!NO PLAN, NO PROGRESSNO PLAN, NO PROGRESS

A financial plan is not about getting A financial plan is not about getting rich, and you don’t have to be rich to rich, and you don’t have to be rich to have one. It’s about doing more with have one. It’s about doing more with what you have.what you have.

What information do I need to build a financial plan?

Start by looking at your finances today:

• What do you own?• What do you owe?• What you make?• What you spend?• What you hope to achieve (your

goals)?

What does a financial planner do?

Set realistic goals and take steps to achieve them

Decide what type of insurance you need Save for your children’s education and

training Plan and save for retirement Build an estate to leave for your family

when you die Save and invest in smart ways that reduce

your taxes

What will you talk about to a financial planner?

Your personal situation (job, where you live, married, children)

Your goals (and when you want to reach them)

Your current investmentsYour tolerance for riskYour debts

What will you talk about to a financial planner?

Your insuranceYour taxes (income tax, property tax)Your willYour estate (what you will be leaving

behind upon your death)

What training does a financial planner have?

There are no required courses for financial planners in Canada. The training and education of people who call themselves planners varies. Make sure any financial planner you work with has one of the following designations:Certified Financial Planner (CFC)Personal Financial Planner (PFP)Chartered Financial Consultant (CH.F.C.)Registered Financial Planner (RFP)

Remember!

FINANCIAL PLANNERS LOOK AT THE BROAD PICTURE!

They will look at who you are, where you are now, and where you want to be. They will construct a plan to get you there. Be sure any financial planner you consult has the proper training to create a solid financial plan.