Making a Financial Plan and Finding an Advisor

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Making a Financial Plan and Finding an Advisor

• Investment and Finance 12
• Ms. Stewart

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Why do I need a financial plan?

• You wouldnt take a long road trip without a map.
  In the same way, you need a road map for your
  financial future. 
• A financial plan looks at where you are today and
  where you want to go. Then it leads you through
  all the steps you need to take to get there.

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Five Dangers of Not Having a Financial 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 Financial Plan

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

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Five Dangers of Not Having a Financial Plan

• 3) You may not see the big picture.
• Ex. You may grow your savings, but then pay
  more tax on your money than you need to
• (If you invest in RRSPs, this is not taxable
  income).

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Five Dangers of Not Having a Financial Plan

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

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Five Dangers of Not Having a Financial Plan

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

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Remember!

• NO PLAN, NO PROGRESS
• A financial plan is not about getting rich, and
  you dont have to be rich to have one. Its about
  doing more with what you have.

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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)?

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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 childrens 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

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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 investments
• Your tolerance for risk
• Your debts

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What will you talk about to a financial planner?

• Your insurance
• Your taxes (income tax, property tax)
• Your will
• Your estate (what you will be leaving behind upon
  your death)

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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)

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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.