THE FINANCIAL PLANNER CALGARY TRUSTS
There are two parts your financial plan should address:
There are three time horizons when it comes to investing:
• Short term: e.g. Emergency fund, vacation
• Medium term: e.g. Home, Registered Education Savings Plan (RESP), Investment Properties
• Long term: e.g. Retirement
We’ll start with short-term investment options because you might need to access this money soon in case of an emergency or if you’re saving for a vacation. Therefore, your short-term savings should be easily accessible. The accounts you use for these are typically non-registered accounts or your TFSA (Tax-Free Savings Account).
Your medium-term investments are focused on goals within 5 to 10 years. Examples include saving for the down payment of your home or paying for your child’s education.
To save for the down payment of your home, you would use a non-registered account, TFSA, Registered Retirement Savings Plan (RRSP) in some cases, and the new Tax-Free First Home Savings Account (FHSA – available from 2023).
Saving for retirement:
When it comes to retiring, you must have a plan to ensure you have enough money to last for your retirement years. If you fail to plan, you’ll spend your retirement years worrying about your finances instead of enjoying your time.
We consider including the following:
• The client’s current asset allocation
• The client’s risk tolerance, time horizon, and investment objectives
• The model asset allocation based on the client’s risk tolerance, time horizon, and objectives, and its expected annual rate of return
• The client’s expected annual rate of return on their investments
• The level of diversification of the client’s investment portfolio
• The cost and tax efficiency of the client’s investment portfolio
Cash flow management or budgeting is the process of managing the inflows and outflows of your money.
This includes:
• A summary of the client’s current assets and liabilities
• A summary of the client’s current and projected income and expenses
We identify the following:
• The strength of our client’s current and projected financial position relative to their goals
• Any cash flow shortfalls or surpluses
• The adequacy of the client’s emergency funds
• The fit of the client’s debt repayment plan with their goals and attitude toward debt
• The fit of the client’s savings plan with their goals and attitude toward savings
Comprehensive Financial Planning Services in Calgary
We help our clients determine which debts should be paid off first.
Our priority is to establish an emergency fund.
An emergency fund is a cash reserve for unexpected expenses, such as major car repairs or a medical issue.
In addition, you should have at least three to six months’ worth of living expenses.
Next, you should set up a plan to pay debts down.
Paying down debt should be a high priority for those looking to get out from under it.
After debts are paid off, it’s time to start saving for your short, medium, and long-term goals, including purchasing a vehicle, buying a home, paying for education, or investing in property.
Saving for Retirement
When it comes to retiring, you must have a plan to make sure you have enough money to last throughout your retirement years.
If you fail to plan, you’ll be spending your retirement years worrying about your finances instead of enjoying your time in retirement.
Professional Retirement Planners in Calgary, Canada
We consider including the following:
• The client’s expected or desired retirement age
• The client’s expected income in retirement
• The client’s expected lifestyle expenses in retirement
• Planned asset sales in retirement
• Survivor lifestyle expenses (i.e., lifestyle expenses expected upon the death of one spouse)
• The client’s life expectancy
Most Canadians don’t realize that tax is one of the most significant expenses in their life. The average Canadian family now spends more of its income on taxes (36.4%) than on necessities such as food, shelter, and clothing combined (35.4%). Therefore tax planning is essential. Tax planning often involves making sure you’re paying your taxes and accessing all the deductions and credits available to you. We’ll also explain financial strategies you can use throughout the year to lower the amount of taxes you have to pay.
It’s essential to think about your health.
But what if the unthinkable happens — will you be financially prepared for the unexpected?
If you are serious about ensuring robust protection for your finances and your family, here are the four types of insurance you should consider:
Finally, you need to have an estate plan in place.
Estate planning means preparing for how your assets will be managed and distributed after you’re gone.
It’s essential to plan your estate for several reasons, including:
• Ensuring your wishes are respected — so that you, not the government, decide how your assets will be allocated
• Leaving money to loved ones and charities
• Helping to avoid tax consequences and probate
While it’s challenging to talk about, it’s important to plan in advance, so it doesn’t have to be done during a time of crisis or emotional upheaval.
