Financial Planning Services

THE FINANCIAL PLANNER CALGARY TRUSTS

Providing Peace Of Mind On All Financial Planning Needs

A financial plan determines where you are today and where you want to go. It determines your short-, medium- and long-term financial goals and how you can reach them. For individuals and families, it will help you worry less about money, focus on the big picture, and gain financial clarity.

There are two parts your financial plan should address: 

  1. Accumulation – how you save money and grow your assets specifically through cash flow management, tax planning, investing and retirement planning. 
  2. Protection – how to protect yourself in case of the unexpected, specifically with insurance and estate planning.
Cash Flow Management/Budgeting

Cash flow management/Budgeting is managing the in and outflows of your money.
This includes:

  • A summary of the client’s current assets and liabilities; and
  • A summary of the client’s current and projected income and expense

We identify the following:

  • 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; and
  • the fit of the client’s savings plan with their goals and attitude toward savings.

We help our clients to determine which debts that 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 in debt and 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 and home and paying for education or investment property.

Tax Planning

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.

Investments

There are 3-time horizons when it comes to investing: 

  • Short term: ex. Emergency fund, vacation,
  • Medium-term: ex. Home, Registered Education Savings Plan (RESP), Investment Properties
  • Long-term: ex. 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 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 – not available until 2023.) 

Saving for retirement, when it comes to retiring, you must have a plan to make sure you have enough money to last for 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.

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 investment 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; and
  • The cost and tax efficiency of the client’s investment portfolio.
Retirement Planning

Saving for retirement, when it comes to retiring, you must have a plan to make sure you have enough money to last for 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.

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); and
  • The client’s life expectancy
Insurance Planning

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: 

  • Health
  • Disability
  • Critical Illness
  • Life

Health insurance offers protection for you and your family. It can help to pay for medical expenses not covered by regular health insurance.  It will also provide coverage for drugs, prescriptions 

Disability insurance is there when you suffer from an illness or injury that prevents you from working. It provides a monthly benefit to replace lost income until the condition is resolved. This monthly benefit can be used to pay your bills and living expenses. 

Critical illness insurance is an insurance policy that gives the insured a lump sum payout in case of a heart attack, stroke or cancer. You can use the lump sum to pay for medical treatment not covered by the province, bills or whatever you wish so that you can focus on your recovery. 

Life insurance pays out a lump sum benefit in the event of death. This can be used to pay funeral expenses and final taxes and provide for your financial dependents.

Estate Planning

Finally, you need to have an estate plan in place. Estate planning is planning for your assets after you’re gone. It’s essential to plan for your estate for several reasons, including:

  • Ensures your wishes are respected and that you, not the government, decide how your assets will be allocated. 
  • Leaving money to loved ones and charities

Estate planning also helps avoid tax consequences and probate. 

While it’s challenging to talk about, it’s essential to plan in advance, so it doesn’t have to be done at a time of crisis or emotional upheaval.

Get Started on Your Financial Planning Today

Get started on your financial success today. Call us to set up a meeting with us!