Strategy 1 – Comprehensive financial planning

Dec 20, 2018 | Joshua Opheim


Share

Gain confidence in your family’s financial future

If you have $1 million or more in investment assets, your financial situation is more complex than the average Canadian. You may pay higher taxes and have a higher standard of living. Maybe you are an executive with a complicated compensation package or a business owner with an interest in a private corporation. In addition, you possibly own or plan to own more than one real estate property and likely have a larger estate to be transferred and charitable giving desires. Furthermore, you are very busy with your day-to-day work and family life and may not have spent the time to determine if you are on track to achieve your retirement goals and other important financial goals such as minimizing taxes or planning for the eventual transfer of your estate.
One of the best ways to start mapping out your financial planning strategy is to step back and look at your overall financial situation by having a comprehensive written financial plan prepared for you and your family.

Creating your financial plan

One of the best ways to start mapping out your financial planning strategy is to step back and look at your overall financial situation by having a comprehensive written financial plan prepared for you and your family. This type of financial plan addresses all aspects of your financial affairs, including cash and debt management, tax and investment planning, risk management, and retirement and estate planning. It ensures that you leave no stone unturned related to your financial situation and potential strategies to enhance your wealth.
 
A comprehensive financial plan can address the following questions:
  • Can I retire when I want to and maintain my desired retirement lifestyle?
  • How can I ensure that I don’t outlive my money?
  • How can I minimize the taxes I pay each year?
  • Is my investment mix appropriate?
  • If I were to die unexpectedly, would my family be taken care of?
  • How can I protect the value of my estate?

A higher level of customization

In many cases, the key to a comprehensive financial plan is the
level of customization it offers.
 
A customized, comprehensive financial plan should involve the following:
  • In-depth discovery discussion to ensure that your goals, aspirations and objectives are clearly identified
  • Projection of your financial situation (investment, retirement and estate) based on your current strategies and savings rate
  • Recommendations of key investment, tax, estate and retirement planning strategies that are aligned with your goals
  • Projection of your financial situation if the recommended strategies are implemented
  • An action plan that summarizes the key recommendations and acts as a clear guideline for you and your advisor to help monitor their implementation
Contact us today if you require more information about having a comprehensive financial plan prepared for you. Depending on your situation, you may only require a simple retirement plan or projection to determine if you are on track to meet your retirement goals.
 
 
Family wealth management tip
A comprehensive financial plan is essential if you are a business owner as you have more complex financial issues due to owning an active business. This includes business succession issues, withdrawing money from the corporation tax-effectively, the taxation of the corporation at death and more. Like many business owners, you may not have a retirement savings strategy since you are relying on the equity in your business to fund your retirement. A financial plan will include both your business and personal needs to ensure you are able to meet your goals.