FP Canada recently commissioned two studies on Canadians’ financial confidence, and as Financial Planner I found the results unsettling. One study found that nearly 40% of respondents revealed they were so financially stretched that they could not withstand another financial emergency. The other reported that 1 in 3 Canadians feel that they will never recover financially from the pandemic.

With government support, encouraging news of a vaccine and the markets recovering, we have come a long way since March. This K-shaped recovery has some industries recovering quickly – even booming; while others are struggling more than they ever have before.  After a year like this, I guess it should not be surprising that many Canadians are feeling uncertain about their finances.

One thing I have learned over my 25+ years in business, if you want to have confidence in your finances, you need to have a solid financial plan. Creating a financial plan maps out your financial future, it helps define your short and long-term goals. When you have a plan in place, its easier to make financial decisions and stay on track when times get tough. 

Steps to Developing a Financial Plan:

Your Goals and Expectations. What do you want out of life?  What does your retirement look like?  What other goals do you have? The first step is determining your personal wants and desires.

Data Collection:

Where are you now?  How are your finances set up?  Where are your investments held and how are they being managed?  This includes your RRSPs, LIRAs, TFSAs, annuities, government plans such as CPP, OAS, and GIS, the analysis of registered pension plans, deferred profit-sharing plans, severances packages and retirement packages.

Development of your custom Financial Plan including Strategies for Success:

This is the job for your Certified Financial Planner (CFP) (or me) with all the information and a clear picture of what you want to achieve a CFP will develop your Personal Financial Plan. The plan will outline tailored strategies you can easily implement to achieve your short and long-term goals.   

Implementation:

With your plan in hand, you have the power to change your financial future, by implementing the recommended strategies you start moving towards your goals and dreams.  “The secret of getting ahead is getting started” Mark Twain.

Regular Reviews:

As with life, your plan will continue to evolve over time. Regular meetings with your Planner are essential; these meetings will ensure you stay on track and enable you to adjustment the plan as your life changes. 

Financial plans are not complicated or arduous, and they are not only for the wealthy. Having a financial plan is essential for your future and your wellbeing. If you do not have a plan in place, or your current one needs updating, give me a call.

Have a great week,

Tracey

Sources: Article Toward a grand renewal by Cary List, Investment Executive, posted 11-30-2020; Certified Financial Planner Board of Standards Inc. website; Plantyourmoneytree.ca website

Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp.  4665 Yonge Street, Suite 309, Toronto, ON  M2N 0B4  t 416.964.0440