7 things your planner can help you do
- Set realistic goals and take steps to achieve them.
- Save for education.
- Plan and save for retirement.
- Choose the right mix of investments.
- Decide what type of insurance you need.
- Build an estateEstate The total sum of money and property you leave behind when you die.+ read full definition to leave to your family or charity.
- Save and investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition in ways that reduce your taxes.
5 things your planner should tell you
- What services they’ll provide and how the process of planning works.
- What documents they’ll provide to you.
- Their responsibilities as your planner.
- Your responsibilities as a client.
- How they’ll be compensated.
9 things your planner will ask about
- Your personal situation – including information about your job, where you live, whether you’re married, and whether you have children or other dependants.
- Your goals – and when you want to reach them.
- Your current investments – including investments you hold in non-registered accounts, registered accounts such as an RRSP, a TFSA or an RESP, and any workplace pension and savings plans.
- How you feel about risk – and what kind of investor you are. For example, are you a conservative investor or are you more willing to take on risk to meet your goals?
- Any money you earn and owe – Do you earn a salary, rental income, business income? Do you have a mortgageMortgage A loan that you get to pay for a home or other property. Often the loan is for 20 years or more. You make a set number of payments for a set amount each year.+ read full definition, car loanLoan An agreement to borrow money for a set period of time. You agree to pay back the full amount, plus interest, by a set date.+ read full definition, student loan, credit cards, personal loans or business loans?
- Your insurance – such as life, auto or health insuranceHealth insurance Insurance that covers some or all of your medical bills if you get sick or hurt.+ read full definition. Mention any insurance coverage you have paid for yourself or that you receive through work.
- Your taxes – including income taxIncome tax A charge you pay based on your total income from all sources. The Canadian government and your province set the rate.+ read full definition, property taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition and tax on your investments.
- Your will – If you have one, the planner will want to review it.
- Your estate – How much money and property will you leave behind after your death and what you would like to do with it?
3 key points
A financial plannerFinancial planner An individual who looks at your financial situation and builds a complete plan to help you reach your goals. The process may cover: financial planning, risk management, investment planning, tax planning, retirement planning, and estate planning.+ read full definition looks at:
- Who you are
- Where you are now
- Where you want to be