Making a Financial Plan and Finding an Advisor Investment and Finance 12 Mr. Andrecyk

Why do I need a financial plan? You wouldn’t take a long road trip without a map. In the same way, you need a road map for your financial future. You wouldn’t take a long road trip without a map. In the same way, you need a road map for your financial future. A financial plan looks at where you are today and where you want to go. Then it leads you through all the steps you need to take to get there. A financial plan looks at where you are today and where you want to go. Then it leads you through all the steps you need to take to get there.

Five Dangers of Not Having a Financial Plan 1) You get what you want today but not be able to get what you want a few years down the road. Ex. If you purchase a new car now will you have the funds to purchase a home a few years into the future?

Five Dangers of Not Having a Financial Plan 2) You may do the wrong thing with your money or get caught up in a scam. Worst of all, you may end up doing nothing and never reach your goals.

Five Dangers of Not Having a Financial Plan 3) You may not see the big picture. Ex. You may grow your savings, but then pay more tax on your money than you need to (If you invest in RRSP’s, this is not taxable income). (If you invest in RRSP’s, this is not taxable income).

Five Dangers of Not Having a Financial Plan 4) When you get into relationships with other people and you have no financial plan you could end up making different choices in terms of spending and saving money.

Five Dangers of Not Having a Financial Plan 5) You’ll likely have more money worries. You may not know where you are today or how to plan ahead. You could even lose control of your money and not be able to pay bills.

Remember! NO PLAN, NO PROGRESS A financial plan is not about getting rich, and you don’t have to be rich to have one. It’s about doing more with what you have.

What information do I need to build a financial plan? Start by looking at your finances today: What do you own? What do you owe? What you make? What you spend? What you hope to achieve (your goals)?

What does a financial planner do? Set realistic goals and take steps to achieve them Decide what type of insurance you need Save for your children’s education and training Plan and save for retirement Build an estate to leave for your family when you die Save and invest in smart ways that reduce your taxes

What will you talk about to a financial planner? Your personal situation (job, where you live, married, children) Your goals (and when you want to reach them) Your current investments Your tolerance for risk Your debts

What will you talk about to a financial planner? Your insurance Your taxes (income tax, property tax) Your will Your estate (what you will be leaving behind upon your death)

What training does a financial planner have? There are no required courses for financial planners in Canada. The training and education of people who call themselves planners varies. Make sure any financial planner you work with has one of the following designations: Certified Financial Planner (CFC) Personal Financial Planner (PFP) Chartered Financial Consultant (CH.F.C.) Registered Financial Planner (RFP)

Remember! FINANCIAL PLANNERS LOOK AT THE BROAD PICTURE! They will look at who you are, where you are now, and where you want to be. They will construct a plan to get you there. Be sure any financial planner you consult has the proper training to create a solid financial plan.