Many of us are trying to take things one day at a time while adapting to the changes and frustrations of daily life, leaving little room to think long-term and plan for the future.
The good news? It’s never too late to start, restart, or start over when it comes to preparing for retirement. What does matter is finding the right strategy that works for you and your unique situation. And that’s where we come in.
Think of your financial advisor as your personal travel consultant, rather than planning a vacation, they’ll help plan your future. Whether you want to retire and move to the sandy beaches of Aruba, spoil your grandchildren and become the favourite grandparents, or take up golf and spend your summers playing the best courses in the world, we can help you get there and you don’t have to sacrifice that new car, new pool, or that big family trip to Disney World along the way.
Step 1: Define your goals
Like any good New Year’s resolution or fitness plan, the more specific you are the better. Think about everything you want to achieve financially. A kitchen makeover, university tuition for three and a retirement spending winters in warm weather? A new home, a trip to Churchill to see the polar bears, and retirement spoiling your family and travelling the world?
No matter what your goals may be, it helps to put them to paper so your advisor has a clear idea of your objectives and targets.
Step 2: Your current financial picture
Now that you have a clear idea of where you want to go, it’s time to look at where you are in your journey to get there. This will require a bit of work: list all your assets and liabilities as well as monthly cash flow. This will provide your advisor with a complete financial picture so that they can make sure you’re maximizing your potential savings at every turn. And if you’ve already started saving, great! You’re one step ahead.
It may feel vulnerable to lay out your entire financial picture for your advisor to see, but that’s precisely why they’re there: To help. You may have been making unintentional mistakes that could impact you down the road, or you may have been leaving money on the table when it comes to your tax returns for example.
A financial advisor will find areas that can be improved to help you maximize your income and cash flow and prepare you as best as possible for your future. This leads us to the next step…
Step 3: Identify potential risks
Life isn’t perfect, and as we’ve all seen lately, it certainly doesn’t always go as planned. But having a clear plan in place can greatly help mitigate the damage of curveballs and unexpected turns.
Acknowledging risks doesn’t mean they will automatically negatively impact your financial situation – better understanding your financial picture simply means that you not only know where you stand but can map out your future and protect your family along the way.
And like following a new fitness regime and progressively seeing results, a financial plan gives you a means by which to measure your progress, so you’ll know that you’re staying on the right track.
Your financial planner will also help you to assess your risks – including those you may not have considered – and make recommendations based on those risks, like online investments or mutual funds. You’ll better be able to pinpoint the mistakes you may be making and bring your spending in line with your goals when you have your financial map laid out in front of you.
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Planning for the future without a crystal ball telling us what the future holds can be daunting. But your Financial Planner is here to provide advice and counsel in planning areas such as life insurance, retirement savings, group benefits, or education savings, as well as get advice on pension or investment management decisions. Your Financial Planner can help you explore mutual funds, tax-free savings accounts, or online investments and together decide which is right for you.
“We are coaches, trusted experts and sounding boards for our members,” said Rhonda Oakden, Director of Westoba Financial Solutions. “We will walk members through a scenario or a problem and offer solutions; it’s never about a product, it’s about the relationship and the advice that we provide.”
Here are a few tools your Financial Advisor might suggest:
RRSP (Registered Retirement Savings Plan)
The Canadian government created RRSPs to encourage people to save for their futures by providing tax breaks on RRSP contributions. This means that any contributions you make to your RRSP are only taxed when you withdraw from it, not when you pay into it, which helps reduce your annual tax bill.
TFSA (Tax-Free Savings Account)
While they may sound just like the above-mentioned RRSP given there are no tax implications on redemptions, a TFSA is designed for more immediate savings goals, like purchasing a car or rainy-day funds. Contributions made to your TFSA are not tax-deductible like they are for your RRSP, and the contribution limit is much lower than that of an RRSP (a percentage of your income). You can check those contributions limits on the Canada Revenue Agency website.
Ready to plan for your future? If you’re interested in learning more about the options available to you or if you have specific questions about your financial wellness, call 1-877-WESTOBA to make an appointment with our team or email below. We’re mobile and will meet wherever you like! We believe in making the process as simple as possible.
