The Planning Continuum
A question often asked in the media is what exactly is the role of a financial professional and how do they help the client meet their life goals and dreams? Why do you even need to engage the services of a financial planner or financial advisor when so much information is already available for free on the internet and elsewhere?
There is, however, a big difference between free information and financial wisdom and advice. For example, a recent discussion with a young couple found that they didn’t realize that there is a difference between buying mortgage insurance from the bank and buying their own personally owned life insurance. Yet this information has been widely publicized throughout the years.
During the discussion, the couple was informed of the differences between underwriting life insurance at the point of claim and at the time of an application and the implications for their desired goal of financial security.
Please ask us about the many other differences between bank creditor life insurance and personally owned coverage and how that can affect your ultimate planning objectives.
This article will focus on how clients can get the best from their financial advisor and the value added that advisors can bring to the table. Many of my previous articles have focused on different aspects of financial planning, wealth building and so on. The focus today is on how your advisor can more efficiently assist you to achieve your hopes and dreams!
The easiest way to think of this is to visualize a scale or continuum going from A – your current situation, to Z – your ideal life situation. The focus here is on how you see your life and that of your partner and family unfolding during your lifetime.
It does not really matter at what point you are starting from. What matters is where you want to end up in life. Your goal is something that you are passionate about achieving and that you are prepared to align your behaviour with. This is your ultimate life vision.
Achieving your vision can involve many individual goals and decisions over time. It can include your career, travel, having a family or not, the type of home you desire, leisure activities, freedom from financial worries, and so on. Any and all of these have financial implication now and even many years into the future.
Annual reviews and notifying your advisor when there are significant life changes, such as a promotion, inheritance, or starting a business or selling a business, are part of the process of moving you along the planning continuum more quickly.
The advisor’s role is to stay current and educated on changing tax rules, estate planning and new planning strategies such as the introduction of new programs like TFSAs so that they can more quickly advise you of what is applicable to your situation.
For example, when looking at retirement savings, you can consider dollar cost averaging (DCA), starting early, diversification, portfolio construction, using RRSPs and other tactics to assist you in more quickly and efficiently meeting your goals.
These are just some of the ways you can be assisted in moving more quickly towards your goals. Please call us today for an appointment to review your situation.
Also, visit our business website myfinancialsolutions.ca for additional financial information on insurance, retirement/estate planning, investments and a whole host of other financial topics.
