Before you make an appointment with a financial planner, you can
start with checking out our list of questions to ask, below.
It is a good place to start your reflections on your financial
situation.
Personal and family situation
Your marital status has a major impact
on your financial planning. The analyses and recommendations your
financial planner gives you will be affected by whether you are
married or in a civil union, widowed, divorced or living common
law.
If you are married or in a civil union:
If you are in a common law
relationship:
If your marital status has changed or is about to
change, it's important for you to tell your financial planner,
because every financial planning recommendation you are given
should take that change into account!
Click here for answers to these questions, and more!
Financial situation
Your financial situation is the foundation
of your personal financial plan. But what exactly does "financial
situation" mean? Basically, it means the state of your finances. To
evaluate your financial situation, you need to draw up a personal
balance sheet and figure out your cost of living. Your personal
balance sheet has to be completed before any recommendations can be
made. To estimate your cost of living, the first step is to prepare
an annual budget. You should reevaluate your financial situation
every year.
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Do you know how much you spend every year?
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Do you know your annual savings capacity? Do you
know whether it will allow you to achieve your short-, medium- and
long-term goals?
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Do you know whether you should focus on paying
down your debts or saving?
Click here for answers to these questions, and more!
Tax situation
Your income tax returns contain a slew of
information essential to your tax planning. It
may be a good idea to have them analysed by a professional who can
identify issues or strategies you haven't thought of, in order to
reduce your income taxes.
Click here for answers to these questions, and more!
Retirement situation
Retirement is probably the best known
aspect of financial planning.
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Do you know your RRSP contribution limit for this
year?
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Have you evaluated your projected annual cost of
living in retirement?
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Do you know what your sources of income will be
in retirement? Will that income be sufficient to support the
lifestyle you want?
Click here for answers to these questions, and more!
Situation at death
Your will must be reviewed
regularly to ensure respect of your wishes.
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Do you have a will?
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Has your will been updated recently to ensure
that your assets will really go to the people you wish to
protect?
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Do you know if your assets, combined to your life
insurance protection, would be sufficient to maintain your family's lifestyle in the event of your death?
If you own an incorporated business:
Click here for answers to these questions, and more!
Protection situation
This situation examines the mechanisms that can be implemented to alleviate the financial consequences of an illness or an accident, the worst consequence being the permanent inability to earn a living. It goes further than this, however, as it extends to situations where the ability to care for oneself and administer one's own property is so diminished that another person must do it on your behalf.
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Have you signed a protection mandate?
A general power of attorney?
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Do you know the amount of the monthly benefit you
would receive in the event of a short-term disability? A long-term
disability? Is it enough to cover your needs?
If you own an business:
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Have you made arrangements to ensure business continuity in the event of your extended absence for health reasons?
Click here for answers to these questions, and more!
Take control of your health!
Was your answer to most of these questions "no"? It's time
for you to think about your financial planning! Your
financial planner is the right person to guide you through
this exercise and undertake the various analyses that will
help you make informed decisions. Your financial planner can also
help you ensure that all the right steps are taken and that
everything is properly monitored.
Meanwhile, take a look at the following sections for some
answers to the questions asked here, and more. A section has
been created for each of the situations that has an impact on
your financial planning.