Tips and situations

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:

• Do you know the rules that apply to your matrimonial regime?
• Do you know how family patrimony rules will affect the partition of your assets at the dissolution of your marriage or civil union?

If you are in a common law relationship:

• Do you understand the financial impact of separating from your partner?
• Have you signed a cohabitation agreement?

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.

• Do you know how much you spend every year?
• Do you know your annual savings capacity? Do you know whether it will allow you to achieve your short-, medium- and long-term goals?
• Do you know whether you should focus on paying down your debts or saving?

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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.

• Are you taking advantage of every tax deduction and tax credit available to you? Do you have any deferred capital losses?
• Are you familiar with the retirement income-splitting rules?

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Retirement situation

Retirement is probably the best known aspect of financial planning.

• Do you know your RRSP contribution limit for this year?
• Have you evaluated your projected annual cost of living in retirement?
• Do you know what your sources of income will be in retirement? Will that income be sufficient to support the lifestyle you want?

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Situation at death

Your will must be reviewed regularly to ensure respect of your wishes.

• Do you have a will?
• Has your will been updated recently to ensure that your assets will really go to the people you wish to protect?
• 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:

• Have you taken the necessary measures to ensure the survival of your business in the event of your death?

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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.

• Have you signed a protection mandate? A general power of attorney?
• 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:

• Have you made arrangements to ensure business continuity in the event of your extended absence for health reasons?

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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.