Start the Planning Process
- Consider your goals.
- What do you want your financial future to look like. Do you want your son or daughter to graduate from an Ivy League University? Are you considering buying a vacation property in the future? Do you want a retirement lifestyle involving considerable travel? Do you want to be financially self sufficient in the event of poor health?
- Try and quantify your goals in terms of today's dollars. Realistically consider what your dreams may cost if you were to do these things today.
- Record the cost of these goals in our Pre Meeting Workbook.
- Analyze your current financial situation.
- How much have you saved toward your goals to date?
- How much do you plan on saving toward your goals in the future?
- Record this information in our Planning Workbook, or plan to bring your investment statements to an initial consultation with one of our Wealth Advisors.
- Do you have a pension plan through your employer? If so, is it a defined benefit or defined contribution plan? What impact will these plans have on the achievement of your goals? You can record the information in our Planning Workbook, or bring your statements to an initial consultation with one of our Wealth Advisors.
- Will you be eligible for benefits under one or both of the government sponsored pension plans, the Canada Pension Plan or Old Age Security? In the case of the Canada Pension Plan, you will have received periodic statements. The Old Age Security is based on your citizenship and can be estimated for you. Record this information in our Planning Workbook, or meet with one of our Wealth Advisors who are qualified to make a realistic assumption on your behalf.
- Determine your risk tolerance as an investor.
- What has your recent experience with your investment portfolio been like? Are you able to "sleep at night"?
- How well do you understand the investments you have made?
- Are your current investments congruent with your investment time horizon?
- Complete our Investor Profile Questionaire or meet with one of our Wealth Advisors who will guide you through the process.
- Understand your tax position.
- What is your tax bracket given your current level of income? Will your income change dramatically in the near future? Have you taken advantage of government tax programs such as Registered Retirement Savings Plans, Registered Education Savings Plans, Tax Free Savings Accounts?
- Do you have other tax savings strategies in place such as family trusts, professional corporations, holding companies, etc?
- Do you understand the difference in the taxation of various forms of investment income, i.e. interest, dividends and capital gains, and if so, have you structured your investment portfolios to maximize your after tax investment income?
- Do you currently use tax shelters, limited partnerships of labour sponsored investment funds as a tax strategy?
- Do you seek professional tax advice in determining your strategies?
- Have you accumulated capital gains in the past three years, or do you have capital loss carryforwards?
- Do you currently have unused RRSP contribution room?
- A review of your Notice of Assessment provided by the Canada Revenue Agency and/or your recent tax return will highlight this information.
- You can record this information in our Planning Workbook, or consult with a Wealth Advisor to assess your tax position.
- Risk Management Planning
- Very often in life, unexpected situations arise. Poor health, an untimely death, even unexpected declines in the markets, can dramatically alter the most carefully laid plans. Are you prepared?
- Do you have sufficient resources available in the event of an unexpected illness or an untimely death?
- Have you taken the proper steps to ensure you, not the government, are in control of your estate in the event of a tragedy?
- Analyze your current disability, life and critical illness insurance policies to determine if you are adequately covered for the risks we as humans face.
- Record your insurance coverage in our Planning Workbook, or arrange to provide that information to a Wealth Advisor at your complimentary initial consultation.
- Seek the advice of an investment professional.
- We at ScotiaMcLeod can offer you a complimentary initial consultation to help you formulate your goals, evaluate your current investment and tax situation, and discuss the process of building you a comprehensive financial plan.
- Find a Wealth Advisor you are comfortable with and who will give you the attention you deserve. In choosing an advisor, consider these questions.
- Remember the quote "I didn't realize the cost of professional advice until I tried to do it myself"!!
