Financial Planning

" Whatever failures I have known, whatever errors I have committed, whatever follies I have witnessed in private and public life have been the consequence of action without thought. " - Bernard Baruch

A financial plan makes recommendations on a number of topics. It generally begins with a reprise of a person's (or family's) net worth and a list of income and expenditures and/or a budget. Following this picture of the client's current situation are the issues and recommendations in six key areas:

• Day to day finances (budgeting, expense control, mortgages, other debt, emergency funds, etc.)
• Insurance (life, health, disability, property)
• Taxes (exemptions, deferrals, income splitting)
• Investments (asset allocation, security selection, risk management)
• Retirement (pensions, RRSPs, RRIFs, annuities, etc.)
• Estate (wills, powers of attorney, use of trusts, planned giving, etc.)

Not all financial plans include recommendations for all of these topics. For example, a retired person with a mortgage-free residence and a pension that covers day to day expenses may want and need advice only with respect to investments, taxes, and estate planning.