Everyone should have a Wealth Management Plan.
Having a comprehensive plan contributes to your well-being.
Having a comprehensive Wealth Management Plan (WMP) is important. Studies show that Canadians with comprehensive financial plans enjoy a greater sense of emotional and financial well-being, compared to those with limited planning. People with wealth plans feel they are saving more, living well, and experiencing higher levels of overall contentment. People with a WMP know how they will afford retirement years, which often last as long as your income years. That is peace-of-mind.
A WMP reconciles short and long-term life goals to reveal the big picture. When you have a WMP, it’s easier to make financial decisions and stay on track to meet your goals. A WMP integrates expense management, education planning, tax efficiency, risk mitigation (insurance), private company plan integration, investment management and estate/wealth transfer arrangements.
Education and new qualifications can increase earning potential and enrich professional lives of you and your children. However, education can be costly. A WMP will establish a plan designed to fund your educational goals while keeping your greater wealth goals in view.
Luckily, Canadians have many tools to help save on taxes and plan for retirement. In addition to common deductions such as interest and other expenses, Canadians can benefit from a Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Saving Accounts (TFSAs) and Registered Education Saving Plans (RESPs). A WMP will help improve tax efficiency during all stages of your life – working years, retirement and through wealth transfer. Thornmark will work with you and your tax professional to help you optimize your tax benefits.
Living longer means your retirement years could last longer than your income earnings years. Therefore, a plan is essential to help ensure your retirement resources can meet your lifestyle goals. Computing retirement cash flow that may extend for 35+ years is a complicated process. However, the outlook can be clarified with a WMP.
Many believe that estate planning is simply how your assets are handled at death. A WMP does coordinate a smooth and tax efficient estate transfer to your loved ones and beneficiaries. However, this is just part of the picture. Canadians are living longer than ever, and estate planning is a complex process that is intended to ensure that your affairs are managed according to your wishes while you are alive.
Once your WMP is in place, it will be a resource designed to ensure you’re on course. You’ll be able to see how you’re tracking to your goals and celebrate wins and milestones along the way. Ultimately, proper planning will give you clarity and motivation. If you meander off course, it’s just a matter of recalibrating back to plan. Without a plan, it’s easy to lose sight of your destination altogether. If you don’t have a plan, you’re more likely to end up somewhere else. So give us a call to make sure you have a plan to achieve your goals and dreams.
1The Value of Financial Planning, Financial Planning Standards Council (FPSC), 2013.