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The Importance of Financial Planning for the Future


I spoke with a physician client recently who’s family income was over half a million dollars per year. They have a good amount of cash built up in the RRSP (over $1,000,000) lots of cash in their corporation, and over $2,000,000 in real estate. They plan on working for at least 10 more years. A rough estimate of their worth would be between $6,000,000 to $8,000,000 by age 65.

We were dealing with some insurance issues that needed to be solved and in the process I asked the question about retirement and asked what planning had been done.

The plan was to keep going until retirement age, and then to assess the situation, she said. This was not an uncommon response as my experience shows many people spend more time planning a Christmas party then they do planning their financial future.

My comment was this; if you were running a multi-million dollar corporation with very good cash flow, one where assets were growing compounded every year, would you want to have a business plan with future projections, tax strategies and an exit strategy for the future? “Of course” was the answer. Realizing my point, the client shook her head, and said “you are talking about me aren’t you”?

A written financial plan will vary with every person; however at minimum one should include personal data, goal analysis, liquidity assessment, net worth statement, risk assessment, recommendations, and an implementation schedule, as well as follow up review items.

Planning for the future, elimination of risk before it happens, and eliminating stress and fear are only some of the advantages.


If you are in Nova Scotia and would like some insurance advice, please contact Corry Collins:
corry@maritimewealth.com
902-444-7000

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Comments

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