What is a Personalized Financial Plan? Why Do I Need One?

Your financial plan acts as a roadmap, with action steps that your financial planner will help you implement in order to reach your financial goals.  You will meet with Stacey to discuss your current financial situation and explore your financial goals. The financial plan will answer all of these questions:

  • How much do I need to save for each of my financial goals
  • How do I find ways to save more money
  • Should I pay down debt / mortgage or save money
  • What are my debt repayment options
  • How can I save more taxes
  • Help me understand my company’s benefits package
  • How much insurance do I really need for myself and family
  • What are the most suitable investment options
  • How much should I save for children’s’ education
  • How much do I need for retirement
  • Am I doing everything right with my finances
  • What are the costly mistakes I am making with finances

Components of a Financial Plan

Cash flow management: The ability to manage your cash flow is one of the most important ingredients to your financial success. Your financial planner will work with you to create a budget that meets your family needs. But most importantly, your advisor will hold you accountable when it comes to your spending and helping you to stay on budget

  • Creating and sticking to a budget
  • How to balance everyday living expenses and savings
  • How to build an emergency reserve

Investment Planning: You will receive an UNBIASED second option on your investment portfolio. Are you investments performing well? Is the risk level appropriate for you? How much are you paying to your financial institution, are the fees and commissions too high? Do you have enough money to retire comfortably?  Your financial planner will evaluate your investment portfolio and you will walk away with a better understanding of the following:

  • Understanding different investment vehicles (RRSP, TFSA, Non-Registered investments) and when to use each
  • How much fees you are paying your current financial institution and advisor
  • Are your investments are structured to minimize taxes
  • Is investment portfolio properly diversified to minimize risk
  • Whether your investment portfolio is “too risk” or “not risky enough”
  • How your investment are performing, compared to overall benchmarks

Tax Planning: What is tax planning? Let’s say your tax bracket is 38%, this means for every dollar you make, you pay $0.38 to the government. Tax planning is all about keeping more of that dollar. It’s much easier to save you 38% of taxes, than to get you a 38% return on your investments year after year. Your financial planner will look at strategies to minimize your tax bill

  • Strategies to reduce your income taxes
  • Am I using all the tax saving vehicles and are they used correctly
  • Are my investments structured to minimize tax consequences
  • If I was to get an inheritance, how will I get taxed

Education Planning:

  • How much RESPs will I accumulate based on my current contributions? And how much RESP do the kids need
  • How do I balance between RESPs, paying off the mortgage or retirement savings?
  • What happens to the RESP if the kids don’t go to post-secondary school

Debt Repayment Solutions

  • Creating a debt-repayment schedule to help you pay off your debts in a reasonable timeline
  • Determine the right balance between savings and paying off debt
  • Help you understand the different between good and bad debt

Retirement Planning

  • how much do we really need to save to retire comfortably
  • how big does my investment portfolio need to be when I retire
  • understanding different sources of income at retirement (government benefits + personal savings)
  • when should I start saving for retirement
  • Am I on track to a comfortable retirement

Is financial planning for everyone?

We firmly believe financial planning should be affordable and accessible to everyone. Whether you are starting out and want to learn how to manage your finances, or have been working for a couple of years and have some assets accumulated and would like a second opinion on your financial situation, Stacey will work with you develop a customized financial plan for your unique financial situation and work with you to help you reach all your financial goals and avoid costly mistakes.

What is fee-only financial planning?

Fee-only financial planning is the only way to get 100% objective, unbiased financial advice. Traditional financial advisors at financial institutions make money from the financial products they recommend, such as mutual funds, insurance, loans, etc. We don’t offer any financial products, and we are focused only on giving you the best financial advice possible.

What does the financial planning process entail?

Once you have signed up to work with Stacey, she will meet with you to understand your current financial situation and all your financial goals. A customized financial plan will be created for you with action steps on how to better manage your finances. Stacey will then help you implement the financial plan in order to reach your financial goals.

How can I contact Stacey when I have financial questions?

You can email, call or Skype Stacey anytime you have financial questions. She will also meet with you regularly (if needed) to monitor your progress and to hold you accountable to ensure all your financial goals are met.

Can I cancel my subscription?

Yes. You can cancel your subscription at anytime. We recommend you work with Stacey for at least 12 months to witness the results of working with a financial planner. Reaching all of your financial goals is a process, and as your life and circumstances change, your financial plan will change with you.

What if I don’t know anything about personal finance?

We are here to teach you. We are big advocates for financial literacy and education. We will teach you everything you need to know on how to manage your personal finances and we will always explain the recommendations and advice we providing you.

Will Stacey He Financial Planning hold any of my investments or do trades for me?

We do not hold assets or complete trades for our clients because we don’t sell any financial products. We do a thorough analysis of your current investment portfolio and provide you a second opinion. We will help you implement our recommendations and help you develop an asset allocation strategy that best meets your needs. We will also provide you with step-by-step guidance on how to implement strategies

Subscribe to receive relevant financial tips and advice to become more confident with your money decisions. Also receive a free copy of Money Mistakes - a look at the most common financial mistakes the millennial generation is making and what you need to do to be financially successful.

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