CIBC Private Wealth
June 08, 2023
4 benefits of wealth planning—and how to get started
When it comes to wealth planning, women have unique life experiences to consider. Susan Wood, Director of Wealth Strategies at CIBC Private Wealth, has decades of experience helping women take an active role in creating their wealth plan–here are her top tips to help you get started planning, building and managing your wealth.
Treat wealth planning as a process
Wealth planning is about more than investing. It helps get a better understanding of your financial situation, and addresses key questions you may have. Wealth planning is not a one-time thing—it’s a process that evolves over time as your needs and goals change with your financial situation.
It’s a common misconception that you need to know a lot about investing and wealth planning before meeting with your financial advisor to create a wealth plan. But, that’s not the case. A supportive financial advisor will meet you where you are and help you progress toward your goals. You should never feel self-conscious about asking questions.
Be actively responsible for your finances
At some point in life, we’ll all likely need to take responsibility for managing our own money. Even if you have a partner who generally takes care of the household finances, they may not be around forever. It’s important to take an active role in both your personal and household money decisions because it can be challenging to pick up this skill set later in life. Going into your senior years with some knowledge and experience working with a financial advisor leaves you less vulnerable to elder abuse and scams. You don’t need to know everything about finances, but it’s a good idea to know the basics about managing your money.
Building a wealth plan can also be quite empowering because it helps you understand how much financial flexibility you have and helps set realistic financial goals. This lets you use your money in potentially more fulfilling ways, like gifting funds to your children or donating to charity.
Cover all your bases with a solid wealth plan
First and foremost, when starting to build a wealth plan it’s important to understand your objectives because. Your primary objective may be living comfortably in retirement or maybe you want to understand your estate tax liabilities. Whatever you’re looking for, building a solid wealth plan combines all the elements of your current and future financial picture in a way that’s easy to understand.
A good wealth plan doesn’t only look at investments and cash flows. You should also consider tax and estate planning, family law, and business law as applicable. All aspects of your life should work together in your wealth plan. It’s also beneficial to consider a risk assessment and insurance needs in case something unforeseen happens to you, a business partner or a family member. Planning for unexpected events can help give you peace of mind.
Start with your financial advisor
At CIBC Private Wealth, we understand it can be difficult to know how to get started. Whether you’re looking to get a handle on your finances for the first time or want to fine-tune your wealth plan, we can help. Contact me to see how we can make a comprehensive wealth plan that fits your needs.