The importance of financial planning
Syliva Ellis talks about the importance of financial planning and why it doesn’t have to be complicated
The Importance of Financial Planning
[Upbeat music]
[Sylvia Ellis
Senior Estate Planning Advisor
CIBC Private Wealth – Wood Gundy]
People make plans for vacation travel. They also make plans for home renovations,
weddings and even shopping trips. Why is it then, that many people don’t have a plan
for their most important long term financial decisions?
[The Importance of Financial Planning
(and Why It Doesn’t Have to Be Complicated)]
Hi, my name is Sylvia Ellis. I’d like to talk to you about the importance of financial
planning and why it doesn’t have to be complicated.
Financial planning can seem daunting. You have to integrate so many factors: income,
spending, savings, assets, liabilities, risk tolerance, family situation, goals, the list is
long indeed! All of these need to fit and be coordinated with each other for your
financial plan to work. It is worth the effort.
[A good plan will help you -
x save enough money to invest so you reach your goals
x eliminate, reduce, and defer income taxes
x invest your money properly
x protect your family against financial losses from death, disability or serious
illness and other risks, and
x make sure your estate is distributed according to your wishes.]
A good plan will help you:
x save enough money to invest so you reach your goals
x eliminate, reduce, and defer income taxes
x invest your money properly
x protect your family against financial losses from death, disability or serious
illness and other risks, and
x make sure your estate is distributed according to your wishes.
As a client, you will know from Stan’s monthly Perspectives articles on Behavioral
Finance, that a good plan can help you avoid serious mistakes in your finances and
investing.
Because financial planning can be complicated, it’s human nature that people don’t
even get started.
[Image of a man behind a computer with his hands on his head in frustration]
Or if they create a plan, they get overwhelmed putting it into effect, and let it become
outdated. Meanwhile, taxes, inflation and the wrong investments limit or diminish their
wealth.
We’ve found the easiest way to avoid being overwhelmed with planning is to break it
down into manageable, bite-sized pieces. Don’t try to do everything at once; focus on
what’s important and urgent. And treat it as an on-going process rather than a one-time
event. That way, you can always make solid progress on a schedule and time-frame
you can work with.
At The Stan Clark Financial Team we use a simple and logical four-step cycle:
[ Stet 1:
Clarify Your Situation and Your Goals]
Step one, clarify your situation and your goals.
This is where we take the time to discover, and rediscover, what you are about: your
family, your work, your needs, goals and dreams. Like a trip, you need to know where
you are and where want to go to figure out how to get there.
[ Stet 2:
Create a Personal Financial Plan]
Step two, create a personal financial plan.
Once we clearly understand your situation and goals, the next step is to put numbers to
everything. We then run it through our customized Personal Financial Planning
program, which was developed by, and is unique to, our team. This will help you answer
important questions such as: When can I retire? How much retirement income will I
need and where will it come from? How much should I be saving and investing? What
size estate will I leave my family? From here, we review all of your financial affairs and
identify the top priorities for you and us to act on.
[ Stet 3:
Customize Your Investments to Fit Your Plan]
Step three, customize your investments to fit your plan.
Your investments are an important tool to help you achieve your life goals, so we need
to get these on the right track as soon as possible. Together we review your financial
plan and
determine the strategies and guidelines we will use to best manage your investment
portfolio. We then monitor your portfolio, make necessary changes and report to you
regularly.
[ Stet 4:
Complete Your Financial Action Plans]
Step four complete your financial action plans.
We then work through the priorities identified in your financial plan on a schedule
suitable to you.
Once we’re finished, we go back to Step 1 where we review your situation and goals
and how they have progressed relative to your last plan and start the process over
again. We recommend doing this every year and at least once every two years – or
whenever your personal circumstances change significantly.
We’ll reach out to you when it’s time to schedule a review but are happy to update your
plan any time you’d like.
Planning helps avoid rushed, ill-considered and emotional decisions. Anything that’s
important to you deserves to be well-planned, including your finances!
I invite you to learn more about our unique financial planning process, and also about
our team uses behavioral finance, asset allocation and our exclusive rules-based
investing strategies to help grow and protect your wealth.
You can find more about all of these, including summary videos on each by Stan, Tom
and Mike under the “Our Perspectives” section of our team’s website. And please
contact us by phone or email if you have would like to discuss how any of this applies
to your specific situation.
[CIBC Logo]
[CIBC Private Wealth
The Stan Clark Financial Team]
[CIBC Private Wealth consists of services provided by CIBC and certain of its
subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.
Insurance services are available through CIBC Wood Gundy Financial Services Inc. In
Quebec, insurance services are available through CIBC Wood Gundy Financial
Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of
CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World
Markets Inc.
This information, including any opinion, is based on various sources believed to be
reliable, but its accuracy cannot be guaranteed and is subject to change.
Sylvia Ellis is a Senior Estate Planning Advisor with CIBC Wood Gundy in Vancouver.
The views of Sylvia Ellis do not necessarily reflect those of CIBC World Markets Inc.
Clients are advised to seek advice regarding their particular circumstances from their
personal tax and legal advisors
If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.]