Financial planning is doing what’s necessary to preserve and protect your present lifestyle, while preparing for your future income needs. It’s a continuous process that should adapt to your changing financial objectives. When you’re younger, you want to provide security for your family and establish a sound financial base.
As you get older, you look toward wealth creation and retirement. In later years, your objectives may include estate enhancement, preservation and transfer. But you don’t have to be a rocket scientist to be a successful financial planner.
There are several key areas of financial planning you’ll want to consider over your lifetime:
Planning for the present day and near future is an important element of financial planning.
- Buying or renovating a home
- Saving for a new vehicle
- Saving for a child’s education
All of these things can impact your goals and need to grow your wealth.
By investing in products such as mutual funds, segregated funds, and taking advantage of the tax benefits offered by an RRSP, RESP, or TFSA you can build your wealth to help meet these needs now and in the future.
A Retirement Plan
A sound retirement plan can help you accomplish two important goals: building wealth and saving money for your retirement. Sentinel Financial Management Corp. offers a number of ways to help you build wealth while planning for retirement, including ways to minimize your taxes and maximize your hard-earned money.
Taking advantage of registered investments such as RRSPs you can build your wealth for your retirement. Registered investments offer a tax rebate while sheltering your investments from taxes until they are withdrawn, typically during retirement when you are no longer working and your reduced income level places you in a lower tax bracket.
The final step in developing your financial plan is Estate Planning.
This is the process of determining how to give what you have to whom you want, when you want and how you want – at the smallest possible financial and emotional cost.
Without Estate Planning up to 60 percent of your estate could be lost at your death to administrative costs, fees, taxes and probate.
Through sound Estate Planning you can minimize questions and challenges during the probate process, reduce certain estate taxes, or use charitable giving to enhance your estate tax savings.
Liquidity is also very important and should be built into your estate plan so your heirs aren’t forced to sell assets, borrow money or withdraw cash to pay remaining taxes.
Sentinel Life Management has life insurance solution that can optimize your estate planning strategies, maximize the value of your estate, and provide liquidity to pay taxes and other costs at your death.