|
|
 |
 |
|
What are your greatest assets?
How planning can help safeguard
the important things in life
Many of us share the same beliefs about what’s most
important in life – family, security, and the need to make
a meaningful contribution, for example. But while our
values remain steadfast, our needs change as life evolves.
Whether you’re just starting out, in your prime earning
years, or just retired, your chances of financial success
are better with proper planning and expert guidance.
In this edition of Investment Matters we offer portraits
of some of the common threads that run though our
lives, and some advice on how to start on the road to
financial security.
Portrait 1: The building stage
Building a life together
Tim and Vivian know they’re making good progress. After
two years of marriage, they’re looking to buy their first
house together, a small bungalow on a tree-lined street,
and hope that this will be home to the children they plan
to have over the next few years. Both work at jobs they love
– Vivian as an office manager in a small accounting firm;
Tim has just started his own practice as an occupational
therapist within a team of rehabilitation specialists.
But there’s a feeling of worry that neither can put aside.
They’ve just come through a period of hardship while
they paid off Tim’s student loans and saved the down
payment for their house, only to find there are more
uncertainties than ever when it comes to their finances.
They’ve had to fall back on a line of credit a few times in
the last couple of years, and are still working on paying
that off. And, with all the different options they’ve heard
about, they’re worried the mortgage they get may not be
the best one for them. Though it seems a long way in the
future, they know they must also start thinking seriously
about their retirement savings but feel that this is
nearly impossible right
now. At this rate, they fear,
they’ll never get ahead.
Where to start
A first step to the peace of
mind Tim and Vivian are
seeking is to create a budget that outlines their day-to-day
financial needs and looks at how these shorter-term
requirements will be met. Then, they must create a plan
for debt reduction in the shorter term and retirement
saving in the longer term.
Using Scotiabank tools to review and rank their
personal and financial goals, and to analyze their
income and spending, a Scotiabank representative can
help Tim and Vivian gain a better understanding of
their current financial situation. A consultation with
their Scotiabank representative, an expert on personal
borrowing and investment needs, can help them choose
the best mortgage, and develop regular savings and
investment plans to match their needs.
Portrait 2: The establishing stage
Established values
Hal and Janet feel very fortunate. After years of hard
work, the construction company they started 10 years ago
has started to do well, a payoff from the housing boom of
recent years. Thanks to the sacrifices they’ve made over
the years and business success, they find themselves
with significant levels of assets, both in their RSPs and
outside. Though they have a mortgage on their home,
the amount they owe is falling steadily, and the children
are growing up quickly.
But there’s been a lot to think about lately. For one thing,
the untimely death of a close friend has left Hal worrying
a lot about what would happen to his family if something
unexpected were to happen to him. Also, what about the
family business – where would that end up? And with the
eldest of their three children starting high school next
year, the rising cost of post-secondary education, so much
in the news lately, has also been weighing on their minds.
Where to start
Hal and Janet have a growing number of financialplanning
needs that must be addressed as soon as
possible, and that may be best served by a comprehensive
financial plan that uses a “whole-life” approach to
integrate all their diverse requirements. In terms of
saving for their children’s education, they must review
options for saving, such as registered education savings
plans (RESPs). A ScotiaMcLeod® Financial Planner, with
the assistance of Hal’s and Janet’s Scotiabank representative,
can help them deal with these and other significant
issues. The Financial Planner will help Hal and Janet
develop a long-term investment strategy. A key aspect of
this disciplined approach is establishing the appropriate
investment mix to provide the best return possible for
their appropriate level of risk. The investment strategy
then guides the professional portfolio monitoring and
recommendations as part of an ongoing relationship.
Protection also extends to planning their wills and
estates. It’s important to look at appointing a guardian
for their young children as well as someone to serve as
substitute decision maker, in case either or both of them
become incapacitated by illness or injury. Through the
will-planning process, Hal and Janet, can determine
their goals and how best to meet the needs of their
beneficiaries.
Portrait 3: Preservation stage
Planning for the best
Until her husband died a few years ago, Rose had little
reason to pay attention to money. Her unexpected widowhood,
however, has forced her to take responsibility for
her finances. At the age of 62, and one year into retirement
from the administrative assistant job she held for 20
years, she finds herself wondering more than ever about
whether she has enough to live comfortably for the rest
of her life. She’d also like to fulfill her lifelong desire to
travel, and leave something to her two grandchildren who
are so dear to her. Especially with the way markets are
behaving lately, she’s wary of investing and wants to be
reassured that the nest egg she’s built so diligently is safe.
Where to start
A retirement projection that lets Rose know exactly
where she stands in terms of her retirement income and
expenses is a good place to start. With the help of her
Scotiabank representative and some of Scotiabank’s
financial tools, she can get an overall financial picture
– that is, how much income she can expect to get from
various public and private pensions, her non-registered
savings, RSPs, and how this relates to her retirement
goals. With this information, she can prioritize her “wish
list” and determine which of her dreams to fulfill first. In
terms of her savings, her Scotiabank representative can
help determine her risk tolerance and time horizon and
suggest a range of suitable investment options.
|
Courtesy By:
 |
|
|
|
