The Three Parts of a Financial Plan
By Jason A. DeJean
FCSI®, PFP®, CFP®, CPCA®, EPC®
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As a Certified Financial Planner, I would be remiss if I didn’t give everyone a brief outline of a financial plan and what it entails. The sad part is there is no magic formula, just commitment to the process.
Part 1 - Goals
Goals or written future vision statement that provide a sense of short-term goals (3-5 years) plus longer-term life goals (5-25 Years). What is your vision of the future? What will you be doing , with whom and where? Its time consuming but creating a vivid vision for your goals will make all the work required to reach them just part of the process.
Part 2 - Snapshot
A Snapshot of where you are financially right now. This is akin to looking in the mirror. You’ll need copies of everything financial, here is a list of the most common documents you’ll need;
1.Investment statements including workplace group plans (Group RRSPs and other money contribution plans).
2.Your most recent statement from you workplace pensions.
3.Your workplace benefit booklet, which will include information about life insurance and living benefits insurance.
4.Your most recent statement from all of your personal insurance papers.
5.Copies of your tax returns for the previous three years.
6.Statements from any debts you have including your mortgage.
7.Latest statement regarding your Canada Pension Plan (this can be requested online).
8.Copy of your Will and Power of Attorney.