Our financial advisory services focus on helping clients in Winnipeg and other parts of Manitoba safeguard their financial security, build wealth, and retire successfully by realigning spending toward things that really matter to them and their loved ones.
As consumers, we are constantly bombarded with opportunities to spend our hard-earned money; as such, most people find themselves in a situation where there really isn’t enough left-over at the end of the day to finance the things that are really important to them and their loved ones due to desire-based spending.
The key to achieving financial success is in realigning our spending from desire-based toward one that protects our financial security and builds our assets.
If you work with us, we’ll help you uncover these important things, then develop a plan to ensure they do not get left behind.
We also work with you to identify certain risks that may “roadblock” your plan and together, we design a solution that mitigates or eliminates their potential financial impact.
Our Financial Advisory Process
Financial Risk Management
Financial risk management protects your household’s financial security by helping you mitigate the financial risks of serious life events that are beyond your control.
A well-planned risk management strategy takes into account the most common serious life events that could potentially impact your household’s financial security.
As opposed to popular belief, your savings and investments are not the foundation of your financial plans. Risk management is.
Risk management protects yourself and your loved ones against the financial risks of life events that may negatively impact your ability to work for a living.
In essence, the first step in planning your future is to ensure that your most valuable asset is secured.
So, what is your most valuable asset?
Most people think that their valuable asset is the home they live in, or the car they drive, or their jewelry collection.
In reality, none of that matters in securing your lifestyle and future. Your most valuable asset is
YOU when you are at work.
What Are Your Risks?
Serious Illness or Disability
If you’re like most of us, you probably won’t have control over being affected by a serious illness or disability.
When a person gets seriously ill or become disabled, he or she may not be able to perform his or her regular activities to earn a living; a well-thought-out living benefits plan ensures you have income during disability or a lump-sum amount of money that you can use while recovering from an illness.
This takes away any monetary stress associated with the inability to work during an illness or disability, so you can focus more on getting well instead of worrying about money.
Just like the above mentioned serious life events, premature death is a potential risk that everyone is exposed to.
Premature death is the single, most impactful life event that can change a family’s life forever.
Understandably so, it’s a sensitive topic that most families aren’t comfortable talking about.
The potential of such, however, does not disappear by simply not talking about it, that’s why it’s important to plan ahead for things that aren’t likely to happen, such as the potential premature death of a breadwinner.
There are times when families find themselves in a situation where the person whom they rely upon for financial support is no longer around to provide for them.
Life insurance has the ability to replace the deceased’s income. It can provide the necessary capital needed to support the same lifestyle and future that the deceased is able to give his or her survivors so they can continue living without suffering the financial loss associated with losing a breadwinner.
Why Start with Insurance?
Well-planned insurance is an important part of your personal financial strategy as it protects your household’s financial security against life events that are beyond anyone’s control.Insurance makes it a point that funds are available when you or your loved ones need it most. Click To Tweet
It has been said that without employment insurance, most Canadians are two months away from bankruptcy after being laid off.
This is due to the high financial obligations that most actively working Canadians carry. To hedge against this risk, we advise our clients to save up between 6 months to 1 year worth of income either in a TFSA or simply a bank savings account.
An emergency fund helps take away the financial strain of emergency spendings such as vehicle breakdowns and home repairs, thereby helping you avoid dipping on credit cards and lines of credit for unplanned expenditures like these as well as a buffer in case of job loss or business setbacks.An emergency fund can serve as an interim source of cash flow to take care of your basic costs of living while you're searching for another source of income. Click To Tweet
Wills and Powers of Attorney
Wills and Powers of Attorney are an important part of financial risk management as these legal documents empower you to see through it that your assets and monetary affairs are facilitated as you desire when you’re no longer able to due to death or incapacity through a lawyer or a trustee.
Who Needs a Will?
If you have young kids, assets, or investments that are not protected by an insurance blanket, you need a will so the people whom you want to receive these assets will rightfully. In the case of under-aged kids, your will makes it a point that the guardians assigned to care for them are the people whom you believe will care for them as you do.
Why Is Power of Attorney Important?
A Power of Attorney is a legal document that empowers another individual to act on your behalf when it comes to financial matters should you lose the ability to make decisions on your own due to an illness, disability, or loss of independence.
Special Note on Wills & Powers of Attorney
As you may have guessed, we are not lawyers, yet we highly recommend our clients to put these legal documents in place for their financial protection.
A qualified Wills and Estate lawyer in Winnipeg can help you set this up for a minimal fee. If you’re already working with a lawyer, you can ask them about these documents, if not, we can refer you to ones we trust.
As important as risk management is in protecting your financial security, wealth accumulation is equally important in building your financial future.
Give Your Children a Headstart
As we all well know, a post-secondary education (college or university) in Canada is one of the most expensive in the world but yet we can not deny the fact that our children will have a better shot in building their financial lives if they finish their post-secondary degrees.
RESP is a great program for parents or grandparents who are looking to give their kids or grandchildren a head-start in life by investing in building their post-secondary education funds.
Without an RESP, a child who wants to secure a post-secondary degree usually have three options:
- Get into debt by applying for a student loan
- Have their parents borrow money on their behalf (usually from home equities)
- Work their way through college or university by working at jobs while studying.
Another option that’s available to you as a parent or a grandparent of underaged kids is to plan ahead by building the necessary funds needed for your children’s post-secondary education.
RESP allows you to build wealth that will take away the financial stress on your child when she or he is ready to embark on his or her post-secondary education so they could focus on earning their degrees instead of worrying about their tuition fees or the interest on their student loans.
Most people never really think of retirement until it’s about time to retire, not realizing that the best time to start investing for retirement is the moment they earn their first paycheck.
Now, don’t be too hard on yourself if you think you’ve missed this because almost all hardworking Canadian professionals do.
Come to think of it, most Canadian adults are pretty much in the same boat when it comes to their financial education after finishing school. This is due to the fact that financial literacy was never taught in school.
The school equips us with the education and skills we need to empower us to make a living; unfortunately, our traditional educational system never taught us what to do with our money after we earn it, how money works, how to make it grow, and how to make it work for us so we can eventually stop working for money and instead have that money work hard for us.
Most Canadians actually save too little while most live paycheck to paycheck regardless of how much they make from their jobs or professions, putting off or entirely crossing-out retirement planning and instead, putting their hopes for retirement on government or company pensions.
According to then Finance Minister, late Jim Flaherty; while it’s good that we have government pensions in place, the problem is that it’s too small. This is the reason why he urged Canadians NOT to put all their hopes for retirement on government pensions and instead, save their own funds for retirement.
Understand that Canadian government pensions are never meant to fully replace our active income; rather it is only designed to supplement our own retirement funds and not the other way around.
The challenge most retirees are facing today is not only to have enough income but also NOT to run out of funds at retirement.
It is expected that the majority of the population will not have saved enough money for retirement.
By planning ahead, you can avoid being part of these statistics.
The best time to plant a tree was twenty years ago.
The second best time is now.