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David McFarlane,CFP,CIM
Rose Hawrychuk

Tel: 905-337-2027
Fax: 905-337-2033

Address
132 Trafalgar Road
Oakville, ON
L6J 3G5
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LifeStages 2

LifeStages
A guide to financial planning for every stage of life - specifically designed for women.

LifeStages identifies key investment issues and challenges for each of life's five financial stages. Going forward I will highlight each stage with a brief case history designed to help you to better understand sound financial planning principles. Please check back often to review each stage.

LifeStage 2 (Ages 30-44): Household Formation & Career

Case Study: Kim
Kim is a 34-year-old married, professional who loves the feeling of accomplishment she gets from successfully balancing work and family. She and her husband have two young children and recently bought a new four-bedroom home. Kim is president of her own accounting firm and has just returned to work after giving birth to her second child. With a new home and a young family, Kim wants to be sure that their financial plan and investments keep pace with their changing lifestyle. With a household income of $125,000, budgeting is a challenge. After meeting mortgage payments and household costs, Kim wants to ensure that they save for the children’s education. With an eye to a pleasant retirement, both Kim and her husband own RRSPs, although they haven’t contributed much for the past two years.

LifeStage 1 is the best time take to advantage of a Registered Retirement Savings Plan (RRSP) for long-term growth. An RRSP offers the benefit of tax-sheltered compounding (and you get a tax refund after each contribution!). You can also carry deductions forward to future years when your taxable income will be higher. I can help you take advantage of this proven process.

Investment Planning Goals
Whether you have a personal, spousal or group RRSP, the basic investment principles are the same:
  1. Your primary focus should be capital growth; you have a long time-horizon and you want your money to grow.

  2. Your secondary focus should be safety of principal; the risk level of your investments should match your comfort zone.
If you’re purchasing a home, your savings capacity will be reduced or redirected to debt reduction. Before taking on a mortgage, take the time to learn all you can about the subject and how to reduce interest costs over the years.

Things to Consider
In LifeStage 2, you may be earning more but you may also have bigger expenses; meaning that money management can be very challenging. It’s important to keep your objectives in focus and on track. Here are some things to consider.

Archives
LifeStage 1

* Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.