Why is financial planning important?
Because the process enables you to clearly identify your priorities and focus your resources on achieving your objectives.
To attain your goals, you need to know where you stand today, where you want to be in the future and how you’re going to get there. For example: what will your retirement look like? What is it you want to do in this next stage of life? How will you spend your time? Where will you live? Do you want to travel?
And, most importantly, how are you going to pay for all of this?
A good financial plan can help you answer these questions, and more:
• Will you be in a position to fund your children’s post-secondary education?
• If you become disabled, will you have enough income to manage until you are well again?
• If you were to die, would your family be financially secure?
• Is your investment strategy consistent with your financial goals?
• Will you be responsible for the care of an aging parent or spouse, or a mentally or physically challenged child?
Watch this short video for an overview of how a financial plan can help: