Organizing your six areas of financial planning

I had an interesting conversation today with Rod Hammond that lead us into the six areas of financial planning that individuals could be looking at.

What I really loved about the conversation with Rod was that his six areas approach makes it so easy for his clients to know which areas they will need to access documents from, which in turn makes it easy for us to sort, organize and create easy to access systems for these sorts of documents.

It’s a complete win-win situation if you are going to be evaluating your financial situation or you simply want to be prepared for when you do, that you organize your digital and paper documents in alignment with the six categories below.

Here are the six areas:

1. Cash management – usually has a shorter term focus with an emphasis on ensuring that there are adequate financial resources to meet obligations, as well as provide for longer term goals. It may include strategies to retire debt early.

2. Tax planning – reducing and deferring income tax. You want to ensure that you are not paying too much tax and that decisions taken today will not leave you in a disadvantageous situation in the future.

3. Investment planning – ensuring that the investments in your portfolio and asset allocation strategy are consistent with your risk profile and that there is a written plan. What are the investments trying to achieve and over what period of time?

4. Retirement planning – will your assets provide you with an income in retirement that will last your lifetime while maintaining a comfortable standard of living? It integrates income sources from CPP, OAS, registered pension plans, retirement savings plans, tax free savings accounts and non-registered tax advantaged investments.

5. Risk management – Do you have the right types and amounts of insurance in place to ensure that if the unexpected happens, your assets are not depleted, that your retirement plan remains intact and your financial obligations and family are taken care of?

6. Estate planning – Ensuring that when the time comes, your assets are transferred to your beneficiaries, as you intended, in a tax efficient manner.

Feel free to reach out to Rod on Linked In at and if you are looking to get the information organized, we’d be happy to help.

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