Goals and Objectives:

The first point of focus in the financial plan is a clear identification of your key Goals and Objectives both of a short term and long term nature. These may consist of a major purchase, education and retirement funding plus other significant cost items in the future. The Goals & Objectives Statement sets forth the probable cost in future dollars of each item and estimates the monthly savings required to achieve them.

Budget and Cash Flow:

This records your income from all sources and itemizes each expense by category. Some expenses are mandatory while others are variable or optional. A careful analysis of your Cash Flow will determine your ability to add to your Net Worth and develop a realistic Budget and Savings Plan to finance your life objectives. This analysis should be carefully reviewed at least annually.

Statement of Net Worth:

Your Net Worth represents the foundation you will build upon to achieve your Goals. The assessment includes all that you own less all that you owe to arrive at your actual net value (financially) at any point in time. Your net worth should be estimated at least annually to determine if you are 'on plan'.

Investment Return and Structure:

Of continuing importance in the successful building of net worth is sound Investment Management to compound income and participate in capital appreciation opportunities. Asset allocation in accordance with risk and return requirements is set forth including division between tax sheltered and unsheltered investments. The anticipated yield from each sector is included. Other investments such as real estate and business ownership are also monitored.

Education Funding Estimates:

The funding requirements for university education are estimated and the contribution to them via the Registered Educational Savings Plan is included. Provision is made for allocation between contributors as well as the entitlement for government grants. Future value estimates allow for students' own funding of a selected portion.

Retirement Planning Projection:

A key Goal of the personal financial plan is to ensure adequate Retirement Funding. The Projection takes into account expected income from various retirement funding resources such as pensions, RRSPs and investment income, and determines how well these will fund anticipated retirement living costs. If there is a deficiency the annual additional funding is determined in current dollars to assure adequate monies will be available in future inflation adjusted dollar terms.

Insurance Needs Analysis:

Planning for defence against the risk of financial impairment is secured with the contingent resource of Insurance. Insurance can also be engaged to offset anticipated future liabilities such as estate related taxes and costs. Because of tax features of certain policies, wealth accumulation on a tax exempt basis is an attractive adjunct to the RRSP. There are several other applications for the wealth creation possibilities of insurance that can be incorporated into the Insurance Needs Analysis.

Tax Planning:

An important ingredient to ensure as much accumulation is retained as possible is that of careful Tax Planning. This is essentially a check list of the many tax saving opportunities available. Alert review of every statement often points to additional tax saving considerations as well.

Estate Expense and Allocations

This statement anticipates estate expenses such as funeral and wind up costs as well as estimated taxes arising from terminal capital gains and registered retirement plan income tax. The funding of these expenses and subsequent beneficiary allocations are estimated.

Other Statements and Estimates:

- Expense Allocation Summary showing current and planned.

- Detailed investment portfolio analysis including balance, income,

  growth potential and tax treatment of each security.

- Disability insurance needs analysis.

- Mortgage calculation on a ' what if ' basis showing advantage of

  lump sum or early maturity together with other variables and

  comparative alternatives such as RRSP contribution option.

- Registered Retirement Income Fund funding via RRSP and draw down

  analysis including terminal income tax estate effect with

  compensating insurance requirement.

- Retirement funding of key person with buy out provision for

  small business structure.

- Estate freeze analysis.