Why does Financial Planning seem so mysterious?
The majority of Canadians don't have one. Unfortunately they think they have one simply because they use an accountant to do their tax returns and a banker to handle their RRSP'S.
A good financial plan is like an architectural blueprint. Once the blueprint reflects the perfect plan, then all of the key people such as the accountant, lawyer and financial planner are privy to the overall objective and work in concert to achieve the common goal.
The result is peace of mind!
Vision is where your plan starts!
- What would a day on my calendar look
like if I were financially secure?
- How would I spend my time?
- Who would I be doing these things with?
- When would I start doing these things?
- Where would I be living? What would I be doing?
When you start to answer some of these questions you have begun to create a vision!
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A financial plan is the roadmap that ensures your vision becomes a reality. It takes you to places you may never have been and over time it allows you to understand how each factor is critical to realizing your vision.
Critical Success Factors are key in building a Financial Plan and therefore they are often referred to as the pillars of prosperity. They are six interdependent factors, each affecting the other, while at the same time sharing the common long term goal.
A comprehensive financial plan takes
all of these aspects into consideration, identifying where you are today and compares that information to your vision or where you want to be. The financial plan
is the migration strategy or the COMPASS which provides the direction and moves you toward making your Vision a reality.
The process is ongoing, and is designed to be interactive as well as a collaborative rewarding experience culminating in peace of mind. It's not all work, it's also fun and energizing, knowing that you are actively participating in the plan of your life where the rewards are great!
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