Whenever we go through turbulent markets we all feel a little uncomfortable and sometimes wonder what we should do. The message is old but still valid. What we should do is review our financial plan and if our circumstances have not changed, we should stick to the plan.
I want to use this opportunity to share some of the content from a publication called “Get More Out of Life” put out by the Financial Planners Standards Council. For the full version visit www.fpsc.ca click on Financial Planning and select Get More Out of Life PDF on the right hand side of the page.
71% of people who engage in comprehensive financial planning feel closer to achieving their goals.
Many Canadians have identified personal finance as one of their largest sources of stress. Feeling that your finances are out of control can have a significant detrimental impact on your well-being. The good news is that people who engage in comprehensive financial planning feel much more confident about their financial situation, as compared to those with no financial planning.
Do some research to maximize your familiarity with financial planning terms and strategies. While a good financial planner will explain things to you, understanding the basics will allow you to engage more with the process.
Financial planning is about putting the right strategies in place to meet your life goals. Take the time to reflect on what’s most important to you for both today and tomorrow.
There are a variety of different designations in the financial services industry, and some only require day or weekend courses to earn. Others, such as Certified Financial Planner (CFP®) certification, represent high standards of experience, competence and knowledge, as well as on-going adherence to standards of practice and a code of ethics.
It is crucial that you know the right questions to ask when you initially meet with a financial planner. Remember, a financial planner is working for you, so it is perfectly acceptable to ask them about their credentials and what services are offered. Make sure the person helping you has proven that they are capable, and is accountable to a professional body. Also, ask about compensation: some financial planners charge a fee, while others are compensated by commissions, salary, or a combination thereof. Providing a financial planner access to your financial information gives them a window into your personal life; as such, finding a knowledgeable, ethical planner to work with is a serious decision. For many people, their finances are their livelihood. Ensure that the person you choose to work with understands, appreciates, and is competent to handle this responsibility.