A Diagnosis of your Financial Situation

I have created a series of questions that will allow you to identify any changes that need to be made in order to attain your financial objectives.

Section 1: The choice of professionals that surround you

• Does your investment advisor contact you regularly (at least twice a year)?
• Do you have an investment policy statement defining your investment objectives, how your assets will be diversified as well as the expected return of your portfolio?
• Do your advisor and accountant communicate in order to find ways to minimize your taxes and maximise the value of your assets?
• In order to maximize your wealth, do you rely on a simple financial products salesman?
• Is your advisor connected to any products of the company for which he works?
• Can you explain the difference between a banker, a financial planner and an investment advisor?
• Have you verified if the person that takes care of your finances holds a title that is recognized by the Autorité des Marchés Financiers (AMF)?
• Do you have an advisor that acts slightly like your family doctor, one who takes into consideration your entire financial situation?
• Did your investment advisor divulge his method of payment?

Section 2: Your investments

• Are your investments too risky for you?
• Do you have investments in numerous financial institutions and do you have a global strategy for your investments?
• Do you know the returns on your investments on a 1 year, 3 year, 5 year and 10 year basis?
• How do you measure the risk of your portfolio?
• Do you know the potential long-term return of your investments?
• Do you pay too much for the services that are rendered to you?
• How is your portfolio rebalanced and how often?
• Are you familiar with the principles of behavioural finance and the mistakes investors commonly make?
• When was your last portfolio evaluation?
• Is the concept of financial planning complicated for you?

Section 3: Better plan for your retirement

• Do you have a detailed & written retirement plan?
• Are you confident in your long term financial objectives?
• Have you discussed your financial objectives with your investment advisors?
• Are you aware of the new Tax-Free Savings Account (TSFA) account for 2008?
• Have you been explained how a spousal RRSP works & the contribution limits associated with this registered plan?
• What are the principal factors that have an impact on your portfolio?
• What might disrupt your investment plan?
• Have you examined your insurance needs?What is the maximum duration of a registered education savings plan?

Section 4: At retirement

• Are you familiar with the rules applicable to income splitting at retirement?
• What are your options at the maturity of your RRSP?
• What are the principal factors that might affect your portfolio?
• How do we calculate the minimum payment that must be withdrawn you’re your RRIF?
• Do you receive stable and predictable revenues from your portfolio?
• Do you have enough money to have a comfortable lifestyle throughout your life?
• Do you know how to recuperate a greater amount from your « Old Age Security” (OAS) »?

Section 5: Minimizing your income taxes

• What are the advantages and risks associated with tax shelters such as labour-sponsored funds?
• Are you familiar with the rules applicable to charity donations?
• If you hold investments outside of your RRSP or RRIF, are you aware of the investments that can minimize the taxes on your investment income?
• Are you aware of the use of insurance as a tool in fiscal planning?
  

Section 6: Estate and protection of your wealth

• At what stage are you in building your wealth: compensate for shortcomings or managing excess?
• What is most important to you when we speak of money?
• Have you listed your assets?
• Are you comfortable with your investment management strategy?
• Do you have a notarial will and a mandate in case of incapacity?
• Are your documents scattered with various professionals?
• Have you informed a third party of your plans?
• Have you informed your team of financial specialists?

Have any of the above points caught your attention? If so, I invite you to contact me and it will be my pleasure to help you attain the correct answers for your particular financial situation.

My priorities are, and always will be, to provide clear and judicious advice to help you make informed decisions and therefore achieve your financial objectives with confidence.