Whether one seeks retirement or financial independence by a certain age, a financial planner can help to create the best path to take.
If you've used GPS, you've probably driven down roads
you wouldn't have chosen and through towns you've never
heard of. And as long as you didn't end up in an unmarked lake,
you might even have thought, "Wow, I never would have gone
this way on my own, but I'm glad I did." Amardeep Sidhu
sees similarities between
GPS and the work he does as a financial planner for Lawyers
Financial, a not-for-profit corporation that provides Canada's
legal community with high-quality insurance and investment
solutions.
"Most people have a destination in mind when you talk to
them about money," Sidhu says. "It may be retirement or
financial independence by a certain age or maybe they have very
specific dreams about how much money they want to have. In all of
these cases, a financial planner can help to create the best path
to take."
In time, the value of financial advice becomes clear when you reach
your destination with greater wealth and security because you went
down the right roads and stuck to a plan that you might not have
created on your own.
Four steps to planning your route
Planning a trip isn't as complicated as managing your investments - and the stakes aren't nearly as high. That's why Sidhu and his team break the process into four parts:
1. Cash management
Getting a handle on where your money goes and finding ways to
save more
of it is the first step to increasing wealth. "Savings are the
building blocks. The more money you have to invest, the faster you
can reach your goals," Sidhu says.
2. Asset protection
It's good to accumulate a variety of assets as you increase your wealth. It's just as important to protect them with the right combination of insurance. Without protection, you could find yourself back at the beginning of your trip and having to start over again.
3. Retirement planning
When retirement is the destination, you want to arrive with a
reliable source of
income for life. An advisor can help you create a plan that
provides you with steady cash flow while minimizing taxes and
investment risk. Sidhu encourages clients to see retirement as the
start of a new trip - one that also requires a detailed plan.
4. Estate planning
Your lifetime of hard work can pave the way for others. It's never too early to think about how your estate could be used to give your loved ones a leg up and ease their financial burdens.
Navigating your investments is never easy. But with the help of a qualified financial advisor, you can chart the path that's right for you.
Start your financial plan
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.