As another year comes to an end, we all begin to think about our resolutions for the New Year. While these resolutions often focus on improvements to our physical health; this is also a time to think about enhancements to our financial health.
By setting out realistic and obtainable financial goals, establishing an action plan and monitoring progress, you can make significant strides in your financial security while also achieving peace of mind.
Typical financial well-being goals include saving more, spending less and reducing debt. While these are all important goals, I`d suggest some additional recommendations to improve your family finances.
Put a financial plan in place: All too often we hear that putting a financial plan in place is “on my list of things to do”. The earlier a comprehensive financial plan is put in place, the more effective it can be.
Be an active participant in the management your wealth: Whether you work with a financial advisor or choose to manage your investments on your own, it is imperative that all men and women are active participants in the management of their wealth and have a full understanding of their financial circumstances.
Maximize your registered plan contributions when possible: Both RRSPs and TFSAs provide Canadians with registered investment plans to grow our capital on a tax-free basis. The compounding effect of this tax-free growth can be substantial.
Talk to your family about money and family values: Families are failing to sustain wealth across generations. A sound inter-generational wealth plan includes passing on family values relative to wealth, open communication and enhancing the financial knowledge of future generations.
Assess your insurance coverage: Any time we experience significant life changes, insurance should be reviewed to ensure the required protection is in place. If 2015 brought any transitional events such as marriage, children, divorce or an inheritance, it is important to ensure that you have the appropriate insurance in place and beneficiaries are updated.
Financial security plays a key role in our overall health and happiness. We each have our own unique financial goals and objectives. As you begin to map out your New Year resolutions for the year ahead, consider making a commitment to yourself that 2016 will be a year of prioritizing you.
Darcie Crowe is a Sr. Investment Advisor and Portfolio Manager at Canaccord Genuity Wealth Management.