In a perfect world, everyone would have enough money to retire comfortably and live the life they want. In reality, many variables influence a person’s financial future. Developing a financial plan is one way to help control these variables. There are five key financial products you can add to this plan to help build a strong foundation.
“A health plan if you get sick. A disability plan if you cannot work. A life insurance plan if you have debts or dependents. An RRSP and a TFSA for your savings,” says Darren Devine*, Sun Life Financial Advisor and President of Devine and Associates Financial Services Inc. “These five things sum up the world of financial planning for most people in the market.
Here are some details about each product that Devine – a CERTIFIED FINANACIAL PLANNER® professional – suggests:
- Health insurance. It’s about protecting what you have. It will give you access to basic medical services if you are injured or ill. It’s supposed to be a short-term solution.
- Disability insurance. What happens if an illness or accident prevents you from working and earning an income? A disability plan can help protect you and your family in these events.
- Life insurance. Regardless of the type of policy, you’ll have an extra layer of security to cover all debts. It can also offer financial assistance to dependents if the unexpected occurs.
- An RRSP. There are different types of Registered Retirement Savings Plans (RRSPs), each with several advantages. These include tax-deductible contributions, flexible contribution schedules, and investment returns that accrue tax-free within the plan.
- A TFSA. A Tax-Free Savings Account (TFSA) is a smart way to save without paying tax on investment growth. You can use it to pay for home repairs, weddings or other expenses instead of dipping into savings which may have tax implications.
Devine says incorporating these five products into your financial plan is a good first step. But there is another priority that is essential to the success of such a plan.
“The first thing everyone should start with is a basic budget,” he says. “The question to ask is ‘do we have more money coming in through the front door than out the back?’ A healthy budget is simply about spending less than you earn. »
To envision your financial future or start building your plan, contact Devine & Associates Financial Services Inc. at 519-780-1730.
*Mutual funds distributed by Sun Life Financial Investments (Canada) Inc.
Sun Life Assurance Company of Canada is a member of the Sun Life group of companies.