Steps to Financial Freedom

Information for individuals looking to improve their financial situation.

(Source: MoneySense Magazine - Sep/Oct 2011)

Set Your Goals
Figure Out Where You Are
Review Your Insurance
Review Your Investments
Review Your Taxes
Plan Your Estate

Set Your Goals

Goals could include:

Paying down mortgage or other debt (by age ??)
Gaining control over my spending
Saving for children’s education
Understanding my investments
Strategies for reducing income taxes
Saving for retirement (age ??)
Maintaining my standard of living in retirement
Developing income withdrawal strategies for/in retirement
Providing a comfortable lifestyle for my family in the event of my death
Creating/preserving an estate for my heirs
Leaving a legacy, philanthropy

Figure Out Where You Are

Summarize your assets and liabilities
Net Worth Worksheet (word) ......Net Worth Worksheet (pdf)

Summarize your spending
Spending Worksheet (word) ......Spending Worksheet (pdf)

Review Your Insurance

Insurance is necessary to protect you and your family in the event of health problems or death.

Life Insurance provides a way to replace your income, so that your family can maintain their lifestyle after your death. It can also provide funding to pay off loans or to pay any final income tax owing.

Disability Insurance provides a monthly income in the event you are unable to work due to sickness.The Canada Pension Plan includes a disability plan.

Review Your Investments

Stocks vs fixed income
Portfolio ROI target
Saving vs paying off debts

Review Your Taxes

Are you taking advantage of:

RESPs
RRSPs
TFSA
Dividends
Capital Gains

Plan Your Estate

Estates

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