It’s the tomorrow syndrome and many of us suffer from it. Blame it on our busy lives and the crises that crop up every day keeping us from getting through our carefully crafted ‘to do’ lists, meaning that sometimes the seemingly less important things get put off until tomorrow…. and tomorrow…. and tomorrow.

    Your Financial Plan is critical to your financial well-being. But it requires a check-up from time to time. This ensures that your objectives remain realistic and that you’re on your way to reaching your financial goals. It is said that money does not buy happiness, but it sure helps. Neither does financial health buy physical health, but it also helps. Many illnesses have been linked to the stress of money related issues.

    • Is your plan meeting your goals? You can’t get to where you’re going if you don’t know where you are. Take a good look at how your plan is working. If you’re not moving closer to your financial objectives, something is wrong. Either you’re overly ambitious, or you’re not sticking to your strategy. On the other hand, a review may reveal you are closer to your dreams than you thought.

    • Has your lifestyle changed? If you’ve experienced changes in the way you live, it might be time to adjust your plan. Lifestyle changes, like marriage, divorce, the birth of a child, illness, death or an inheritance can seriously alter your money strategy.

    • Does your budget need updating? Your spending and savings habits can change. If your salary has increased, you may have more opportunity to save and invest. Or you may be spending less than you thought, providing a chance to put more of your earnings toward your future. If things have been moving in the wrong direction, determine if you should change your habits or revise your budget.

    • Are you in control of your debt? Have you made headway in paying down debts such as your mortgage, personal loans or credit card balances? If not, plan to reduce debt as soon as possible, starting with the highest interest rate loans where the loan interest is not tax deductible. Restructuring your debt to try to reduce interest costs may be an option worth exploring.

    • Are your investments balanced, diversified and according to your risk tolerance and objectives? One way to control investment risk and get the most out of your portfolio diversification is to take advantage of a proper asset allocation strategy. Diversifying your investments through asset allocation can both improve returns and reduce risk. For example, when one investment or market is not performing well, others may have superior performance, and lift your overall long-term return. Without diversification, or with haphazard diversification, your risk exposure may rise to levels that make you feel uncomfortable.

    • Do you have appropriate insurance coverage for life’s emergencies? Life insurance proceeds can provide enough dollars when invested by your beneficiaries to replace the income you generated when you were alive, and help maintain your dependents’ lifestyles when you die. The insurance proceeds are generally tax-free and can be utilized to pay taxes that may arise on your death, leaving again more for your beneficiaries. What happens if one of those tomorrows brings with it an accident or sudden illness that keeps you from your job for weeks, months or even longer? Will you have the financial resources to see you through? Or will you and your family face financial disaster? Disability, critical illness or long-term care insurance may be the answer because expenses don’t stop when you are unable to work. You may feel you have sufficient coverage through your employer but may find, after a careful review, that it may need topping up with a personal plan. The low cost of group plans usually comes with weaknesses in contract wording and limitations that may cause these plans to fall short of the coverage you really need in order to provide adequate protection for you and your family.

    • Is your estate in order? In order to help protect the assets you accumulate and to ensure they are distributed as you wish in the event of your death, make sure your Will is up-to-date. It’s especially important that you review your Will and make any necessary changes upon marriage, divorce, the birth of a child, inheritances, other major lifestyle changes or significant changes in your financial picture. In addition, make sure you have granted a Power of Attorney and Personal Directive to someone you trust who can make financial and health care decisions on your behalf in case you become ill or incapacitated.

    • Are you up-to-date on your tax planning? Changing tax rules call for changing financial strategies. It’s best to examine your tax strategy early in the year so you can take full advantage of tax breaks available to you. Should your position be even slightly complex, a consultation with an advisor, accountant and lawyer can result in significant tax saving strategies. Tax considerations should not override a proper asset allocation strategy based on risk and time horizon. Investment returns are uncertain whereas it is a definite fact that the highest tax rate in Alberta is currently 39% for individuals. It is unlikely they will reduce to 10.2%. Sound tax saving strategies in combination with sound investment planning can stretch those hard earned dollars.

•PRESCRIPTION AND DOSE FOR A HEALTHY WALLET

    Selecting any type of financial advisor is a big decision, and this is especially true when selecting the individual who will assist in helping you manage your finances and help you achieve your life’s dreams. It is also true that it seems that anywhere one turns today there is always more information and advice available from the Internet, media, coffee shop next door, and other well, or not so well, intentioned people. You must be comfortable with your advisor and feel you can have confidence in their advice. And you must be able to sleep at night.

    An advisor can show you how projections based on assumptions may not be accurate to measure your financial picture and realistically revise your budget. There isn’t much point in formulating a plan if goals are unreasonable or impossible to reach. In addition, making a visit to your advisor as a part of your periodic check-up should reveal any problems or missed opportunities in your financial life, and allow you to make adjustments. You’ll also be well on your way to realizing your dreams and life goals.

    All roads lead somewhere, but that may not be where you wish to go. An advisor who lives and breathes financial planning every day can make a significant difference to your financial health. When you go somewhere you have never been before, don’t you get a roadmap to ensure you get to your preferred destination? Get some help to map out a course for your journey in maintaining financial health, security, prosperity and peace of mind. You only get to take this journey once. Why take the chance that you may not do it right?

    This column, written by Pearl Gittins of Investors Group Financial Services Inc., is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide legal advice. For more information on this topic or on any other investment or financial matters, please contact Pearl at 403.284.0494 or email her at pearl.gittins@investorsgroup.com Visit www.risingwomen.com/walletwatch or www.investorsgroup.com/consult/pearl.gittins Insurance products and services distributed through I.G. Insurance Services Inc. Insurance License sponsored by The Great-West Life Assurance Company.

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