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Building a financial plan

DFSIN - Define your needs and objectives first, then fin solutions

Your financial needs change as your life evolves. What is important when building a financial plan is to fully understand the risks related to the market, inflation, your health and life expectancy, and to take the appropriate steps to preserve your capital and income.

Here are some of the things you should consider:

  • An investment portfolio;

  • Savings instruments;

  • Insurance (life, general, disability, critical illness, health care), a will and a mandate in case of inability;

  • Tax shelters;

  • Mortgage and other loans.

How to build a financial plan

An integrated financial plan helps you accumulate, preserve and transfer wealth, which consists of all your assets that have economic value. The plan is developed in cooperation with a financial services professional, whose role is to initiate the process and accompany you through it, one step at a time.

Step 1 – Needs analysis

It all begins with a financial needs analysis (FNA). This involves gathering all the information and data you need to draw up a personal balance sheet of your assets and liabilities: income, loans, credit cards, mortgage, etc. This is also the time to specify your financial concerns and objectives.

Step 2 – Your objectives

Define or review your objectives (short-, medium- and long-term) with regards to the following:

  • Personal and family situation;

  • Financial situation;

  • Tax situation;

  • Plans for retirement;

  • Insurance coverage (life, healthand estate planning.

Step 3 – Analysis of your financial situation

Determine whether your current financial situation will allow you to achieve the objectives defined in Step 2. This is the stage when you should complete your estate plan (included in your FNA), specifying the strategies for achieving your objectives.

Step 4 – Solutions

Determine the solutions for achieving the objectives set in Step 2. To help you do this, consult a financial services professional who will work, if necessary, with experts in each of the related fields (e.g. notaries, accountants and lawyers), and coordinate the group effort that will result in your personal financial plan.