Personal
Financial
Management
Bringing It All Together
-Bhavesh Patel, CGA
(416) 522 - 3234
Personal Finance Workshops
A. Budgeting and Debt
Reduction
B. Saving and Investing
C. Personal Financial
Management
D. Ste...
Our mission today
• Financial planning
• Overcoming the fear factor!
• Building a solid foundation
• Where to go for more ...
People don’t plan to fail…..
they fail to plan!
• Only 28% of households have a
comprehensive financial plan
• Only 19% ex...
How do we create a
financial plan?
• Define financial
planning
• Structure of a sound
financial plan
• Commit to action
• ...
What is financial planning?
1. Where you are today?
• Examine your personal finances
2. Where you want to go?
• Define sho...
Your plan will move with you
through the various life stages
Life cycle planning periods
retirement
Pre-retirement
Peak
ac...
Key components of a plan
Speculation
Financial Goals &
Priorities
Protecting
Financial
Security
Key components of a plan
Speculation
FinancialGoals
&Priorities
Protecting
Financial
Security
Key components of a plan
Speculation
Financial Goals
& Priorities
Protecting
Financial
Security
Savings and
Investments for
Retirement Goals,
Education, etc.
Long Term Care to preserve
dignity and family ties at old
ag...
Life insurance
Financial protection for:
Your family and loved ones
• Can supplement lost
income
• Provide funding for chi...
Critical Illness Facts
73,000 died of
Heart Disease
and Stroke in
2003
159,900 new
cases of cancer
diagnosed and
72,700 de...
The need – advances in
medicine
We are more likely to survive critical illnesses:
• Today 59% of people diagnosed with can...
Critical Illness Insurance
Pay the bills and more!
• Provides you with options
• Allows you to focus on getting well
• Eli...
Wills and Power of Attorney
• A Will helps ensure your personal
wishes are followed. If you own a
personal asset or have c...
Truth about savings and debt
Trend #1: Less Saving
• Savings rates: 20.2% in the 1982 to 1.2% in 2005
• Half of all Canadi...
Key components of a plan
Speculation
Financial Goals
& Priorities
Protecting
Financial
Security
Wealth creation
• The Power of Time
• The Power of Compounding
• The Importance of Rate of Return
Rule of 72
• Dramatic effect of time, compounding and rate of return.
• Your money will approximately DOUBLE at a point in...
Who Has More at 65?
• Investor “A” invests
$1,000/year from age 40 to
50 and stops to let it grow
or
• Investor “B” invest...
Retirement savings
• 25% have died
• 19% have incomes less than $10,000
• 49% have incomes of $10,000 - $35,000
• 7% have ...
If you fail to plan…
• Inefficient use of resources
• Risk of not meeting financial objectives
• Unprepared for the storms...
Commit to action
Concrete steps for action
• Set goals – spiritual and
practical
• Assess current situation
• Develop acti...
Who can help?
“Plans fail for lack of counsel, but with
many advisors they succeed”
Want to go deeper?
To review or start your plan contact
Bhavesh Patel, CGA
Certified General Accountant
Financial Advisor
...
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Financial planning by bhavesh patel, cga

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People don't plan to fail...they fail to plan!

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Financial planning by bhavesh patel, cga

  1. 1. Personal Financial Management Bringing It All Together -Bhavesh Patel, CGA (416) 522 - 3234
  2. 2. Personal Finance Workshops A. Budgeting and Debt Reduction B. Saving and Investing C. Personal Financial Management D. Stewardship E. Charitable Giving
  3. 3. Our mission today • Financial planning • Overcoming the fear factor! • Building a solid foundation • Where to go for more help
  4. 4. People don’t plan to fail….. they fail to plan! • Only 28% of households have a comprehensive financial plan • Only 19% express an interest in having a financial plan • Don’t understand the value • Don’t know what a comprehensive plan is • Believe the cost of having such a plan developed by a financial professional is high
  5. 5. How do we create a financial plan? • Define financial planning • Structure of a sound financial plan • Commit to action • Who can help?
  6. 6. What is financial planning? 1. Where you are today? • Examine your personal finances 2. Where you want to go? • Define short and long-term goals 3. Creating the plan to get you from today into tomorrow • Action steps to reach those goals
  7. 7. Your plan will move with you through the various life stages Life cycle planning periods retirement Pre-retirement Peak accumulation mid career early career Life cycles Disposableincome
  8. 8. Key components of a plan Speculation Financial Goals & Priorities Protecting Financial Security
  9. 9. Key components of a plan Speculation FinancialGoals &Priorities Protecting Financial Security
  10. 10. Key components of a plan Speculation Financial Goals & Priorities Protecting Financial Security
  11. 11. Savings and Investments for Retirement Goals, Education, etc. Long Term Care to preserve dignity and family ties at old age (stream of income) Disability Insurance for income preservation while living (stream of income) Life Insurance for income and estate protection on death (lump-sum) Risk Management
  12. 12. Life insurance Financial protection for: Your family and loved ones • Can supplement lost income • Provide funding for child’s education • Debt relief – mortgage, credit cards • Money for funeral and final expenses and taxes
  13. 13. Critical Illness Facts 73,000 died of Heart Disease and Stroke in 2003 159,900 new cases of cancer diagnosed and 72,700 deaths in 2007 Over 70,000 heart attacks in Canada each year Statistics Canada, Canadian Cancer Society, Heart and Stroke Foundation
  14. 14. The need – advances in medicine We are more likely to survive critical illnesses: • Today 59% of people diagnosed with cancer will survive as compared to 1 in 3 in the 1960’s • 80% of heart attack victims survive when admitted to hospital • 75% of stroke victims will survive the initial event, but 60% will be left with a disability We are survivors! Sources: Statistics Canada; Canadian Cancer Society; Heart and Stroke Foundation of Canada
  15. 15. Critical Illness Insurance Pay the bills and more! • Provides you with options • Allows you to focus on getting well • Eliminates money worries • Return of premium option
  16. 16. Wills and Power of Attorney • A Will helps ensure your personal wishes are followed. If you own a personal asset or have children, you should have a Will. • A property power of attorney will make financial decisions on your behalf. • A healthcare power of attorney will take care of your healthcare needs.
  17. 17. Truth about savings and debt Trend #1: Less Saving • Savings rates: 20.2% in the 1982 to 1.2% in 2005 • Half of all Canadians have less than $2500 in savings Trend #2: More Debt • Canadians spend, on average 127% of their income every year • Money is the #1 cause of marital conflict Source: www.crowncanada.ca / Statistics Canada
  18. 18. Key components of a plan Speculation Financial Goals & Priorities Protecting Financial Security
  19. 19. Wealth creation • The Power of Time • The Power of Compounding • The Importance of Rate of Return
  20. 20. Rule of 72 • Dramatic effect of time, compounding and rate of return. • Your money will approximately DOUBLE at a point in time determined by dividing 72 by the percent interest you earn. Values are for illustrative purposes only and may be subject to applicable taxes. Time, Compounding and Return 7.2 9 12 18 36 0 10 20 30 40 Your Money Will Double In…Years 2% 4% 6% 8% 10% 72/%Interest
  21. 21. Who Has More at 65? • Investor “A” invests $1,000/year from age 40 to 50 and stops to let it grow or • Investor “B” invests $1,000/year from age 50 to 65? Putting money to work 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 Investor A Investor B Assumes 7% Annual Return Inside an RRSP Invested Grew To
  22. 22. Retirement savings • 25% have died • 19% have incomes less than $10,000 • 49% have incomes of $10,000 - $35,000 • 7% have incomes of over $35,000 Most people begin their career with the hope of a good retirement. However by age 65: 19% 25% 7% 49% Source – National Council of Welfare, Canada Customs and Revenue Agency, 2001
  23. 23. If you fail to plan… • Inefficient use of resources • Risk of not meeting financial objectives • Unprepared for the storms of life • Pay higher taxes than necessary • Delay retirement; live on less money • May be difficult fulfilling God’s purpose for your life
  24. 24. Commit to action Concrete steps for action • Set goals – spiritual and practical • Assess current situation • Develop action plans • Put your plan into action • Track your progress • Celebrate your successes
  25. 25. Who can help? “Plans fail for lack of counsel, but with many advisors they succeed”
  26. 26. Want to go deeper? To review or start your plan contact Bhavesh Patel, CGA Certified General Accountant Financial Advisor (416) 522 - 3234

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