The document discusses the importance of personal financial planning and outlines key components of a comprehensive financial plan, including defining goals, risk management through insurance, savings and investment strategies, and estate planning. It emphasizes taking action to develop a plan with the help of financial advisors in order to avoid failing to achieve financial objectives and prepare for life's uncertainties. Committing to a financial plan is presented as crucial for achieving both practical and spiritual goals.

1. Personal
Financial
Management
Bringing It All Together
-Bhavesh Patel, CGA
(416) 522 - 3234

2. Personal Finance Workshops
A. Budgeting and Debt
Reduction
B. Saving and Investing
C. Personal Financial
Management
D. Stewardship
E. Charitable Giving

3. Our mission today
• Financial planning
• Overcoming the fear factor!
• Building a solid foundation
• Where to go for more help

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. How do we create a
financial plan?
• Define financial
planning
• Structure of a sound
financial plan
• Commit to action
• Who can help?

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. 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. Key components of a plan
Speculation
Financial Goals &
Priorities
Protecting
Financial
Security

9. Key components of a plan
Speculation
FinancialGoals
&Priorities
Protecting
Financial
Security

10. Key components of a plan
Speculation
Financial Goals
& Priorities
Protecting
Financial
Security

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. 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. 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. 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. 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. 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. 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. Key components of a plan
Speculation
Financial Goals
& Priorities
Protecting
Financial
Security

19. Wealth creation
• The Power of Time
• The Power of Compounding
• The Importance of Rate of Return

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. 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. 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. 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. 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. Who can help?
“Plans fail for lack of counsel, but with
many advisors they succeed”

26. Want to go deeper?
To review or start your plan contact
Bhavesh Patel, CGA
Certified General Accountant
Financial Advisor
(416) 522 - 3234