How do you know if your dreams are attainable and what they will
cost you? What investments should you put into your RRSP and how
much should you put outside of an RRSP? Are your financial records
up to date? These are not simple questions, especially when they
usually involve so many factors. How can you plan properly if you
don't take everything into consideration? And how can you figure
out where you are and where you're going?
A financial planner can help you get a clearer picture. It's
their job to assess your financial situation objectively!
Who can call themself a financial planner?
In Quebec, any individual claiming to be a
financial planner (or F.Pl.) must:
-
Have an IQPF diploma and
-
Have the appropriate certificate issued
by the
Autorité des marchés financiers or be
authorized to wear the title by a professional order who has
an agreement with the Autorité des marchés financiers (the Ordre
des comptables professionnels agréés du Québec (CPA) and the
professional order of chartered administrators).
Make sure your financial planner meets these criteria!
What will your financial planner do?
Before presenting you with a plan of action, your financial
planner will meet you to explain their financial planning approach
and their role in the process, determine their mandate with you and
gather the necessary data and personal information. He or she will
help you determine your goals.
With this information, your financial planner will then be able
to analyse your current situation and formulate strategies and
recommendations. He or she will present you with a written personal
financial planning report. Optimal financial planning
integrates knowledge from all seven financial planning areas:
estates, finance, insurance and risk management, investment,
legal aspects, retirement and taxation.
You and your financial planner can then decide together which of
the suggested strategies you will carry out and determine the
method and frequency of your follow up.
Don't forget that personal financial planning requires a
professional service contract between you and your financial
planner. If your planner only deals with certain aspects of your
financial situation, this is considered a partial financial
planning mandate. Athough this is sometimes done to
fulfil a specific or immediate need, ideally a complete analysis
should be undertaken.