Tag Archives: financial plan

Top 5 money challenges small business owners face

Portrait Of Couple Running Coffee Shop Behind Counter

Most people don’t start a business for the sole purpose of making money. There are much easier ways to make money than to build a business. At the risk of sounding too mystical; it’s more often a soul purpose that creates the energy behind entrepreneurial success. People who start businesses are passionate about what they do. But here’s the thing, people who stay in business, the people who thrive and grow, are also practical about what they do. They know that even if they don’t feel comfortable in the world of profits and losses, debts, taxes, budgets and retirement; learning how to take control of their money and having a financial plan in place will make them more successful and allow them to continue doing what they love.

Here are the top five money challenges you’ll face as a small business owner: Continue reading →

1 Reply

The Real Secret to Making Smart Investment Decisions

By Tom Feigs, CFP^®, CET

As a fee-for-service financial planner it’s not unusual to be approached for a “quick” portfolio review. “Can you just look over my investments?” or “Can you tell me if I’m saving enough?” As much as it’s in my nature to want to help people, it would be unethical and unprofessional to advise someone without a comprehensive look at their finances and a clear understanding of their goals.

The idea that investments are priority one is a by-product of how traditional financial advisors are paid – commission on investment sales. In fact, where and how to allocate your funds are decisions that should only be made after reviewing your personal situation and needs.

Imagine your financial journey. The destination is your retirement. Your personal framework (income, obligations, health, family commitments, risk tolerance, age) represents your vehicle and the road map is your various goals. Your investments and savings are the fuel to get your vehicle to your destination. You wouldn’t be looking for fuel before having a car and directions.

I work with individuals and couples that earn upwards of $150,000 a year, and because of the possibilities their income allows, they will all have their own set of priorities and cash flow needs for retirement. They also have various personal situations (for example, some people may have family in distant locations, others have no children, others have health concerns and still others have various complexities in their personal and business lives.) All this information is vital to the financial plan we create together. Continue reading →

2 Replies

Credit card rewards: perk or pitfall?

By Karen Richardson, FPSC Level 1^TM Certificant in Financial Planning

Photograph of a stack of credit cards

Credit cards, when used carefully, can play a positive role in your financial life. Using credit wisely is critical to building a solid credit history. If you need a loan or a mortgage, or you want to renegotiate a loan, a good credit rating is important and will help you negotiate the best terms. But credits cards used carelessly can send your life and finances into a tailspin.

But we all know this, right? So how do smart people with six figure incomes end up with more credit debt than they intended? Often it’s the seductive lure of credit card reward programs.

How many people do you know who put almost everything on their credit card so they can earn reward points? Maybe you do it too. Well let’s take a look at the perks and pitfalls of a rewards plan spending habit.

Perks

1. If you are using a card with rewards that are of value to you, and you are paying off your balance each month, you may be benefitting from the program.

Well that was a short list.

Pitfalls

Unfortunately this list isn’t as short. Continue reading →

UNSTUCK: How to Get Out of Your Money Rut and Start Living the Life You Want

A REAL NEW YEAR’S GIFT

At this time of year, no matter how much we try not to….it’s hard not to get caught up in holiday madness.

December is a time where merchants and retailers are vying for your nickel. January is a time where you get that sinking feeling about where all your nickels went!

And that’s the kind of feeling that Karin Mizgala and Sheila Walkington want to help you address. They want to help you get a grip on managing those precious funds to help you start the New Year off in the black, not the red.

The founders of Money Coaches Canada and the Women’s Financial Learning Centre are proud to offer UNSTUCK – How to Get out of Your Money Rut and Start Living the Life you Want, a book written by Canadians, for Canadians that will show you how to live a sane financial life.

There is no better time than now to order a copy of this new book. It will arrive just in time for the New Year and help you begin the year with a fresh outlook on your financial life and stick to some of those resolutions!

Start the New Year off right with this proven step-by-step money management guide that will show you how to stop living paycheque to paycheque and give you the tools and insight to the emotional and psychological challenges of today’s money culture.

2013 can be the year that you, your family, friends, business colleagues, employees, students, entrepreneurs, and everyone you know can stop the financial insanity and make the year the most profitable one yet – both in your life and in your bank account!

Put your hard earned money to good use by ordering a copy of UNSTUCK – How to Get out of Your Money Rut and Start Living the Life you Want today!

Stop the insanity and check out UNSTUCK today on Amazon.com http://amzn.to/XLNhlf

What makes this book different? Here’s what:

“Kudos to Money Coaches Canada! This book reveals your practical yet caring expertise. You showed me that financial calm is possible for me and for so many other Canadians who have fallen between the financial planning cracks. Unstuck will change lives. It will change the lives of our kids.” Patti-Jo Wiese, Vancouver, B.C.

The ABC’s of Financial Planning

By Karin Mizgala

A financial plan is a roadmap
to help you define your financial life goals and to give you the tools, information and structure you need to organize your finances to live the life you want.

How do I balance today’s goals with a secure financial future?
Do I have enough money to retire comfortably?
Which investments or financial products are suited to my needs?
What do I need to know to make the best financial decisions?

A financial plan will help you answer these questions in an organized, structured manner. By creating a financial plan, you will know what steps you need to take to get you from where you are now to where you want to be with more confidence and greater ease.

A comprehensive written financial plan generally includes the following:

A clarification of your short, medium and long term goals
A statement of Net Worth
An analysis of your cash inflows and outflows (budget and debt strategies)
A review of your current investments and investment strategy advice
Retirement/Financial Independence projections including pension decisions
A review of your insurance needs, group benefits and estate plan with recommendations
The action steps needed to implement your plan and stay on track

Do I need a financial plan?

If you are feeling anxious about your finances, a well-developed financial plan can give you the comfort, confidence and direction to ensure that you are on track to meeting your life goals and what steps to take if you’re not there yet.

Or if you are experiencing a major life change or transition such as retirement, marriage, divorce or job loss, the process of creating a financial plan will help you systematically consider and address the financial complexities these life changes bring.

Clients who have a financial plan report that they have a better handle on their cash flow, have a plan to pay down debt and are more prepared for emergencies. They have a better understanding of their investments, they know what to do to retire comfortably and have more peace of mind.

A Financial Planner typically provides a written financial plan which outlines your goals, problems and considerations, recommendations and an action plan. Although the planning document is a valuable tool, the real benefit is in the planning process itself. A trusted advisor who understands your goals, your relationship with money and the financial numbers can provide solutions to create more joy and ease in your financial life.

Here’s how one of our recent clients described the benefits of the financial planning process:

“I felt scattered and not really sure where to start or what specific areas to look at. Now I feel like I have been given a direction and a map to follow. I could see exactly what I needed to do, and I felt more confident following through with these steps knowing that there was someone I could ask if I ran into any problems. I also have tools that I can use to check up on my own financial health in the future.”

What is the difference between a Financial Planner and an Investment Advisor?

A Financial Planner uses the financial planning process to help you manage all aspects of your personal finances more successfully. All of your financial needs will be considered including: budgeting and savings, debt management, tax planning, investments, insurance, retirement and estate planning. The ideal Financial Planner will also place a strong emphasis on personal financial education so that you are better informed, more confident and in control of your financial affairs.

An Investment Advisor focuses primarily on recommending, implementing and managing your investments. Some Financial Planners also provide investment management services.

Financial planners generally fall into 2 categories:

1. Financial Planners licensed to sell investments or insurance
Typically this type of financial planner will provide you with a financial plan for free if you purchase (or plan to purchase) investments or insurance with them. Others referred to as “fee-based” financial planners may charge a fee for the plan then give you the option to invest or buy insurance from them.

The model of financial planners licensed to sell financial products is the most common one with the advantage of being a one-stop-shop for clients looking for financial planning and investment management. However, there is also a potential for conflict of interest in a model that blends planning advice and financial products. Ask for full disclosure on what services you can expect and how the planner will be compensated.

2. Financial Planners who don’t sell financial products
“Fee-only” Financial Planners or Money Coaches charge clients a fee either hourly or by project. Fees typically range between $1,500-$4,000 depending on the complexity of planning needs.

Some “fee-only” Money Coaches provide comprehensive financial plans and others will help you address specific issues such as getting out of debt or saving for the things you want.

Note: The terminology in the financial advice industry is not standardized so be sure to ask questions and to clarify what you can expect from your advisor no matter what model of financial advice works best for you.

How do I find a Financial Planner?

Finding the right financial planner usually takes some homework and investigation. You can start by asking friends or family for a referral and you are wise to interview more than one Financial Planner. You can get tips on questions to ask and how to find a planner on the Financial Planning Standards Counsel website. The personal finance magazine MoneySense also maintains a data base of “fee-only” financial planners.

The clearer you are on what you are looking for in terms of guidance and what you expect from the relationship, the better you will be able to find a Financial Planner that works for you. Do your homework, take advantage of complimentary consultations, ask questions and trust your instincts.

If you would like some support and guidance in creating your financial plan, check out our upcoming weekend workshop Smart Money Essentials offered through the Women’s Financial Learning Centre or book a complimentary consultation with one of our fee-only money coaches.

1 Reply

Are you on Track with your Money?

Now is a good time to assess your financial health and knowledge. These days there’s a chill in the air and it’s not just the wintry weather!

Across Europe it has been the chill of economic uncertainty as Europe wavers on the brink of a debt crisis. Here at home, the Occupy protesters are a reminder of discontent that has been brewing over corporate bailouts and executives payouts.

With all this turmoil people are probably wondering about their future. They’re asking themselves, do I have a sound financial plan? Is my financial house in order? Do I even know what I’m doing?

We’re happy to tell you, in our experience as money coaches, we have found people usually know more than they think they do. So while it’s no time to throw caution to the winds, relax a little — you probably know more than you think.

Here’s a five-point check list for the basics:

1) I have completed a net worth statement: I have added up the value of everything I own (my assets) and what I owe (liabilities) to come up with my net worth.

2) I manage my cash flow, tracking money that comes in and all my spending.

3) I have a spending and savings plan so I know money is there to pay the bills when they come due and I can make choices about whether it’s more important to save for a designer dress or if I’d rather put that money towards a ski trip.

4) I have built up a good credit history and I pay my credit card off in full every month so I am not paying high interest rates to fund buying that is beyond my means.

5) I have an investment and retirement plan which I review regularly and I seek professional advice because it’s worse to remain in ignorance than to worry about asking questions for fear of looking dumb.

If you have answered yes to most of the questions, you’re on your way.

You have a handle on your finances and are aware of the some of the key issues that can make a difference between financial security and not sleeping at night because you’re worried about paying the bills.

If you didn’t answer yes to all, don’t be too hard on yourself, you’re not alone – but it is time to take control.

Many of the respondents in the Desjardins personal finance index survey who were aged 45 to 64 had no retirement savings plan. And 40 per cent in that age group who were still working had no idea how much they’d need to live on when they retired.

As money coaches, we can help you discover those answers and take responsibility for your own finances. We’re not here to judge but to empower you with the knowledge to take control of your financial future.

Call us and take a step towards securing your financial future.

Women's Financial Learning Centre

Dream. Learn. Build. Grow.