Dear Nancy,
I keep reading and hearing about the importance of having a financial plan and wealth management. I don't consider myself wealthy by any means. I am saving a little bit each month but I don't have hundreds of thousands of dollars. Who exactly should be looking at this? Shelly
Dear Shelly,
The catch phrase, "Wealth Management" does come across as elitist but that is not at all the case. A financial plan is not important to have for only those that have "wealth," but actually more so for those that are trying to acquire it. Managing one's "wealth" covers many aspects of your finances. It encompasses your will and estate, health, life and disability insurance, savings and retirement planning to name the major components.
I find that going through the process and questions that go along with coming up with a financial plan is the most enlightening part. Rarely do people gather their financial information together to get an overall picture of their standing, goals and progress. It does require fact gathering and some soul searching.
Managing debt and accumulating savings are a very daunting task. Sometimes it is difficult to face. That is the situation where it is beneficial for someone with knowledge to help you devise a plan.
With the financial plan comes the investment or savings plan. That is where your future goals such as buying a house, saving for education or retirement come into play.
It is important that not only you have this laid out for you, but also for your investment adviser, if you use one.
Many times when I sit down and do a retirement plan for a client they are pleasantly surprised that their initial impression that retirement was a long ways away was the farthest from the truth. In some cases they have found out that they are in a position to retire immediately if it is their choosing. It relieves a great amount of stress and often gives them a new view on their job.
So with all that said, a financial plan or wealth management should be looked at for everyone no matter what stage of life or "wealth" they are at.
Nancy Woods, CIM, FCSI, is an associate portfolio manager and investment advisor with RBC Dominion Securities Inc. To ask her a question, send an e-mail to asknancy@rbc.com or visit her web site at nancywoods.com
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