Where do I begin?
In the beginning you talk, we listen! This is the most powerful part of the planning process as this is when we hear about your fears, your needs, your goals and your dreams. This process allows us to get an understanding of your current financial picture so we can begin to create your plan wrapped around you. These first appointments also give us a chance to see if our philosophy’s are in alignment with each other.
What type of advice are people looking for when they come to Hadden & Associates?
Clients come to us for many different reasons…they want to retire but don’t know where to start. They have a need for life insurance or a need to protect themselves in the event of a disability or critical illness or they have just had a major life event and are looking for some advice.
When can you retire? Can you continue to live your lifestyle today if you retire? How much will you need to retire?
We complete a very detailed Personal Financial Review which includes the following: Net Worth Statement, Current Expense Budget and your personal Goals & Concerns for your financial picture. Once we have reviewed your Goals for Retirement we will then complete a future Retirement Budget and build a plan wrapped around achieving those goals.
You’re overwhelmed, where do you go to find the right information to make an informed decision?
Everyone will have a different opinion as to what is the right path for you. The key is to find the advice that fits with your risk tolerance and resonates with your goals. Your life is unique to you and your financial plan should be the same.
How do I get through retirement but still leave an inheritance for my family?
This depends on each client’s unique situation. Our first goal is to make sure that you do not outlive your Retirement Savings and then we can start integrating legacy planning for your family.
Is it more beneficial for you to pay down your mortgage or save for your retirement?
We will first want to study what is currently happening in the economy. When you have a low interest rate and mortgage rate environment there can be more beneficial ways to invest your money than paying down your mortgage. As interest rates rise and mortgage rates rise than it is important to re-evaluate your plan to ensure it is still working in your best interest. Again, it comes down to each individual’s circumstance and is definitely part of the entire planning process.
How do I know which type of insurance is right for me?
We will go through a very thorough review to determine if you have a temporary need for insurance or a more permanent need. We also take into consideration which type of insurance will provide you with the coverage you require while keeping the premium within your budget.
How can I plan for tomorrow when I can hardly pay for today?
Create a budget and determine what you actually spend each month. There are fixed expenses like rent, loan repayments, and utility bills every month which are a constant. The variable items such as food, clothing and entertainment are usually the expenses that take us off track. I will often recommend implementing the envelope method -using cash only to pay for the variable part of our expenses to stay on budget and this can be very effective.
What tax savings strategies are available to me?
There are many different tax savings strategies that can help your investments grow and reduce the amount of taxes you pay. We find it effective to also work with your accountant to ensure you are receiving the maximum tax savings each year. Below are a few options that are available to you:
- Tax Free Savings Accounts-you can purchase up to $5500.00 each year which will grow 100% tax free.
- Registered Savings Plans -You can also purchase RRSP’s each year and the amount will be determined by your level of income and your allowable contribution room. RRSP’s will grow tax deferred until you begin to draw them down at some point in the future.
- Universal Life Insurance policy– Some will use this as a way to supplement their retirement income. A portion of the monies that you deposit into this policy will grow 100% tax free. You will also have the ability to leave this money as a legacy for your family. Each individual plan is unique.