Financial planning is a dynamic process that changes throughout your lifetime. In the financial life cycle, the first stage is the Accumulation Phase. We like to call this “Growing Your Wealth”. This phase is often associated with realizing lifestyle goals such as buying your first home, saving for your children’s education and saving for retirement.
First, we work to create an investment strategy by outlining your objectives, including your return requirements and your risk tolerance. Then, we diversify your portfolio based on your financial goals, time horizon and tolerance for risk. Finally, we implement the strategy by selecting the proper investments.
During the course of our planning, we strive to minimize your taxes, to increase your current and future cash flows, and if required, we also work with your accountant to co-ordinate your overall tax strategy.
There are several ways to organize your debts so you can reduce interest payments, pay down your debts faster and better manage your cash flow.
One of your greatest financial risks is that your income will cease before you have accumulated enough capital to become financially independent. Fortunately, we can employ a number of risk management strategies to provide income for an unplanned event such as unemployment, premature death, prolonged disability, critical illness or the need for long term healthcare.
Even in the accumulation phase, it is important to establish an estate plan. This involves creating a will and naming an executor, beneficiaries, a trustee and a legal guardian for your children. Insurance will provide income protection for your family in the event of an illness or untimely death. You can also relieve the burden from your family by minimizing taxes and probate fees. Finally, you can create a trust or donor-advised account to ensure that your charitable giving continues after death.