Planning Road Map
Steps to Building a Personal Financial Plan
6 steps are designed to help you get started on the road to financial
security. By following the six steps, your journey will take you from
where you are now to where you want to be for the future.
goals and objectives is the first step of any financial
planning process - if you do not know where you are going, how can you
know when you get there, or even decide which route to take? Setting
goals and objectives is the foundation of any sound financial plan.
matter where you are heading, you need to assess where you are now,
and what you already have in place for the journey. Data
gathering will ensure that your personal documents are
up-to-date and that you know your current financial situation.
in a general direction won't guarantee success in reaching your final
destination. Before heading out on your journey, do your analysis
and find solutions. This strategy will assist you in reaching
your stated goals and will provide you with a roadmap to help you
achieve these goals.
financial plan should confirm that your goals are achievable, and
will help define what you need to do to ensure that you reach these
financial plan is only helpful if the recommendations are put into
strategies will assure you reach your destination.
and annual reviews are critical to ensuring you maintain a
clear focus in order to succeed.
Setting Goals and Objectives
some thought to your financial goals. Some may be short-term in nature,
others long-term. Assign each one a time frame and put them in order of
importance to you. These goals are the building blocks to any sound
financial plan. Our Getting
Started section can assist you in identifying goals and establishing
time frames. Your
Savings Tool will determine the savings required to meet your
Your Financial Documents. Assess your current financial situation by
completing a Net
Worth Statement and a Cash
Analysis And Solutions
on the goals that you established in Step 1, you will need to perform some
further analysis to define a roadmap to help you achieve your goals. This
may include analyzing your retirement, education, debt or insurance needs.
most Canadians, Retirement
Planning is a major goal that requires considerable financial
commitment. By completing the Retirement
Contribution Calculator we can show you where you are today and how
much you need to save to meet your retirement goals.
the costs of a typical four-year Canadian university undergraduate degree
program currently estimated to be about $40,000 including room and board,
and that figure rising, most parents consider Education
Planning an important long-term financial goal, and a regular
investment plan is an important part of this strategy. Our Education
Savings Tool is designed to assist you in determining how much you
need to save today in order to meet future education costs.
you may not wish to drastically alter your lifestyle, a budget is
important for planning purposes and to determine the availability of funds
to set aside for savings. Debt
Management is the ability to handle your current debt and whether one
can assume further debt. Since most of us incur debt at some point in our
lives, effective debt management is critical to a sound financial plan.
Debt reduction often ranks as a primary financial goal, especially if it
includes paying down a mortgage. The first step is to determine how much
you currently owe using our Total
Debt Worksheet. The second step will determine your Total
Debt Service Ratio (TDS), which Financial Institutions use to measure
your current debt situation in order to assess and approve your credit and
can be unpredictable. Whatever your age and personal situation, make sure
you have a plan in place to provide for your survivors. Visit TD's Life
Insurance Centre to assist you with ensuring that your family is
adequately prepared in the event of your death.
goal, regardless of the amount, can best be served by applying a
systematic approach to savings. Consider investing regular amounts to your
plan during the year as opposed to attempting to come up with large
amounts when it is required. Not only do you avoid the rush and pressure,
but you take advantage of dollar-cost averaging. TD's
Pre-Authorized Purchase Plan Tool will show you how to implement this
important strategy for any of your goals.
that you have established goals and objectives, you will want to begin by
implementing the recommendations that will ensure that you reach these
the preparatory work of analyzing, determining and calculating is
finished, the most important step is implementing the recommendations
to ensure your goals are reached. TD
Waterhouse Financial Planning and the TD
Mutual Fund Centre are designed to assist you in establishing a
well-diversified portfolio that will help you meet your goals by spreading
risk, reducing volatility and enhancing the potential for solid long-term
returns. No matter what the goal, a well-balanced portfolio, based on your
individual investor profile is a requirement of any financial plan. Your
financial planner may assist you in either implementing the
recommendations or in coordinating with other professionals.
Follow-up and Periodic Reviews
follow-up and annual reviews by both yourself and your financial planner
are critical to ensuring your success. Your financial situation should be
reassessed at least once a year to account for any changes in your life
cycle or economic conditions. Achieving your goals and objectives are the
ultimate measure of success in the 6 steps to a personal financial plan.
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