Divide life plan into 10-year goals
At the end of 2018, according to the Office of the Superintendent of Financial Institutions, Canada was home to 88 banks. They included 35 domestic banks, 21 foreign bank subsidiaries, and 32 foreign bank branches.
Unlike our neighbours in the U.S., Canada is dominated by only six large banks that now control 91 per cent of the entire Canadian financial service industry, with approximately
$4 trillion in assets.
Many may think there are larger industries in Canada. However, as of 2019 the financial sector has now become the largest industry in terms of employment.
Why is this so important?
Well, this means there are a lot of financial advisers and professionals out there to help you become debt-free and wealthy!
I've said it before — and I'll say it again — you must have a personalized financial plan. Basic planning is proven to create feelings of purpose, allows you to work toward a goal and can remove future uncertainties.
The following is a cascading financial plan that's designed to provide you with a “basic life plan” divided into 10-year milestones.
Use this as a guideline, and of course, if you're behind on some of the suggestions, that's OK.
This is the time to see where you are, engage your adviser and make sure you're on track for the future.
Here we go.
20s: Career building, becoming independent and moving out of your parents' home.
■ Acquire consumer and school debt for career advancement
■ build up a good credit history
■ Buy into a participating whole life insurance plan
30s: Career developing
■ Begin building an emergency fund.
■ Begin saving for retirement (RRSP, TFSA)
■ Invest in real estate and update insurance coverage
■ Plan for school debt repayment
■ Will and power of attorney
40s: Career advancement or change, self-education and personal improvement
■ Pay off all consumer debt Continue to build wealth — buy additional real estate or add to savings (RRSP)
■ Review insurance
50s: Start decluttering and begin to live on less income
■Maximize saving strategies Work toward eliminating debt, mortgages and lines of credit
■ Think about long-term care coverage
■ Limit risky financial ventures and monetary schemes
60s: Simplify your lifestyle and your commitments
■ Downsize or rightsize your residence
■ Reduce as much risk as possible in your investment portfolio
■ Eliminate all remaining debt and don't take on any new debt
■ Update will and power of attorney
70s: Have a plan to fill your days
■ Maintain or improve your health
■ Nurture existing social relationships and build new ones
■ Keep brain active, read, educate, stay physically active.
80s: Stay healthy, continue to be active
■ Establish a support system and care directives
■ Discuss your wishes with your family
■ Plan for emergencies
■ Stay involved, engaged and most of all happy!