Financial Check-Up A Prescription For Healthy Wealth
December 23rd, 2010 06:02 AM
December is a busy month and many Canadians often forget to do their annual financial check-up. As the New Year gets under way, and the bills from Christmas begin to pile up, you should re-evaluate your personal financial health.
Being financially healthy can feel as good as you do when you are physically healthy. Don’t delay and explore how you can improve your financial well-being.
During the first few weeks in January, I recommend that you explore the following five important points of interest to determine if your financial health is at its best. Contact an investment adviser if you need more details on any of these.
1. Regulate Your Retirement
Inform your adviser of any plans that may affect the level of income you require. (For example, buying a new condo, taking a lavish trip or helping out the grandchildren with university.)
If you have any contribution room left in your RRSP, make sure you utilize this if you have the money; or, if the rate is good, you may want to take out an RRSP loan.
2. Evaluate Your Bank
Add up your ATM and other charges to see how much these have cost you over the past year.
If you hold GICs or Term Deposits, compare the rate you are getting with other financial institutions. But don’t get caught up in the gimmicks such as “5% Return” – only to realize you really only get five per cent on your fifth year of holding the GIC and four per cent for every year before. Don’t lock in for long terms!
3. Inspect Your Insurance
Determine if you have enough life insurance to take care of your family.
Find out if your employer provides disability insurance, and then meet with an investment adviser or insurance agent to determine if it is enough.
4. Diagnose Your Spending Habits
Inspect your bank account and credit card statements to record and analyze your expenses for the last six months. This can be time-consuming but not difficult. You need to find out what you are spending your money on before you can improve your financial health.
Keep receipts for all cash purchases and calculate them at month end.
Establish a budget and a means of tracking it.
5. Explore your Investments
Evaluate the performance of your portfolio. Most investment advisers can print out a report that will show you the gain or loss on each investment.
Have an independent portfolio analysis done if you are not satisfied with your relationship with your adviser.
Ask your investment adviser how much you are paying in annual fees.
Discuss any changes that should be made to your portfolio for 2008.
Lori Pinkowski is a Senior Investment Advisor at Canaccord Capital. www.pinkowski.ca lori_pinkowski@canaccord.com
Copyright North Shore Magazine Issue Dec 07-Jan 08
Being financially healthy can feel as good as you do when you are physically healthy. Don’t delay and explore how you can improve your financial well-being.
During the first few weeks in January, I recommend that you explore the following five important points of interest to determine if your financial health is at its best. Contact an investment adviser if you need more details on any of these.
1. Regulate Your Retirement
Inform your adviser of any plans that may affect the level of income you require. (For example, buying a new condo, taking a lavish trip or helping out the grandchildren with university.)
If you have any contribution room left in your RRSP, make sure you utilize this if you have the money; or, if the rate is good, you may want to take out an RRSP loan.
2. Evaluate Your Bank
Add up your ATM and other charges to see how much these have cost you over the past year.
If you hold GICs or Term Deposits, compare the rate you are getting with other financial institutions. But don’t get caught up in the gimmicks such as “5% Return” – only to realize you really only get five per cent on your fifth year of holding the GIC and four per cent for every year before. Don’t lock in for long terms!
3. Inspect Your Insurance
Determine if you have enough life insurance to take care of your family.
Find out if your employer provides disability insurance, and then meet with an investment adviser or insurance agent to determine if it is enough.
4. Diagnose Your Spending Habits
Inspect your bank account and credit card statements to record and analyze your expenses for the last six months. This can be time-consuming but not difficult. You need to find out what you are spending your money on before you can improve your financial health.
Keep receipts for all cash purchases and calculate them at month end.
Establish a budget and a means of tracking it.
5. Explore your Investments
Evaluate the performance of your portfolio. Most investment advisers can print out a report that will show you the gain or loss on each investment.
Have an independent portfolio analysis done if you are not satisfied with your relationship with your adviser.
Ask your investment adviser how much you are paying in annual fees.
Discuss any changes that should be made to your portfolio for 2008.
Lori Pinkowski is a Senior Investment Advisor at Canaccord Capital. www.pinkowski.ca lori_pinkowski@canaccord.com
Copyright North Shore Magazine Issue Dec 07-Jan 08
