Why does anyone need a financial planner? Is there a specific age stated anywhere for the start date for working with a financial planner?
A Certified Financial Planner (CFP) helps individuals put together a life plan for you. This should include looking at all aspects of your life, and will be age dependent.
At a young age, you may be saving for a home, going back to school, or starta ing a family? The CFP will put together a plan that will include different kinds of saving vehicles. It may include opening a RRSP, Tax Free Savings Account (TFSA) or simply opening up a savings account to assist you with savings.
As a young couple saving for a family or who have a young family, there are saving tools available at this stage: RESP’s, Trust Accounts, RRSP, TFSA’s and Life Insurance. If you own a home should you take out some of the equity in your home or change your current mortgage payments to free up some cash flow? Do you have enough life insurance or do you simply have mortgage insurance?
As a middle-aged couple with children in Post Secondary education, there are still some saving tools available to you: RRSP’s TFSA’s, Savings Accounts and Life Insurance. Do you need to save within a RRSP? If you break even at the end of each year, a TFSA or other methods might be the best for you. Is your life insurance sufficient to meet your family’s needs should you die unexpectedly? Will all of your debts be covered with the savings you have, still leaving your family something should you wish to?
A CFP should be able to offer you something at each stage of life. Working with someone whom you can trust and can offer solid advice, this means that the sooner you start with someone the better, as they will be able to offer you personalized advice. Make sure you are honest and open about your goals and this will assist them in the planning.