Vandalizing money is a crime under Canadian law. Therefore you cannot draw a mustache on the Queen’s picture or set fire to a shiny new bill.
If I were to hand you a $20 bill and ask you to throw it in the trash with the baby’s dirty diapers and meat bones would you do it? How about for a $5 bill or a toonie?
Of course you would say no. Yet every day in my financial planning practice I see money being wasted, lost, or flying out of the client’s wallet.
Here is another question. When I say the words financial planning what comes to mind? The right investment? The newest financial product? Rate of return?
Those might be a part of financial planning but it is first and foremost about people. Then it is about communication. This was driven home to me again by a true situation.
Over 10 years ago a young couple wisely took out life insurance, because they were newly married, planning to start a family, and had financial obligations. They were both smokers so the premium was high.
Fast forward 10 years and time for renewal. At renewal the already high premium quadrupled. That is when they decided to contact their financial planner.
What makes this story important? 1 year after taking out the policy they quit smoking. That meant for 8 or more years they could have saved at least half of the life insurance premium, which was thousands of dollars. But their financial planner didn’t ask and they never told him.
My role in your financial life is to use my experience and expertise to further your financial success. It is a partnership, where communication is essential to your progress.