Financial Planning

Financial Planning

Creating a financial plan involves a series of calculated and deliberate steps that must be taken in order to achieve your personal and financial goals. In the financial plan, every issue that is pertinent to your desired objective will be addressed – projected earnings, household budgeting, company benefits, retirement planning, investment analysis, insurance coverage, college planning, debt management, and estate planning. All these areas will be coordinated in a clear and concise format that will guide your financial decisions now and into the future.

A comprehensive financial plan will include a detailed analysis of your:

  • Objectives and Goals
  • Financial Profile and Portfolio Composition
  • Net Worth
  • Asset Allocation and Liquidity
  • Cash Flow Requirements
  • Tax Liabilities
  • Debt and Creditor Obligations
  • Investment Recommendations and Appropriate Investment Vehicles
  • Retirement planning
  • Estate planning Concepts
  • Insurance Needs and Proposals

Monitoring and reviewing your financial plan is essential when major financial or personal changes occur. Our Financial Planners can guide you in formulating a plan.

Annuities

An Annuity is a long-term contract between you and an insurance company. The same company that insures your home or protects your family may also help you save for retirement.

An annuity may be set up as a single or flexible payment; fixed or variable; deferred or immediate. No matter the type, annuities are financial contracts to provide payments to the holder at specified intervals, usually after retirement.

Single vs. Flexible Payment Annuities

Several options exist here:

  • A single premium annuity involves payment of one lump sum to purchase it.  There is no provision for additional contributions at later date.  Rather, a new annuity must be acquired.
  • A flexible payment annuity provides flexibility to contribute money at regular or irregular intervals—at anytime.

Fixed vs. Variable Annuities

There are two options:

  1. Fixed Annuities earn a guaranteed rate of interest for a specific term.  When the term expires, a new set of terms is set for another period.
  2. Variable annuities offer a range of investments or funding options that include stocks, bonds, and money market instruments.  The principal and the return you earn are not guaranteed.  Performance is dependent on the underlying investment options.  Some variable annuity plans permit asset allocation dividing funds between programs under one annuity.  Variable annuities also permit transferring of funds from one funding option to another.

Deferred vs. Immediate

Immediate annuities generate immediate income while deferred annuities delay payment of any proceeds.

All earnings from annuities are taxed as ordinary income. Annuities are long-term investment vehicles and you want to make sure that the company you invest with will be around as long as you will be. Our Financial Planners can guide you to choosing the right investment fit.

Segregated Funds

Segregated funds are similar to mutual funds. Each offers investors an opportunity to grow their investment capital and provide access to professional fund management. Generally, both allow investors to diversify with different fund managers and fund types.

Segregated funds offer many of the same investment opportunities and mandates provided by mutual funds but have one important difference: segregated funds are insurance contracts known as individual variable annuities and are, therefore, governed by the Insurance Act.

It is the insurance contract that essentially provides a number of additional features and benefits that are not available with mutual funds. The significant difference means segregated funds may have certain advantages including:

  • Estate bypass
  • No trustee fees
  • Creditor protection capability
  • Death and maturity guarantees

Call us and our Financial Planners will guide you to choosing the right investment fit.