Game Plan Strategy: Monthly Financial Checklists

Monthly Financial Checklists

As part of our commitment to helping you achieve your financial goals, we have provided you with a monthly financial planning checklist. This article will include the checklists we sent out for July, August, September and November.

Each checklist focuses on a key area of a comprehensive financial plan, ensuring you stay on track and make informed decisions about your financial future.

Taking a few moments to review these can make a significant difference in reaching your long-term goals. 

Office Hours

If you have any financial-related questions or concerns, you can set up a phone call or a virtual meeting using the following LINK to set a call/virtual meeting.   

July Checklist

Financial Management

• Create or Update Your Cash Flow Statement:
  • List all sources of income and all expenses.
  • Ensure all entries are accurate and reflect current financial status. 
  • We can send you a document to use, just let us know.
• Set Monthly Savings Goals:
  • Automate your Savings:  Set up a specific amount to save each month.  This can be an RRSP, TFSA, RESP, RESP and non-registered investments. 
  • Track progress towards these savings goals.
• Review and Adjust Budget:
  • Compare actual expenses against budgeted amounts.
  • Adjust budget categories as necessary.
  • Many banks have a tool you can use with your accounts.
• Assess Credit Use:
  • Review all outstanding credit card balances.
  • Plan strategies to reduce high-interest debt.
• Debt Repayment Plan:
  • List all debts including interest rates and minimum payments.
  • Prioritize debt repayment, focusing on high-interest debt first. (Credit cards normally have the highest interest rate)
  • Plan to have your mortgage paid off by your retirement date.
• Emergency Fund Status:
  • Ensure you have an emergency fund with 2-3 months of expenses. (6 months if self-employed)
• Track Financial Goals Progress:
  • Review progress toward short-term, medium-term, and long-term financial goals.
  • Meeting with your financial advisor and/or ask questions!
• Create or Update your Key Contacts:
  • Update or create a listing of your lawyer, accountant, insurance broker, bank, Executor, Power of Attorney, and financial advisor. 
  • Let your spouse/CLP, Power of Attorney (POA), Executor, and/or family know where this list is. 

 

Over time, the best strategies in our planning included:

1. Monthly Savings: Pay yourself first, and set up monthly savings plans. 
2. Debt: Paying off or having a plan to eliminate debt.

 

August Checklist

Retirement Planning 

• Assess Retirement Goals:
  • Define your desired retirement lifestyle.
  • Estimate the income needed to support it.
• Review Retirement Accounts:
  • Check balances in RRSPs, TFSAs, and employer-sponsored plans.
  • Are you maximizing any company matching programs?
  • Ensure contributions are on track.
  • Set up monthly savings plans.
• Calculate Retirement Income:
  • Project income from pensions, savings, and investments.
  • Compare against expected expenses.
• CPP Estimate
  • Find out your projected CPP Income
• Evaluate Retirement Savings Rate:
  • Determine if you’re saving enough for retirement.
  • Adjust savings rate as necessary.
• Consider Retirement Age:
  • Decide on a target retirement age.
  • Adjust financial plans to meet this goal.
• Plan for Healthcare Costs:
  • Estimate healthcare expenses in retirement.
  • Include these costs in your retirement budget.

 

Resources for Additional Information Creating Your Retirement Plan

1. The Six Levers to Retirement Income Planning
2. What are the Retirement Income Investment Options?
3. Retirement Income Withdrawal Strategies
4. Simplifying the Timing of Canada Pension Plan (CPP) for Retirees
5. How Much Are You Spending? A Hack to the Inevitable  Question Everyone Wishes to Avoid from a CFP® Professional

 

September Checklist

Insurance and Risk Management

• Review Current Insurance Coverage:
  • Ensure all existing policies are up-to-date.
  • Verify coverage amounts are adequate.
• Assess Life Insurance Needs:
  • Evaluate if current life insurance coverage meets your needs.
  • Review  term vs. permanent life policies.
• Evaluate Health Insurance:
  • Check if your health insurance coverage is sufficient.
  • Confirm you have out of country health insurance for when you travel.
  • Explore additional coverage if necessary.
• Disability Insurance Check:
  • Ensure you have adequate disability insurance.
  • Understand the terms and benefits of your policy.
• Property Insurance Review:
  • Verify home and auto insurance coverage is adequate.
  • Consider additional riders for valuable items.
• Liability Coverage Assessment:
  • Ensure you have sufficient liability coverage.
  • Consider umbrella insurance for added protection.
• Risk Management Plan:
  • Identify any potential financial risks.
  • Develop strategies to mitigate these risks.

Resources:

Protecting Your Family – Insurance  

October Checklist

Tax Planning Checklist

RRSP Contributions

• Maximize your Registered Retirement Savings Plan (RRSP) contributions to reduce taxable income and benefit from tax-deferred growth.

TFSA Contributions

• Maximize contributions to your Tax-Free Savings Account (TFSA) for tax-free growth and withdrawals.

Charitable Donations

• Ensure you claim tax credits for eligible charitable donations.

Eligible Medical Expenses

• Track out-of-pocket medical expenses that may be eligible for a tax credit.

Home Office Deduction

• If you work from home, check you’re claiming deductions for home office expenses such as utilities, maintenance, and internet.

Capital Gains/Losses

• Review realized capital gains or losses from investments. Use tax-loss selling to offset gains and reduce taxable income.

Pension Income Splitting

• If receiving pension income, consider splitting it with your spouse to reduce your tax bill. This can include RRIF income over the age of 65.

Carry Forward Amounts

• Keep track of unused RRSP room, tuition credits, or capital losses you can carry forward to offset future income.

Income Tax Installments

• Ensure you’re up to date with income tax installments to avoid interest or penalties.

Disability Tax Credit

• Claim the Disability Tax Credit (DTC) if you or a family member qualifies to reduce taxes.

Spousal RRSP Contributions

• Contribute to a spousal RRSP to help with income splitting and future tax savings.

RESP Contributions/Redemptions

• Contribute to a Registered Education Savings Plan (RESP) to save for your child’s education and receive government grants.
• For redemptions, review how best to allocate the taxable portion over the number of years in school.

Consult a Tax Professional

• Seek professional advice on complex tax issues and stay informed about tax law changes.

November Checklist

Estate Planning and Legal Must-Do’s

1. Update Your Will
   Review it to make sure it reflects your current wishes and is legally sound.
2. Check Your Beneficiaries
   Make sure beneficiaries on your accounts and insurance policies are up to date.
3. Assign a Power of Attorney for Property
   Select someone you trust to handle important financial decisions if needed.
4. Assign a Power of Attorney for Personal Care
   Choose someone who understands your personal care wishes.
5. Talk With Your Executor and Power of Attorney
   Ensure they have copies of key documents and know your financial advisor.
6. Review Any Trusts
   Reassess if you need a trust, and make sure it’s properly funded.
7. Plan for Estate Taxes
   Explore strategies to minimize potential taxes on your estate.
8. Have the Four Essential Family Conversations
   Don’t skip these! HERE

 

For your FREE E-Copy of Preserving Wealth, CLICK HERE

What To Do Next

Are You on Track with Your Retirement Strategy? FIND OUT TODAY!

For more information, refer to Preserving Wealth: The Next Generation – The definitive guide to protecting, investing, and transferring Wealth by Jack Lumsden, MBA, CFP® or schedule a call with Jack at 905-332-4403