Building a Solid Foundation
 for Wealth

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Solutions for Your Needs

Solution: Begin with a Financial Plan
We have gathered a great deal of information from Sylvia and Peter* and we now have a clear picture of their situation – their current and future goals, investment knowledge, tolerance for risk as well as the financial issues they’ll be facing in the next year. However, in order to make sound recommendations for the management of their wealth, we need an even more detailed picture of their current financial situation.

A great first step would be to have a formal financial plan done by a qualified Investment Advisor. Financial planning will enable Sylvia and Peter to clarify their goals so that they can focus their resources on achieving them.

For example, Peter and Sylvia have voiced a desire to continue maximizing their RRSP contributions even after their child is born. Their Investment Advisor can help them determine if this would actually be in their best interests. The review of their situation may reveal non-deductible personal debt – such as credit cards and other personal loans – which they should make efforts to eliminate or reduce first. On the other hand, if RRSP contributions are something they should focus on, their Investment Advisor can suggest tactics for maximizing their contributions, such as regular, automatic payments through a program like BMO Nesbitt Burns’ Wealth Administrator, or spousal RRSPs for income splitting purposes.

Understandably, Sylvia and Peter are also thinking about upcoming daycare and education costs. Their Investment Advisor can help them assess their spending and saving habits, and, if necessary, suggest changes to ensure they can afford daycare. He or she may also suggest the establishment of a Registered Education Savings Plan (RESP) to help Peter and Sylvia save for their child’s post-secondary education.

And what about providing for their child in case of loss of income from death or disability? Their Investment Advisor can help with this concern by referring Peter and Sylvia to an Estate and Insurance Advisor if necessary.

As we mentioned, the first step to creating appropriate wealth management solutions for Peter and Sylvia is to meet with an Investment Advisor – this is a good course of action whenever you start to work towards a new or more complex financial goal.

If you think you could benefit from a thorough review of your unique financial situation and get access to some fresh ideas on how to achieve your particular goals, contact a BMO Nesbitt Burns branch near you or complete our simple online request form to have an Investment Advisor contact you directly.

* Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.