A Year in Review

At this time of year, we are all accustomed to looking back at the year that has gone by. Today, I would like to suggest that we look ahead to 2018.

If you’re like me, at the start of a new year, I tend to look back and think about all the things I intended to complete or things I thought about that needed to be done. Don’t get me wrong, at the time, my thoughts and intentions were strong- I was motivated to get stuff done! But thoughts and intentions are not trackable and they don’t visually keep us focused and motivated. I love lists…anyone who knows me will attest to that! There is something satisfying to me about making a list of tasks, etc. and then one by one, crossing them off as they’re completed. My wife Jenny will tell you that, in the name of efficiency, I will even organize my grocery list in the order of the store!

This year, I’m going to create a list that spans twelve months, where I will commit to review as many things as possible that may impact my family’s financial health.

Start with the low hanging fruit – every financial advisor will tell you to review your pertinent financial documents on an annual or bi-annual basis. Here is a list of the typical documents that we suggest clients review:

■ Will and Power of Attorney

■ Healthcare Directive or Representation Agreement

■ Financial and Retirement Income Plan

■ Life and disability insurance policies

■ Investment Policy Statement and Investment Objectives

■ Group benefit plan While all of the above are very important to our financial health, there are also things that may not be top of mind that can certainly have a serious impact on our financial health.

Here are some examples of things that I will be adding to my 2018 review list:

■ House Insurance – With the dramatic appreciation in construction costs, the cost to replace one’s house may need to be adjusted. It’s a good idea to review your policy with your general insurance agent prior to renewal to ensure your house is adequately insured.

■ Vehicle Insurance – Prior to renewal, we should review all the coverages and deductibles however, most important is to ensure we have adequate 3rd party liability coverage and what, if any coverage we have when we are driving outside BC, either in our own car or in a rental car.

■ Review the “big ticket” items around your house and if necessary, consult professionals to inspect things like your roof, gutters, heating/cooling systems, plumbing and electrical systems.

■ Travel and Health Insurance plans – many of us have travel and health plans either through work, through member-based programs and even private plans, as well as some coverage through our credit cards. Take some time to review the limits to your travel medical policy to ensure you have adequate coverage in the event of a medical emergency abroad.

I’m sure each of us have lots of things we can add to our review lists. The important part is to make a list and start the process. Lists are a great way to stay focused on the tasks at hand and track your progress. 

Business Owners

The most overlooked area of financial planning for business owners and incorporated professionals is the lack of integration between corporate and personal assets. When the majority of your assets are in your corporation you need very specific, specialized and personalized financial advice.

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