3 minute read
Five Steps to Help You Plan For Your Family's Financial Future
By Matt MacDonald | MNP
The importance of family wealth, estate and tax planning has never been more critical than it is today. Developing a plan ensures you’re financially prepared to face your family’s unique challenges, opportunities, and goals — and that you have confidence that your family’s wealth, assets and financial freedom are ready for whatever the future may bring.
Here are five steps to help you and your family ensure that you are protected and continue to focus on the big picture of growth, legacy, and preservation:
1. Prioritize goals and objectives
Identifying and aligning the key stakeholders in your estate is important in executing a well-thoughtout plan. Family members, trusted advisors and close friends all act as valuable resources in both the planning and execution phase of your estate. Together, you can discuss your needs and the needs of you family – while factoring wants, goals, values and risk tolerance. This will help to develop a fulsome understanding of you and your family’s vision of how you’d like to be positioned in the long-term.
2. Develop your planning objectives and prepare supporting documents
A strong plan requires strong supporting documents. These documents will give you a better picture of your financial position and will help you make informed decisions in your planning process. Having an updated net worth statement, basic cashflow summary, financial projections and a review of your investment portfolio and insurance are critical.
3. Assess estate value and liquidity — now and into the future
Understand how your investments will appreciate over time, and ensure you have the liquidity to cover key expenses throughout the seasons of your life. This gives your family the ability to strategically plan for liquidity through insurance or other tools.
4. Complete a retirement strategy and tax planning assessment
Understanding how your financial needs will evolve and the planning requirements associated with those needs will provide you with insight into the tools required to achieve success in the planning process. Maximize your options for minimizing taxes over the long term. To achieve this, you need to engage the right team of professionals as soon as possible to provide them enough time to craft the most optimal plan for your objectives.
5. Develop an action plan to implement recommendations
Create a comprehensive financial plan for your family. Common deliverables include updating legal documents, applying for insurance, or putting programs in place to prepare your children for inheritance.
As wealth increases, it’s important to have a plan for your family’s finances — today and into the future. A strategic plan for spending, saving, and financing your retirement will give you the confidence in the decisions you make today without fear of unanticipated consequences tomorrow.
MNP is a leading accounting, business consulting and tax advisory firm in Canada. National in scope and local in focus, MNP is one of Canada’s leading professional services firms — proudly serving individuals, businesses, and organizations since 1958. Through the development of strong relationships, we provide client-focused accounting, consulting, tax, and digital services. Our clients benefit from personalized strategies with a local perspective to fuel success at every stage. mnp.ca
