FINANCIAL MATTERS

3. Review and re-establish financial goals

Making informed decisions starts with identifying your goals Working with a financial advisor can help you identify your priorities and determine what assets you want to keep and assess the financial and emotional value placed on those assets.

As with any financial matter, it’s important to understand that not all dollar amounts are created equal For example, receiving a second home in a divorce settlement which has significant ongoing expenses and a built-in capital gain may be less financially beneficial than receiving the equivalent value in cash. If you sell the home, your after-tax proceeds could be far less than the sale price.

The same is true in the case of selling a business. You need to understand the significance of the sale in the context of your own personal goals Ask yourself:

* Does it make sense to sell now or later, based on where the business is headed or your own needs?

* If you sell now, could you afford to live on the proceeds for the rest of your life?

* Would it allow you to carry out any legacy plans you might want to put in place?

Business owners are often surprised to realize how much their own personal cash flows are impacted after the sale of a business Asking these questions and running projections of various scenarios can help you narrow in on the best course of action.

4. Keep an eye on your estate plan

When life changes, you need to review and reconsider your estate plan You also need to make sure your investment accounts, real estate holdings and insurance arrangements reflect any changes in ownership. Beneficiary designations for retirement assets and life insurance policies need to be reviewed and possibly updated.

We have seen some difficult scenarios where estate plans aren’t updated after a divorce or a death in the family, or additional children and grandchildren are born after a plan is put in place and the plan either didn’t take that possibility into account or was not updated. A significant change in financial position can also require you to change your plan. Following through on the details now can save your family from financial complications and maybe even legal battles in the future.

Lastly, you need to keep track of changes in the lives of others you may rely on. This includes people you’ve named as guardians, agents, executors or trustees for your family It also includes your team of professional advisors At some point, everyone’s situation evolves, and what works today likely will not work or be the same at some future point in time.

You can achieve financial resilience and peace of mind by staying informed, being proactive in estate and financial matters, and having open and honest communication with your family and advisors.

Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice Seek advice on your specific circumstances from an IG Wealth Management Consultant.

Jacob Gaudet is an Associate Consultant on the wealth advisory team Gaudet Group Private Wealth Management He helps clients get more out of their money, so they can get more out of life Jacob specializes in six key areas: Investment, Retirement, Estate, Tax, and Insurance, and Mortgage Planning. With more than 60 years of combined experience, Gaudet Group Private Wealth Management is committed to making clients’ interests their top priority Do you have questions you’d like Jacob to Answer? Email him at jacob gaudet@igpwm ca or check out his website at GaudetGroup ca! Investors Group Financial Services Inc