Wealth
Our Financial Planning process focuses on three types of WEALTH:
- Person
- Portfolio
- Possession
Person Wealth is made up of three components; Capacity (Health), Capabilities (Knowledge and Skills) and Connections (Relationships and Network). Our ability to create Portfolio Wealth and own Possession Wealth is directly dependent (outside of inheritance and lotteries!), at the very least early in our working lives, on our Personal Wealth.
Portfolio Wealth is made up of our financial assets; our cash and investments, including where applicable, rental real estate and business assets.
Possession Wealth is as the name suggests, our non-portfolio-related property such as house and cottage/camp, vacation real estate, vehicles and other personal possessions.
Vision
The heart of our Financial Planning process is Vision. A clearly articulated Vision and clearly stated life goals are essential to an effective financial life plan.
Tax and Estate
Taxes are a fact of life in Canada, as they are in most other developed countries.
Cash (Flow)
Cash and Cash Flow is “Vision” fuel. After tax income from employment or self-employment, and/or from portfolio investments can be spent or saved.
Risk
We live with risk every day. Risk cannot often be eliminated completely. It can sometimes be minimized and/or managed.