As we journey through life, we spend considerable time building relationships and accumulating wealth. Saving money has become a daunting task and wise financial planning is an absolute necessity. Your financial plan is as individual as you are, therefore in attempting to simplify what can be a complicated matter, you may feel the need to seek advice.

A good financial planner is like a fitness coach. Everybody knows what they need to do to become fit, but unless you have somebody coaching you, it then becomes difficult to realize the goal. Selecting a financial planner is no small feat. Ask your friends, family members and fellow associates for referrals. Often, this is the easiest way and nothing speaks greater volumes than a personal reference.

There is a level of credibility if your financial advisor has affiliations with professional industry organizations such as Advocis (the merged organization of the Canadian Association of Financial Planners and the Canadian Association of Insurance and Financial Planners). These organizations insist their members must adhere to a strict code of ethics and are bound by principals of integrity and good judgment. In addition, your planner is more qualified if he or she has a professional designation such as CFP (Certified Financial Planner) or R.F.P. (Registered Financial Planner).

You should seek a professional who communicates easily with you. Your planner should help clarify your precise goals. He or she should educate you on the various financial products available to meet your needs. The concepts should be explained in simple and easy to understand terms. Regular reviews should be conducted to update and adjust your personal changes.

In addition to saving and investing, your plan should include strategies for tax reduction, cash flow management, insurance needs and debt management. Considering that people are living much healthier and longer lives, it is imperative that you take a long term perspective. It is wise to project your plan to 95 years of age and allow for various contingencies.

Ultimately, you are responsible for the success of your plan. You must make your concerns known to your planner. Your financial professional can then tailor an approach specific to you and your needs. By establishing great communications with you, he or she should be able to keep you on track to achieving your goals.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.