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 he or she needs 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 co-workers for referrals. Nothing speaks greater volumes than a personal reference.

There is a level of credibility if your financial advisor has affiliations with professional industry organizations. These organizations insist their members must adhere to a strict code of ethics and are bound by principles of integrity and good judgment. In addition, your planner has achieved a higher degree of qualification if he or she has a professional designation such as CFP (Certified Financial Planner) or R.F.P. (Registered Financial Planner).

Seek a professional who communicates easily with you. Your planner should help clarify your goals. He or she should educate you on the various financial products and investment vehicles 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, a comprehensive 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.

Understand how your planner is compensated. If investment or insurance products are purchased you should expect your planner to earn a commission. Alternatively, your planner may charge a fee for advice only. In this case you are on your own to select an alternate source for your investment or product selection. Some planners work on a fee and commission basis. Regardless of how your planner is compensated, you should know these details up front so there is no misunderstanding in the future.

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 life 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.