{"id":2865,"date":"2025-01-07T15:14:35","date_gmt":"2025-01-07T20:14:35","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/insights\/financial-planning-nine-key-areas-of-focus\/"},"modified":"2025-01-07T15:14:36","modified_gmt":"2025-01-07T20:14:36","slug":"financial-planning-nine-key-areas-of-focus","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/insights\/financial-planning-nine-key-areas-of-focus","title":{"rendered":"Financial planning: Six key areas of focus"},"content":{"rendered":"\n

When you think about your finances, there are likely a number of factors that make up the overall picture. And, over time, these pieces may change as your life evolves. Whether you\u2019re a recent grad or early in your career, an individual with a busy family household or a longtime professional or business owner, periodic financial check-ins can offer a range of benefits.<\/p>\n\n\n\n

Here are six financial to-dos that can help put you on the right track to achieving your goals.<\/p>\n\n\n\n

1. Review your financial situation<\/h2>\n\n\n\n

Doing a financial review is a simple way to get a clear overview of your broad financial picture and where you stand today. If this type of personalized review isn\u2019t something you\u2019ve pursued before with a qualified advisor, think of it as a shell for your planning\u2014it captures your family tree, financial goals, net worth and cash flow needs, as well as estate, insurance, retirement and other important information. <\/p>\n\n\n\n

Once gathered, these details may help guide discussions on what strategies or types of planning may make sense for you and can point you in the right direction. The information can also be updated regularly so you can see how you\u2019re progressing from year to year or as your situation changes.<\/p>\n\n\n\n

2. Develop a retirement projection or financial plan<\/h2>\n\n\n\n

For many Canadians, looking ahead to retirement is a main financial focus. In fact, one of the most common questions is, \u201cWill I have enough to retire comfortably?\u201d Or among business owners, \u201cHow will I create retirement income, and will it be enough?\u201d<\/p>\n\n\n\n

Whether your retirement is approaching or it\u2019s decades down the road, a retirement projection can provide a holistic view of your situation, showing possible financial steps you can take or adjustments you can make to your plans based on what you envision for retirement. It can also identify and report on your goals and illustrate how adjusting certain assumptions may impact your retirement plans.<\/p>\n\n\n\n

Using information from a financial review or retirement projection, you may want to consider a financial plan. \u201cA financial plan addresses all aspects of your financial life, including tax and investment planning, risk management, and retirement and estate planning,\u201d says Howard Kabot, vice president of financial planning with the Family Office Services team at RBC Wealth Management Canada. \u201cThink of it like a blueprint for your financial life.\u201d <\/p>\n\n\n\n

A personalized plan \u201cwill identify strategies to help you reach your goals within defined time horizons,\u201d says Kabot, and it\u2019s something you can shift and adjust as you experience changes in life or as your goals change. <\/p>\n\n\n\n

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Take<\/strong> control of your wealth<\/strong><\/h4>\n\n\n\n

Let’s talk about your financial future and build a plan to help you achieve your goals. <\/p>\n\n\n\n

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3. Consider potential income splitting strategies<\/h2>\n\n\n\n

Depending on your circumstances, certain income splitting opportunities may help lower your family\u2019s overall tax bill. If you expect your spouse to have a significantly lower retirement income than you, consider directing some or all of your allowable RRSP contribution to a spousal RRSP. You can still claim the tax deduction yourself, reducing your taxes now. Your spouse will receive income from the spousal RRSP when it’s withdrawn, which may help even out your retirement incomes and put you both in a similar tax bracket, potentially reducing your taxes during retirement.<\/p>\n\n\n\n

Although you can allocate a maximum of 50 percent of eligible pension income (which includes RRIF income) to your spouse, it may still make sense to contribute to a spousal RRSP if:<\/p>\n\n\n\n