A Life Planning To Do List

October 2024

The best way to get the most out of life is to do plan now. It is important to use your time and money to enjoy today but, also, to save enough to provide for tomorrow…financial planning for a balanced lifestyle.  Review the following list, which is by no means complete, and to help you meet your goals.

1. Make or update your Will and Power of Attorney – these are not optional if you want your family and beneficiaries to receive as much as possible from your assets upon your demise.
2. Also prepare a Health Care Directive and Personal Care Directive, as well as a Letter of Wishes to accompany your Will if you have personal preferences that you do not wish to be binding on your Executor.
3. Consider the risks of joint ownership with your family members (or others), and use joint ownership only after obtaining professional advice on legal, tax and creditor issues.  You could incur immediate taxes and/or lose your assets because of your co-owner’s issues.
4. Make a list of your important documents, information, assets (including original costs) and liabilities, and keep it with your Will.  Include your “digital assets” (e.g., social media & online banks).
5. Pre-plan your funeral, whether you pre-pay for it or not.
6. Review your insurance coverage – life, health, disability, home, personal liability, travel, critical illness, long-term care, business liability and interruption, etc.  Is it adequate? Are the features appropriate for your personal situation? Are you getting the best price?  Get advice from life and property insurance agents.
7. Make a list of what you want to do before you are physically unable, set some goals, and then plan.
8. Review your savings and investment plans: 
   • Young adults:
     • Do you have a liquid emergency fund of 3 – 6 months of living expenses?
     • Are your cash needs for the next 5, maybe up to 10 years, invested in safe securities (normally those that pay interest)?
     • Do you have a written financial plan setting out a savings plan to meet your goals, such as travelling, buying a home, raising a family, educating the children and, of course, retirement? A personal financial plan covers cash flow and debt management, insurance and risk management, tax planning and estate planning, in addition to investment analysis and retirement projections.  The latter are often provided by product sales reps, but be sure to cover all the topics.
     • Are you taking advantage of all tax-beneficial plans, such as TFSAs, a First Home Savings Account, a RESP (Registered Education Savings Plan), a RRSP, and a RDSP (for disabled family members)? Obtain  advice on which to use when.
     • Only use loans for assets that hold value, such as a home; perhaps a vehicle to allow you to work, and for investing only if you can afford to lose money.  Pay off your credit card monthly.
     • Are your long-term needs invested in a portfolio that you understand and well-diversified between safety and risk? Buy no investment without understanding the worst case scenario.
   • Pre-retirement
     • Are you saving 5 – 10% of your take-home pay on top of any employer savings or pension plans, or 10-15% (minimum) if you have no employer savings or pension plans?  Of course, you need to balance debt reduction with saving for the future, but do some of both with proper advice.
     • Are you increasing the safety of your investments as you get closer to retirement (or in your RESP when your children are within 5 years of post-secondary education).
     • Are you paying down your debts to be debt–free by retirement?
     • Are you meeting at least annually with your financial planner to review your progress, and are you getting your questions answered fully, and with a comparison of your current net worth to your target plan, and a comparison of your investment performance to industry averages?
   • Retirement
     • Are your day-to-day spending needs for the next 7 – 10 years in short-term, safe (i.e., fixed income) securities? Are you still evaluating your performance to your plan at least annually?
     • Review your expenses for savings. Buy only what you need, and comparison shop on all expenses,  such as your telephone, Internet, television, insurance, bank account fees, etc. Remember senior discounts, and government grants to help with certain purchases, and tax credits for seniors.
     • Consider downsizing on housing and automobiles.  Get tax and legal advice before transferring your home to family members, especially when using a life interest.  See my article Life Interests and the Family Home.  Remember to report all real estate title changes.
     • Understand the costs and available subsidies for seniors housing, including long-term care homes.  For PEI, see my article, Nursing Homes / Long-term Care Financial Assistance in PEI.
     • Educate children on financial management.  If called on to assist financially, obtain advice on the pros and cons of using a loan instead of a gift.  Consider helping them save money in a First Home Savings Account, TFSA, RESP, etc.
     • Do not miss deducting any new medical expenses.  See my article, Medical Expenses and Taxes.
     • Think about how you can help others.  Donate to charity, now or in your Will. Feel good about helping others and reap significant tax savings as a bonus.  Volunteer for a cause that you like.
     • Expand your horizons with education and take an interest in your own financial situation:
       • Visit a professional (i.e., with designations) financial planner; write down your questions and objectives before attending.  Write down the answers, record the meeting on your cell phone or ask for a written report for later reference – with aging, we often become more forgetful.
       • Take continuing education through associations, community courses, self-study online, etc.
       • Arrange educational workshops and seminars for your non-profit groups or your company.

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Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum