Fee-Only Financial Planning

A 'Whole Life' Financial Plan

You may wonder if you can retire confidently without compromising your current lifestyle. Entrepreneurs and high-income professionals often find this question challenging to answer. Running a business demands more than full-time attention, leaving personal finances as a lower priority.

Your Financial Vision

Collaborative Financial Planning connects your personal finances to the rest of your life. The resulting vision translates into a 25–40 year financial plan with real-dollar targets. The plan naturally adjusts over time to accommodate changes, but getting started and establishing the scaffolding for a long-term plan — with real dollar savings, investing, and decumulation targets — is the key.

Retirement can Seem Abstract

It's nicer to have something to retire to, rather than from. Your retirement might focus more on travel, leisure sports, or perhaps on mentoring and giving back. The coaching process helps ensure your financial plan serves your future vision.

Determining "Enough"

It's typical to assume you'll spend 80% of your annual pre-retirement expenses in retirement. This assumption may not accurately reflect your specific goals. You should consider whether 80% of your historical spending comfortably covers your retirement aspirations as those evolve over time.

Imagine you're mid-career and plan to work until your early sixties. If your total household spending is $250k per year after tax, $200k per year in retirement might seem reasonable. Your children will likely be independent by then. You might downsize your home or move closer to grandkids. These factors could change your income need significantly — and your plan should reflect that.

The Impact of Inflation

At a 3% annual rate, a $200k income target in today's dollars translates to a required income of $418k in 25 years. Using the conservative 4% rule, you'd multiply $418k by 25, resulting in a retirement savings target of $10.5M. With CPP and spouse pension covering $90k of the required $418k, your target drops to $8.2M. The plan considers the savings rate and investment returns required to achieve your income goal.

Corporate Assets

If you own a company, you should consider whether to retain profits and invest them inside the corporation. You need to strategize to use your personal TFSA and RRSP accounts for the best outcome. The decision to pay yourself a greater salary (ensuring maximum CPP in retirement) or to defer tax inside the corporation depends on expected investment returns and the mixture between annually-taxed dividend income and deferred capital gains. The plan optimizes for these tax-driven factors.

The Plan Becomes a Progress Dashboard

You should review your plan at least once a year, with as-needed ongoing coaching around significant life events — a newborn, house move, or career change. Prioritizing saving with reverse budgeting (save first, spend the rest) for the remainder of your primary income-earning years is crucial. If you find yourself meaningfully ahead of plan, you may be able to slow down and enjoy greater spending now.