What does a financial planner do with your money?

Understanding Your Financial Picture

The first thing we do when we start working together is get a full understanding of your financial situation. It’s like taking a snapshot of your life today, so we know exactly where you stand. We’ll go over things like your income, expenses, savings, debts, and investments. I want to know what you’re working towards—whether that’s buying a house, saving for your children’s education, planning for retirement, or just making sure you have a solid financial cushion.

Think of this as the foundation. Just like you wouldn’t build a house without understanding the land it’s going on, I can’t help you get to where you want to go without understanding where you are now.

Setting Your Financial Goals

Once we’ve got that picture, the next step is setting clear, realistic goals. Everyone’s situation is different, and so are their dreams. I’ll ask you questions like:

• What do you want your future to look like?

• When do you want to retire, and what kind of lifestyle do you envision?

• Do you want to help your kids with their education or buy a vacation property someday?

These conversations are key. They help me understand your priorities and tailor the financial plan to fit your unique needs. It’s about taking your dreams and turning them into a plan that we can work on together.

Building a Financial Plan

This is where we start putting the pieces together—and where I really start earning my keep. A financial plan is essentially a roadmap to get you from where you are now to where you want to be. It includes saving strategies, investment plans, risk management, and cash flow planning.

1. Budgeting and Cash Flow Management

One of the first areas I focus on is cash flow. It’s not just about how much money you make; it’s also about how much you keep and how efficiently you manage it. Together, we’ll go through your spending habits and make sure your budget aligns with your goals. This helps create extra room for saving and investing—which is where the real magic happens.

2. Investing for Your Future

Now, let’s talk about investments. A big part of my role is helping you invest your money in a way that suits your goals and risk tolerance. I know investing can seem intimidating, especially with the ups and downs of the market, but that’s where a financial planner really helps.

I’ll develop an investment strategy tailored specifically to you. If you’re saving for retirement and have 20+ years, we might look at a balanced portfolio that mixes growth-oriented investments like equities with safer, income-generating assets like bonds. If you’re saving for a shorter-term goal, like buying a home in the next 5 years, I might suggest more conservative options to protect your money from market volatility.

Diversification is key here—we don’t want all your eggs in one basket. A well-diversified portfolio helps minimize risk while still allowing your money to grow.

3. Risk Management and Insurance

Protecting you from unexpected risks is another important aspect of what I do. Nobody likes to think about worst-case scenarios, but they do happen. Life insurance, disability insurance, and critical illness insurance are tools I use to help ensure that if something unexpected happens, you and your family are financially secure.

This isn’t about selling you products you don’t need—it’s about making sure that a single event doesn’t derail the entire plan we’ve worked so hard on. It’s all about peace of mind, knowing that your loved ones are protected.

4. Retirement Planning

Retirement planning is one of the biggest reasons people seek out a financial planner. Whether you want to retire early or work part-time, I’ll help you figure out how much you need to save to achieve your desired lifestyle.

We’ll consider factors like inflation, your anticipated spending needs, government benefits (like CPP and OAS in Canada), and your current retirement accounts (such as RRSPs and TFSAs). I’ll use these details to create a sustainable withdrawal strategy, so you don’t outlive your savings. My goal is to help you enjoy retirement without constantly worrying about running out of money.

5. Tax Efficiency

Nobody likes paying more taxes than they have to. Part of my job is to make sure your financial plan is as tax-efficient as possible. This might involve using tax-advantaged accounts like RRSPs and TFSAs, optimizing how you withdraw funds in retirement, or planning charitable donations in a way that minimizes your tax bill.

Tax planning is especially important here in Ontario, where taxes can significantly impact your overall wealth. I’ll make sure we’re taking advantage of every opportunity to keep more of your money in your pocket.

Monitoring and Adjusting Your Plan

Creating a financial plan is just the beginning—life changes, and your financial plan needs to change with it. Whether it’s a new job, a growing family, buying a home, or any other big event, I’ll be here to help adjust your plan so it always reflects your current situation and goals.

The markets also fluctuate, and sometimes we need to make tweaks to your investment strategy. I keep an eye on your portfolio and make adjustments when necessary to keep you on track. It’s an ongoing process, and I’m here to provide guidance every step of the way.

Acting in Your Best Interest

One thing I always emphasize to my clients is that I’m working for you. As a Certified Financial Planner, I adhere to a fiduciary standard, which means I have a legal obligation to act in your best interests. My recommendations aren’t based on commissions or sales targets—they’re based on what’s going to help you reach your goals.

Trust is a huge part of the financial planning relationship, and I take that responsibility very seriously. My goal is to be your partner in your financial journey, helping you make informed decisions and giving you the confidence to achieve what matters most to you.

Common Questions About Financial Planning

Here are a few questions I often get from clients about what I do with their money:

1. Will You Take Over All My Accounts?

Not necessarily. Many clients like to have me manage some accounts, while they continue to handle others themselves. My role is to provide advice, help make decisions, and manage investments if that’s what you need. It’s entirely up to you how involved you want me to be.

2. How Much Does Financial Planning Cost?

The cost varies depending on the complexity of your financial situation and the level of service you need. Some planners work on a flat fee, others on an hourly basis, and some charge a percentage of the assets they manage. I believe in being transparent about costs, so you’ll always know what to expect.

3. Do I Have to Be Wealthy to Work with a Financial Planner?

Absolutely not. Financial planning isn’t just for the wealthy—it’s for anyone who wants to make better financial decisions, grow their wealth, and achieve their goals. Whether you’re just starting out, saving for your first home, or preparing for retirement, financial planning can help you make the most of your money.

Final Thoughts on How Financial Planners Manage Your Money

So, what does a financial planner do with your money? We create a plan, invest your savings wisely, manage risks, optimize taxes, and help ensure you’re on track to achieve your goals. It’s about so much more than just managing investments—it’s about helping you live the life you want, with less stress and more financial freedom.

If you’re in the Niagara region and considering working with a financial planner, I’d love to help you get started on your journey. Financial planning is a partnership, and together, we can create a strategy that gives you confidence in your financial future.