n the face of globaleconomic uncertainty, ex-plosively volatile markets,

and rising unemployment and debtloads, many Canadians are under-standably concerned about theirfinancial security.

But in this anxiety-ladenenvironment, studies show thoseindividuals who are sleeping bestat night are those with a compre-hensive financial plan. “Financialplanning provides Canadians withgreater confidence in their own fi-nancial future,” says Cary List, CEOof the Financial Planning StandardsCouncil (FPSC). “Undertaking acomprehensive, life-goals approachto your financial needs is verystrongly correlated with a sense ofpersonal well-being, ability to buildwealth and lower levels of stress.”

In fact, according to a 2009study from FPSC, those who have acomprehensive financial plan aretwice as likely to feel that they are

prepared to manage through tougheconomic times as compared tothose with no plan, and threetimes as likely to feel preparedin the event of an unexpectedfinancial emergency. The studyalso revealed that Canadians witha comprehensive financial planare twice as likely to feel they havepeace of mind compared to thosewithout.

As Diane Koven, a certifiedfinancial planner (CFP) with SunLife Financial Canada, describesit, “financial planning is a way toget your finances and your wholelife organized; to set goals andbenchmark your progress againstthose goals.”

That’s true, she says, even forpeople who are just starting outor who have limited means. “Itcan be adapted for anyone, in anysituation.”

A qualified financial planner isyour personal expert on your life’s

journey, says Ms. Koven. “Financialplanning takes time and knowl-edge.”

Just as we go to our doctor formedical advice and our mechanicto get our cars fixed, she says,qualified financial planners arethe source for competent, ethicalfinancial advice.

To get the most value fromthe relationship, it’s essential tochoose a planner who has theright qualifications and withwhom you enjoy working, saysMs. Koven. “Finances are verypersonal. A financial planner hasto know an awful lot about you– about your life, hopes, dreams,what you have now, what youare hoping to achieve – in orderto properly advise you. And it isan ongoing relationship, becausea plan must be monitored andadapted over time.”

In good times and bad, financialplanning involves managing riskas well as achieving goals. “Evenwhen your investments are doingextremely well, if you are hit byan unexpected and catastrophicillness or injury, or if you lose yourjob, your prospects for the futuremay be different.

“Considering insuranceproducts that protect againstthose risks is part of the plan-ning process as well – rather thancontributing $500 each month toyour RRSP, you may be better offinvesting $400 in your RRSP and$100 in insurance.”

Financial planning takes the un-certain and makes it more certain,says Scott Plaskett, a CFP withIronshield Financial Planning.“When you recalibrate a financial

plan based on current conditions,it enables you to see what theimpact will be on your financialgoals. When you’ve mapped thatout, you can make good decisionseven in very uncertain environ-ments.”

For investors, a comprehensivefinancial plan enables them tofocus on achieving their goalsrather than just on rate of return.“The process gives individuals agreat degree of confidence, andit’s a much more constructiveconversation than just trying tofigure out how we are going toget ourselves out of this downmarket,” he says.

It’s common to believe thatfinancial planning only works forthose who have already accumu-lated wealth, but that is “lookingat things backward,” he says.“Financial planning enables youto make better decisions and geton track to accumulate wealth.Not putting a plan in place islikely to keep you where you aretoday, which may not be whereyou want to be.”

A comprehensive financialplan also helps ensure that yourinvestments are aligned with yourgoals. “A common theme amongmost new clients when they cometo us is that they have been takingon more market risk than theyshould be,” says Peter Andreana,CFP. “We recommend what we calla pension-style of investing, and itserves our clients very well. Whilethe economic and market newsmay be disheartening, when theylook at their statements, they feelmuch better.”

The financial plan providesa way to know what changes inthe market value of investmentsmeans in terms of retirementincome, he says. “It usually resultsin feeling much better about thefuture.”

as one of these myths beenkeeping you from takingcontrol of your financial

future and achieving your dreams?

Myth 1:It’s too late to start now“You often hear people saying it’stoo late to start planning,” saysAl Nagy, CFP, senior executive,financial consultant with Inves-tors Group, Edmonton, “But Ioften find that the real reason theyaren’t saving is that they’ve beenprocrastinating.”

To which the obvious responseis: if not now, when?

“The sooner you break theprocrastination logjam, the sooneryou can develop good financialplanning habits and start savingfor your retirement,” he says.

Individuals approaching retire-ment have a unique and critical setof financial planning needs thatshould be addressed to ensure thatthey don’t outlast their income orpay more tax than they have to.

Conversely, younger individualsmay fall into the trap of believ-ing they have lots of time to getstarted, but it’s important toremember that, at any age, time isan asset: the sooner you start, the

harder time works for you.

Myth 2:I don’t have any spare cash tostashMr. Nagy says cash-flow analy-ses invariably unearth “hiddenmoney” that can redirected intosavings.

It’s all about priorities, addsCynthia Kett, CFP, of Stewart &Kett Financial Advisors Inc. inToronto.

“Take a hard look at where themoney is going,” she says. “Most ofus tend to over-consume, buyingthings we don’t need instead ofinvesting in our future. How wouldyou like to be able to take off oneyear for every four years you work?That’s exactly what you can do byinvesting 18 per cent of your grossincome.”

Myth 3:I already have a pension fromworkAs for relying on a work-basedpension, don’t do it – there are toomany “if’s,” says Ms. Kett. Whatif the company fails, benefits arecut, the plan changes from definedbenefits to defined contributions,you leave the employer or you

get a divorce and have to split theproceeds with your ex? Having apension is nice, but it’s a bet worthhedging.

Myth 4:Good financial planning advice istoo expensiveWhatever your income level orlife stage, there are many differentadvice offerings that could fit intoyour budget. The reality is goodadvice from a qualified profes-sional will often pay for itself overthe long term.

Myth 5:I can do it myselfLooking after your finances ef-fectively requires a great deal ofknowledge about a wide variety offinancial topics, as well as a lot oftime and attention to detail – allthings that, in today’s fast-pacedworld, most people don’t have.But this is something that youcan easily get help with. “You canwalk off the street into most banksand receive financial advice at nocharge,” says Scott Ellison, CFP,portfolio manager and investmentadvisor, TD Waterhouse in Halifax.

Whether faced with a big deci-sion about your mortgage, making

changes to your will, or convertingyour RRSPs to RRIFs, it is good tohave someone on your side to dis-cuss implications with. “An advisorcan also help eliminate emotionalreactions to the market and rebal-ance portfolios when necessary,”he says. “We’re the place of sobersecond thought.”

So ... if not now, when?

SpecialFinancial Planning 2011

When it comes to your financial future, professionals say

take action now

M O N DAY, O C TO B E R 1 7 , 2 01 1 PAGE 1

AN INFORMATION FEATURE

ABOUT FINANCIAL PLANNING WEEK

ACTION

Don’t let financial planning myths hinder you

This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. Grant MacMillan, Category Manager, gmacmillan@globeandmail.com.

Now in its third year, Financial Planning Standards Council (FPSC)and the Institut québécois de planification financière (IQPF) havejointly declared October 17-23, 2011, as Canada’s Financial PlanningWeek. During the week, each organization will be spearheadingindustry events and public outreach activities in theirrespective markets. Financial Planning Week is part ofan ongoing effort by both organizations to makefinancial planning more a part of Canadians’lives.

Stay up-to-date at:www.financialplanningweek.caTwitter @FPWeek, and join us onthe LinkedIn and Facebookpage for Financial PlanningWeek. ONLINE?

For more information, visitwww.fpsc.ca.

INSIDE

Financial Planning Week isOctober 17 to 23. For eventsacross Canada, see Page 2.

Your own worst enemy?Behavioural finance revealsthe key to making betterdecisions. Page 3.

Hire right: FPSC CEO writesabout the need for regula-tion of financial planning inCanada. Page 4.

“Finances are verypersonal. A financialplanner has to know anawful lot about you –about your life, hopes,dreams, what youhave now, what youare hoping to achieve– in order to properlyadvise you.”

Diane Koven, CFPCertified financial planner,Sun Life Financial Canada

“How would you liketo be able to take offone year for everyfour years you work?That’s exactly what youcan do by investing 18per cent of your grossincome.”

Cynthia Kett,Certified financial planner,Stewart & Kett FinancialAdvisors Inc.

rganization will be spearheadingtreach activities in theirPlanning Week is part ofanizations to maket of Canadians’

on

nly one in five Canadianshas a personal financialplan, according to the

Financial Planning StandardsCouncil. To promote what finan-cial planning is and why – andhow – people can start, a series ofevents will be held cross Canadaduring Financial Planning Week toraise awareness among the other80 per cent of the population.

Below are just a few of themany Financial Planning Weekevents that are being held for thepublic across Canada from Octo-ber 17 to 23.

Visitwww.financialplanningweek.cafor the full map of activities andto find an event in your commu-nity today!

GET FINANCIALLY FITAND GETMORE OUT OF LIFEYoga teaches sound mind, bodyand soul, and with the assistanceof Yorkton Saskatchewan finan-cial planners, also sound finances.

“We’re partnering with a certi-fied yoga teacher and a profes-sional fitness trainer to raiseawareness of personal financialplanning,” says Delores Moskal,CFP, with Cornerstone CreditUnion in Yorkton. “It demon-strates that physical and mentalfitness are linked to financial fit-ness since money problems oftencause the stress that underminespeople’s mental and physicalwell-being.”

In addition to opportuni-ties to shape up physically andfinancially, Yorkton planners areparticipating in a food drive andoffering a retirement dimensionsplanning session to illustrate therisks of not planning personalfinances as well as two sessionsentitled “financial fitness mattersand so do your dreams.”

“Our goal is to demonstratehow being financially fit is inte-gral to getting more out of life,”says Ms. Moskal.

STUDENTS LEND STUDENTSADVICE ONMANAGING LOANSEvery day during Financial Plan-ning Week, financial planningstudents at Fanshawe College inLondon, Ontario, are offering theirfellow students advice to helpthem better manage their studentloans.

Tools such as student-orientedbudget forms will help students settheir goals and anticipate expensesthat will arise during the year,enabling them to better managetheir loans.

“Many students arrive at collegehaving never been responsiblefor their own budgets,” says LynnOkanski, CFP, professor of finan-cial services. “They receive theirstudent loans as a lump sum earlyin the year and are faced with all ofthe responsibilities and tempta-tions that come with that. Often,that leads to problems. It’s excit-ing to see our financial planningstudents using their skills to helpother students.”

“FINANCIAL PHOTOGRAPH”HELPS PREVENTMONEY HURTSKeeping finances on track overthe course of a lifetime isn’t easy,as people’s financial and personalsituations are always changing.When things get out of sync, that’swhen money hurts.

“Most people don’t have a com-prehensive strategic financial plandirected towards where they wantto go in life,” says Richard Hobbs,a senior financial consultant atInvestors Group in Victoria, B.C.“It’s hard to manage the differ-ent financial pieces – expenses,insurance, retirement plans and soon – without a big-picture view toprovide context.”

Mr. Hobbs will lead four sessionsat Victoria’s Camosun College tohelp people better manage theirpersonal finances. An eveningsession is offered to high schoolstudents and their parents, whichwill cover the basics of debtmanagement, including studentloans and creating a financial

roadmap early in life. There willalso be an evening for businessstudents who have interest in thefinancial planning profession anda series of “brown bag lunches” forthe faculty and staff at CamosunCollege, which will cover financialliteracy topics.

MOREWAYS TO CELEBRATEFINANCIAL PLANNINGWEEK

Nova Scotia: Guest speaker GregGiffin will help clarify the idea ofa “Personal Pension Plan” withguaranteed income for life andwill show you how to invest todayand create an income you cannotoutlive.

Ontario: In Brampton, HeatherHoljevac, CFP, will conduct

Lunchtime Financial Informa-tion Check Ups.

Alberta: Kelley Doerksen,CFP, will present a financialplanning workshop for Uni-versity of Alberta students.The event will introducefinancial fundamentals tostudents in a practical wayso that they can apply thesemethods in their everydaylives.

British Columbia: DuringFinancial Planning Week,Prospera Credit Union isextending its complimentaryRoadmap financial planningservice, usually available just toits members, to all members ofthe public, with no obligation.

page 2 • AN INFORMATION FEATURE t h e g lo b e a n d m a i l • m o n day, o c to b e r 1 7 , 2 01 1

FINANCIAL PLANNING WEEK

EDUCATION

Building awareness offinancial planning acrossCanada

Take action todayand learn more aboutfinancial planning! Visitfinancialplanningweek.cafor dates and details onthese events or to findout what’s going on inyour community duringFinancial Planning Week.

fpsc.ca

76% of Canadians with a CERTIFIEDFINANCIAL PLANNER® professional feeltheir financial affairs are on track.

It’s the value of professional advice.

can change your life.advicethe right kind of professional

Statistics from FPSC’s Value of Financial Planning study, 2010. Copyright 2010 Financial Planning Standards Council. All rights reserved.

Visit www.fpsc.ca to find a CFP professional in your area.

FINANCIALPLANNINGSTANDARDSCOUNCIL®FP

SC

nowing the tricks yourmind plays when it comesto money may not turn

you into the next Warren Buffett,but it may save you from expen-sive blunders, warn researchers inthe area of behavioural finance.

Behavioural finance is thescientific study of behaviour: whatpeople actually do when theychange jobs, choose a house, buystocks and make other real-lifedecisions. More often, peoplerelate behavioural finance toinvestments decisions. However,most of what we can learn frombehavioural psychologists canbe applied to everyday decisionslike budgeting and cash flow. (It’snot called “impulse” shopping or“retail therapy” for nothing.)

The overriding conclusion: Leftto their own devices, consumersare prone to engage in all kinds ofgoal-sabotaging behaviour.

“Often, we become our ownworst enemy,” says Sucheta Ra-

jagopal, a financial advisor withHampton Securities in Toronto.“It’s important that you not letyour financial decisions be drivenby the size of today’s headlines ora bad day, for instance.”

It’s all about understanding ouremotions, Ms. Rajagopal explains.For example, overconfidencemakes us misjudge our skills, mis-read market moves, make riskierbets and lose money as a result.Similarly, depression and unhap-piness make us overcompensatein other areas such as spending onthings we cannot afford or need.Fear of the unknown may makeus reluctant to prepare a will orpower of attorney.

We are also very good at foolingourselves, searching for evidencethat confirms our intuition whileoverlooking facts that might refuteour feelings.

To work against this, you need asolid framework to help you meetyour financial goals, says Tamara

Smith, vice president of Market-ing and Consumer Affairs for theFinancial Planning StandardsCouncil. “Identifying the rightpersonal financial advisor is animportant first step in this pro-cess,” she emphasizes.

The FPSC recommends that youwork with a Certified FinancialPlanner professional to help focusyour attention on core issues andhelp you stay on track. “They're go-ing to ask you the right questionsand help you concentrate on theitems and goals that matter,” Ms.Smith says. “Often, we don’t knowwhat really drives our thinking,and that can lead to trouble.”

Figuring out your life goals is anessential element here, suggests

Ms. Rajagopal, who has been aCFP professional for a number ofyears.

The truth is that most consum-ers have no idea what their goalsin life are and how to managetheir financial resources to getthere, says Ms. Smith.

They also have conflictingemotions that encourage them tomake bad decisions, Ms. Rajago-pal concludes. “Establishing clari-ty and helping a client understandtheir relationship with money iswhat financial planning is reallyall about,” she says. “We try to setup guardrails, distinguish wantsfrom needs, and develop strate-gies to deal with these sorts ofchallenges when they do arrive.”

AN INFORMATION FEATURE • page 3the globe and ma il • monday, october 17 , 201 1

TAKE ACTION NOW

BEHAVIOURAL FINANCE

Stop being your own worst enemy!

ADVICE

10 questions to ask when hiring a planner

Think of interviewing a potential planner as similar to interviewing aperson who is applying for a job you’ve posted. In a way, they are – theywant to be your personal moneymanager! And you need to ask theright questions to see if this person is ethical and competent to handlethe responsibility of managing your financial future.

Don’t be afraid to ask these and any other questions you feel need afull and open answer. Any professional will welcome them.1. What are your qualifications?2. What experience do you have?3. What services do you offer?4. What is your approach to financial planning?5. Will you be the only person working withme?6. Howwill I pay for your services?7. Howmuch do you typically charge?8. Could anyone besidesme benefit from your recommendations?9. Are you regulated by any organization?10. Can I have it in writing?

For more information, visit www.fpsc.ca.

Achieving your financial goals begins with understanding your emotions,says expert. PHOTO: ISTOCKPHOTO.COM

“Financial plannersare going to ask youthe right questionsand help youconcentrate on theitems and goals thatmatter. Often, wedon’t know whatreally drives ourthinking, and that canlead to trouble.”

Tamara Smith,Vice President, Marketing andConsumer Affairs, FinancialPlanning Standards Council

™Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations. Investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm) andInvestors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund.

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page 4 • AN INFORMATION FEATURE t h e g lo b e a n d m a i l • m o n day, o c to b e r 1 7 , 2 01 1

Q&A with Cary List, President andCEO, Financial Planning StandardsCouncil

Why is it essential that consumersunderstand financial planningdesignations?Financial planning is a processof determining how you can bestmeet your life goals through effec-tive management of your finan-cial affairs. It is common to viewinvestment portfolio managementas equivalent to financial planning,but investing is just one element.Financial planning includes payingoff your bills, making sure you’reputting the right amount of moneyaway for the right needs over yourlifetime and that you’ve protectedyourself against unforeseen cir-cumstances such as personal risks,injuries, disabilities and loss ofemployment.

It’s not so much about whatparticular mutual funds or invest-ments you choose, it’s aboutgetting the right advice for yourspecific needs.

Your organization is hosting asymposium to address this evolu-tion. What are themost importantquestions you’ll be addressing?Consumers are looking for theright advice from the right indi-vidual. As an industry, we havea responsibility to clearly definetitles and the role: how is a certi-fied financial planner differentfrom an investment advisor or amutual fund representative? Howdoes the consumer really know thedifference?

In other professions, titles areclearly defined – everyone knowsan architect is an architect, an inte-rior designer is an interior designer,and a lawyer is a lawyer. What isthe right solution for the financial

services industry?At the symposium, we’re asking

what we can do to consolidate andclarify all the various designations– which don’t currently mean a lotto consumers – in order to achieveone designation that clearly signalsto consumers that the individualbearing the designation is quali-fied to do comprehensive financialplanning.

We know that quality financialplanning is fundamentally impor-tant to the well-being of Canadians.We believe that we can eliminateconfusion and enhance consumerprotection.

What is The Coalition for Profes-sional Standards for FinancialPlanners?Our mandate is working towardthe establishment of a common setof national standards that wouldprovide Canadians with clarity andbetter protection when engagingfinancial planners.

Coalition members include ourorganization, the Canadian Insti-tute of Financial Planners (CIFPs),The Financial Advisors Associationof Canada (Advocis), the Instituteof Advanced Financial Planners(IAFP) and the Institut québécoisde planification financière (IQPF).

In the current environment, whatare some of the ways that Cana-dians can ensure they are gettingthe right advice from a qualifiedprofessional?Do some research. The vast major-ity of Canadians use the servicesof a financial planner to help themwade through complex and inter-related financial issues. If you’reconsidering an RRSP loan, forexample, there is much more toit than whether the interest costsmore than the amount you’ll gainthrough the tax refund. Should yoube paying credit card debt first?Are you trying to save money fora home? There are so many waysthat individuals and families canbenefit from the services of a quali-fied financial planner.

But it is important to chooseyour planner wisely. The CFPdesignation is a rigorous, interna-tionally recognized designationthat requires the completion of acomprehensive education curricu-lum, conferred by colleges, univer-sities and other educators acrossthe country, two separate examsadministered by our organization,an integrated financial planningcapstone course before certifica-tion, along with annual educationrequirements.

At the moment, it is incumbentupon Canadians to make suretheir financial planner is quali-fied through certification. Do yourhomework – check our website toensure that anyone who uses thedesignation is a member in goodstanding. Interview him or her. Askabout their approach to financialplanning, their team and how they

are compensated.Our work at the coalition sup-

ports the recommendation fromthe Federal Task Force on FinancialLiteracy, which highlighted theneed to help consumers becomebetter informed when choosinga financial practitioner. We areworking toward a day when allCanadians who engage financialplanners can be assured that thereare national standards in place.

Now into its third year, the popularFinancial Planning Vision 2020 Sym-posium will be held on October 19,2011, at the Old Mill in Toronto, On-tario. The symposium is attended byindustry leaders, regulators, govern-ment officials and financial planners,producing lively discussion on currentand emerging issues in the financialplanning industry. For more informa-tion, visit www.FPSC.ca.

TAKE ACTION NOW

VISION 2020

Ensuring your financial planner is qualifiedand compatible with your needs

“Financial planningincludes paying offyour bills, makingsure you’re puttingthe right amountof money awayfor the right needsover your lifetimeand that you’veprotected yourselfagainst unforeseencircumstances suchas personal risks,injuries, disabilitiesand loss ofemployment.”

ADVICE

In the absence of comprehensive regulation,it’s buyer beware

It is important that Canadians be aware that there is currently nooverarching provincial or national rule restricting the use of the term“financial planner,” says Stephen Rotstein, vice president, Policy &Enforcement & General Counsel, Financial Planning Standards Coun-cil (FPSC).

“Unfortunately, people often come to see us after the fact, whenthey’ve seen someone who is not a Certified Financial Planner andhave had problems. We strongly believe that wemust work toward amandatory, comprehensive approach to the regulation of financialplanning with the goal of better consumer protection.”

Until then, through Financial PlanningWeek and other initiatives,FPSC works to educate Canadians that the CFP designation identifiesqualified individuals. “Individuals who call themselves CFP profes-sionals are subject to a code of ethics and practice standards, andthere is a rigorous enforcement system in place.”

More CFP®

professionals forCanadians to count on

ALBERTABarr, RyanBilyk, AdamChen, Guo HuaChong, HildyDeRosa, DarrenForrest, ChristopherGarde, SalmaGilani, NaheedHowell, PrestonInglis, EvanKakkar, PragyaKam, Wei TaoKew, ScottKwok, JeremyLowry, ClarkLum, CalvertMacdonald, KurtisNadeau, WandaOkrainetz, ShaunParhar, DaneshRupprecht, JoelSenkiw, AlexSpevakow, AaronStauffer, CarlaTaimuri, RoxanaTucker, JosephTucker, SusanTupman, JulieTwerdochlib, ClaytonWagner, JosephWhite, KevinWunder, Christopher

BRITISH COLUMBIAAndersen, ShaneAvram, LauraAziz, OmarBensimhon, MikeCastonguay, TomChakraborti, MoniChen, David

Chin, Chi ChungChou, PhillipDiep, JamesEvans, JonathanFung, KennyGeorge, ChristopherGreen, AbbieHall, GeoffHong, JeehoonHu, FredHunt, RoryJelic, JohnnyKelsh, JeffLatimer, RochelleLeach, BobbieLethbridge, QuentinLi, MengLi, NanLin, Ko JohnLockhart, JakeLong, BuhaiMacLean, DanielMclaren, SandhyaMurray, ScottPage, Lee-AnnPaquette, GarrettParikh, Madhuri (Margie)Pather, KellyRussell, JoyceSchmidt-Weinmar,

JohannesSchultheiss, PhilippeSidhu, DalwinderSinclair, AngusStafford, CampbellTalabis, Girlie GraceWan, Janet Siu YingWang, WeiWong, CrystalXu, MengZou, Shang

MANITOBABergen, CorwinCampbell, MatthewHamilton, LesleyMcDonald, OlivePaterson, CarolynRodrigue, ChristopheSahota, Kuldeep

NEW BRUNSWICKDupuis, MarleneFearn Gallant, JulieShanks, Greg

NEWFOUNDLAND& LABRADORCormier, Dean

NOVA SCOTIAEaton, StevenJenkins, Daniel

ONTARIOArora, VarinderAshton, LisaAujla, RanjitBlake, RyanBrown, AaronBrutto, MassimoCampbell, SpencerChan, Vivian Ping ChingChan, WiltonChehlawi, JadChiu, CharlesChowdhary, RupinderChwaf, RamezColbourne, BradCornacchia, MichaelCruz, RaymondD’Alimonte, RobertDias, DennysDuggal, Sanjeev

Dupree, AdamDurst, JonathanDusting, PatriciaFeigin-Lubomirski, EricFowler, StephanieGeorge, ShaunaGerrie, GaleGlover, WilliamGomes, MichaelHooper, ChrisHooton, DavidHou, Hai PeiJackson, AtibaKhan, HammadKlisouras, MagdaleneLawson, LeslieLin, JonathanMammoliti, MichaelMansour, KhaledMaple, SeanMcLeod, LeeMoon, Hyon ChungMorris, CharleneMorrissey, Paul JosephMurray, DavidNablo, KristaNagy, RyanNewman, DeanO’Leary-Brunton, K.Michelle

Osborne, ChrisPadhya, MukulPaley, DeanPiras, ElissaPlayford, ChristopherPollock, GregRawlings, Anne MarieReynolds, TimothyRichard, AdamRichmond, DanielRowe, MarkSearle, Nick

Shanderuk, MichaelSharma, NareshSilva, RaviniSimoes, JorgeSleegers, RobertSpencer, MarjorieSt. Germain, ValStephenson, EdwardSun, CuinanTran, Mai LyTraversa, AnthonyTsang, AnnieTurcan, VeaceslavVacher, SonyaVanGassen, EricVermeulen, ElizabethVu, QuyenWang, XukunWarrington, VaughnWaters, JamesWhitehead, StewartWynter, AliceXu, Jia LongYang, XiaohuYe, JunshengYi, Shawn (Seung)Zetu, CatalinZulkiewicz, Laura

SASKATCHEWANAmos, DeannaBaerg, ColinBellay-Dieno, JaneaBunnie, ShelleyHess, BarbaraHewson, TaylorHoesgen, RobertMorrison, Krystal

CFP®, CERTIFIED FINANCIAL PLANNER® and are trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the markslicensing authority for the CFP marks in Canada through agreement with FPSB. ©2011 Financial Planning Standards Council. All rights reserved.

®

FINANCIALPLANNINGSTANDARDSCOUNCIL®FP

SC

®

Financial Planning Standards Council (FPSC) is proud to recognize the following 188individuals who have obtained CFP® certification between Oct. 1, 2010 and Sept. 30, 2011.CFP certification is a demanding process requiring the completion of a thorough educationin financial planning, successful completion of two rigorous standardized examinations,financial planning-related work experience and an ethical commitment to putting theclient’s interest first.

Numbering almost 18,000, CERTIFIED FINANCIAL PLANNER® professionals represent the largestidentifiable body of financial planners in Canada. CFP certification provides assurance thatthe planner is committed to internationally-recognized professional standards ofcompetence, ethics and practice as set and enforced in Canada by FPSC.

Financial Planning Standards Councilproudly announces the first recipientsof the FELLOW OF FPSC™ distinction.These individuals are recognized for theiroutstanding contribution to furtheringFPSC’s vision and for advancing thefinancial planning profession.

ALBERTARyan BeebeDan BusiJohn CarpenterMark ThomasLarry Wood

BRITISH COLUMBIAMark LeslieDon NilsonRandy ReynoldsBradley RoulstonLarry Stubbs

MANITOBADebbie Ammeter

SASKATCHEWANCheryl Bauer-HydeRod Tyler

ONTARIOJohn DeGoeyGarry DuncanCarolyn FallisAlan GoldharRon HarveyGena KatzNaguib KerbaCynthia KettDave KohlerJury KopachMichael LemCraig LilleyCary ListPatricia Lovett-ReidJoanne MageeJohn MurrayAlastair RickardChris RobinsonTina TehranchianPeter Volpé

F E L L O W O F

FPSC

CFP®, CERTIFIED FINANCIAL PLANNER® and are trademarks owned outside theU.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning StandardsCouncil is the marks licensing authority for the CFP marks in Canada through agreementwith FPSB. ©2011 Financial Planning Standards Council. All rights reserved.

®

SPECIAL INFORMATION FEATUREMONDAY, OCTOBER 17, 2011 - THE GLOBE AND MAIL

T he majority of Canadians(61 per cent) between theages of 45 and 64 don’t

have a written financial plan, ac-cording to the TD WaterhouseFinancial Planning Poll. This canleave them more vulnerable tovolatile markets and possibly lessable to reach their personal goalsin retirement.Of those who don’t have a plan,almost one-quarter (23 per cent)said they don’t think it’s neces-sary. Fifty per cent said theyknow they should have one buthave not got around to it yet.“They haven’t seen the benefitsof having a plan,” Lee Bennett,senior vice-president, TD Water-house Financial Planning, saysof Canadians who want a planbut procrastinate. “The profes-sionals within the financial plan-ning community can outline themany benefits of having a planand work with you to put a planin place that will help you reachyour long-term financial goals.”Those benefits are huge, shesays. “A plan gives people op-tions to make decisions. Withouta plan, you may not have as manyoptions. It’s about taking controlof your life, and understandingwhat you can do in the future.”When Canadians with a finan-cial plan were asked what thebenefits were, 53 per cent saidthey feel more confident abouttheir financial future, 48 per centsaid they have steps in place toreach their goals, and 34 per centsaid they have a formal plan toreference. Only four per cent saidthey don’t see the benefits.Having a plan offers protectionduring periods of market volatili-ty, Ms. Bennett says. It helps keepinvestors focused on their long-term strategy rather than react-

ing emotionally to the worries ofthe moment. Financial advisersconsider volatility in the markets,interest rates and inflation, whencreating a financial plan, shesays, and people who have a well-balanced plan find that marketswings have a minimal impact ontheir ability to reach their goals.The TD Waterhouse FinancialPlanning Poll found that amongCanadians who worked with a fi-nancial planner to develop theirwritten plan, three in every foursaid that they worry less aboutmarket fluctuations. Three infour also feel at least somewhatconfident in their investments, inspite of recent market unpredict-ability.A key to that confidence is the

ongoing communication betweenthe investor and adviser, Ms.Bennett says. “You can’t avoidwatching what’s in themedia, andso there is definitely heightenedconcern about the market vola-tility. Financial advisers are veryproactive in reaching out to theirclients to talk to them about whatis happening in the market todayand what that means to them andtheir plan. That’s why those whohave a plan are feeling more con-fident that they will weather themarket volatility – because theyhave the ability to talk to some-body about what is happening inthe short period and what thatmeans to them, long-term.”Among those who have a plan,47 per cent said they don’t feelthey need to change anything, inspite of the up-and-down marketactivity, and 36 per cent said theybelieve that their financial plancan weather the market storms.A financial professional helpsclients work through their life-style goals and their risk toler-

ance, while considering theirincome, expenses and taxes andasking, “What are you trying toachieve in the next year, the nextfive years, and the next 10, andeven further out?” Ms. Bennettexplains. “And then highlight-ing the steps to achieving thosegoals.”One key question people askis, “Will I outlive my savings?”“We help people to understandthat maybe there are some ex-penses they need to cut back on,or maybe they actually have moremoney than they realize. The planwill help them see where they willbe in 20 to 30 years and wheth-er they’re going to have enoughsaved to meet their needs.”A plan doesn’t necessarily tellpeople when they can retire, Ms.Bennett says. “That’s a personaldecision. I think that’s part ofdetermining what your goals are.Many people are working longerbecause they want to, not becausethey have to. And people are in-vesting differently, and have dif-ferent sources of income. Somepeople have rental income or in-come from investments. Othersjust have income from work. Aplan brings everything togetherinto one document, so it can beclearly seen and people can makebetter decisions as they move for-ward.”A plan is not set in stone, Ms.Bennett says.“A plan isn’t just a documentthat you create and put away. Itshould be something you contin-ually revisit. It will evolve as youevolve and your needs change.It’s almost like a living document.It helps you achieve your goalsthrough your different life stag-es – and adapts along with yourwants, needs and priorities.”

Driving without a mapMany Canadians are missing out on the benefits of a financial plan,

even as they near retirement, the TD Waterhouse Financial Planning Poll finds

Canadians who havea financial plan mentionthese benefits:

Feeling more confidentabout their financialfuture (53 per cent)

Having steps in placeto reach their goals(48 per cent)

Having a formal plan toreference (34 per cent)

Source: The TD

Waterhouse Financial

Planning Poll shares

results from an online

survey conducted from

September 28 to October

3, 2011, among a sample

of 1,207 Canadians aged

45-64.

Lee Bennett, senior vice president,TD Waterhouse Financial Planning

Expect theunexpectedHow to plan for the best,

and worst, life can throw at you

Many Canadians are liv-ing beyond their means,leaving them vulnerable

to unexpected events, such as thedeath of a spouse, the loss of a jobor the need for major home re-pairs, says Crystal Wong, seniorregional manager, TD Water-house Financial Planning. A com-prehensive financial plan createdwith the help of a financial plannershould include a realistic budget,and measures to protect peopleagainst the unexpected, she says.Q: How does one planfor the unexpected?A: We can’t predict the future.

The best way to prepare is tohave a written, comprehensivefinancial plan that works towarda financially secure future, andwhich includes a plan for retire-ment. A written comprehensivefinancial plan is an extremelyvaluable asset.Q: Why is it such a valuableasset?A: It will embed all of your lifeevents, expected and not expect-ed, to ensure you’re financiallyprepared to handle whatever lifethrows your way.Q: What are some measuresin a financial plan that pro-tect against the unexpected?A: Life insurance can provide anincome for your family, providefunding for children’s educationor pay your final expenses. Let’snot forget about critical illness andaccident insurance. Another ideais to consider pre-qualifying for aline of credit or a home equity lineof credit. Then you have access tocredit when you need it and thereis no cost if you don’t use it. A lineof credit would give you the con-fidence that you would be able tosupport your family for a numberof months if something happenedand you did not have a regular in-come coming into the household.And you will hear every finan-cial planner talk about having anemergency fund that provides youwith about six months worth ofliving expenses should somethingunexpected happen.Q: How does one create anemergency fund? Many Ca-nadians are living week toweek.A: The best way is to set asidemoney each week or pay cheque,whether it be $25, $50 or $100– whatever your budget allowsyou to do. A financial plan shouldhave a very solid budget. Youwould be surprised what you canactually carve out and put towardsavings. Then we can assign thosesavings to different life goals suchas retirement, saving for yourchildren’s education, home reno-

vation or a vacation property.Making sure you’re not living be-yond your means and spendingmore than you’re making is prob-ably one of the biggest challengeswe have.Q: To what extent do you seepeople living beyond theirmeans and unprepared forthe unexpected as a result?A: On average, Canadians have avery high level of debt compared totheir disposable income.When youfind that you are not accumulat-ing savings every month, it’s timeto swing back to your financialplanner. A financial plan can helpclients understand their entire fi-nancial picture as it considers theirinvestment goals, risk tolerance,income, expenses and taxes.Q: Do Canadians have togive up their frills to preparefor the unexpected? Some ofthose frills may feel very im-portant, like summer campsor private schools.A: Every family situation is dif-

ferent and that’s why every fam-ily needs to determine what areneeds and what are wants. Indi-viduals should look at the big pic-ture and set priorities. Often theywon’t understand what those pri-orities are until they list them andthey’ve got them in front of theirfinancial planner.Q: What particular challeng-es do women face in prepar-ing for unexpected eventssuch as divorce or the loss ofa spouse?A: Often they lack confidencewhen it comes to taking over ev-erything all at once.Weencouragewomen to educate themselves, beinvolved, talk to a financial plan-ner so they can understand whatan emergency fund is, what theirfinancial situation is and what in-vestments they have. The moreinvolved they are, the more likelythey will be prepared in the eventof divorce or death.Q: What if the unexpectedcomes and there’s no plan?Is it too late to develop one?A: It’s never too late.

Crystal Wong, senior regionalmanager,TD Waterhouse FinancialPlanning

One key

question

people ask is,

"Will I outlive

my savings?"

TD Waterhouse

She’s always been a free spirit. Why shouldit be any different in retirement?

TD Waterhouse Discount Brokerage, TD Waterhouse Financial Planning, and TD Waterhouse Private Investment Advice are divisions of TD Waterhouse Canada Inc., a subsidiaryof The Toronto-Dominion Bank. TD Waterhouse Canada Inc. – Member CIPF. TD Waterhouse Private Client Services means The Toronto-Dominion Bank and its related companiesthat provide deposit, investment, loan, securities, trust and other products and services. TD Waterhouse is a trade-mark of The Toronto-Dominion Bank, used under license.

While retirement may be years away, you take pride in striving to balance today’sfinancial goals with tomorrow’s dreams. So do we. At TD Waterhouse, our retirementplanning advice can help you make the most of your financial life, whether it’s payingdown a mortgage, contributing to RSPs or securing your children’s future. And youcan feel good knowing that one-on-one advice, backed by a team of investmentprofessionals, is behind you every step of the way, year after year. The result?Call it the right balance between confidence and peace of mind.

The first step to the retirement you want starts with contacting us today.

Talk to TD Waterhouse. Together we’ll help turn yourretirement dreams into reality.

Start getting ready for the retirement you’ve always wanted.Call 1-866-638-5321 or visit www.tdwaterhouse.ca

page 6 • AN INFORMATION FEATURE the globe and ma il • monday, october 17 , 201 1

re you one of the mil-lions of Canadians whohave trouble meeting

increasing costs and financialdemands? If so, you aren’talone. One of the reasons couldbe that you lack a clear un-derstanding of your personalfinancial situation. The goodnews? This can change!

“Companies have reducedpensions [for employees], edu-cation costs have tripled in thelast decade and rising real estateprices have doubled the size ofmortgages – but salaries haven’tgrown that much,” notes KurtRosentreter, a CA and CFP withManulife Securities in Toronto.“No wonder families face amoney crunch.”

While financial problems arecommonplace, few people takesteps to address them. BradleyRoulston, CFP and partner withHealthcare Financial Group inVancouver, says that’s becausemany people find financialplanning complicated andconfusing.

“Financial planning will onlybe as good as people’s under-standing of the process,” hesays. “I describe it as a financialhike, which is easier for many

people to picture.”Step one on that hike is deciding

where to go – in other words, writ-ing down your financial goals.

“Simply writing down your goalsand sharing them with othersmakes it much more likely you’llachieve them,” Mr. Roulston says.

A written financial plan alsohelps people prioritize where tospend money.

“Pay down the mortgage, buyRetirement and Education SavingsPlans, increase your life insurance– you should do them all, but fewCanadians have the financial re-sources to do everything at once,”Mr. Rosentreter says. “A financialplan identifies the most importantplaces to put your money at eachstage of your life.”

The next step on the hike is tounderstand your cash flow, whichMr. Roulston calls staying finan-cially hydrated.

“There are financial faucets:your paycheque, investmentincome and other sources ofmoney,” he says. “There are also fi-nancial drains: taxes, debt chargesand the things you buy from dayto day. Unfortunately, most peoplehave only a vague idea of wheretheir money goes.”

Many financial planners requiretheir clients to track every dollarthey spend. At the end of themonth, the purchases are totalledand categorized – automobile,home, meals and entertainment,etc. – to create a spending picture.

It may not be the most excitingactivity, Mr. Rosentreter admits,but he emphasizes that it can beempowering. “Once you knowwhere your money is going, thenyou can control it.”

Setting goals and understand-ing and monitoring cash flowalso helps identify other requiredfinancial planning components,including risk management (insur-ance, lines of credit and other re-sources to draw on when things gowrong), short-term investments,longer-term retirement savingsand estate planning.

Mr. Rosentreter recommendsgetting a written financial plan

from an advisor that sets out theclient’s goals and the strategiesto achieve them, as well as an en-gagement letter that describes theservices the advisor will provide.

Also important is a dashboardthat clearly reports progress to-

wards each financial goal. “Interestrates change, investments mayincrease or decrease in value.You can’t track all of that in yourhead. You need a clear report toknow your financial position,” Mr.Roulston says.

FINANCIAL PLANNING WEEK

PERSONAL ASSESSMENT

Are you packed for life’s financial “hike”?

NOVEMBER IS FINANCIAL LITERACY MONTH

Fall is always a great time to get your house in order to prepare forthe coming winter. And there is no better time for Canadians to gettheir finances in shape and strengthen their financial literacy. Tohelp Canadians find the resources they need, the Financial LiteracyAction Group (FLAG), in collaboration with the Financial ConsumerAgency of Canada (FCAC), has announced that this November willbe Financial Literacy Month. Financial Literacy Month will raiseawareness of the need for financial literacy and encourage Canadi-ans to seek information, programs and services to help strengthentheir financial knowledge.

To support Financial Literacy Month, a website has been developedto help inform Canadians about the multiple programs, events andservices offered by many organizations across the country:www.financialliteracymonth.ca

“Financial planningwill only be asgood as people’sunderstanding of theprocess. I describe itas a financial hike,which is easier formany people topicture.”

Bradley Roulston,Certified financial planner,Partner, Healthcare FinancialGroup, Vancouver

Clients should expect a professional advisor to provide a written financialplan that sets out the client’s goals and the strategies to achieve them, aswell as an engagement letter that clearly describes the advisor’s services.PHOTO: ISTOCKPHOTO.COM

CFP®, CERTIFIED FINANCIAL PLANNER® and are trademarks owned outside the U.S. byFinancial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council isthe marks licensing authority for the CFP marks in Canada through agreement with FPSB.©2011 Financial Planning Standards Council. All rights reserved.

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