Why middle-income Canadians in their 40’s needs an advice only financial plan
Your 40s are a glorious time. You’re old enough to know better, young enough to still do something about it, and smack dab in the middle of a financial balancing act that makes Cirque du Soleil look like a kid on a teeter-totter. Mortgage, kids, saving for retirement, aging parents — the list is endless. But don’t worry; you’re not alone. This is where an advice-only financial plan comes in to help you pull off your greatest act yet: securing your financial future.
What Is an Advice-Only Financial Planner?
Unlike other financial advisors who might try to sell you products like mutual funds, insurance policies, or a magical “get-rich-quick” scheme (spoiler: there’s no such thing), an advice-only financial plan offers exactly what the name suggests: unbiased, professional advice.
Why Now? Why Your 40s?
Your 40s are a financial sweet spot — or, let’s face it, a sour patch. Your kids might be in braces, you’re trying to figure out how to pay for their education, and your knees are starting to groan every time you climb the stairs (welcome to midlife!).
This is the perfect time to:
Avoid expensive mistakes like borrowing from your RRSPs to renovate the kitchen. (Your 2035 self will NOT thank you.)
Plan for retirement so that Future You doesn’t end up in your kids’ basement, arguing about whose turn it is to load the dishwasher.
Organize your cash flow so your money is working as hard as you are.
Benefits of an Advice-Only Financial Plan
Tax Smarts Now, Retirement, and Beyond
Now: An advisor can help you figure out whether contributing to an RRSP or a TFSA or FHSA(or all three) makes the most sense for your situation. Spoiler alert: It depends on your tax bracket.
Retirement: They’ll guide you in creating a withdrawal strategy that minimizes taxes and keeps the CRA from crashing your retirement party.
At Death: Yes, even here taxes are a thing. A planner can help you organize your estate to ensure the government gets less and your heirs get more.
Clarity on Cash Flow
Knowing how much money is coming in and where it’s going is critical. A planner can help you prioritize: mortgage payments, RESP contributions, and that annual vacation to escape winter.
They'll also make sure you’re setting aside enough for emergencies. Life happens — the furnace dies, the car breaks down, or your kid suddenly needs $500 for a “mandatory” school trip.
Purpose for Your Money
A planner will help you align your financial goals with your values. Do you want to retire early? Pay for your kids’ education? Travel the world? Buy a lifetime supply of golf balls? Whatever your dreams, they can show you how to make your money work towards them.
Peace of Mind
You’ll sleep better knowing you have a roadmap for your finances. It’s like having GPS for your wallet and purse, minus the annoying “recalculating” notifications.
Costs
An advice-only plan charges a flat or hourly fee, usually ranging from $1,500 to $5,000 for a comprehensive plan. Yes, it’s an investment. But consider the cost of NOT having a plan:
Ppotentially paying thousands in unnecessary taxes.
Living in financial chaos, which could lead to stress, arguments, and possibly a regrettable midlife crisis purchase (a boat? really?).
A Legacy
Working with a planner doesn’t just benefit you; it’s a gift to your entire family. You’ll teach your kids the importance of financial literacy, ensure your spouse is on the same page, and reduce financial stress at all stages of life.
Conclusion
Having an advice-only plan in your 40s isn’t just a good idea; it’s the best decision you can make for your financial future. You’ll gain clarity, confidence, and control over your money, ensuring it works for you now and well into the future. Plus, you’ll avoid waking up at 65 wondering where it all went.
*ChatGPT may have been used in developing this article