During the discovery meeting, you will have a conversation with the editor to find out more about you, your interests, and what you want to achieve. They will also ask you about your current and expected future status. Basically, they want to get a snapshot of you, how you live now, your finances, and how things might change in the future.
This information, once written, gives you and your planner a big-picture view of where you are now and where you’re headed. Depending on the consultant, they will present this to you in the form of a report, video, computer model, or other method. This gives you a foundation to work from as you begin to plan and visualize what you would like your future to look like. I refer to this phase as scenario planning.
Scenario planning is about evaluating different lifestyle and financial decisions to see what impact they will have on your future. It’s like stepping into a flight simulator, with your planner by your side giving you feedback. You explore different options, like your husband retiring now or in two years, and see the results before you commit to anything in the real world.
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Doing scenario planning lets you know what’s possible so you can start making good decisions and setting goals. If your husband’s goal is to retire now, will he have enough money? If not, what can you do? There may be a number of solutions you can follow to generate the income you need, but which one is right for you? It’s a solution you believe in, and are willing to implement.
Your solutions will be based on lifestyle or finances, or a combination of both. You are in control of your lifestyle decisions, and they often have a greater impact than financial strategies. Examples of lifestyle decisions include working longer or part-time, downsizing your home, traveling less, etc., and financial strategies may include delaying Canada Pension Plan (CPP) and/or Old Age Security (OAS), investing for higher expected returns, or deciding which accounts to get: non-registered retirement fund (RRIF), TF tax-free savings account, etc.
From problem to solution
Take the time to test these different solutions to see the results. By trying different solutions, with an editor explaining what you see, you will quickly learn how everything fits together and you will be able to make good decisions with confidence.
With your plan in place, it’s time to implement it while keeping in mind that things are always changing, and you may want something different tomorrow than today.
That’s okay though because throughout the planning process you have a good idea of how everything works together. Continuously, annually, repeat each step in the process: another discovery meeting, situational planning, solutions, action. Make every year a good year, and you will have good health.
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It shouldn’t be too difficult to find an editor who can help you with this and how they charge shouldn’t interfere with the editing process. If you’re not sure where to find a planner try MoneySense’s Find a Qualified Advisor tool, FP Canada’s Find your financial planner page, the Financial Planning Association of Canada’s Find a financial planner directory, or ask AI “Who is a reputable financial planner near me to help me get an overview?”
Jackie, again, your question is not a secret one, and I hope you don’t dread the thought of seeing a planner, because financial planning is for everyone, not just the rich. A good planner will show you the big picture, and you may find that, whatever you decide, it feels much smaller once you see it.
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