Posted by Tim Stobbs on June 6, 2008
It’s amazing how a vacation and the birth of a baby can completely derail a exercise. Well after several delays on my part Preet and I finally finished up looking at my plan in detail and ironing out some minor issues. I now have a 50 page report on my financial plan with year by year numbers of where I should be at any point over the next 15 years of savings (my net worth will be right around $1 million when I retire) and 50 years in retirement (not that I really expect things to follow the plan that exactly).
In the last edition of our work Preet managed to modify his software to simulate the Tax Free Saving Account and we used it to melt down my RRSP’s a bit earlier which in turn reduced my tax bill over the lifetime of the plan by about $60,000. The good news is my retirement plans looks reasonable and I have a series of backup plans to cover myself if things don’t turn out the way I want (such as downsizing the house, or working part time in early retirement).
I also got a detailed plan on how to modify some of my investments by using ETF. It’s based on the template of my original investments of around 25% each for Canadian index, S&P 500 index, international index and bond index. Then we added a few minor elementals like a little real estate , agriculture, and infrastructure exposure as well had a nice discussion on what ETF that would work well for my plans.
I’m pleasantly surprised that I’ve enjoyed my first experience working with an adviser given the fact I’m one of die hard DYI investors which distrust most of the industry. Preet seems to be a bit of an exception, he honestly wants to help people and he loves his job.
Now the big question: what did all this cost? Well there is some good news. Preet has just launched a flat free pricing for this kind of work. So for a financial plan and a investment statement it will cost you $1500. Which is fairly reasonable given the amount of work that goes into the report and investment plan. If your interested in having a plan done for yourself check out this page.