“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

Three Ways To Spot A “Bad” Financial Plan

Three Ways To Spot A “Bad” Financial Plan

As an advice-only financial planner we often see financial plans created by the big financial institutions. We provide a second opinion to new clients who have created one of these financial plans. These clients have received a financial plan from their investment advisor, or sometimes a separate financial planner within the bank, but they’re skeptical of the results and the recommendations.

Often, they want more detail, more discussion, more process, more scenarios, more peace of mind etc. They want an unbiased second opinion.

Now let me preface this blog post by saying there are many excellent financial planners at the big banks. In fact, many have moved into advice-only financial planning where they can spend more time doing financial planning instead of selling products. The problem is that, for the most part, the financial services industry doesn’t prioritize financial planning.

Planning is not their product, investments, insurance, and mortgages are their product, and unfortunately, financial planning is sometimes just barely good enough to secure a new client or keep an existing one. There is often a lack of tools, time, or process to create a really detailed financial plan.

So, when reviewing a generic “bank plan” and helping clients build a new one there are a few things to look out for. These things are signs that perhaps the financial plan needs a bit more work.

There are three ways to spot a “bad” financial plan.

read more
The CPP Max Will Be HUGE In The Future

The CPP Max Will Be HUGE In The Future

Did you know that the Canada Pension Plan (CPP) is getting bigger? Every year since 2019 CPP has been expanding and it will continue to expand for the next 40+ years until 2065. By the end, CPP will be HUGE!

CPP is an important retirement benefit. The old “base” CPP aimed to replace 25% of pre-retirement employment income. The new “expanded” CPP will increase this amount to 33.33% and will cover a larger amount of pre-retirement of income. The result is that CPP will be over 50% larger in the future.

If we follow the rule of thumb* that suggests that we need 70% of pre-retirement income in retirement, then for the average Canadian the new expanded CPP could provide nearly half of retirement income in the future. When combined with OAS this means that over half of retirement income could be covered by CPP and OAS combined.

And if we consider that the maximum annual CPP payment could be over $7,000 per year higher in the future (and over $14,000 per year for a couple), that could mean the average Canadian needs to save hundreds of thousands less for retirement.

In this post we’ll look at the current maximum CPP payment, the maximum CPP contribution, the current contribution rate, and how these will change in the future as CPP expands. We’ll also look at how the current “base” CPP will grow by over 50% in the future…

read more
High Investment Fees Could Cost You $1,000,000+

High Investment Fees Could Cost You $1,000,000+

Imagine paying $1,000,000 in investment fees? It seems crazy, doesn’t it? There aren’t many things I could imagine spending that much money on, and investment fees would certainly be at the bottom of the list. And yet, there are millions of Canadians who could end up paying this much, or possibly more, in investment fees over the course of their life.

If given an extra $1,000,000, what would you spend that money on? Probably not investment fees. I would probably spend that money on a vacation, a cottage, a reno, or a hundred other things before choosing to spend extra money on investment fees.

But for a mutual fund investor in Canada, over time, high investment fees could easily add up to $1,000,000+.

If you don’t believe me, or just want to see the details, lets take a look at the numbers together…

read more

Owen Winkelmolen

Advice-only financial planner, CFP, and founder of PlanEasy.ca

Work With Owen

“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

Three Ways To Spot A “Bad” Financial Plan

Three Ways To Spot A “Bad” Financial Plan

As an advice-only financial planner we often see financial plans created by the big financial institutions. We provide a second opinion to new clients who have created one of these financial plans. These clients have received a financial plan from their investment advisor, or sometimes a separate financial planner within the bank, but they’re skeptical of the results and the recommendations.

Often, they want more detail, more discussion, more process, more scenarios, more peace of mind etc. They want an unbiased second opinion.

Now let me preface this blog post by saying there are many excellent financial planners at the big banks. In fact, many have moved into advice-only financial planning where they can spend more time doing financial planning instead of selling products. The problem is that, for the most part, the financial services industry doesn’t prioritize financial planning.

Planning is not their product, investments, insurance, and mortgages are their product, and unfortunately, financial planning is sometimes just barely good enough to secure a new client or keep an existing one. There is often a lack of tools, time, or process to create a really detailed financial plan.

So, when reviewing a generic “bank plan” and helping clients build a new one there are a few things to look out for. These things are signs that perhaps the financial plan needs a bit more work.

There are three ways to spot a “bad” financial plan.

read more
The CPP Max Will Be HUGE In The Future

The CPP Max Will Be HUGE In The Future

Did you know that the Canada Pension Plan (CPP) is getting bigger? Every year since 2019 CPP has been expanding and it will continue to expand for the next 40+ years until 2065. By the end, CPP will be HUGE!

CPP is an important retirement benefit. The old “base” CPP aimed to replace 25% of pre-retirement employment income. The new “expanded” CPP will increase this amount to 33.33% and will cover a larger amount of pre-retirement of income. The result is that CPP will be over 50% larger in the future.

If we follow the rule of thumb* that suggests that we need 70% of pre-retirement income in retirement, then for the average Canadian the new expanded CPP could provide nearly half of retirement income in the future. When combined with OAS this means that over half of retirement income could be covered by CPP and OAS combined.

And if we consider that the maximum annual CPP payment could be over $7,000 per year higher in the future (and over $14,000 per year for a couple), that could mean the average Canadian needs to save hundreds of thousands less for retirement.

In this post we’ll look at the current maximum CPP payment, the maximum CPP contribution, the current contribution rate, and how these will change in the future as CPP expands. We’ll also look at how the current “base” CPP will grow by over 50% in the future…

read more
High Investment Fees Could Cost You $1,000,000+

High Investment Fees Could Cost You $1,000,000+

Imagine paying $1,000,000 in investment fees? It seems crazy, doesn’t it? There aren’t many things I could imagine spending that much money on, and investment fees would certainly be at the bottom of the list. And yet, there are millions of Canadians who could end up paying this much, or possibly more, in investment fees over the course of their life.

If given an extra $1,000,000, what would you spend that money on? Probably not investment fees. I would probably spend that money on a vacation, a cottage, a reno, or a hundred other things before choosing to spend extra money on investment fees.

But for a mutual fund investor in Canada, over time, high investment fees could easily add up to $1,000,000+.

If you don’t believe me, or just want to see the details, lets take a look at the numbers together…

read more

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

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