FINANCIAL SECURITY
FUTURE PROOF YOUR FINANCIAL SECURITY
MaryAnn Kokan-Nyhof, financial planner and division manager, IG Wealth Management. SUBMITTED PHOTO
BY KRISTIN MARAND
T he key to securing your financial future is starting with a solid foundation. Ensuring you have finances to fall back on during a crisis, understanding cashflow management and having a properly diversified mix of investments and savings are all part of a well-rounded plan that can serve you even when the markets are in a downturn. “The foundation is risk management; preparing for the unexpected things that life can throw at you, like disease, disability and death, things that can absolutely derail the best laid financial plan,” explains MaryAnn Kokan-Nyhof financial planner and division manager at IG Wealth Management. “Making sure that there's the right amount of life insurance to cover the mortgage and that there's enough disability insurance to replace income or critical illness insurance in case somebody gets sick. It is essential to have all those things in place, because no matter how well you plan, if you don't cover those unexpected circumstances,
everything will fall apart.” The next step involves understanding budgeting and cash flow management. Keeping accurate track of money coming in and knowing where your spending is will allow you to cover your immediate needs and show you what you can afford to put toward savings to reach your short and long-term goals. Then comes accumulation, which is growing your wealth through regular investments to help ensure you have enough to live on once you've retired. Finally, taxation management, plans for decumulation (how you will use the money you’ve saved), and estate planning round out a comprehensive financial plan. “My advice for any stage of life is to understand your cash flow management and have a regular savings plan,” says Kokan-Nyhof. “It's securing the financial future. Proper asset allocation will ensure you won't outlive your money.” Kokn-Nyhof encourages everyone to empower themselves through financial literacy. She recommends seeking credible sources such as
your bank’s or credit union’s qualified associate financial planners or FP Canada, a national not-for-profit education, certification and professional oversight organization. Online courses are available, and many certified professionals like Kokan-Nyhof offer informational sessions on topics such as tax and estate planning at local community centres. While economic uncertainty is unsettling, Kokan-Nyhof says she's seen several significant downturns throughout her career and notes that navigating fluctuations is part of the process. A trusted financial professional can guide you through downturns and corrections, and a properly diversified portfolio will ensure that not all your funds are affected in the same ways at the same time. For instance, market downturns can be an excellent investment opportunity if you have uninvested capital. Diversified savings can provide some security for those nearing retirement amid economic uncertainty.
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Manitoba
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