FINANCIAL SECURITY
“A planner would have probably established several sources for you to draw from in retirement, not just one. If you can, postpone drawing from your retirement savings, go into your TFSAs or other savings plans," she suggests. "The same goes for recession-proofing your financial plan; it's about proper diversification and asset allocation because you’re not having your eggs all in one basket. It could be some fixed income, cash, GICs, equities, stocks, or bonds. A well-diversified portfolio is not correlated to itself, so some sections are doing well, while others aren't.” Kokan-Nyhof is a big believer in giving back, and she encourages her clients to consider regular charitable giving as a means to contribute to causes close to their hearts in addition to tax benefits. During your earning years, a charitable donation can reduce the tax you may owe. A gift-in-kind of stocks or bonds to a charitable organization can save you from paying
capital gains tax. “Especially if there's an excess, if there are no direct beneficiaries that are relatives, or if there are charities that are near and dear to someone's heart, we always try and build those things in, not just at the end in the estate plan, but along the way, because there are good tax benefits to donating to charity. I believe it is important for everyone to have that in their plan. The advantages are that it feels good and is the right thing to do.” Do-it-yourself investing commercials may have you wondering if seeking out the services of a financial professional is worthwhile. Studies have shown (Cirano 2020) that working with a financial advisor can help you grow your wealth 2.3 times more than someone who tries to go it alone. “Financial planning is so much more than just investment advice. Investment advice is part of it, but it's so much broader,” she explains. “It's risk
“My advice for any stage of life is to understand your cash flow management and have a regular savings plan.”
— MaryAnn Kokan-Nyhof
management, cash flow management, investment management, taxation planning and income planning; there are so many moving parts. Financial professionals like myself have to spend 30 hours a year minimum in continuing education to keep on top of all the changes to the tax act and all the things that can affect or derail your financial plan. So if you want it done right, go see a professional certified financial planner.”
Manitoba 7
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