The activity of examining one's daily, weekly, and monthly spending to find inefficiencies in order to maximize your disposable income for retirement planning.
Many Canadians define their primary financial goal as financial independence and retirement savings. It is important to realize however, that achieving financial independence or retirement planning is more than just a matter of earning a high income. Successful retirement planning begins with a budget and cash flow analysis to determine inefficiencies in your current profile. By analyzing all aspects of your finances, maximizing the tax efficiency of inflows and minimizing outflows, an efficient savings plan can be implemented.
Cash flow analysis is a key component of the retirement planning process as it helps the advisor understand the income needs of the client and to ascertain the longevity of investment savings. The on-going process of understanding one’s spending habits is a focal point of ensuring that a proper retirement savings plan is in place, and is sustainable given the rates of return present in the markets.
Cash flow consultations are common in initial meetings to help our advisors gain a better understanding of our clients.
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