What is Financial Planning

What is Financial Planning?

Personal finances play an important role in every area of our lives. That includes understanding expenses, buying your first homes, saving enough for an enjoyable retirement, managing your money in retirement, and determining the best insurance policies for our households.

It’s about partnering with a Certified Financial Planner^® professional or Qualified Associate Financial Planner™ professional to develop and implement a plan that's based on your financial goals.

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Financial Planning Creates a Personalized Roadmap to Your Financial Future

Financial planning starts with getting a handle on your unique financial circumstances. A professional financial planner is trained to show you how to take a big-picture view of your financial situation and come up with strategies designed to help you maximize your potential for reaching your financial goals. That’s regardless of your age, income level, or background.

The sooner you start planning for your financial goals, the better prepared you’ll be to reach those goals.

Welcome to Financial Planning for Canadians

A Personalized Financial Plan Covers Every Aspect of Your Financial Life

To set you up for success, financial plans factor in the following elements and explore the following questions:

Cash flow/financial management – How much do you need to cover your expenses? Are you a saver or a spender?
Insurance and risk management – How to prepare for unexpected shocks, like a job loss or health issues?
Investment planning – What kind of investing is right for you? What kind of investments meet your time frame and risk tolerance?
Retirement planning – What do you most want to do in retirement? Travel? Take up a new hobby? And how will you manage your retirement income?
Estate planning – What legacy do you want to leave for your family? Do you want to make a difference for a charity? If you’re inheriting money, how will you manage it?
Tax planning – How can you minimize your tax burden? What to do if your tax bill is bigger than usual?

Read more about the basics on the path to financial wellness

Financial Planning 101: The Basics →

Help for You Every Step of the Way

It’s never too soon to start a plan for your future. A CFP^® professional or QAFP^® professional is a qualified, credentialed expert who can help you stretch your money at all stages of life.

The 2023 Financial Stress Index found that one-in-four Canadians who use a financial planner don’t have any financial regrets, compared to 17% of those who don’t. That’s probably because professional financial planners provide ongoing support and specialized advice so that you're financially resilient no matter where life takes you.

What Canadians said: I feel hopeful about my financial future. 59% agreed - with financial planners.

Proven Expertise

QAFP professionals and CFP professionals have the experience, knowledge and skills to support the financial needs of all Canadians. They’ve gone through a rigorous credentialing process requiring them to meet and adhere to a Code of Ethics, Rules of Conduct, Fitness Standards and Practice Standards:

QAFP professionals provide financial planning strategies and solutions for clients who are growing their financial well-being.
To obtain QAFP certification, individuals must complete a robust education program, pass a four-hour exam, have a post-secondary diploma and demonstrate one year of qualifying work experience.
To maintain certification, QAFP professionals must keep their knowledge and skills current by completing 12 hours of continuing education each year. They must also agree to adhere to the FP Canada Standards Council™ Standards of Professional Responsibility, including a Code of Ethics mandating that they place their clients’ interests first. The FP Canada Standards Council vigilantly enforces these standards.

CFP professionals provide financial planning strategies and solutions at the highest level of complexity required of the profession.
CFP certification is the world's most widely recognized financial planning designation and is considered the gold standard for the profession.
To obtain the CFP designation, individuals must complete a comprehensive education program pass a six-hour exam, have a post-secondary degree and demonstrate three years of qualifying work experience.
To maintain certification, CFP professionals must keep their knowledge and skills current by completing 25 hours of continuing education each year. They must also agree to adhere to the FP Canada Standards Council™ Standards of Professional Responsibility, including a Code of Ethics mandating that they place their clients’ interests first. The FP Canada Standards Council vigilantly enforces these standards.

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What is Financial Planning?