High levels of indebtedness continue to make Canadian households vulnerable to changes in the economy, yet few are taking the financial planning measures needed to prepare themselves for a potentially negative financial shock. A reality check is needed.

-Household Finances in Canada: Time for a reality check. 2015. Chartered Professional Accountants of Canada

Are you ready for all that’s ahead?

A number of factors will affect your readiness for the various seasons (and expenses!) of life, including:

  • Education Costs
  • Disposable Income
  • Patterns of Saving and Spending
  • Readiness for Retirement
  • Elimination of Debt
  • Investment Strategies to Diversify Income

Retirement Readiness

The average Canadian is living well into his and her 80s these days. This is great news — but with the increase in lifespan, has their been an increase in retirement planning? Statistics Canada (2007) revealed that Canadians are only saving four percent of their income, which begs the question: will you have enough set aside for the retirement lifestyle you want to have?

The Debt Syndrome

A recent paper published by Statistics Canada reports that 35% of Canadian families have a debt-to-income ratio above 2.0 as of 2012, meaning their overall level of debt is a staggering two times greater than their annual income after taxes!

It’s harder to get ahead, save, plan for retirement, or handle financial crises, when you’re stuck in the debt syndrome. A financial advisor can not only help you set a budget and stick to it, but also identify benefits, tax grants, grants and so on that your family is eligible for.

Let’s assess where you’re at so we can develop a sound plan to get you to where you’d like to be.

Increasing cost of education

It’s never too late or too early to start saving for your children’s future.

Cost estimates for the typical four-year undergraduate degree have been projected at over $100,000 by 2020. Statistics in recent years suggest that six in 10 university graduates carry debt, with the average student debt at around $25,000 upon graduation. To students and their families, this can be overwhelming. The benefits of a university or college degree can, however, far outweigh the costs, if you’re prepared.

Are you prepared?

Our financial advisors can help you select the right education savings plan for your family, and also show you how to benefit from education grants for RESPs.

The paycheque to paycheque phenomenon

A recent survey of working Canadians across the country by the Canadian Payroll Association suggests that many are living paycheque to paycheque. Amongst working Canadians aged 18 to 29, 63% are in this predicament, while 26% of all those surveyed were not confident they could come up with $2,000 over a month if an emergency were to arise.

Are you in this spot? Here at Vision Financial, our trusted advisors will work with you one on one so that you can navigate your current circumstances and map out a way to achieve your financial goals.