• Starting a career: If you are beginning your career, you should take immediate steps toward putting your finances in order. Watch excessive credit card spending and begin repaying your student loans. You should establish a budget and start a solid savings program (at least 10% of your income). An emergency fund consisting of six months worth of living expenses is recommended. Diversify your investments and don’t skimp on health insurance.
   
• Marriage: People who marry early in life are in an enviable financial position, as they can get a head start establishing their financial foundation. If both spouses work, the couple should establish a joint savings plan, including retirement accounts, flexible spending accounts, and an investment portfolio. To protect against risk, they should invest in auto, health and disability insurance. They should change their beneficiaries for pension plans and insurance, and update/make their wills.
   
• Purchasing a home: Buying a home is generally the biggest purchase you will make. Compare mortgage deals and spend time getting to know the neighborhoods. You may want to use the same insurance company as your vehicle to take advantage of discounts.
   
• Starting a family: If you are thinking about kids, you need to purchase life insurance, as a wage earner’s premature death can have a devastating financial impact on the family. It is wise to revise your will when a child is born. Since college costs have been increasing at a higher rate than inflation, you need to begin thinking about college funding immediately. First, you should estimate future tuition bills and specify the dates at which these bills will arrive. Then you should establish a college savings program, even if you can’t put enough away each year to cover the projected costs. You should thoroughly acquaint yourself with new possibilities for educational funding with the financial aid process. If your children are already nearing college age, evaluate your current financial position to assess what resources, if any, might be redirected to fund college costs.
   
• Prime earning years: If your kids have graduated from college and moved out of the house, you are probably approaching your prime earning years. If you haven’t done so, you need to begin saving for retirement immediately. Maximize contributions to all types of deferred savings vehicles, such as employee share plans, RRSPs and TFSAs. You might also consider moving into a smaller residence – but don’t be too quick to sell, as increasing numbers of children are moving back home to live with their parents after college.
   
• Pre-retirement: During the period just prior to retirement, you don’t want to pull out of equities and move entirely into fixed income. Because of early retirement trends and increased longevity, fixed income accounts don’t perform as well as equities over the long haul. Retirement can constitute one third of a person’s lifetime. Preserving capital will however become more important than maximizing returns. You should also consider formulating an estate plan and have your attorney review all legal documents to ensure that they fit your goals.
   
• Plan for life’s uncertainties: Job loss, divorce, remarriage, widowhood

We encourage you to speak with us about any life event or change in your life. As you have seen, all events have different financial consequences and require decision making. Encourage your kids to speak with a financial advisor as soon as they are out of college and start their first job. They will thank you for it down the road.

 
Theresa Wever and the Money Concepts Team.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.