Financially Sound



46 Beechfern Drive Stittsville, ON K2S 1E3 info@financiallysound.ca

	Reality Planning TM.



	1. The quality or state of being actual or true. 2. One, such as a person, an entity, or an event, that is actual: 3. The totality of all things possessing actuality, existence, or essence. 4. That which exists objectively and in fact. The American Heritage® Dictionary of the English Language, Fourth Edition *You will have a future reality – the question is: what reality do you want to create?* Reality Planning™ is a unique refinement of the financial life planning process. Financial planning is primarily about making long term assumptions based on needs, inflation rates, investment growth and taxation. Reality Planning is about providing a future income you cannot outlive and about funding a life you cannot out experience. The need to move from financial planning to Reality Planning™ comes from our belief that clients want to use their Net Worth to fund building their Life Worth. Life Worth is the memory of all the wonderful experiences created from the accomplishments with our families, friends and within our communities. It’s about recognizing the need to build Life Worth verses just Net Worth and that lives are lived through a series of cycles and each cycle builds on the last in terms of experience and meaning. Reality Planning™ considers what is really important now and what will be important in the future. It takes into account what is needed to achieve happiness and peace of mind. It helps define a financial independence. Taking into consideration the current personal and financial situation, the challenges and opportunities that exist and the management of risks to achieve the desired reality is the cornerstone of this methodology. Reality Planning™ gives the capacity and opportunity to experience life in a way that can be most meaningful. It is an approach to financial life planning that goes beyond numbers and goals. It continually considers what is truly important to accomplish and experience life. Our Reality Planning™ process allows adjustments for personal needs and desires with consideration of the current financial situation. It also provides the funding strategy for the current life cycle while maintaining an appropriate level of financial security to reach a future cycle.

	Basic Reality Planning™ Philosophy We are responsible for our own financial situation and personal satisfaction Our Net Worth helps fund how we build Life Worth. Our lives go through cycles and our plans need to adapt to and support them Our behaviour today influences our potential reality tomorrow. Living involves risk, we need to understand and manage that risk. Clarity is achieved with a comprehensive, written plan. Progress is achieved with review and action Planning is a process, not a one time event.
	Some examples of Reality Planning™: Creating transition plans from full time work to part time work to re-education to a new career to part time work to full time retirement. Retiring later to travel more now. Supporting our aging parents financially now despite its impact to our personal plan Prioritizing the funding of post secondary education for our children now over our funding our retirement plan. Focusing effort, energy and finances into a business now, and planning for retirement later. Insuring blended families have Estate concerns addressed so that all members of the family are taken care of.
	It is up to us to create the reality we want. However, the personal and financial challenges that are faced and the demands of time can distract from our goals. A Reality Planner™ can make the difference between just living a reality verses creating a desired reality. We ensure clients are prepared and not surprised. They have the opportunity to create Life Worth and not just Net Worth. They have the opportunity to create memories, not just dreams.

	The Reality Planning™ Process

	Discovery:
	Reality Planning™ begins with clarifying our client’s current personal and financial reality at a Discovery Session where we complete the financial RoadMap™. We begin to uncover what is truly important to our clients by discussing individual values and desires. Once values and desires are clear, financial goals can be better defined. We help to clearly define financial goals and determine specific timeframes and dollar amounts required. Ensuring financial goals are specific, measurable and achievable begins to make them real.
	Analysis:
	The next step is the analysis of all the data and evaluations of all the possible strategies and alternatives. Working through the “what if” scenarios and presenting them in clear terms makes the decisions as to which desires are prioritized.
	Recommendations:
	Next, a comprehensive, simply stated, draft plan with clear options and recommendations is produced. It includes details for all the important financially related areas of an individual’s life and addresses all the specific actions needed to begin moving to the desired reality. It provides strategies in the following four areas: How to create, the amount required and where to hold cash reserves now and in retirement. How to manage and eliminate unproductive debt. The specific products, amount to have, and lowest cost of insurance products needed to manage risk. How to best deploy assets to create maximum tax efficient return for minimum risk. We meet with our clients and review the draft plan and “what if” scenarios to finalize the plan and recommendations.
	Implementation:
	A plan without excellent implementation is just a series of good intentions. Our Reality Planning™ process includes the critical on-going focus on implementation, review and reporting. Customized and regularly updated reports that answer the all important questions our clients ask, “Will we be okay?” and “How are we doing?” are provided to clients.
	Review:
	Finally, we hold annual reviews and maintain regular contact with our clients to ensure we are aware of changes that could impact the plan. As life events change the plan, we go through the analysis, recommendations and implementation process again.

	Discovery > Analysis > Recommendations > Implementation > Review