Benefits of wealth planning — and where to start

When it comes to wealth planning, women have unique life experiences to take into account. Susan Wood, Director of Wealth Strategies at CIBC Private Wealth, has decades of expertise helping women take an active role in creating a wealth plan.

Here are some of her top tips and takes.

One, there’s a misconception that many women just aren’t interested in finances or planning, which in my experience is plainly false. 

Two, women themselves might have the misconception that they need to know a lot about investing before creating a wealth plan. In fact, wealth planning is about more than investing. It’s to help you get clarity on your financial situation and address questions you may have. 

Three, a more general misconception is that wealth planning is a one-time thing — but really, it evolves over time.

At some point in her life, a woman will need to take responsibility for managing her own money. Even if her partner takes care of the finances, given a women’s longer average lifespan, she is likely to survive them. This means she’ll be responsible for managing her own finances.

It can be challenging to pick up that skill set later in life. Going into your senior years with some knowledge and experience working with an advisor leaves you less vulnerable. You don’t need to know everything about finances, but you do need to know the basics about managing your money.

The planning experience can also be quite empowering by helping you understand how much financial flexibility you have. This lets you use your money in potentially more fulfilling ways, like gifting funds to your children or donating to charity.

First and foremost, you need to understand your objectives. Your primary concern might be how to live comfortably in retirement. Or maybe you want to understand your estate tax liability. 

Overall, a solid wealth plan combines all the elements of your financial picture. Don’t just look at investments and cash flows. You should also consider tax and estate planning, family law issues, and business law issues, as applicable. Everything needs to work together. 

Finally, consider a risk assessment in case something unforeseen happens. This isn’t meant to point out doom and gloom. It should give you peace of mind.

Your financial advisor should have the skill set to help you, or they’ll have resources within their firm. You should never feel self-conscious about asking questions. A supportive financial advisor will meet you where you are and help you move forward.

Whether you’re looking to get a handle on your finances for the first time or want to fine-tune your wealth plan, CIBC Private Wealth can help. Talk to us about how we can collaborate.