When I was an investment advisor, a very good client asked me to provide the frame work of a typical financial plan that they could then give their kids…….so the “Cascading Financial Plan” was born.  Below is a basic plan divided up over your life for each decade and what you should be working towards, researching, or at the very least, talking to your advisor about.

CASCADING FINANCIAL PLAN

20’s. Career-building, becoming independent and moving out of your parent’s home.
* Acquire consumer and school debt for career advancement
* Build up a good credit history
* Buy into a participating whole life insurance plan

30’s. Career-developing
* Begin building an emergency fund.
* Begin saving for retirement (RRSP, TFSA)
* Invest in real estate and update insurance coverage
* Plan for school debt repayment
* Will + Power of Attorney

40’s. Career advancement or change, self-education and personal improvement
* Pay off all consumer debt
* Continue to build wealth – buy additional real estate or add to savings (RRSP)
* Review Insurance

50’s. Start de-cluttering and begin to live on less income
* Maximize saving strategies
* Work toward eliminating all debt, mortgages & lines of credit
* Think about long-term care coverage
* Limit risky financial ventures and monetary schemes

60’s. Simplify your lifestyle and your commitments
* Downsize or right-size your residence
* Reduce as much risk as possible in your investment portfolio
* Eliminate all remaining debt and do not take on any new debt
* Update Will and Power of Attorney

70’s.  Have a plan to fill your days
* Maintain or improve your health
* Nurture existing social relationships and build new ones
* Keep brain active, read, educate, stay physically active.

80’s. Stay healthy, continue to be active
* Establish a support system and care directives
* Discuss your wishes with your family
* Plan for emergencies
* Stay involved, engaged and most of all happy!