financial planning fact finder -...
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Financial planning fact finderQUESTIONNAIRE
Financial planning fact finder
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Client information
Client: Completed by: Date:
Client profile for this financial plan
• All personal assets
• Principal residence
• No other real estate, farm or small business property
• No trust assets or disabled beneficiaries
• Pension, government pension, RRSPs, TFSA, Open, RESP
• Not a US-connected person
Please indicate your planning goals and reports to be included:
Retirement income analysis
• Achieve a target income
• Maximize income from existing sources and savings
Estate projection including tax at death
Will review (must include copy of most recent wills)
Life insurance needs analysis
Disability insurance needs analysis
Critical illness insurance needs analysis
Education funding
Impact of long term care (information only)
Required documents
Please provide the following documents in conjunction with this profile.
Two years’ tax returns for each client
Pension statements including Canada Pension Plan
Information on current group benefits
All life insurance policies, preferably with a recent statement
All disability and/or critical illness insurance policies
Most recent investment statements from all sources
Most recent bank statements including liabilities, mortgages and savings account balances
Your Wills
Your Powers of Attorney for property and personal care
The information in these documents is crucial to the fact-finding process, and planning cannot begin until you have provided us with all the appropriate information. The quality of information provided will directly affect the quality of your planning experience.
Financial planning fact finder
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1. Tell us about yourself.
Client 1 Client 2
Name
Name commonly used
Date of birth __________ / _______________ /__________
Day Month Year
__________ / _______________ /__________
Day Month Year
Marital status Single Married Common-Law Divorced Separated Widowed
Single Married Common-Law Divorced Separated Widowed
Smoker Yes No Date Quit ____________ Yes No Date Quit ____________
Citizenship
Canadian resident and taxpayer Yes No Yes No
US-connected person Yes No Yes No
Place of birth
Employer
Occupation/title
Gross salary $ ___________________ per _______________ $ ___________________ per _______________
Bonus/stock options
Take-home pay
Time at current job
Employment outlook
Spousal support obligation
Child support obligation
Tell us about your health
Tell us about your hobbies, interests, charities, etc.
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2. Your children
Name Date of birth/age Student? Marital status Notes (spouse name, residence, school, occupation, etc.)
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
3. Your grandchildren
Name Parent Date of birth/age Student? Marital status Notes
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
4. Post-secondary education funding needs
Child name Estimated years in school Estimated start date Annual cost in today’s $
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5. Your parents
Client 1 Client 2
Mother
Age (or age at death)
Cause of death
Father
Age (or age at death)
Cause of death
Financial or physical care needs
6. Your professional advisors
Client 1 Client 2
Lawyer
Accountant
Investment advisor
Insurance advisor
Physician
Other
Other
Do you have a Will? Yes No Yes No
When was it signed?
When was it last reviewed?
Do you have Powers of Attorney for property
and personal care?
Yes No Yes No
When were they signed?
When were they last reviewed?
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6. Your planning objectives and priorities
What would you hope to accomplish by going through this planning process?
What are your primary financial planning concerns?
How do you foresee your lifestyle changing throughout retirement? Example: Continue working part-time, travel, buy a cottage, downsize your home, buy a condo, become a snowbird, etc.
Do any of your children or grandchildren rely on you for financial support?
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Where do you see yourself in 5 years?
10 years?
Long term?
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Describe any family issues that may exist and may be relevant to your plan.
Describe any business or employment issues that may exist.
What are your main estate planning objectives? For example, lower taxes, start probate planning, provide support for kids and grandchildren or give to charities.
Are there any upcoming major purchases? For example, new car, cottage, home renovation, major trip, family wedding.
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7. Your assets
Residence
Owner(s) Description Purchase amount Purchase date Current market value
Investments• I have included recent statements for investments from all sources OR
• See following table
Owner(s) Registration type Current market value
Cost base Ongoing contribution
Income drawn
8. Defined benefit pension
Client 1 Client 2
Retirement age
Income
Reduced by At age At age
Indexed?
Current death benefit
Beneficiary
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9. Defined contribution pension
Client 1 Client 2
Current value
Contribution
Employer match
10. Liabilities
Owner(s) Description Outstanding principal
Interest rate
Planned payment
Payment frequency
Date loan started
Date loan ends
11. Insurance inventory
Owner(s) Life insurance Company Plan type Face amount Premium
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12. Major purchases
Purchase for whom Description Amount Planned purchase date
13. Do you plan to downsize your house in the future? If so, provide details.
14. Probable future inheritance
From Approximate timing Amount Amount to be invested
Notes
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Notes
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15. Monthly expenses (if budget is to be included)
Housing Cost
Mortgage (PIT) or rent
Property tax
Home phone
Cell phone(s)
Internet and cable
Cable
Heat hydro
Water
Property maintenance
Other
Transportation Cost
Car loan/lease
Car loan/lease
Insurance
Licensing
Fuel
Maintenance
Other
Insurance Cost
Home
Critical Illness and disability
Life
Other
Food Cost
Groceries
Dining out
Other
Pets Cost
Food
Medical
Grooming
Toys
Other
Personal care Cost
Medical
Hair/nails
Clothing
Dry cleaning
Health club
Vision
Other
Lifestyle Cost
Entertainment
Donations
Vacation
Subscriptions
Personal allowance
Lottery tickets
Recreation
Other
Other
Loans/bank Cost
Asset accumulation Cost
Emergency fund
Education fund
Retirement
Other
Children Cost
Activities
Gifts
Allowance
Tuition (out of pocket)
Other
Support Cost
Spousal support
Child support
Other
Legal/accounting Cost
Attorney
Accountant
Other
Other
Budget total
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16. Planning Objectives and assumptions
Desired retirement: Age _____________ of _______________________________ (client)
Desired net monthly income in retirement $ ________________ today’s $ (If the income cannot be met, the plan will identify the shortfall and options to fund it)
Or create the maximum income from existing resources and projected savings
Inflation assumption: ____________%
Indexation for pensions: __________%
Investment assumptions:
Fixed income: amount ___________ % Assumed rate _____________ %
Equities: amount ________________ % Assumed flat rate __________ %
Or 35-year history
____________% TSX __________% S&P ___________% EAFE plus or minus _________ %
17. Government benefit assumptions
Start at age Eligible amount (%)
Client 1 CPP
Client 1 OAS
Client 2 CPP
Client 2 OAS
Notes regarding investment assumptions
Financial planning fact finder
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Notes
QuestionnaireThe questionnaire has 15 questions and is divided into 5 categories: Investment Time Horizon, Investment Knowledge and Investment Objectives with one question in each category, Risk Capacity with 6 questions and Risk Attitude with 5 questions. Check the option that is most appropriate for each question, and then follow the instructions in the next section to determine how to send back to your advisor.
This form has been structured in a way that will allow it to be completed on a personal computer. You may wish to print this form and manually fill it out. Please follow the instruction below to complete the form, and email the completed form to a recipient. You may use the “Tab” key on the keyboard, or the mouse to move the next field. Once a field is selected you can use the keyboard to fill in the appropriate information.
1. Use the keyboard/mouse to complete all fields in the form.2. Once the form has been completed you must save it to your computer.3. Select File4. Save As5. Name the file6. Choose location where file will be saved (remember this location)7. Once saved, you may print a copy, or send as an attachment in an email.
Investment Time Horizon
1. When do you expect to need to withdraw a significant portion (1/3 or more) of the money in your investment portfolio?
i) Less than 1 year
ii) 1-3 years
iii) 4-6 years
iv) 7-9 years
v) 10 years or more
Investment Objectives
3. What is your primary goal for this portfolio:
i) I want to keep the money I have invested safe from short-term losses or readily available for short-term needs. (Safety - Investments that will satisfy this objective include GICs and money market funds)
ii) I want to generate a steady stream of income from my investments and I am less concerned about growing the value of my investments. (Income - Investments that will satisfy this objective include fixed income investments such as funds that invest in bonds)
iii) I want to generate some income with some opportunity for the investments to grow in value. (Balanced - A balanced fund or a portfolio that includes at least 40% in fixed income investments and no more than 60% in equity funds will satisfy this objective)
iv) I want to generate long-term growth from my investments. (Growth – A portfolio with a relatively high proportion of funds that invest in equities will satisfy this objective if you also have a long time horizon and are willing and able to accept more risk)
Investment Knowledge
2. Which statement best describes your knowledge of investments?
i) I have very little knowledge of investments and financial markets.
ii) I have a moderate level of knowledge of investments and financial markets.
iii) I have extensive investment knowledge; understand different investment products and follow
financial markets closely.
Risk Capacity (Questions 4-9)
4. What is your annual income (from all sources)?
i) Less than $25,000 (0 points)
ii) $25,000 - $49,999 (2 points)
iii) $50,000 - $74,999 (4 points)
iv) $75,000 - $99,999 (5 points)
v) $100,000 - $199,999 (7 points)
vi) $200,000 or more (10 points)
6. How would you classify your overall financial situation?
i) No savings and significant debt (0 points)
ii) Little savings and a fair amount of debt (2 points)
iii) Some savings and some debt (5 points)
iv) Some savings and little or no debt (7 points)
v) Significant savings and little or no debt (10 points)
7. What is your estimated net worth (investments, cash, home and other real estate less mortgage loans and all other debts)?
i) Less than $50,000 (0 points)
ii) $50,000 - $99,999 (2 points)
iii) $100,000 - $249,999 (4 points)
iv) $250,000 - $499,999 (6 points)
v) $500,000 -$999,999 (8 points)
vi) $1,000,000 or more (10 points)
8. This investment account represents approximately what percentage of your total savings and investments. (Total savings and investments include all the money you have in cash savings, GICs, savings bonds, mutual funds, stocks and bonds)?
i) Less than 25% (10 points)
ii) 25%-50% (5 points)
iii) 51%-75% (4 points)
iv) More than 75% (2 points)
9. What is your age group?
i) Under 35 (15 points)
ii) 35-54 (8 points)
iii) 55-64 (5 points)
iv) 65-74 (3 point)
v) 75 or older (1 point)
5. Your current and future income sources are:
i) Stable (8 points)
ii) Somewhat stable (4 points)
iii) Unstable (1 points)
Risk Attitude (Questions 10-15)
10. In making financial and investment decisions you are:
i) Very conservative and try to minimize risk and avoid the possibility of any loss (0 points)
ii) Conservative but willing to accept a small amount of risk (4 points)
iii) Willing to accept a moderate level of risk and tolerate losses to achieve potentially higher returns
(6 points)
iv) Aggressive and typically take on significant risk and are willing to tolerate large losses for the
potential of achieving higher returns (10 points)
12. When you are faced with a major financial decision, are you more concerned about the possiblelosses or the possible gains?
i) Always the possible losses (0 points)
ii) Usually the possible losses (3 points)
iii) Usually the possible gains (6 points)
iv) Always the possible gains (10 points)
11. The value of an investment portfolio will generally go up and down over time. Assuming that youhave invested $10,000, how much of a decline in your investment portfolio could you tolerate in a 12 month period?
i) I could not tolerate any loss (0 points)
ii) -$300 (-3%) (3 points)
iii) -$1,000 (-10%) (6 points)
iv) -$2,000 (-20%) (8 points)
v) More than -$2,000 (more than -20%) (10 points)
13. The chart below shows the greatest one year loss and the highest one year gain on four differentinvestments of $10,000. Given the potential gain or loss in any one year, which investment would you likely invest your money in:
i) EITHER a loss of $0 OR a gain of $200 (0 points)
ii) EITHER a loss of $200 OR a gain of $500 (3 points)
iii) EITHER a loss of $800 OR a gain of $1200 (6 points)
iv) EITHER a loss of $2000 OR a gain of $2500 (10 points)
Risk Attitude (Questions 10-15)
15. Investments with higher returns typically involve greater risk. The charts below show hypotheticalannual returns (annual gains and losses) for four different investment portfolios over a 10 year period. Keeping in mind how the returns fluctuate, which investment portfolio would you be most comfortable holding?
i) Portfolio A (0 points)
ii) Portfolio B (4 points)
iii) Portfolio C (6 points)
iv) Portfolio D (10 points)
14. From September 2008 through November 2008, North American stock markets lost over 30%. Ifyou currently owned an investment that lost over 30% in 3 months you would:
i) Sell all of the remaining investment to avoid further losses (0 points)
ii) Sell a portion of the remaining investment to protect some of your capital (3 points)
iii) Hold onto the investment and not sell any of the investment in the hopes of higher future returns
(5 points)
iv) Buy more of the investment now that prices are lower (10 points)