The first step in building a plan to reach a financial goal is understanding what's important to you and where you are today. Answer these questions to gauge how well you know your current financial situation.
True or false?
Question |
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1. I/we have defined what and who is important to me/us. |
2. I know how much I/we spend each month.
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3. I know the location and amounts of all my/our investments. |
4. I/We have saved 3-6 months’ worth of living expenses. |
5. I know the expected rate of return each year for each of my/our investments. |
6. I know how much I am/we are saving for retirement.
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7. I know the value and location of all my/our registered and non-registered accounts. |
8. I know how much I am/we are estimated to get from my/our retirement savings and government plans. |
9. I know how much insurance coverage I/we have. |
10. I/my family circle know(s) where to access important documents related to the above in case of an emergency. |
Think about |
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Think about who is impacted by your life and financial decisions. |
Think about your mortgage, utilities, food, clothing, education, insurance and entertainment. |
Think about cash, GICs, stocks, bonds, mutual funds and real estate. |
Think about the amount spent for essentials and miscellaneous expenses on a 3-6-month basis. |
Include the expected rate of return for GICs, stocks, bonds, mutual funds, real estate and other investments. |
Note if this is a regular monthly amount and/or if you use systematic investing. |
Think about employer-sponsored plans, TFSAs, RRSPs, RRIFs, FHSA and non-registered plans. |
Find your statements and review your entire financial picture. |
Think about life, critical illness, disability and long-term care coverage. |
Think about financial accounts, legal documents and passwords for important online accounts.
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How did you do?
If you were able to answer "true" to most questions – congrats! You're in tune with your current financial situation, but don't slow down now. Try one of the courses below to advance your financial knowledge.
Mostly "false"? You're in the right place and we can help. For any statements you marked false, make a commitment to learning the answers. Get started today by trying the Debt management or Family conversations about money courses below.
Armed with this knowledge, you can work with an Edward Jones financial advisor to build a better strategy for getting where you want to go.