Certified Cash Flow Specialist|Cash Flow planning

28 Jan

Certified Cash Flow Specialist for Tumultuous Times

Why do you need a Certified Cash Flow Specialist for these tumultuous times?  Since last fall, the market has been pulling back – 1,000 points since January 1, 2016 until today (January 28).  Ouch!  Our loonie is also down, and economists are predicting a difficult financial year ahead.

As a Financial Advisor, I do not control either the market or the value of the Canadian dollar.  Even our government cannot control the world economy.  Listen to the podcast of CBC’s “The House” from January 9, 2016, when a panel of experts discussed how our new Finance Minister might calm all the headwinds buffeting our economy.

Although my training does not allow me to control world economic events, my designation as a Certified Cash Flow Specialist, enables me to help my clients by advising them on getting the most out of the money they already have – even in tumultuous times.

Certified Cash Flow Specialist
Image Source: The Money Finder

On January 11, there was a good article in The Globe and Mail by Gordon Pape.  One of Mr. Pape’s conclusions about the current investment outlook is, “Cash doesn’t provide much return but it cushions the portfolio against loss, provides liquidity when buying opportunities appear, and allows you to sleep better at night.”

Have you ever heard the saying “Cash is king?”  Mr. Pape seems to be supporting that view for 2016 and I agree with him.  Not only is holding cash a good cushion in your investment portfolio, a cash flow plan allows you to keep and use more of your take-home pay.

If you are not getting what you want with your money, or having challenges making ends meet, don’t feel bad.  You didn’t miss a financial literacy course in high school.  Besides, if having a better cash flow was just about the math, we would all be wealthier. Having more cash in hand is also about behaviour. Now is a good time to work with a trusted Financial Advisor/Certified Cash Flow Specialist to design a cash flow plan for you and your family.

What will you do with your extra cash once we find it?  One option is to buy more investments at a much lower cost than this time last year.  There are other options.  For example, we might realize together that this is a good time to save up several months of emergency funds, so that if an unplanned repair arises, you won’t have to take on expensive debt to cover it.  Or, it may be time purchase insurance to cover yourself and your family in case you lose some income due to a disability or critical illness.

Manulife has a very flexible policy called Synergy. This unique product combines life, disability and critical illness into one policy.  For a very reasonable premium, you cover all three risks.  Manulife’s web site will show you that the risk of passing at a young age is less likely than the risk of needing income replacement because you cannot work for a period of time or to cover unexpected expenses if you suffer from a critical illness.

A cash flow plan gives you solutions that make managing money and debt less stressful.  Just last week, I completed two plans for clients:  in the first one, we found an extra $500 per month to pay off high interest credit cards, and in the second, we found almost twice that amount to put into investments targeted for retirement.

We all hope that sooner rather than later the markets improve and the loonie stops losing value. While we are waiting for these corrections to take place, let’s put your cash flow plan in place and see if there is any extra cash that might have been overlooked.  And when we find it, together, we can decide the best ways for you and your family to use it.

Contact me at 416-939-2000 or by email at mheenan@assante.com.

It’s just good advice.