Financial planning fact finder -...

Financial planning fact finderQUESTIONNAIRE

Financial planning fact finder

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.


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.


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 $


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?


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?


Where do you see yourself in 5 years?

10 years?

Long term?


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.


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


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


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


Notes


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


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


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)

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