the broken typewriter

By Brad Brain

Its Sunday afternoon, and I am on the phone with my kid. My daughter Emily is in her second year of studies at the University of Alberta.

She asks me what I am doing. I tell her I am trying to think of a good topic to write about for this week’s column. Then inspiration hits me.

I ask her, as a young adult, what is her number one financial question or concern?

Unprompted, she says that without me, and her RESP, she would currently be drowning in student loans. Forget about being able to put aside a little money for the future, despite the life changing impact of compound interest when you get an early start on your savings. Without my help, there would be no chance that she would be able to put away money into her FHSA or RRSP, she would be struggling to just to pay rent and groceries.

The reason this is on her mind is that she is seeing her friends and classmates dealing with these very issues right now. When her friends should be thinking about their upcoming final exams, they are distracted by trying to make ends meet.

Now that my kids are entering adulthood and starting to think about their own careers, they are asking more questions about my work. They know I am a financial planner, but what is it that I do?

This, folks, is what I do. I help people make smart decisions about their money so that they can do the things that are really important to them. Like giving their kids a massive head start in life by taking care of post-secondary education costs so they can focus on their studies and not on their bills. That’s exactly what I do.

But my purpose in telling you this is not because this is an advertisement for my own services. You can get a great RESP from almost any professional financial advisor. You don’t have to specifically see me for that.

Rather my purpose is to make sure that people know how easy financial planning is if you get an early start, and consistently work your plan.

Both my kids already have the money in their education accounts to fully pay for four years of post secondary education. And I don’t mind telling you that this is NOT because I made brilliant tactical investments. This is NOT because I am so rich that I can just throw money around no problem. This is NOT because I am smarter than everyone else.

The reason that my kids can pursue their post-secondary aspirations without worrying about affordability is because I started early.  It’s because I put away money for them consistently. Its because I invested in products and programs that were appropriate for the situation. That’s it. There is no magic here, and there is nothing that you can’t replicate for your own kids and grandkids.

This is the takeaway that I want to impress upon you. The sooner you start planning for the future, the easier it is to have the life you want. My kid can sweat over her finals instead of her bills right now because of what I started 19 years ago.

Of course, procrastination is easy too. And, right now, maybe some of those other kids who are currently wondering if they can pay their rent or afford groceries are living the consequences of what procrastination looks like.

Maybe future education costs are not important to you, and that’s fine. Financial planning is all about making smart decisions so that you can reach your own unique Great Goals.

So, two questions for you.

First question.

What is really important to you? Educating your kids or grandkids? Being able to stop working and still have all the income you could ever want? Making sure your loved ones are protected in case something terrible happens? Passing on your fortune to the next generation? Supporting your favourite charity? Travel? A winter home?

Second question.

What are you doing about it?

The future is coming. Whether or not you prepare for it is up to you.

Brad Brain. CFP, R.F.P., CIM, TEP is a Certified Financial Planner in Fort St John, BC. This material is prepared for general circulation and may not reflect your individual financial circumstances. Brad can be reached at www.bradbrainfinancial.com.