6 reasons for CAF members to work with a financial planner

CAF members have unique considerations when it comes to personal finances. Unlike people in traditional careers, you’re often on the move. How do you plan for relocation costs, avoid mortgage penalties when you move, manage single or dual household incomes at various times, and make the most of your allowances for the biggest tax advantage? 

With a financial planner, you’ll consider how to make smart contributions to your registered retirement savings plan (RRSP), spousal RRSP or tax-free savings account (TFSA) that complement your CAF pension, save on taxes and ensure a balanced income in retirement. 

Providing stability for your spouse’s career, your post-release plans, (which may include a second career), and your children’s education are always top of mind. With your financial planner, you’ll know how much to save, access the right insurance to match your unique military lifestyle needs, and manage change every step of the way.

6 reasons to work with a financial planner

1. Have a financial specialist on call so you can stop worrying about money

Working with an advisor means you have access to professional advice when your financial situation changes. Military members and families experience change more often than most. Your advisor ensures your financial plan is continually adapted to your changing lifestyle needs – whether you’re deployed, on tour, or considering your next posting with the CAF. That’s one less thing to worry about when you’re adapting to a new location or a promotion.

Fun fact: SISIP advisors offer guidance on debt repayment, how to save on income tax when you receive a bonus or allowance, and help you invest money to buy your next house, fund a business, plan your relocation or take a dream vacation. 

2. Get a free financial education 

When you work with an advisor, you really start to understand how money works. You’ll make better financial decisions in everyday life, which boosts your income, helps you make the most of every dollar and save for your short and long-term goals. 

Fun fact: Once you understand finances better, you’ll know how to keep more of your hard-earned money for the things you really want in life! 

3. Discover how to pay down debt and save at the same time

A lot of people are unsure whether they should save money or pay down debt first. The short answer is that it depends on your situation. It’s quite possible you can do both! Keep in mind, for CAF members, how you prioritize savings and debt may vary, depending on your lifestyle changes. Military families sometimes rely on a single income temporarily when a CAF member is relocated. On the other hand, there are opportunities to use allowances and salary increases to boost investments or clear debt more quickly.

Fun fact: Your advisor can help you create a financial plan to both pay down debt in the most efficient way and save money for the future and prioritize your allowances and salary increases.

4. Build wealth faster 

Saving and investing is highly individualized. Your advisor checks in with you regularly to make sure your money is invested in a way that makes sense for you. For military families, your goals and timelines may change when you’re posted or relocate. Advisors can help you find the best tax-advantaged investment opportunities to meet your individual goals, so you keep more of your pay and save in a way that makes sense for you at the right time. 

Fun fact: Canadians who work with a financial advisor tend to build more wealth more quickly than those who go it alone! Having an advisor on top of your financial plan helps your investment grow with stability, even as your lifestyle changes.

5. Know how to use “extra” income 

At various times in your career, you’ll receive allowances, per diems or pay increases. Working with an advisor ensures you maximize every dollar you earn. You’ll look at the big picture to see how much of that additional income you need now, and how you can save some to meet future costs and purchase big-ticket items on your wish list. Extra income could be in the form of a temporary allowance, or a more permanent salary increase. You want to work new income into in your everyday planning so you don’t get caught spending more than you can afford.

Fun fact: Working with an advisor makes it more likely that you can afford that new truck and invest money for the future too! 

6. Match spending and saving to your values 

What’s the point of having money if not to buy things and experiences that enrich our lives? You don’t want every dollar going for necessities or servicing debt. That’s no fun. When you sit down for your discovery session with a SISIP advisor, you determine what’s most important to you. That depends on the stage of your career, your plans for the short term and what you want to do post-release.

Fun fact: With your advisor, you’ll create a saving and spending plan, and an investment timeline tailored to your unique military family lifestyle needs. Setting priorities helps you meet your financial goals more quickly, and can be adapted depending on where you live, where you are in your career, and the needs of your military family.

SISIP advisors are part of the defence community. Find out how to ensure your financial plan keeps up with your military lifestyle.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by SISIP Financial, for the benefit of SISIP Financial, Investment Funds Advisor, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.