Generosity requires solid planning

Much to the relief of our boys, Christmas is the only time of year when I pick up a guitar and shamelessly lead the family in our favourite carols, whether I can hold a tune or not!

I can't help it. The Christmas spirit recharges me! I look forward to the time spent with family and friends, and my heart will also be with the millions who won't enjoy those privileges.

Throughout the world, unfortunately, greed and intolerance are often the rule, while indifference and despair are the tragic response.

And yet, what good is all this navel gazing if it doesn't inspire us to reach out to those in need? I believe most of us have charitable goals, but we lack the plans to realize them.

It's an easy matter to think about all the good we'll be able to do "when we have the money."

I'd say "why not now?" Let's build financial plans that fully fund our life goals, build a healthy nest egg and include the funding of our charitable goals that need to be addressed today.

We have a cash flow decision to make.

We usually pay for the necessities of life, then the luxuries. If there's anything left over, we save for future needs and, depending on our mood, we might give a few dollars to charity.

The thing about the pernicious "luxuries" category is that we generally want more of them than we can afford and we end up not having enough for future needs or for charity.

A good plan will reduce the drag of outrageous fees and excessive taxation. It will have a game plan in case of illness, death, loss of income, property damage or litigation.

It will fund our life goals and it will build in a generosity factor that could change many lives for the better.

Your generosity can only be improved by taking care of all other parts of your plan.

Through some cash flow transformation modelling that we've done, I know that some very simple financial "tweaks" can make a world of difference in our personal financial plans and on the many needs in our society.

The challenge then becomes not only what we can do during these few weeks of Christmas, but what we can aspire to in the coming year and beyond. Life is way too short to not make a mark while we're still around.

Merry Christmas to you and all those you love.

Richard Vetter, is a senior financial advisor with WealthSmart Financial Group/Manulife Securities Incorporated in Richmond.