[Fall 2026 GPS] Simplifying Your Finances

Simplifying your financial situation starts with asking a two-part question: Does each part of my financial life still serve a clear purpose, and how well is it coordinated with everything else?

Four in ten Canadians say they avoid thinking about their financial situation because it feels overwhelming, according to FP Canada’s 2026 Financial Stress Index.

We accumulate accounts, investments, insurance policies, and legal arrangements, mostly for good reasons at the time. However, these pieces can become difficult to follow, costly to maintain, and poorly coordinated. In this article, we look at how simplifying your financial life can save you time, money and bring peace of mind.

Investments: more accounts don’t necessarily mean more diversification

Holding investments at several institutions can feel like diversification, but diversification depends on what you own under the surface.

Suppose one advisor manages a Canadian equity portfolio while another manages a global balanced portfolio that also holds Canadian stocks. Each portfolio may be reasonable on its own. Combined, they could leave you with substantially more exposure to the same banks and energy companies than you intended.

Separate portfolios can also make it harder to understand your overall risk level and investment costs. Most advisory fee schedules offer lower percentage rates as assets increase. Splitting assets across providers may prevent you from accessing these rates.

Multiple institutions can serve legitimate purposes. You may need to keep your investments in an employer plan to continue receiving employer matching on contributions, or you may want to manage a small portion yourself, but you should understand the trade-offs, which often add complexity.

Tax planning: Understanding the whole picture

One advisor might recommend an additional RRIF withdrawal without knowing that another account is generating substantial Canadian dividend income. Canadian dividends are generally “grossed up” for tax reporting, meaning the income reported is higher than the cash received. Together, these income sources could push you into an Old Age Security repayment you didn't expect.

Another example we often see is clients trying to incorporate rental property, which seems like a straightforward way to reduce taxes, but rental income is usually considered passive within a corporation and taxed at 50%, not to mention the added complexity and cost of hiring an accountant to file returns for the corporation.

Insurance: policies should reflect today’s needs

Insurance often accumulates through different stages of life: coverage through work, mortgage insurance, a policy purchased when you have your first child.

Some of these policies are essential, while others may overlap or cover risks that no longer exist.

A collection of policies can also leave family members searching for documents or, worse, unaware of existing policies.

When reviewing insurance, ask yourself:

What does this policy cover?

Why do you still own it?

What does it cost, and who receives the proceeds?

Keep a current summary in a safe place and let your executor or beneficiaries know the location.

Estate planning: consider the people who must carry out your wishes

An estate plan must work for the people administering it.

Accounts spread across many institutions can mean more correspondence, forms and follow-up for your executor. Outdated beneficiary instructions, missing alternate beneficiaries and unnecessarily intricate will provisions can add complexity.

Trusts can provide valuable protection and control, but they should address a defined need that justifies their administration and cost.

Powers of attorney also deserve practical attention. Requiring several people to act jointly may provide oversight, but it can be impractical and cumbersome when everyone must participate. In Ontario, wording that permits attorneys to act “jointly and severally” allows them to act individually or together. The appropriate arrangement depends on your circumstances and should be discussed with your lawyer.

Consider whether the instructions you leave will be clear and workable for the people relying on them.

Run a financial fire drill

If someone had to step in to help manage your finances tomorrow, could they identify your accounts, insurance policies and regular payments? Would they know whom to call, where your legal documents are kept and how to access your information securely? Could they understand the purpose of the arrangements you have made? That exercise often reveals opportunities to simplify. You don’t necessarily need less of everything, but you do need a clear purpose for what you have, coordination among the pieces and instructions others can follow.