My Money Plan: how it works in 2026, with a worked example

Questions people ask

Is this financial advice?

It is the arithmetic a planner starts from, using published assumptions, with every rule shown. It does not know your whole situation and does not recommend specific products. Use it to see the shape of a plan and the size of each piece, then act or take it to an advisor.

Why does the emergency fund come before my goals?

Because without it the first surprise bill goes onto a credit card at 20%, which undoes years of investment returns. Three months of bills in a high-interest savings account is the FCAC's minimum suggestion; the plan builds it within a year and then moves on.

Why pay debt before investing, but take the employer match first?

A debt at 20% is a guaranteed loss of 20% a year; no investment reliably beats that, so clearing it is the best return available. An employer match is the one exception: a 100% return the day the money lands, so you contribute enough to get all of it even while carrying debt.

How does it pick the account for each goal?

By what the goal is and when you need the money. Under three years: a savings account or GIC, because a bad year in the market would hit exactly when you need the cash. A first home: FHSA, deductible going in and tax-free coming out. A child's education: RESP, because of the 20% grant. Retirement: RRSP if your marginal tax rate is 30% or more, otherwise TFSA. Everything else: TFSA.

Where do the growth rates come from?

The FP Canada and Institut de planification financière Projection Assumption Guidelines, which Canadian financial planners are required to use as a baseline: about 2.7% for cash, 3.7% cautious, 5.0% balanced and 6.1% growth before fees, with 2.1% inflation. The plan deducts typical low-fee ETF costs of 0.3%.

What does 'money doubles every 12 years' mean?

The rule of 72: divide 72 by the yearly return to get the years it takes money to double. At 5.8% that is about 12 years, so $10,000 invested at 30 is roughly $70,000 at 65 without adding anything. It is why starting early matters more than picking the perfect investment.

What if I cannot fund every goal?

The plan funds goals soonest-first with the cash you have, then tells you when the rest would be reached at the affordable pace and how much a month you are short. Push a date, trim a target, or find the difference in your bills, and it re-sorts.

How is the retirement number calculated?

Planners commonly target 70% of pre-retirement income. The plan subtracts what CPP (at the average) and OAS (at the maximum) would cover, and divides the rest by a 4% withdrawal rate to get the savings needed. It then projects your current investments plus the retirement contributions in the plan to your retirement age.