Summary
In Episode 2 of the Plain English Finance Podcast, Tré Bynoe shares the framework he uses to help clients make better financial decisions. Instead of focusing solely on numbers, Tré emphasizes that financial planning is really about avoiding decision paralysis, structuring goals, and building repeatable systems. This post outlines his six-step process, his core principles on taxes and cash flow, and how to manage risk with flexibility.
Why Decisions Matter More Than Numbers
Many people think personal finance is about math. But as Tré explains:
“Not making a decision is still a decision — usually the worst one.”
When people face too many choices, they freeze. This “analysis paralysis” can leave important opportunities on the table. A planner’s role is to filter through options, keep clients focused on what matters, consider human behavior, and guide them toward action.
The Six-Step Planning Framework
Tré outlines a structured process he follows with every client:
- Clarify today’s reality. Understand the current financial picture.
- Define tomorrow’s goals. Get specific about what the client wants to achieve.
- Map the routes. Explore multiple ways to get from A to B.
- Recommend the best path. Narrow down to the most effective option.
- Build tailored solutions. Only after the plan is clear do investments and insurance come into play.
- Review and adjust. Plans evolve as life and goals change.
This sequence ensures solutions are grounded in strategy, not guesswork.
Key Principles in Practice
Beyond the framework, Tré highlights several principles that guide his advice:
Tax Efficiency
Taxes can be a household’s largest expense. Planning should aim for efficiency across a lifetime, not just saving in the current year. Tré regularly reviews tax returns and structures strategies around long-term efficiency.
Cash Flow Discipline
Instead of tracking every expense, Tré emphasizes creating a gap between income and spending. He recommends setting a ceiling on cash — enough for emergencies but not so much that growth opportunities are wasted.
Corporations as a Tool
For business owners, corporations can smooth income over a lifetime. Tré prioritizes registered accounts first, then corporate investing, and finally personal non-registered accounts. He stresses clearing accounts like RDTOH and CDA while avoiding outdated practices, such as leaving shareholder loans invested after the 2019 tax changes.
Charitable Giving
Rather than donating cash, Tré suggests giving appreciated investments — especially from corporate portfolios — for greater tax efficiency.
Managing Risk and Flexibility
Tré’s approach to risk is pragmatic:
- Use the war chest method in retirement: hold several years of safe assets (cash and bonds) to let equities recover in downturns.
- Base recommendations on risk capacity (ability to absorb ups and downs) while coaching clients to grow their risk tolerance through education.
- Prefer flexibility over rigid strategies, even if it means slightly less efficiency. As Tré notes, priorities change, so it’s better to keep options open.
On risk ratings, he cautions:
“What’s inside the investment is actually what matters more to me when it comes to risk.”
Not all “medium risk” investments are alike: context matters.
Evidence-Based Investing
Tré favours low-cost index-type funds as the core of most portfolios. For those seeking outperformance, he turns to small-cap, high-quality equity strategies rooted in data. He also applies asset location principles, ensuring investments are held in the most tax-efficient accounts across RRSPs, TFSAs, corporations, and non-registered portfolios.
What to Do Next: A Checklist
If you’re looking to strengthen your financial planning:
- ✅ Clarify your current financial picture.
- ✅ Set specific, measurable goals for the future.
- ✅ Avoid analysis paralysis: seek a planner who considers optimization AND human behaviour.
- ✅ Prioritize tax efficiency across your lifetime.
- ✅ Create a gap between income and spending.
- ✅ Review your corporation’s structure if you own one.
- ✅ Focus on flexibility — build plans that can adjust.
- ✅ Anchor investment strategies in evidence, not speculation.
Financial planning isn’t solely based on numbers — it’s about building a decision-making framework that keeps you moving forward. Episode 2 of the Plain English Finance Podcast offers practical steps to overcome paralysis, manage risk, and create flexibility in your wealth journey.