CLARITY Framework™
Guidebook
A structured approach to financial planning. Diagnosis first. Then planning.
What is CLARITY?
CLARITY is a financial planning framework that separates diagnosis from planning. It ensures that every recommendation is grounded in complete, accurate data — not assumptions or guesswork.
Two Phases. One Journey.
C through T = What is true about your situation.
Y = Given what we know, what should we do?
The Two Phases of CLARITY
C — T
Purpose: Fact gathering. Data collection. No judgment. No action yet.
Question answered: "What is true about your financial situation?"
Sections: Cash Flow, Liabilities, Assets, Retirement Readiness, Insurance & Risk, Tax Optimization.
These sections capture verifiable, factual information about the client's current reality.
Y — You
Purpose: Actionable direction. Structured recommendations. Concrete next steps.
Question answered: "Given what we now know, what should we do?"
Content: Goals, values, tradeoffs, risk tolerance, legacy, and life priorities.
Y is not another data field. It is where data becomes direction.
🔁 The Transition from T to Y
CLARITY assumes you have captured the full picture (C through T). Y then asks: "Given what we know, what should we do?" This separation ensures that planning decisions are never made in a vacuum.
The Seven Letters
C — Cash Flow
What it captures: Income, spending, budgeting, monthly money management, emergency reserves.
Key question: What comes in and what goes out each month?
L — Liabilities
What it captures: Debts, loans, mortgages, credit balances, interest costs, payment schedules.
Key question: What do I owe, and at what cost?
A — Assets
What it captures: Investments, registered accounts, real estate, business interests, net worth.
Key question: What do I own that has value?
R — Retirement Readiness
What it captures: Retirement goals, current savings, projected income (CPP, OAS, pensions), decumulation strategies.
Key question: Am I preparing for my future self?
I — Insurance & Risk
What it captures: Life, disability, health insurance, estate documents, dependents, risk factors.
Key question: What protects me and my family if things go wrong?
T — Tax Optimization
What it captures: Marginal tax rate, registered account room, tax events, corporate or cross-border considerations.
Key question: What do I owe, and how can I legally keep more?
Y — You (Planning)
What it captures: Life goals, values, tradeoffs, risk tolerance, legacy, and what money is actually for.
Key question: Given what we now know, what should we do?
Y is structured, actionable, and designed to support concrete recommendations — not vague hopes or generic advice.
Key Principles
Using the CLARITY Framework™
For Individuals
Use the CLARITY Webform to work through each section. Complete C through T first. Then spend time with Y — the planning phase. The output will help you identify gaps, clarify priorities, and have more productive conversations with advisors.
For Financial Planners
CLARITY can serve as your intake and discovery process. Use the webform with clients to ensure you have complete data before making recommendations. Y becomes the basis for your written financial plan.
For OpenBook Planning
The CLARITY Framework™ powers our calculators, articles, and reference tools. Each tool is tagged to one or more letters, allowing users to explore by topic or follow the full journey.
Disclosure
Educational framework only
The CLARITY Framework™ is an educational structure for organizing financial planning concepts. It is not financial, tax, legal, accounting, investment, retirement, estate, mortgage, lending, or cross-border planning advice. Always consult qualified professionals for your specific situation.