Earlier this year,the Canadian Government had unveiled the budget which outlined their objectives and goals, as well as some policies they were looking to implement going forward. One of the things they did was introduce legislation that would implement a “bail-in” regime. That’s right, not “bail-out”, but “bail-in”. Now, this largely went un-noticed and under-reported, but this is probably one of the most important aspects of the budget that Canadians do not understand.
In Part 1 of this series on Transferring Your Estate, we went over the basics of what Estate Planning is and the importance of it. We also went into detail in regards to the first method of transferring your Estate, which is using a Will, and its importance in the overall Estate Planning process. We went over the different types of Wills as well as what happens when someone dies without a valid Will, also known as dying ‘intestate’. In this Part 2 of the series, we will discuss the second method of transferring your Estate, which is using Joint Ownership.
Estate planning is one of the most important aspects of a comprehensive Financial Plan, yet not nearly enough people or Advisors/Planners pay enough attention to it. It is essentially a process undertaken to ensure the assets of an individual are distributed according to their wishes, the loved ones are taken care of upon death and taxes and fees are minimized for both the Estate and beneficiaries. As one’s assets and net worth increases over time, so does the need to have a functional and comprehensive strategy for Estate Planning. This involves careful tax, legal and overall financial planning, which can only be effectively done by qualified and knowledgeable professionals. In this 5 part series, the topic of ‘Transferring Your Estate’ will be discussed in detail to give a clear understanding of the options available, thus allowing the Estate Planning process to be more effective and efficient.
These days there are so many new types of investments coming into the market, that it’s hard to keep track of everything. Exchange Traded Funds (ETFs) have been one of these ‘new’ investments introduced into the industry, and we’ve seen a huge surge in their popularity. Although they aren’t very new to the industry (having been around for more than two decades), it seems like only in the last 5-7 years they have started to make a name for themselves. In this post I will go over the basics of this type of investment, the types of ETFs, the pros and cons, and also the type of investor who I feel would benefit most from it.
In this 3rd post on the Insurance Planning topic, we will focus on the second of the ‘Living Benefits’ – Disability Insurance protection. Continuing from the last post on Critical Illness, this post will illustrate the importance of protecting your ability to earn an income, through Disability Insurance. Disability Insurance is generally the most underserved and undersold part of the Insurance Industry, as a) many Advisors are not having the conversation with their clients and b) many clients don’t realize the importance of protecting their ability to earn an income. However, the numbers state that the probability of injury or disability before age 65 is much higher than getting critical illness or death before age 65. With facts like this, both the general public and Advisors need to pay much more attention to this type of coverage.
In a properly designed financial plan, one of the most important areas of discussion is that of “Protection”, by way of Insurance. However, for one reason or another (usually because people don’t like to talk about it or feel they don’t need it), that area of the financial plan often gets overlooked or isn’t designed properly. Protecting your and your family’s lifestyle and standard of living is a very critical component in planning both while you’re alive, and when you’ve passed on. The importance of insurance needs to be addressed and its components need to be understood.
In this series of ‘Investment Basics’, we will go over some of the vehicles Canadians can use to accumulate wealth.
Essentially, in Canada, we (generally) have 5 investment vehicles the general public can use to accumulate our assets/wealth: RRSPs, TFSAs (Tax-Free Savings Account), Open (Non-Registered) Plans, Real Estate and CVI (Cash Value Insurance) – [a 6th would be using a corporation, for business owners]. Each one of them has their pros and cons and each must be used according to each client’s individual situation and goals.
If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should become seriously ill or die before paying off the mortgage, the coverage will kick in and pay it off for you. It’s meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you.
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