Play with Fire and Ignore the Possibility of Disability

Dr. S. S. Hueber chillingly describes prolonged disability as “living death” and surely it is that. For when a man or woman is disabled and unable to work, the ability to earn income stops.

…and what is income?

The foundation of hopes, plans, dreams
The source of the family’s well-being
Food on the Table, a roof overhead, clothes for the family
The car, TV, comfortable furniture, appliances
Recreation and vacations, the joyful times and the quiet times spent with the family

How can a family’s breadwinner let one day go by without insuring his or her income – the source of all the necessities of life and all the good things that make life worth living?

When the breadwinner dies, income stops, but what also stops, is the need for money to keep him or her alive.

When disability strikes income stops, but the need for money to keep the breadwinner alive does not. In addition to the basic necessities of life, medical attention is needed. Medical expense insurance – even the best plan – will not pay all of the doctor bills, hospital bills, drugs, medicines and hundreds of other items.

The high cost of death is insignificant compared to the high cost of staying alive.

Yet every day, millions of breadwinners face the threat of living death with little or no protection. They are vulnerable. They gamble with fate, and the stakes they play with are the highest anyone can own – financial future and the economic well-being of their families. Some may have group policies, but they don’t really know what the benefits are and for how long. Typically, they brush off any entreaties by financial planners to help them, only to find that it only pays them a small amount they can’t live off of and even then for a short time.
People buy insurance on their homes, cars, golf clubs, cameras… and yet so many times they fail to protect what has been called their most precious asset – their ability to earn income. If you had a machine in the basement that cranked out your income every two weeks, I bet you would insure it… and keep it well oiled.. and very well maintained…Well Guess What , that machine is YOU!

If one of my good clients became disabled, unable to work, feeling fearful for lack of money and the idea of having mounting unpaid bills, I’d like to be able to say “Don’t worry about money. That income policy we put in place is going to deliver a nice cheque to you, month after month, as long as you’re disabled?”

Remember, those that need insurance can’t get it, so you had better get it before you really need it!!

John Scholl
Financial Advisor - Desjardins Financial Security Inc.
CFP, CLU (Chartered Life Underwriter), CGA, B. Math., EPC
W – 416 743-1239
C – 416 731-3660

2011 Resolutions you can keep

Here’s a resolution you can take to the bank

There’s a resolution revolution is here!

Canadians everywhere have made New Year’s promises to themselves. Big promises (I resolve to quit smoking.) and not-so-big-promises (I resolve to call my aunt more often.). But here’s one promise you should make and never break: “I resolve to be financially secure.” And here are ten simple ways to make that happen:

1. Budget better

Look carefully at your income and expenses -- then set a realistic budget that includes savings.

2. Defeat debt

Keep that high-interest credit card in your pocket – or better yet, cut it into little pieces. Credit card debt is very expensive. Stay on top of your debt by paying off high interest and non-deductible debt first. Do you have mortgage insurance …. Wrong…Get quotes on a personal insurance policy instead.. it’s cheaper and your survivor is the beneficiary, not the bank.

3. Set goals

Make sure your lifestyle expectations match – and don’t exceed – your income. Be sure to set aside enough regularly to reach your goals.

4. Register yourself

Investments held within a Tax-Free Savings Account (TFSA) allows for tax-free income and an RRSP is a terrific tax-deferred savings builder. Start early, make your maximum yearly contributions and you’ll save on tax and enjoy years of tax-free growth in a TFSA and tax-sheltered compound growth in a RRSP.

5. Trim taxes

There are lots of tax deductions and tax credits – be sure you take full advantage of every one that applies to you.

6. Invest efficiently

Interest income is taxed significantly higher than dividends or capital gains – so it’s usually better to hold investments earning interest income in a TFSA or a tax-deferred RRSP and those that earn dividends or attract capital gains in your nonregistered portfolio.

7. Invest in your child’s future

A post-secondary education is expensive but necessary. Help your kids pay for it by starting a tax-deferred, compound growth Registered Education Savings Plan (RESP) eligible investments now!

8. Insure change

Your life is always changing in one way or another – that means your need for income protection and estate planning are changing, too. Be sure your insurance coverage keeps pace.

9. Assist your assets

Good asset allocation is vital to good long-term investment growth. Get steadier returns over time with the right balance of assets from the three asset categories – cash, fixed-income investments and equities.

10. Wrap it all in a plan

The tenth step to financial security is to wrap the other nine steps in a comprehensive financial plan that will get you where you want to go. Achieving financial security – now, that is a resolution you can take to the bank. Your professional advisor can help you get there.

***


John Scholl , CLU (Chartered Life Underwriter),CGA, B. Mathematics,

Financial Consultant - Investors Group Financial Services Inc.

& Investors Group Insurances Services Inc.

200 - 24 Queen Street East,

Brampton, Ontario L6V 1A3

Wealth Management & Financial Planning

Phone: (905) 450-2891 X529 Toll Free: 1 (866) 799-2223 x529 Cell (416) 731-3660 Fax: (905) 450-9747

I strive to continually improve my wealth management practice to be worthy of the referrals received. I build my business one introduction at a time, and would consider it a great compliment to be introduced to one of your business associates, friends or family.