If you just don't know where to start, or have some questions about this topic feel free to reach out to me to talk. 
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Financial debt is a fact of life. How you manage your debt and spending habits today is what will define your future, including your retirement planning objectives.
 
Many people find it incredibly difficult to save money and plan for retirement. That’s not uncommon. Being mired in debt only complicates matters. How you define your retirement and financial future is dependent upon the decisions you make today. In many ways, the difference between managing debt effectively and saving money comes down to being frugal and happy with the quality of living you have today. By doing so, you can secure the quality of living you want to have in the future.
 
To put it another way, if you’re a spendthrift who relies heavily on credit cards and a line of credit to fund your purchases, you’re essentially mortgaging your future. That’s one of the major problems with being deep in credit card or line of credit debt.
 
Similar to managing an investment portfolio, you need a thoughtful, flexible strategy for managing your debt and consumption habits. No doubt you’ve heard people talk about diversifying or rebalancing their investment portfolios; look at debt in the same way. Debt, like investments, is also a portfolio that you can manage more efficiently. Unlike investments where you’re seeking the highest possible returns, for debt you want to manage it effectively so you achieve the lowest cost of borrowing.

Is there such a thing as “good versus bad debt”? Yes. Good debt is an investment in something that will generate returns or long-term income such as property. Bad debt is credit card or consumer spending debt where you don’t have anything to show for the spending other than maybe some good life experiences.
 
Basic economics theory suggests you can do one of three things to effectively reduce your debt: you can make more money, spend less money, or a combination of the two.

Are you worried about the amount of debt you have? That’s a good sign. It means you’re ready to do something about it.
 
Getting out and staying out of debt should be every individual’s goal, but how can you do that and still have the things in life you want while saving for retirement? Consider these ideas to help you tackle your debt:
 

• Track and change your spending habits. It may be one of the most difficult things you do, but once you get into a routine, it becomes easier. Whether by pen and paper or using a mobile app, keep a spending journal for at least three or four weeks. Include everything you spend money on, not just random purchases. Include your monthly bills and the amount you’re committing to each one. When you do purchase goods, only buy what you need, and if you can, buy it in bulk. Take advantage of coupons and rebates on your purchases, and consider buying no-name product alternatives to goods made by more popular, expensive name brand products.

 

• Get into cash-flow planning. Now that you’re keeping a spending journal and you have a better idea of what you’re spending your funds on, cash-flow planning is the next step. It’s a forward-looking strategy for planning to use only cash to buy most things you need. If you own a home or property, you have equity, and there are many ways to pay down debt by financing it through those assets.

 

• Refinance your debt to a lower rate. If you have a good credit score and rating, you can use it to your advantage. For instance, if you’ve been diligent making payments on your credit card, and haven’t missed any monthly payments for more than one year, contact your credit card company and ask if they’ll lower the interest on your card. Alternatively, you might be able to secure a personal loan at a rate that’s lower than your credit card from your bank or an online lender.

 

• Increase your income. Depending on what it is you do for a living, and if you have the personal bandwidth, increase the amount of money you make each month by taking on additional freelance projects outside of your primary employer. Or get a second part-time job on the weekends to help up your income.

 

• Trim your expenses. Leveraging the data from your spending journal, analyze where you can reduce your expenses. For instance, can you live without cable TV and forgo annual vacations? Avoid eating out and bring a lunch from home to work. If you take public transit, purchase a monthly transit pass instead of paying cash at the fare box each day. Use your bank card instead of a credit card to pay for goods. Can you switch to a bank account that doesn’t charge you annual fees? Wherever you can find savings, even if it’s only $50 each month, it’s a step in the right direction.

 
Everyone faces a unique situation when it comes to debt, but understand that you’re not alone in that struggle, and there’s no reason to feel ashamed about being in debt. Above all, know you always have options to help you seize control of your debt portfolio, and in turn, make retirement planning a reality.
 
Do you have questions about or are seeking assistance on how to reduce your debt? Talk to one of our professional, certified financial and investment advisors. We have the experience and expertise to help. Call us toll-free at 1-800-595-2150.

​As a business owner or leader, you want to ensure you’re taking care of your company’s most prized assets: your employees. That typically involves offering a well-rounded group benefits plan.
 
On one hand, you need to offer your employees health and life insurance benefits to retain and attract top talent to your company and protect your revenues. On the other hand, they can be expensive to offer and administer, and sometimes, the costs associated with them can be incredibly tough to control.

Absenteeism, physical illness and stress among employees have a detrimental impact on your company’s productivity and profitability. Stress is the leading cause of mental health concerns in workplaces, and there are many causes of stress, including being financially unprepared.
 
Ergo, it’s wise to consider including employees’ financial health as part of or as a complement to a group insurance plan. Herein lies the value of providing your staff with access to a certified financial advisor and planner.

The group benefits package you select for your organization needs to be effective now and well into the future. Determining what the cost may be depends on many factors, including:

• The average age of your employees. The lower the average age of your employees, the better premium you will receive. 
• Employees’ dependents. If your employees are married and have children, the cost of insuring their families will have an additional cost. 
• The nature of your business. Is your company an office-based environment? Or is it a manufacturer? Both scenarios present health risks to employees.

​While it’s true the economies of scale theory will apply when negotiating with insurance firms for the lowest possible cost you can secure, for entrepreneurs, startups, and small business owners, it may be more beneficial to establish a Health Spending Account (HSA) as opposed to a traditional group insurance plan.
 
HSAs provide better flexibility for each employee to be reimbursed for eligible expenses. HSAs are effective at controlling costs without stripping away benefits from employees’ plans because they are like spending accounts: if the employee doesn’t use the benefits, the HSA account grows over time.
 
For midsized to large companies, the irony is the larger the group, the better the benefits are. That’s particularly true for the life insurance component because of what’s known as “rate banding”. In other words, it’s similar to buying a product in bulk. The more you buy, the lower the cost.

Many workplaces have employees ranging in age from their late teens to their late 60s or older. From a group benefits and cost-benefit point of view, it’s advantageous for employers to count younger people among their employees.
 
Appealing to millennials – people born between the mid-1980s and early 2000s – means going beyond offering competitive compensation, a flexible work-life balance, career growth opportunities, and a games room. Do they value health insurance almost as much as older adults? It’s tough to say conclusively. A 2015 report by the U.S.-based nonprofit Employee Benefit Research Institute stated millennials are more likely to value life insurance and paid time off as the most important benefit than health insurance compared to Baby Boomers and Gen Xers.
 
Do you have questions about group benefits for your organization? Talk to one of our professional, certified insurance and investment advisors. We have the experience and expertise to help. Call us toll-free at 1-800-595-2150

It’s a tough call for any retiree focused on investment planning: Should you convert your registered retirement savings plan (RRSP) to an annuity once you reach the age of 71? Or would it be more beneficial to choose a registered retirement income fund (RRIF) or a life income fund (LIF)?
 
The short answer is it depends on your personal financial picture and desires, your risk tolerance, and how much flexibility you want accessing your funds.
 
Converting an RRSP is the easy part. The difficulty comes in deciding how to proceed. But take heart: you’re not alone if you find this topic confusing. Most people do.
 
The best way to choose the right option is to take a long-term view of your situation, work closely with a financial advisor, and determine a suitable plan that ensures your savings will last and provide you with what you need to live comfortably.
 
Another important point to remember: investment planning for retirement is not a “set-it-and-forget-it” proposition. You need to revisit your investment plan at least once every year to ensure you’re deriving the most value, and if necessary, make changes that will improve your returns.

Whether you choose an annuity, LIF, or RRIF, all three offer investment planning upsides and potential pitfalls. However, the argument for annuities isn’t a strong one presently. That’s because of the low-interest rate environment we’ve been in since the Great Recession gripped the world in the late 2000s. However, there are other factors that you must consider.
 
Let’s start with an overview of what the primary differences are between each one of these investment vehicles:

• Annuity. There are varying types of annuities to choose from, but like anything else you purchase, the more features you add, the more the product will cost. There are single life annuities, joint annuities, last survivor annuities, fixed-term annuities, and more. In general, people who are worried about running out of money over the course of their retirement tend to buy a life annuity from an insurance company because it provides guaranteed payouts for the balance of their lives. But there’s a catch. On one hand, there are minimum monthly payouts that you have to take which are determined by several factors including current interest rates, and once you’re locked into an annuity, you can’t use the funds to invest in other financial instruments. Also, if you die earlier than expected, you cannot bequeath the funds to a beneficiary. On the other hand, financial market volatility won’t impact an annuity, and they’re a good option if you have a low-risk tolerance.

• RRIF. Think of a registered retirement income fund like an envelope in which you can place a broad range of investments. RRIFs can also provide a guaranteed income for life, and there are minimum monthly payouts, but the amounts are based on your age. Typically, those payouts start out small and increase as you grow older. RRIFs also provide you with more flexibility in that you can adjust the investments to fit your inflationary goals, risk tolerance, and so on. The balance from this investment can be given to a named beneficiary after you die. You can also opt to convert a RRIF to an annuity at a later date if you wish.

• LIF. A life income fund is basically a RRIF for funds that were originally held in a locked-in RRSP or a registered pension plan, and these savings continue to grow tax-free until you withdraw them. In a certain sense, a LIF works much like an RRSP but in reverse. It will provide you with a guaranteed income, and it too is flexible on how you control and invest your funds. For instance, you can use the money in a LIF to invest in mutual funds, segregated funds or GICs, and you can name a beneficiary to receive the balance from this investment after you die.

Not everyone has an RRSP, and not everyone needs one. For some people, they avoid investing in an RRSP for the same reason many people are steering clear of purchasing an annuity: the interest rate is too low to make it worth their while. Others, such as people with low marginal tax rates, may find using a tax-free savings account (TFSA) to be of greater benefit. Simply put, the lower your tax rate is, the lower the tax savings you will realize.
 
There is no one-size-fits-all investment planning blueprint for retirement. Even if you feel you’re late to the retirement savings game, to make an informed decision on how you should proceed with your retirement plan requires honest reflection and contemplation on what you can realistically achieve, and a trustworthy and experienced partner to advise you.
 
Are you seeking an experienced financial advisor to help you and your business succeed? Talk to one of our professional, certified insurance and investment advisors. We have the expertise to help. Call us toll-free at 1-800-595-2150.
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Many people and business owners are focused on their daily activities.  They are saving for retirement but they have little knowledge of how best to maximize their investments for retirement and forging a business succession plan.  A qualified Financial Advisor will help keep your investments consistent with your financial goals and your risk tolerances. 
 
It is not easy finding someone who not only knows about investments, but also understands how to help you and your company thrive and grow.
 
To find a qualified Financial Advisor ask your business associates, friends or relatives for recommendations.  You can also contact the Financial Planning Standards Council (www.fpsc.ca) or look in your local business directory.
 
After you find a few candidates in your area, call them and schedule an appointment to meet and interview them personally.  You then need to ask all the right questions and be certain the individual you hire has the experience and qualifications to steer you in the right direction. 

• What is your background? You want someone who is qualified and has the right experience to give you the help you need.  Ask the following:

1. What are your professional qualifications?
2. How long have you worked in the industry?
3. Can you provide referrals from client’s you have worked with?

• What kind of products and services do you offer? Some advisors specialize in certain kinds of investments and others can offer you a wide range of investment options and services to meet your goals.
• How will you help me reach my goals? The advisor should ask about your financial goals and objectives. Make sure you are comfortable with him or her to provide the necessary personal details. The advisor should then be able to provide a detailed analysis and a personal plan.
• What level of service can I expect? You need to know how often you will meet, when you will receive updates and how quickly you will receive information on your questions and concerns.
• How are you paid? Some advisors charge a flat hourly fee, but most are paid a commission based on the products that you invest in.

At the end of your interview be diligent check the advisors’ qualifications and references.  Then ask yourself:  Do you like this person??  Do you have any reservation??  Because you will be providing and discussing very personal information with this advisor, so you need to be very comfortable with this person.         

Whether your end goal is personal retirement, business succession, or both, the earlier you engage in a relationship with a qualified professional, the greater the benefit to you, your family, and for preserving the legacy and vitality of your company.
 
Are you seeking an experienced financial advisor to help you and/or your business succeed? Talk to one of our professional, certified insurance and investment advisors. We have the expertise to help. Call us toll-free at 1-800-595-2150.

As a business owner, you already insure many assets to protect your business from potential risks: your office space, company vehicles, computer equipment, and so on. But have you insured the key people who operate your business?
 
Key person insurance is one vital insurance policy many business owners may be neglecting. This type of policy provides life and/or disability insurance for key people who are critical to a business’s continuing operations. For small businesses, in particular, key person insurance is an essential part of any proactive business continuity plan. Without such a policy, your company may be exposed to financial risks.

By acquiring key person insurance on your crucial employees, the company owns the policy and the company is the beneficiary.  Should one of the “key people” covered by the policy suddenly and unexpectedly die or become disabled, the policy is triggered and the benefits are paid to the company tax-free.
 
The policy funds can be used in a number of ways including hiring a temporary replacement, covering financial losses incurred as a result of an absent key person, paying off the business’s debts or reimbursing investors. In other words, it will help preserve the value of your business and its continuation if a key person becomes disabled or dies. 

Whether your business is a sole proprietorship, partnership or corporation, key person insurance should be a part of your overall business risk management plan. It’s an important business-related liability that must be adequately addressed.
 
There are several things to consider when determining how much key person insurance you will need. Think about the projects that would be lost without these people, the amount of sales generated by them and the costs associated with replacing them.

In a country like Canada where small to medium-sized businesses account for the largest percentage of all employers, and where individual entrepreneurs are often the crux of those success stories, key person insurance is simply a must-have for any risk-averse and forward-looking organization.  Having a key person insurance policy isn’t solely about planning and securing your business’s success. It also assures a firm’s customers, partners, investors, and creditors that in the event of the sudden disability or death of the owner or key person, the company will survive and thrive.
  
Do you have questions about key person insurance for your organization? Talk to your broker or one of our professional, certified insurance and investment advisors. We have the experience and expertise to help. Call us toll-free at 1-800-595-2150.

Across Canada, rising home prices and an ever-shifting economic landscape are making it increasingly difficult and stressful for most people to save comfortably for and purchase a home. For most Canadians, the key to opening the door to buying a home is a mortgage default loan insurance policy. But what is mortgage loan insurance? And if you’ve diligently saved your money, do you need to buy a mortgage loan insurance policy?
 
If you have less than 20% of the asking price, a mortgage lender, or bank, is required by federal law to purchase mortgage loan insurance or CMHC (Canada Mortgage and Housing Corporation) insurance as it is commonly referred to, for what is typically called a high-ratio mortgage. This law applies to mortgage lenders for both new and repeat homebuyers.
 
The purpose of mortgage loan insurance is two-fold: it protects the financial institution that holds your mortgage, and it gives you the opportunity to purchase a home with only a minimum down payment; as low as 5% of the price of the home you wish to buy provided you qualify for that low percentage rate. There are two firms in Canada that provide mortgage lenders with mortgage loan insurance, the CMHC, and Genworth Canada. If your bank is required to purchase mortgage loan insurance for your mortgage, it will pass on the cost of the insurance to you as part of your monthly mortgage payments (which is standard).
 
Avoiding Mortgage Loan Insurance Premiums
Mortgage loan insurance does not protect you, the purchasing homeowner, from defaulting on your mortgage. It is a policy that compensates the bank that provided you with a mortgage in the event you default on your mortgage payments.
 
If you have conscientiously saved funds and have more than 20% of the asking price for the home or property you want to acquire, your mortgage lender is not required to buy a mortgage loan insurance policy, but more often than not, it will purchase the insurance regardless.
 
In this case, you should be able to avoid being charged monthly insurance premiums on your mortgage. If you aren’t, you may wish to consider talking to a different mortgage lender. After all, the mortgage lending business is highly competitive.
 
The Different Types of Mortgage Insurance
There are different types of mortgage insurance policies:

1. Mortgage Loan Insurance, which protects the lender in case of default or foreclosure.
2. Homeowner or Property Insurance Policies are designed to protect the home from fire, flooding, theft and other accidents and damages. These types of policies may be required by the terms of your mortgage contract.
3. Mortgage Life Insurance provides protection for you and your family if you are unable to make your mortgage payments because of a critical illness, disability, or if you as the policy holder should suddenly die. 

Additionally, you should be aware of the difference between personally owned and bank-owned mortgage life insurance policies.

A personally owned mortgage life insurance policy is one you control. Among its many benefits, it protects your family, is fully portable (transferable to any home), gives you the opportunity to shop for better interest rates when your mortgage renewal crops up, and it provides a 30-day grace period for any missed premiums. The value of the insurance does not decrease as the mortgage is reduced.
 
A bank-owned mortgage life insurance policy is the exact opposite. It is designed to protect the bank and is controlled by the bank. It’s a non-convertible, inflexible policy which runs out whenever your house is sold. Moreover, a missed mortgage payment often means this form of coverage will be revoked. Additionally, the value of this insurance policy decreases as the mortgage is reduced.
 
Do you have questions about mortgage insurance or mortgage repayment strategies? Talk to one of our professional, certified insurance and investment advisors. We have the experience and expertise to help. Call us toll-free at 1-800-595-2150.
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