RRSP vs TFSA
Whether you should invest in a Tax Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP) is a question that affects almost every investor, regardless of age or amount of savings. For most, the answer is a bit of both. If you have a looming short or medium-term need (under five years) that will require funds, the untaxed TFSA withdrawals is likely the right choice. For longer term, retirement needs, you’ll want to invest in an RRSP.
Key Person Insurance
Thanks to their size, small businesses usually rely on a few key people to keep operations running smoothly. Whether it is a front-line supervisor that runs the crews, a senior leader for slightly larger business, or the founder and owner of a company, the absence of key people can really cripple short-term results which can potentially place long-term business viability at risk.
Key Person Insurance is a risk management tool that helps to cover the loss of a valued contributor due to death or disability.
Dollar Cost Averaging
Dollar Cost Averaging (DCA) is a structured approach to buying investments. DCA is intended to temper the volatility of your investment portfolio by breaking large holding purchases into smaller buys done over time.
Instead of buying a large holding of a single investment vehicle all at once, the entire purchase is divided into smaller transactions and spread over a period of time.
Term vs Permanent Insurance
When it comes to life insurance, there are many options available – so many, in fact, that it can be an intimidating process to undertake. Many people are unsure about which option is best in terms of cost, coverage and meeting their goals. That said, insurance can be quickly and easily simplified by dividing it into two broad categories: permanent and term. Each of these insurance categories has multiple variations.
The video below is intended to provide clarity and relieve some of the anxiety associated with choosing the most appropriate insurance option for your situation. If you have questions about insurance options and what would best suit your needs and goals, please contact us – we’d be pleased to answer your questions!
TFSA Contribution or Mortgage Payment?
The question of reducing debt or contributing to savings will continue to be debated for as long as people plan to retire in Canada.
Of course opting for both: reducing debt and increasing savings is the ideal. As for which is better, however, really depends on the individuals involved, their goals and feelings and their unique financial situations.
Estate Maximization
In your lifetime, you’ve worked hard to build assets, some of which you may want to pass along to loved ones or charitable organizations after your death. The following video explains how to use a Life Insurance Estate Maximization strategy in order to minimize taxes and maximize your legacy.
Individual vs. Mortgage Insurance
Whether you’re a first-time home buyer, or purchasing a vacation property, if you have a mortgage your lender will encourage you to purchase mortgage insurance.
Like every other life insurance policy, a death benefit will be paid if the insured person dies. Mortgage insurance is usually not the most cost effective and flexible way to protect your assets and family. In almost every case there are less expensive policies than those offered by lenders. The video below explains the difference:
Who needs retirement planning?
On average, 1,250 Canadians turn 65 years old every single day. Most Boomers were born between 1961 -1965. And people are living longer, much longer. With all of this happening, it’s small wonder that the media, politicians and the financial services business are all talking about retirement. That kind of focus may be good, because of what it means for savings habits and pressures on goods and services. There are a lot of myths we have to be wary of if we want to ensure we have an adequate retirement income that lasts a lifetime.
What is a Segregated Fund?
t’s a question we hear often – can I guarantee my investment? Well, in a sense, yes – the product you’re talking about is called a Segregated Fund.
Segregated funds, usually referred to as “Seg Funds”, are individual insurance contracts that invest in one or more asset, much like a mutual fund. Unlike mutual funds, Seg Funds provide a death and/or maturity guarantee that protects a portion of invested capital (usually between 75% to 100%).
Critical Illness Insurance
More and more Canadians concerned about the financial costs of major disease are turning to Critical Illness Insurance to gain peace-of-mind and protect their savings. Critical Illness Insurance provides a lump sum payment to the beneficiary who has contracted or suffers from a major disease. This allows them to “soldier on” in the short-term and pursue treatment without the concern over immediate expenses.
