For most people, buying life insurance is difficult enough, even when it’s done right. But when it is done with only one eye open, or haphazardly just to ‘get it over with’, mistakes are very common, and they can be very expensive. Without question life insurance is one of the most important purchases people make in their lifetimes, yet many people are ill-equipped to make informed decisions. Consequently, many life insurance owners express doubt, or even remorse, over their purchase. By avoiding some of the biggest mistakes that people make when buying life insurance, you can be more assured of your purchase and enjoy its peace of mind.
For many Canadians, building true wealth might seem unobtainable, or even illusory considering that many people, who very recently were sitting on six and seven-figure RRSP’s and home equity values, now feel unprepared for retirement. The primary lesson learned from the recent financial crisis is that wealth can be fleeting. However, wealth creation always has been, and still is, a process grounded in sound principles and practices that, when applied with discipline and patience, are manageable for most people.
The death of a partner or major stockholder in a business can have devastating effects on both the business and the deceased partner’s surviving family. The business is concerned with gaining control of the deceased partner’s interest at a fair price so that it can continue operations without interference from the surviving family members. The family members are most concerned with receiving as much money as possible for their interest in the business and for capital that may be needed for estate settlement purposes.
People spend a lifetime accumulating assets and building an estate with the intention of passing it on to their heirs or charitable beneficiaries. Without proper planning, a person’s death can create significant hardships on the people for which the estate was created.
For an estate to be passed on to the heirs, there could be settlement costs, such as probate fees and terminal taxes. In some cases, where the terminal taxes are substantial, assets may have to be liquidated in order to pay them. Also, the actual transfer of assets could be delayed by probate proceedings that are bogged down if there are any contestable assets.
Saving money versus paying off debt is an age-old quandary that has plagued people since the advent of consumer debt. Posing the question to a group of financial planners, the responses will usually be split, roughly, down the middle. While there may be as many advocates for savings as there would be for paying down debt, the broad consensus will likely be that it really depends on the specific situation.
As we age, the odds of incurring an injury or major illness, which will prevent us from performing simple daily functions, increase substantially. Today, one in three people over the age of 65 will require assisted care of some sort; and past age 75 the odds increase to one out of every two people. With the average cost of nursing care now surpassing $3000 a month, it’s no wonder that long-term care often decimates the savings and assets of the seniors who need it.
The decision to move forward with your plans to start a family is a joyous one, but it can also lead to increased stress, especially if your financial house has not been “child-proofed”. Considering that, on average, the estimated cost of raising a child now exceeds $300,000, there’s little margin for error for most young families that have other important financial goals to achieve. But there’s no reason why you should get caught off guard or in a cash-crunch, as long as you plan ahead. The following family planning checklist contains what is deemed by most new parents as being essential concerns when preparing for a new arrival, but it is by no means exhaustive
The notion of needing protection from the impact of a car accident or a fire at home is something most of us learn with the purchase of our first vehicle and house. We tend to become better acquainted with life insurance with marriages, the arrival of children, or estate planning. Over time we typically begin to acknowledge that sometimes people become sick and need extra care that can rapidly deplete assets, leading to a desire for education on CCP Disability Benefits and long-term care coverage.
The current economic environment has caused many to reconsider their personal finances; resulting in lots of people having to drastically change their spending and savings habits. Out of this economic malaise may arise an opportunity to instill the right financial habits in your teens, and they can carry these habits with them into adulthood. Just as our parents or grandparents of the Great Depression era developed deeply ingrained attitudes about finances from their experiences, our teens can share in the lessons of the more recent “great recession”. As a parent, it is important to make your teen a partner with a stake in your family’s financial enterprise.