FINANCIAL SEMINAR   Brett Cranson, Insurance & Investment Broker
AgendaIntroductionReduce Your Debt & Budget PlanningFinancial Strategies To Help You Reach Your GoalsProtection You Ca...
Good Debt vs. Bad Debt• Element of Good Debt:  1. Underlying Assets Expected to Appreciate in     Value• Reconsider Canadi...
Credit Card DebtPay off high interest credit cards firstLook for lower interest rate credit cardsPay more than the mini...
Create A Budget1. Determine your monthly net income2. List your expenses    Fixed expenses (rent/mortgage payment, loans,...
Establish Your Future Short, Medium, And Long-Term                       Goals! Buying a house Having a family/more chil...
Financial Strategies To Help You Reach Your GoalsRetirement savingsThe best way to save moreThe benefits of starting ea...
There Are Three Sources of Retirement Income1. Government Benefits2. Employer Programs3. Personal Assets
Government Retirement Benefits            Canada Pension Plan (CPP) Old Age Security (OAS)           2010 Maximum payouts ...
Saving optionsWhat are the options for filling the  savings gap?•   Savings account•   Investments in Tax-Free Savings    ...
RRSP Investing Benefits YouYou get:•Tax benefits – contributions are tax deductible•Compounding – investments compound tax...
The best way to save MORE               Save automatically through a               pre-authorized chequing plan (PAC)     ...
Maximize Your EffortsInvestment Strategies•Start investing now – start a Pre-Authorized Chequing Plan (PAC)•Diversify•Bene...
The Benefits Of Starting Early                            Jennifer     $930,511                Age: 30                    ...
The power of compounding     $100,000                                                                  Amount contributed ...
Tax-Free Savings Account!•Non-deductible contributions - $5,000 per year•Investment income AND withdrawals tax-free•Withdr...
Advantage TFSA???                           TFSA       RRSP   Non-registeredDeductiblecontributions?Tax-exemptincome/withd...
TFSA Growth - $5,000 Per Year Over 20 Years                                      $173,596      *Assumes 5% rate of return
Registered Education Savings Plan!•The best way to save for your children’s education•Money that you contribute to the pla...
What if the beneficiary doesn’t pursue post-secondary                       education?•Wait a while. Accounts can remain o...
•Life Insurance•Critical Illness Insurance   How does it fit into my financial plan?   Why do I need it?   What should ...
Life Insurance•Provides capital in an estate to cover taxes, expenses, etc. payable on death•Can provide for children•Low ...
What types of Life Insurance are there?•Term   T10   T20   T100•Permanent   Universal Life   Whole Life
Term Life InsuranceLow upfront costTemporary protection for time of high riskCoverage will end at a certain ageCost ma...
Whole Life InsuranceStable lifelong protectionOver long term generally a better financial choice than Term Life Insuranc...
Universal Life InsuranceMore Flexible type of InsuranceCombines long term insurance with an opportunity for tax-deferred...
Life Insurance - What to look for in a contract•Healthstyles underwriting   Rewards the healthy•Conversion privledges   ...
Beyond healthiness – why buy young• $500,000 of T10 coverage male/female – average health (monthly);    25 - $25 / $19   ...
What is critical illness insurance?• One-time lump sum if diagnosed and survive a covered condition• Monthly benefit if Lo...
Who Do You Know?• Life-Threatening Cancer• Heart Attack• Stroke• Alzheimer’s Disease          • Loss of Speech• Aortic Sur...
Incidence…                     Male                     Female          Risk to age 65      Risk to     Risk to   Risk to ...
Survival is one thing•9/10 heart attack victims survive 30 days•75% of stroke victims survive the initial event•On average...
CI realities summarized1. These things happen a lot2. The good news is people aren’t dying nearly   as much, but their liv...
Why do I need this insurance?• Accessing of alternate      •Taking stock / catching  care                        your brea...
It’s not always about treatment•Hotel beside the hospital•Cafeteria or eat out during treatment•Hire a nanny (even though ...
What does my solution look like?•Term or Permanent•Return of Premium•Definitions
Plan Ahead• Seek professional advice• Set your objectives and goals• Put together a plan• Stay focused on your long-term i...
Taking charge…           The biggest risk             you can take         is to do nothing at                 ALL!
THANK YOU!  Questions & CommentsDraw for Baby R Us Gift Cards
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Financial Planning 101

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Financial Planning 101

  1. 1. FINANCIAL SEMINAR Brett Cranson, Insurance & Investment Broker
  2. 2. AgendaIntroductionReduce Your Debt & Budget PlanningFinancial Strategies To Help You Reach Your GoalsProtection You Can Count On
  3. 3. Good Debt vs. Bad Debt• Element of Good Debt: 1. Underlying Assets Expected to Appreciate in Value• Reconsider Canadian DebtType of Debt Tax Deductible Asset Appreciation Good or Bad?Credit Card X X BadCar Loan X X BadMortgage/RRSP X GoodLoan
  4. 4. Credit Card DebtPay off high interest credit cards firstLook for lower interest rate credit cardsPay more than the minimum paymentTransfer credit card balances
  5. 5. Create A Budget1. Determine your monthly net income2. List your expenses  Fixed expenses (rent/mortgage payment, loans, car payment, credit card debt,etc.)  Variable expenses (Food, entertainment, etc.)3. Set money aside for savings4. Stick to your budget
  6. 6. Establish Your Future Short, Medium, And Long-Term Goals! Buying a house Having a family/more children Travel Buying a car
  7. 7. Financial Strategies To Help You Reach Your GoalsRetirement savingsThe best way to save moreThe benefits of starting earlyTax-Free Savings Account
  8. 8. There Are Three Sources of Retirement Income1. Government Benefits2. Employer Programs3. Personal Assets
  9. 9. Government Retirement Benefits Canada Pension Plan (CPP) Old Age Security (OAS) 2010 Maximum payouts OAS onlyOAS/GIS $8,429.64CPP/QPP 11,210.04 19,639.68Low-income cut-off Single: $19,000 - $22,000 (2008) Couple: $23,600 - $27,600 (Source: Statistics Canada 75F002M)
  10. 10. Saving optionsWhat are the options for filling the savings gap?• Savings account• Investments in Tax-Free Savings Accounts or Open Accounts• Investments in RRSPs
  11. 11. RRSP Investing Benefits YouYou get:•Tax benefits – contributions are tax deductible•Compounding – investments compound tax- free as long as they are in the plan•Selection – a wide range of investment choices
  12. 12. The best way to save MORE Save automatically through a pre-authorized chequing plan (PAC) Take money from your paycheque before you see it Out of sight, out of mind12
  13. 13. Maximize Your EffortsInvestment Strategies•Start investing now – start a Pre-Authorized Chequing Plan (PAC)•Diversify•Benefit from a spousal RRSP•Consider borrowing to contribute
  14. 14. The Benefits Of Starting Early Jennifer $930,511 Age: 30 Invests $5,000 / year @ 8% for 35 years Lucy $247,115 Age: 45 Invests $5,000 / year @ 8% for 20 years
  15. 15. The power of compounding $100,000 Amount contributed $91,484 Investment value $80,000 $60,000 $57,266 $40,000 $33,978 $30,000 $24,000 $20,000 $18,128 $18,000 $12,000 $6,000 $7,341 $0 5 years 10 years 15 years 20 years 25 years This hypothetical example is based on monthly $100 contributions and assumes an average annual return of 8%.15
  16. 16. Tax-Free Savings Account!•Non-deductible contributions - $5,000 per year•Investment income AND withdrawals tax-free•Withdrawals allowed at any time for any purpose•Unused contribution room accumulates AND withdrawals create new contribution room
  17. 17. Advantage TFSA??? TFSA RRSP Non-registeredDeductiblecontributions?Tax-exemptincome/withdrawals?Re-contribution ofwithdrawals?No maximum age forcontributions?No impact ongovernment benefits?Advantage? 4 1 2
  18. 18. TFSA Growth - $5,000 Per Year Over 20 Years $173,596 *Assumes 5% rate of return
  19. 19. Registered Education Savings Plan!•The best way to save for your children’s education•Money that you contribute to the plan gets to grow tax-deferred•Contribute any amount up to a lifetime maximum of $50,000•To help you save for your children’s education, the government offers a grant of 20% on the first $2,500 contributed
  20. 20. What if the beneficiary doesn’t pursue post-secondary education?•Wait a while. Accounts can remain open for 36 years•Choose a new beneficiary•Roll over to RRSP•Withdraw contributions
  21. 21. •Life Insurance•Critical Illness Insurance  How does it fit into my financial plan?  Why do I need it?  What should I look for when I look at this type of coverage?
  22. 22. Life Insurance•Provides capital in an estate to cover taxes, expenses, etc. payable on death•Can provide for children•Low cost when compared to other alternatives•Creditor protection may be available•Tax-free accumulation of cash values•Access to cash value through policy loans, withdrawals, collateral loans
  23. 23. What types of Life Insurance are there?•Term  T10  T20  T100•Permanent  Universal Life  Whole Life
  24. 24. Term Life InsuranceLow upfront costTemporary protection for time of high riskCoverage will end at a certain ageCost may increase each 10 or 20 years
  25. 25. Whole Life InsuranceStable lifelong protectionOver long term generally a better financial choice than Term Life InsurancePremiums do not changeGuaranteed lifetime protectionAccumulates cash value
  26. 26. Universal Life InsuranceMore Flexible type of InsuranceCombines long term insurance with an opportunity for tax-deferred savingsGuaranteed lifetime protectionPolicy features many options to tailor it to your needs
  27. 27. Life Insurance - What to look for in a contract•Healthstyles underwriting  Rewards the healthy•Conversion privledges  Gives the ability to purchase something affordable (term) and move to a permanent product with no underwriting
  28. 28. Beyond healthiness – why buy young• $500,000 of T10 coverage male/female – average health (monthly);  25 - $25 / $19  30 - $30 / $21  40 - $37 / $30  50 - $82 / $57  60 – $226 / $159
  29. 29. What is critical illness insurance?• One-time lump sum if diagnosed and survive a covered condition• Monthly benefit if Long Term Care benefit is included• Flexible use of benefits• Payment based on diagnosis, not functional ability or loss of income
  30. 30. Who Do You Know?• Life-Threatening Cancer• Heart Attack• Stroke• Alzheimer’s Disease • Loss of Speech• Aortic Surgery • Major Organ Transplant• Benign Brain Tumor • Motor Neuron Disease• Blindness • Multiple Sclerosis• Coma • Occupational HIV• Coronary Artery Bypass • Parkinson’s Disease• Deafness • Paralysis• Heart Valve Replacement • Severe Burns• Kidney Failure• Loss of Limbs
  31. 31. Incidence… Male Female Risk to age 65 Risk to Risk to Risk to age 75 age 65 age 75 30 27.2% 55.3% 21.5% 42.7% 40 25.4% 54.2% 19.9% 41.5% 50 20.6% 51.4% 15.5% 38.4% 55 16.6% 49.0% 12.0% 35.8%Source: Munich Re.
  32. 32. Survival is one thing•9/10 heart attack victims survive 30 days•75% of stroke victims survive the initial event•On average 3,340 Canadians will be diagnosed with Cancerevery week•In the last 30 years, the cancer survival rate has nearlydoubled Source: Manulife Marketing Database & Taddingstone Group
  33. 33. CI realities summarized1. These things happen a lot2. The good news is people aren’t dying nearly as much, but their lives are still hugely impacted3. And unfortunately, it’s often the healthiest person you know
  34. 34. Why do I need this insurance?• Accessing of alternate •Taking stock / catching care your breath• Lessening family impact •Costs to retrofit a home or• Mortgage pre-payment vehicle• Comforts during •Fund career or schedule treatment change• “Yes” pot of funds •Debt reduction• Accessing medications •Early retirement• Accessing non-traditional •Pebble Beach / Paris treatments
  35. 35. It’s not always about treatment•Hotel beside the hospital•Cafeteria or eat out during treatment•Hire a nanny (even though you never had one)•Flat screen for home, visits from buddies•Book trip for post-recovery – Pebble Beach / Paris
  36. 36. What does my solution look like?•Term or Permanent•Return of Premium•Definitions
  37. 37. Plan Ahead• Seek professional advice• Set your objectives and goals• Put together a plan• Stay focused on your long-term investment plan• Today’s market presents many opportunities
  38. 38. Taking charge… The biggest risk you can take is to do nothing at ALL!
  39. 39. THANK YOU! Questions & CommentsDraw for Baby R Us Gift Cards

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