This document provides an overview of important financial planning topics such as life events, priorities, risk tolerance, wills and estate planning, protection needs, accumulation needs, retirement needs, and the benefits of RRSPs. It highlights key statistics about women's financial security, common causes of debt and lack of planning. The document stresses the importance of thinking ahead about financial independence and planning for health issues, final expenses, supporting family, and maintaining your lifestyle throughout life's stages and unexpected events.

1. “THINK AHEAD”
▶ YOUR GUIDE TO FINANCIAL
PLANNING/INDEPENDENCE FOR THE
FUTURE
_1

2. Today’s Topics

3. The longer we wait the steeper the climb…

4. Life Events

5. Priorities of the average Canadian
taxpayer

6. Risk Tolerance

7. Risk Tolerance

8. DID YOU KNOW?
▶ 52 % OF WOMEN TODAY BETWEEN THE
AGE OF 60-65 LIVES ON LESS $ 17,000
▶ AVERAGE AGE FOR A WIDOW IS 56
▶ 52% OF MEN DIE WITHOUT A WILL
▶ 2 OUT OF 5 CANADIAN WOMEN MARRIED
TODAY WILL BE DIVORCED BY THEIR 50TH
BIRTHDAY
▶ 30% MAKE INSURANCE DECISIONS

9. Financial Security

10. Roadblocks While Alive

11. The Will
▶ Heart of estate planning
▶ Only 50% of Canadians have a will
▶ No will?
• Government will write one for you
• Your wishes do not count

12. What If I die Without a Will
▶ Estate - $ 200,000 – One Child
▶ Half to the spouse, half to child
▶ Estate - $ 200,000 – 2 or more children
▶ One third to spouse – two third amongst
children

13. Probate Fees in Ontario
▶ Probate fees are highest in Ontario
▶ $ 5 per thousand on the first $ 50,000 estate
value/assets
▶ 15$ per thousand over $ 50,000
▶ For example: $ 500,000 estate - $ 7,000 in
probate fees
▶ Assets are also subject to probate on the
second spouse’s death

14. ASSETS EXEMPT –
ONTARIO PROBATE
Insurance policies payable to a named
beneficiary
Segregated funds (reg/non reg) payable to a
named beneficiary – creditor proof
Real Estate outside of Ontario

15. Protection Needs
Final expenses
Payoff mortgage, credit cards, loans
Income replacement (2 spouses working)
Income tax – probate fees
Maintaining same lifestyle
Children’s education funds

16. It Always Happens to Others
▶ Lifetime probability of suffering from cancer:
1 in 3 (1)
▶ 70,000 heart attacks each year in Canada(2)
▶ 75% of cerebral vascular accidents will survive
their first attack(2)
(1)
Statistics Canada 1999; (2)
heart foundation 2003

17. Financial Implications
▶ Mortgage/other debts
▶ Maintain business
▶ Leave of absence/no income
▶ Family time
▶ Domestic help
▶ Caregiver
▶ 37% of mortgage foreclosures
inability to make payments because unexpected illness
and cannot work

18. How would you maintain your
lifestyle?

19. Of Course
Perhaps we will never suffer from a life threatening
illness or need to use a home/facility health care
but…
Desjardins Financial Security independent Network/ 2010

20. Long Term Care
▶ In 2007, 1 person in 4 was providing home care
to a weak aging person
▶ In 2007, 385,000 seniors were living in facility
care establishments
▶ Aging population
• Next 20 years – 65+ will triple
• 43% of health care costs
Statistics Canada

21. Accumulation Needs
Children’s post secondary education
Supporting/caring for elderly parents
Savings – down-payment on a home/cottage
Savings to take a leave of absence
Savings to start a business
Savings to reduce debts

22. Retirement Needs
Maintain pre-retirement lifestyle
Travel money
Funds for grandchildren
Funds to maintain financial independence
Funds for charity
Funds to transfer business ownership

23. Benefits Of RRSP’s
▶ TAX DEDUCTIBLE CONTRIBUTIONS
▶ LOWER TAX BRACKET WHEN FUNDS ARE
WITHDRAWN
▶ MAXIMUM CONTRIBUTION LIMITS FOR 2016 ($
25,370)
▶ LIFETIME OVER CONTRIBUTIONS $ 2,000
▶ TRANSFERS FROM OTHER FINANCIAL
INSTITUIONS PERMITTED

24. Investing in an RRSP is a winning
proposition

25. THANK YOU FOR YOUR
ATTENTION
QUESTIONS?