Once again this fall we are all audience to the most discouraging behaviours of publicly elected officials, patronage appointed people and bumbling bureaucrats.
It is very difficult not to worry about the effect that these people can have on our financial lives through idealistic misguided policy, increasing taxation and protectionism.
But taking control is actually quite simple:
Set Goals: Like any business, the setting of goals with associated timelines narrows the focus and tunes out some of the noise. Saving for education or travel as well as repaying the mortgage imposes some spending restraints on the budget. Income must exceed expenses in order to free up the funds to invest in what you want your life to look like.
Live Within Your Means: As the past couple of years have shown tax rates can be raised at any time. (Studies show that they are the single largest family expenditure as a percentage of income) Now more than half the income you earn goes in taxes. With less discretionary dollars we need to be as tax efficient as possible. Where you can, split incomes, maximize rsp savings and defer CPP and OAS to reduce clawbacks.
Pay off Debts: Interest Rates are on the rise and as they do less of your dollar is repaying principal. Not to mention the reduced amount you actually have available after an increase in taxes.
Build your Net Worth: Just like a balance sheet that businesses prepare on a regular basis, keep track of how your assets are growing and your debts are declining to build your net worth.
Invest in Yourself: Take a course, get a library card, explore an interest, and go for a walk. The mental and physical benefits of good health are endless. Focus on those things in your life that you can control and stop worrying about things like stock markets, trade agreements and politicians. Maintaining your health takes time and, in that way, it is a great investment.
Help Others: Consider a charitable gift, volunteer, be a mentor, contribute to a cause.
This past year has been a challenging one for me. The loss of my father and an important friend/ mentor have made me realize that I am becoming part of the old guard. All the more important to live life in a way that encourages and contributes to others. Thank you once again for your trust and your continued loyal support.
Sincerely,
Don Stone
Let’s talk Living Benefits…
According to statistic’s Canada, since the early 20th century life expectancy for men has increased by 20.5 years. During that same period women’s life expectancy has increased 23 years. The current average for both sexes being 82. More than 90% of Canadians who have a heart attack and more than 80% who have a stroke and make it to a hospital survive. Remarkable progress has been made in tackling cardiovascular disease in Canada over the last 6o years, with death rates declining by more than 75%, 40% of which occurred in the last decade alone. Advances in the fight against cancer are being made. With prevention, early detection and treatment the overall cancer survival rate has increased from approximately 25% in the 1940s to 60% today. The good news is Canadians are living longer and the survival rate is higher now than ever before.
The bad news, survival comes at a price. Nearly 1 in 5 Canadians have no private supplemental health insurance. 55% of Canadians say they would have to dip into their savings or take out a loan to pay for drugs if they got Cancer. The Fraser Institute published a surveyed report from specialist physicians reporting a median wait time of 21 weeks, from referral of a general practitioner and receipt of treatment. The 2017 wait time was 128% longer than in 1993 when it was just 9.3 weeks. With advances in technology and medicine, many will recover and continue to lead healthy and productive lives but at what financial costs?
Part of creating a sound financial plan is ensuring you have protection in the event of illness or disability. Hidden and out of pocket medical cost may include; Medication and treatment options not covered by government and employee health plans, home care assistance, increased expenses related to day care and hospital visits, home renovations to accommodate illnesses and covering loss of income in the event you are not able to work. Living benefits can provide lump sum cash which may give you the opportunity to see a private specialist without the wait, time that may be critical to your longevity. The risk of suffering from a critical illness is greater than dying prematurely. Yet in general, purchasing insurance to protect oneself from a critical illness or disability is far less common than purchasing life insurance. Living benefits help ease the financial stresses of being unwell and allow you to focus on what really matters- getting better!
I have enjoyed having the continued opportunity to get to know many of you better this past year and look forward to further discussions and upcoming reviews. If you would like to learn more about living benefits or our planning services, give us a call we would love to hear from you!
Sincerely,
Allison Stone