As value-based Financial Advisors in Winnipeg, we help clients like you realign their spending with what matters most.
In today’s world, we are constantly bombarded with opportunities to spend our money.
Unfortunately, this “desire-based” spending may put you in a position where there really isn’t enough left over at the end of the day to take care of the things that are really important to you.
We help you uncover these important things, then develop a plan to ensure they do not get left behind.
We also work with you to identify certain risks that may roadblock your plan and together we design a solution that mitigates or eliminates their potential impact.
Throughout the planning process, we apply high level, unbiased, independent quality advice to ensure you have a secure financial future.
A well-planned risk management strategy gives you a solid foundation that mitigates the financial risks of serious life events that could put you and your loved ones in a financial catastrophe.
And if you’re like most of us, your financial security relies on your ability to earn income.
This means that if you can’t work, your income STOPS.
Our risk management solutions help you protect yourself and loved ones from loss or reduced income in the event that your ability to earn a living is ever affected which, by the way, is your most important asset.
So whether you’re just starting out in your career or you’ve already achieved much in your life, you have an asset to protect!
People who are just starting out with not much material wealth may not think that they have an asset worth protecting but the mere fact that they can produce income for themselves and loved ones is an asset in itself and is worth protecting.
If on the other hand, you’re someone who is well established financially, with a thriving career or business, and perhaps at the peak of your earning years, risk management couldn’t be more important.
Illness or Disability
As mentioned, serious life events like a critical illness or a disability that can affect your ability to actively work for income to provide for yourself and family.
Protecting your income in the event of a disability or illness
Critical Illness and Disability insurances are living benefits policies that could serve as your financial safety net in the event that an illness or disability prevent you from working at your job, business or profession.
An income replacement living benefits plan is your silent partner that protects you and your family from the financial risks of lost or reduced income which often results from a disability or a serious illness.
Without a living benefits plan, you and your family are at risk of losing your current lifestyle and may put your loved ones financial security in jeopardy.
A living benefits plan that protects you and your family against reduced or loss of income ensures that your lifestyle and financial future is protected.
As responsible providers for our families, we work hard at our professions, businesses or jobs to provide for their needs and guarantee their financial future.
But what happens when death steals this ability from you?
Planning for the unexpected is the key!
Implementing a life insurance protection for your loved ones doesn’t mean you’re planning for your own death.
It only means that you’re aware of your responsibilities and you acknowledge the fact that as human beings, we don’t really have control over as to when our time may come.
Life insurance ensures that your loved ones can still maintain the same lifestyle and future that you’re capable of providing them today even when (if) you’re no longer around to look after them.
In fact, life insurance is a benefit that we hope no one should ever need, at least, during our active years or when our families are young but then again, enough coverage should be in place – just in case.
This way, our loved ones need not suffer the financial consequences of a breadwinner’s death.
Just like living benefits, life insurance is a silent partner that makes sure your loved ones are taken care of in the event that you’re no longer around to take care of them financially.
Why Insurance is Important
Insurance is an important part of your risk management plan because it protects you and your loved ones against the financial risks of events that are beyond anyone’s control.
Insurance protection is like carrying a spare tire, you don’t wish for a flat but you carry one so you can continue on your journey; just in case.
Insurance gives you and your family the peace of mind in knowing that life can continue on without the risk of financial struggle regardless of what serious event life might throw at you.
You Need Insurance if:
- You actively work for income.
- You have people depending on you for financial support
- You’re financially accountable to a person or an entity
- You have a business that needs to survive for you’re loved ones even if you can no longer actively work on it.
- You have material assets or a sizeable estate that you want to pass on to your next generation
Basically, anyone who has obligations needs insurance.
What Insurance Protects You and Your Loved Ones From?
Insurance protects you and your loved ones from the following:
- Lost or Reduced Income
- Consumer Debts
- Mortgage Debt
- Children’s Post Secondary Education Costs
- Funeral & Interment Costs
- Final Taxes
As breadwinners, the income that we contribute to our family’s finances is one of our most important obligations. If we are alive and well and we lose our job or business slows down, it is but natural for us to look for other alternative income sources in order for our income flow to continue but sometimes, loss or reduced income isn’t simply because of job loss or slow business. Sometimes a person can’t continue working because of an illness, disability or at worst, death.
The problem is, a person’s monetary obligations don’t necessarily stop when his or her income stops.
Consumer debt servicing like credit card payments, car amortization, bills, mortgage payments and whatever else monthly obligations an individual may have will continue collecting payments on a monthly basis which may put a strain on a family’s budget when the family’s income is reduced.
Wills and Powers of Attorney
Wills and Powers of Attorney are integral parts of a risk management plan and though, we are not lawyers ourselves, we can introduce you to our trusted lawyers if you don’t already have one.
Both of these legal documents empower you to take care of your affairs (especially financial) should you lose the ability to do so due to illness, disability or death through another person or the document itself through the lawyer in the case of a will.
Our clients qualify for a discount on these services when provided by the lawyers we recommend.
An emergency fund helps take away the financial strain from emergency spendings such as vehicle and home repairs which helps you avoid dipping on credit cards and lines of credit for unplanned expenditures like the ones mentioned herein as well as a buffer in case of job loss.
On average, a person should build at least six month’s worth of salary or earnings on his or her emergency fund which protects the fund owner against monthly obligations in case he or she loses his or her job due to lay off or job shortage.
An emergency fund serves as an interim source of money to take care of your basic costs of living while you’re searching for another source of income.
Wealth Building / Asset Accumulation
The second step of the financial compass process is wealth building.
A sound financial plan is made up of both risk management and wealth accumulation.
Did you know that more than half of Canadians can’t retire at 65 due to financial reasons?
Most people never really think of retirement when they’re young not realizing that the best time to start saving for retirement is the moment they earn their first paycheck.
According to then Finance Minister, late Jim Flaherty; while it’s good that we have government pensions in place, the problem is that it’s too small. He also urged Canadians to not put all their hopes for retirement on government pensions and instead to save their own funds for retirement.
This is because government pensions are only meant to supplement our retirement income and shouldn’t be treated as the sole source of retirement income.
This is the reason why most retirees solely rely on government pensions at retirement.
While it’s good that our government has pension plans in place, these are only meant to partially replace our active income when we retire from the workforce.
This is the reason why most people go back to the workforce (at least on a part-time basis) to supplement their government pensions.
You may argue that having a government pension is more than enough to meet your needs at retirement but this only holds true if you plan to financially struggle at retirement.
Most people go back to the workforce at least on a part-time basis to supplement their retirement income this is because, between 10 to 30 years from now, the Canadian dollar you know today will most-likely have half of its value from today not to mention the fact that you will probably have more time to spend at retirement than when you’re actively working full time.
During your active working years, most of your days are spent working to make a living; typically between 5 – 6 days a week. This means that we have less time to spend money since at least 8 hours of our workdays are spent working. Then usually, we’ll have Saturdays for fun and leisure and this is when we spend.
When you retire from the workforce, your Mondays through Fridays and even Sundays will all become like a Saturday. You will have a lot of free time for fun, leisure, hobbies, travel or whatever else you want to do with your time and each of this represents an opportunity to spend your retirement funds. This is the reason why many retirees run out of retirement money only after a couple of years of being retired.
The challenge is NOT to run out of cash flow at retirement, otherwise, you will have to go back to the rat race at old age and there are two problems most retirees are facing today and they are as follows:
- Not enough retirement income, and
- Outliving their retirement funds.
It is expected that the majority of the population will not have saved enough money for retirement.
Planning your retirement early on will make a huge difference and yet, this is one of the major financial mistakes many of us make.
A lot of us don’t necessarily think about retirement when we’re young and just starting out in our careers and the majority will keep on putting it off for the most part of their working lives, amassing obligations instead of assets, only to realize it a little too late.
According to one of my favorite Chinese proverb: The best time to plant a tree was twenty years ago. The second best time is now.
The best time to start saving for retirement is the moment we earn our first paycheck but most people aren’t aware of this as personal finance and financial literacy was never taught in school.
The sooner you start saving and growing funds for retirement, the sooner you can retire and even if you don’t plan to retire at all, having money working for you at old age means you’ll be working at a job, business or career because you want to, not because you have to.
As your financial advisor in Winnipeg, my goal is to also help you implement a simple yet effective retirement saving strategy that will help you slowly build wealth over time, whatever it is you do for a living. Slow and steady wins the race!
“Get rich slow” is the key and if you keep at it, you will have more than enough money that will provide you with passive income at retirement.
Whatever stage you are in your life right now, either you’re just starting out with your career or you already have an established career, it’s never too late to start planning.
A well-thought-out insurance and retirement planning strategy will help you and your family plan for the unexpected and prepare for when you’re no longer capable or when you no longer want to work.
As your financial advisor Winnipeg, my associates and I are here to guide you through the intricacies of living benefits, insurance planning, savings, and retirement planning options to help you protect yourself and your family from the unexpected and slowly build your financial future.