Heaven can wait… along as you plan for the road ahead.

Heaven can wait… along as you plan for the road ahead.

A person sacrifices his/her health to make money.  Then they sacrifice money to recuperate their health.  They become so anxious about the future that they do not enjoy the present; the result being that they do not live in the present or the future; they live as they are never going to die, only to die never really lived.  Dalai Lama

So when I’m asked what I do?

The answer is simple!  I help you take care of the future so you don’t have worry, thus allowing you to live for today and tomorrow. I help you succeed!

whatdoyoudo

According to the Dalai Lama, “a person sacrifices their health to make money”.  So what if I told you I can help you protect your money so you don’t have to sacrifice your health.

When creating our wealth we are often confronted with the risk of not accumulating enough for our future.  During the accumulation phase of life (accumulation phase –  is when we earn money) it is critical that we save for the future, so we can continue to enjoy a comfortable lifestyle into retirement. Our lifestyle ambitions requires us to earn our dreams.  In some cases we tend live beyond our earning potential.  Saving for retirement is often complicated, difficult and a time-consuming task for many.  We often see people delay saving for the future because they want more now.  This is where I can help you succeed.  I work with you to help give you that future so you can live today, within your earning potential, and not worry about tomorrow.  I help make your life simple through planning.

How?

 If I could…

Take the volatility out of the market would you be interested?

Help you protect your assets would you be interested?

Help you protect your earning power would you be interested?

Help you protect your earning potential would you be interested?

If you answered yes, to any of these questions above, it’s time for us to start planning together.  Plan for your future so you can live in the present…let me do what I do best.

I can help you find money that you did not know you were losing willingly or unknowingly by taking the volatility out of the markets.  In doing so I will help you Protect Your Assets through Wills, Health Benefits, Estate planning, and Long Term Care.  I will help you Protect Your Earning Power through Living Benefits.  Finally, I will help you Protect Your Earning Potential with the use of Life Insurance.

This is what I do! I help you plan for the future so you can live in the present. I help you succeed!

So is the Dalai Lama right?  Do we have to sacrifice health for life style?

As long as we do what we love and love what we do!   We know that life is good.  We must enjoy the present as we never know what lies ahead.  So live for today and plan for tomorrow.  If done correctly we will not have to sacrifice our health for lifestyle.

Do you have to sacrifice your money to recoup your health?

In life we are sometimes thrown a curve ball, and our ability to deal with any health issue that comes our way is vital to our recovery.  If planned correctly you will never have to sacrifice the future for the present.  Depending on the health issues you will have a plan in place so that the road to recovery is all that you will have to concern yourself with.

Although the Dali Lama says that people don’t enjoy today because they worry about the past and the future.  I believe that if you plan your personal and families financial security with a vision and purpose you can indeed live worry free to enjoy today.

Unfortunately, we all will die at some point, as it is the cycle life we know.  Live life, enjoy your present and future.

The purpose of our life is to be happy.  Dali Lama

Start planning today and be happy tomorrow.

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If interested contact me  @ http://www.henleyfinancial.ca

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Expect the Unexpected…

Expect the Unexpected…

If I told you to do what you love and love what you do and spend 99.9% of your time doing so you would understand that statement as it applies to your life. Some would call it the simple life. But I recommend that you commit 0.1% of your time to plan for the unexpected, especially as you move towards some big milestones like marriage, home ownership and kids. That is when term life insurance, a type of policy that covers you for a specific length of time, can really make sense.

Newlyweds with debt

You are marring the person of your dreams the person that you want to share your future with. But does your future include a term life insurance policy. Here is one reason why you might want to consider buying it now:

Debt.

Insurance is designed to protect you from unknown at death. Many young people start their marriages with a significant amount of debt. It could be a disastrous if only one spouse remained to cover the payments. Say you want to cover $100,000 in debt. You can get a term life insurance policy to cover it for pennies on dollar a year, which is most likely less than you spend on coffee for the year.

Another scenario where term life insurance makes sense is when there is a big disparity in income. Insuring the difference means that if the higher income person dies, the lower income person can support their current cost of living while they rebuild his or her life.

For a newly wed couple Life insurance is something you should have. Hopefully you never need to use the benefit. You can feel good knowing that if something catastrophic was to happen your spouse is covered.

Buying your first home together

There’s “married” living the dream travelling doing what you want when you want, with no obligations. And then there’s “married with a mortgage,more debt and kids.” It’s an exciting step, a new home a place you call your own. But it also presents new risk. If one of you were to die, how would the surviving spouse manage the mortgage payments? This is when and why you buy a mortgage insurance at the bank (or they tell you that you have to purchase insurance through them). The better option is to buy a term life policy from your advisor or an insurance company, for a few reasons.

First, Term life is less expensive than mortgage insurance. Second, The payout on death benefit with term life doesn’t change, but on mortgage insurance it declines as you pay down the principal. Third, Mortgage life insurance has no flexibility meaning there is a face value policy limit and it isn’t transferable, so the policy will be cancelled if you move or become terminally ill before your mortgage is renewed.

Getting married and starting a family

There are a few things you are going to need if you’re expecting a baby. A completed baby room with the right crib, dresser, and a car seat plus all the other must haves. Oh yes you will have all the latest things needed to insure that your child is well looked after. I know this might sound morbid but at the same time you’re anticipating a new life beginning, and this is important. If you die, you want to make sure that your dependents are covered. Term life is a good short-term solution for a new family. The question is, how much do you need? The payout should cover your mortgage and replace a loss of income. How much you will need depends on the conversation you and your financial advisor have when you discuss this section of your family’s financial security.

Don’t hesitate to call or email us for your best options when thinking about your family’s financial security.

Henley Financial & Wealth Manangement  

 

Growing Old is Inevitable, Growing up is Optional! But we do have to deal with it…

Growing Old is Inevitable, Growing up is Optional! But we do have to deal with it…

It’s that time again Labour day has come and gone the kids are back in school meaning that summer has unofficially ended. We are back and will have some helpful insights for you to read over the next few months.  All the best from Henley Financial and Wealth Management. www.henleyfinancial.ca

Over the last year, I have been dealing with my mother who has decided that she would like to see my father again. The problem is he died 30 years ago. Yes he left us at the age of 52, the loss was hard but at that time my mother had lots of friends to entertain and years later I started a family. So she always busy and felt needed. Up until a few years ago, my mother was needed as she helped with my children. That has all changed, the girls are now teenagers and don’t even want my help and her friends have passed or moved on so she has been left feeling as though she is no longer needed.  A few years ago, I was telling everyone that she would outlive me. But things changed, life changed, she took her final trip, a trip she had asked me to go on when I was a teenager and of course I refused. It was at a time when I was involved in sports and could not leave my teammates behind. She has traveled extensively but this was her dream destination a month-long trip to China.

 

She has always been a good saver and lives minimally, as she gets older, you can see she is overwhelmed by the costs of things. Her generation is very concerned about finances it is the way they have come through life. Most people over 75 have filled out forms that are 20 pages in length, or do their own income taxes, they live on small incomes, there are Guaranteed Income Supplement forms to fill out, and in her case, a small pension my father left her.

 

As it turns out I have found to maintain their independence, older seniors like my mom need a lot of help with their finances—even if they have healthy savings. Home-care services need to be paid for, bill payments need to be set up, and investments need to be managed. It’s a balancing act and the process is time-consuming, but it needs to be done if you want your parents to age comfortably. Unfortunately, my mother is not aging comfortably as she is suffering from kidney failure and a poor heart. She would not go to the doctor when she was sick she did not think it was necessary… she felt she is no longer needed.

 

Handling elderly parents’ finances is made even tougher by the awkward role reversal. Aging parents are often reluctant to even share financial information with their children, let alone relinquish control. My mother is that in a nutshell. She continues to refuse help on any level. In many cases, you may have no choice but to pick a neutral person to oversee a parent’s finances.

 

That’s why it’s important to do some advance planning before your parents become incapable of managing their money themselves. Every family should have a plan to safeguard their elderly parents’ finances when the time comes.

 

If your parents are having trouble handling their finances, don’t expect them to come to you for help. If they’re like most parents, they don’t want to be a burden. So be on the lookout for subtle signs they may be having problems. Can’t remember if they paid a bill or think they did pay the bill. If they repeat things often, or forget conversations you recently had. I do that to on occasion I guess that comes with age but you will start to notice the signs.

 

Ideally, communication between parents and siblings should start well before a parent needs help. The best time is when parents are starting to talk seriously about retirement. It’s just an intellectual activity then. The longer you leave it, the harder it will become.

 

Understand that total trust doesn’t happen overnight, I have not always had a good relationship with my mother but as an only child there is not much choice. In many cases, it’s hard for siblings to work well together. One often feels another is taking advantage. The key to making it work is transparency on all fronts.

 

Have frequent family gatherings or communicate by email or phone constantly speak candidly about retirement and old age. It will happen it’s not a secret. You should also talk about what happened in the meeting that transpired with lawyers, accountants, and advisors. Then you will be able to understand the process in the future.

 

Gather information

Find out where your parents keep their safety deposit box and important documents. Make a list of their bank accounts and investment accounts, insurance documents, wills and the names of their accountant, lawyer, and financial advisor.

Open a joint bank account with your parents, deposit their CPP and OAS checks into it, and take over all bill payments. You should also find out where your parents’ income comes from, including government and employer pensions as well as RRIF withdrawals and any income from their investment portfolio. Find out who their beneficiaries are, what their financial wishes are, and how they want funeral arrangements handled.

 

Get legal power

While both parents are alive, make sure all non-registered accounts are held jointly: otherwise the surviving parent will need a will and death certificate to access those accounts. Also, ensure your parents have an up-to-date will and estate plan. A loss of capacity either suddenly, such as through a stroke, or gradually as with Alzheimer’s, may mean they never have the opportunity to clarify their intentions.

That’s why it’s also key to know if your parents have in place a power of attorney (POA) for health care as well as for finances and property. A POA will often name a child as a substitute decision maker. That person can sign documents, start or defend a lawsuit, sell a property, make investments, and purchase things for the parent, the POA usually comes into effect as soon as it’s signed and witnessed, but a parent can put a clause in saying it doesn’t come into effect until they’re incapacitated.

 

More than one person can be named as a POA: that way no one can act opportunistically and without accountability. If you’re concerned about mismanagement of funds, make sure your parents include a clause in their POA document that requires the decision maker to submit periodic financial statements to your parents’ accountant, adviser or lawyer.

 

10 key questions to ask your aging parents

You can start by asking your parents these key questions to ensure your family is prepared for the road ahead.

  1. Where do you keep your important papers—wills, investment account statements, life insurance policies, and others?
  2. Do you have a current will? Where do you keep it and when was the last time you updated it?
  3. Have you prepared a power of attorney (POA) documents? A POA designates who will take care of your affairs if you are unable to do so because of illness or cognitive decline. Your parents can designate one person to handle health decisions and another for financial decisions, or they can designate one person for both roles.
  4. Do you have a safety deposit box? If so, at which bank, and where do you keep the key?
  5. Where are your bank accounts? If you are incapacitated, where would I find the PIN and account information?
  6. Do you have credit cards and if so, who are they with? Have you been paying the balance off every month?
  7. Do you have a financial adviser, lawyer or accountant, and what is their contact information?
  8. Do you have life insurance policies? Who is the contact agent?
  9. Do you have any debt and if so, with whom? How much do you owe?
  10. Does anyone owe you money and if so, who?

Hopefully, this will help you start that conversation. I know from experience that once they get sick they have no interest in sharing information.

 

What plan do you have?

What plan do you have?

Life insurance a cheaper alternative to mortgage insurance, experts say

This excerpt released by CBC news network. We wrote about this same program a few months back, it’s always nice to see different perspectives on life or mortgage insurance

Canadians looking to wrap up new home purchases might find that life insurance is a more flexible and less pricey alternative to mortgage insurance obtained through a bank, say personal finance experts.

While most agree it makes sense to cover large debts with insurance, some argue when it comes to mortgages, most consumers treat it as an afterthought and don’t realize that buying through a bank can be a “costly mistake.”

Contact us at info@henleyfinancial.ca we will provide the expertise you need to make an informed decision with better rates than the banks are providing. Saving you money to spend or save in other places within your circle of wealth.

It is important that people know that mortgage insurance is just another piece of a comprehensive financial plan.

When you are not dealing with a professional, unfortunately, you can have surprises and those surprises can come up at the worst time.

Part of the problem, he said, is that most consumers take out mortgage insurance when they close their financing deals with the bank without doing any price shopping ahead of time.

The reason is because they [the banks] ask the questions at the time of the purchase: Would you like to have your house paid off if you die? Would like to have your house paid off if you get sick?  Who is not going to answer ‘yes’ to that?

Possibility for shortchanging

That emotional response, coupled with a lack of knowledge about alternatives, means that some consumers could be shortchanging themselves in the long run.

With mortgage insurance obtained from a bank, coverage decreases with every mortgage payment but the premiums show no corresponding declining balance.

The amount of coverage of their mortgage protection decreases as the mortgage is reduced, however, the premiums stay the same and increase over time.

That means their costs [per $1,000 of coverage] actually goes up as they bring down their mortgage debt. Whereas the amount of protection, when you own personal life insurance, remains fixed throughout the term.”

Additionally, while mortgage insurance pays off the loan’s outstanding balance, only the bank gets paid. In contrast, life insurance will relieve that debt while often leaving something over for loved ones.

Owning on your own life insurance, you have options, noting the leftover money could be used to pay for items such as a child’s education, taxes, and other expenses.

‘Portable’ Insurance

It is also “portable,” meaning that consumers don’t need to requalify for coverage during the term if they buy a new home or switch mortgage providers.

By contrast, those who purchase mortgage insurance through a bank would likely need to requalify with the new financial institution: Potentially, when they do this, they could be older, they could unhealthy and rates could be higher. Which means they may not even qualify.

Homeowners who are healthy and have a good family history can also receive discounts of up to 25 per cent on life insurance premiums. A renewable and convertible term policy can be converted to a permanent product at any time without a medical exam.

Moreover, life insurance is not subject to provincial sales taxes the way that mortgage insurance is.

Going apples for apples, life insurance owned personally is less expensive!

That’s why people really need to go to a professional to see how the insurance fits into the overall plan.

 

Do you have a plan?

Do you have a plan?

Most people are concerned about having enough money to meet their obligations at or in retirement. Using traditional planning methods such as buy term and invest the difference, and live off the earnings and retain capital are the most common methods used today.

This type of planning only works if you follow a regimented plan and you don’t spend the difference.  If you fail to invest the rest… it lessens the quality of life that one should be able to enjoy in the active years of retirement! It is upside down and backwards!

With our low-interest rate environment, it’s difficult to find sustainability in your portfolio. One way to extend the life of your capital is to consider equities in the form of dividend earning stock.

This tends to be a source of hedging against tax, inflation, fees and other wealth transfers, however, using equities means taking more risk.

Who wants to take more risk leading into retirement?

If you would like advice on reducing the risk, or with what type of investment vehicle may be best for your situation please contact us at info@Henleyfinancial.ca

Visit us at at Henley Financial and Wealth Management

If indeed you are investing in equities please understand the risk involved within your investable assets. Investing in equities will depend on your risk tolerance and the reality of the situation. During retirement, you should lower the amount of Equities within your portfolio to protect you against the volatility of the markets. Leading up to retirement Equities can help build your portfolio but you must be able to accept the risk of volatility which the markets will provide.

Guaranteed Lifetime Withdrawal Benefit products offer a guaranteed income bonus and can provide a stable environment for investments moving forward with the option of a guaranteed lifetime income. This takes the guess work out the planning and provides you with a pension like asset.

Another strategy is to have adequate permanent life/asset insurance that frees up other assets such as non-registered savings, investment property equity or retained earnings in a business.

Having enough life insurance allows one to spend down taxable savings RRSP’s or RRIF’s during early/active retirement years (age 60-75) whereby you’re actually reducing the tax burden overall.

By deferring the use of RRSP’s and RRIF’s the tax on these assets is actually growing as invested capital. By using the funds sooner, rather than later, (yes you are paying more tax now) but you are paying a known tax, you have control over what the tax amounts are. If you wait long enough the government dictates the amount of tax owed yearly. Meaning if you defer too long, one conceivably can pay a much greater tax than ever saved by using the registered plan strategy!

Access equity sitting dormant in your paid off or very low debt home could also be a strategy that you could use during retirement. The reverse mortgage has been a component of retirement planning  over the last few years based on the low-interest rates on borrowed money. Again this strategy requires some professional advice.

Life insurance lowers the pressure of the capital to perform and lessens market volatility risk. It also lessens government control risk. Meaning, by using a registered plan strategy you absolutely are in a partnership with the government. RRSP and RRIF products are very much a controlled revenue source for the C.R.A. your strategy will dictate the how much income they will receive on your behalf.

If you are interested in creating more spendable income during the early retirement years without fear of running out of money we can show you how. For the most part, we can increase your spendable income into and during retirement without any additional out of pocket expense!

If we can recover 1%-5% of gross income from dollars that are unnecessarily being transferred away from you through tax, fees and other opportunity costs which can be redistributed to your retirement plan and increase lifestyle along the way. Would you be interested?

Let us provide you with an overall review of your entire investment and financial plan. We will do this with no obligation from you to move forward with any recommendations we may have, or we may find that you are well on your way and continue on that path. Either way, a second opinion never hurt anyone.

You don’t have to die to win!

When you buy Life Insurance you buy it for a good reason.  Generally, there is a need. Whatever the need there are two types of life insurance Term and Whole life.

The problem that arises within our human nature is that we tend to abandon anything that has a proven track record for a hot tip or a fast-tracked value added program. If people don’t understand something they tend to believe that it’s too good to be true, or it’s some kind of a scam. Unfortunately, the people with little knowledge always manage to pass along their expertise on a subject they know very little about.

Understand how you can benefit from insuring yourself today and spending tax-free in the future by contacting us at Info@henleyfinancial.ca for more information regarding the legacy of spending tax -free.

We can help you @ Henley Financial & Wealth Management we understand how this solution can best work for you and your family’s financial security.

Let’s explore the two types of insurance… Term and Whole Life

Term – is a type of life insurance policy that provides coverage for a certain period of time or a specified “term” of years. If the insured dies during the time period specified in the policy and the policy remains active – or in force – then a death benefit will be paid.

Therefore, the best day to die when purchasing a term policy is the day after you pay your first premium. It will never be worth more to your family’s financial security after that day. If you could tell me the day you are going to die and we could sell you insurance the day before then I would tell you to buy more term than you can afford.

Understandably a term policy is a short-term solution for a family with budget restraints, it has merit and a protection value. It has its place in many households and the coverage cannot be undervalued when looking at the financial security needs of the family.

Whole life – A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon the death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.

If you plan properly a legacy can be created with a large or small amount of money, which will create the greatest amount of wealth in a tax-free program. Because of how these policies are created there is a cash accumulation side to this insurance product. Any dollar value that fits into your own financial scenario will create a result, which has the ability to earn uninterrupted compounding values, create liquidity, and provide for collateralization, all this leads to the utilization of opportunity costs.images

Using an insurance portfolio where dividends are guaranteed, once they are paid on the anniversary of the policy. You control the rate of return in your program without allowing the volatility of the market to affect your rate of return. All that is asked of you is that you contribute your premiums to yourself and your future. I refer to this as having an umbrella that will protect you for the future while providing for that tax-free rainy day.

If I told you… you could create a legacy like the Trudeau Family or the Kennedy’s, you would not believe that to be true. We know the dollar value might be different but the strategy is the same regardless of your last name. Most big family names you associate wealth with have used this strategy over generations to create and protect the wealth they have today.

If you knew what you know today – yesterday, would you be interested in the result?  I believe most of us would say yes. Which means the value of hindsight understands the value of knowledge gained from our past. In life, we always want to believe that we are doing the best we can to create our own financial security based on the knowledge we have learned from our past.

Therefore, the challenge is upon you to create a safe financial family security blanket for yourself and your family. Win before you die!

 

 

 

 

 

 

 

 

 

 

 

 

Insure your Childrens Education…

Insure your Childrens Education…

In the last budget, our government announced a plan  that will see less fortunate children gain a free post-secondary education. I believe that this is a great gesture, as we no longer are going to limit post-secondary education to the fortunate. Everyone should be able to pursue a post-secondary education to better him or herself in today’s society.

The only problem we see going forward is that a  post-secondary education is becoming very expensive even for the middle-class working families. Tuition costs have nearly tripled over the past 25 years with no end in sight, parents of today must plan for their children’s future education needs at birth.

We have RESP (registered education savings plans) accounts, which have a maximum investment limit of $50,000 per child. You are eligible for a 20% credit on your yearly investment from the government up to a maximum of $7,200. Their is a strategy involved in this investment portfolio to maximize the value of these accounts moving forward. But we will leave that for another article to come.

These accounts have become the main source of savings for most parents when we speak of education savings for their children.

In today’s dollars, it can cost up to $58,000 for your child’s post-secondary education. With that in mind, as the average cost of an education continues to rise the markets will have to perform extremely well for these accounts to provide the funds needed for the future. Not to mention that you will need to time your planned withdrawal of funds on high market returns. Volatility of todays markets can definitely be damaging to your child’s education portfolio.

Is there an alternative or another investment that could help enhance your child’s future education needs?

We believe there are products in the financial world that can be used to help enhance your present education funds.

Life insurance products  such as whole life offer a guaranteed cash accumulation value component which grows inside the policy tax-free (within limits).

Yes, I said Life Insurance!

Permanent Life Insurance or Whole Life can provide the extra cash needed for the growing cost of your child’s education. Many people don’t like the idea of insuring their children. They believe that the kids do not need coverage or find it very morbid. That being said it is the cheapest form of financial planning that you can do for your child. There is merit in this type of planning regarding  your children.

How does permanent insurance work?

The Cost of Insurance is based on age and health; this is lowest it will cost for your child and at a time when your child is at their healthiest. You are looking at paying pennies on the dollar for insurance coverage with a cash value that will compound annually inside the policy tax-free. Once a dividend is declared it cannot be taken back so you don’t have to worry about market volatility depreciating your account. This is a safe investment!

When it’s time to withdraw funds for your child’s education, you can either withdraw the accumulated cash value or take out a loan against the policy’s accumulation. If you take out a loan, your cash value can continue to grow, provided you repay the loan sometime in the future. Alternatively, you can surrender your insurance policy if coverage is no longer required and apply this money to your child’s education needs. The latter strategy could create a tax issue if you take out more money than you have invested in the insurance policy. Always consult your financial advisor on which strategy would work best for your situation.

Purchasing participating life insurance for your child or grandchild is a gift that keeps on giving. A participating life insurance policy has a cash value that can grow over time and can be accessed to pay for things like tuition, a new car, wedding, or a down payment on a house in the future. With your child’s insurance needs taken care of for life as long as the policy stays in force, they can focus on other key life priorities.

The value of this strategy is second to none in the investment world. You have insured your child’s future health at the lowest rate possible and secured an investment portfolio that will grow tax-free without the volatility of the market.

Consider the possibility of alternative planning.

Let us help @ Henley Financial & Wealth Management we are familiar with this strategy and others to help you create your family’s financial security.

You may also contact us at the following info@henleyfinancial.ca