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

Three Kinds of Money…Debt, Credit, and Cash

Three Kinds of Money…Debt, Credit, and Cash

We live in a time when we can capture information about anything we want… Google has become our go to encyclopedia! Do you remember when we had to write an essay without a computer?  Yes! I am dating myself but encyclopedia Britannica and the library were my research tools. The information found in those pages could be trusted as it was researched and documented with footnotes.  Information today can be found with one click on a computer, the world wide web of research made easy by  Google, Bing, and Yahoo. The problem that we face is some of this information can be contradicted by a single opinion or biases without any documentation. Although it seems research has been made easier it somehow has become more difficult to find the answer.

So how do we get valuable information out to the masses to help them understand the value of what we are saying?

Well, I don’t have that answer, but hopefully, you will find value in the rest of this article as it relates to your Financial Security for the future.

I value experience and knowledge when it comes to a conversation. A good friend of mine who has been in the financial industry for over 30 years sat me down one day and said, “Have you heard about the three kinds of money”?  Umm, Debt, Credit, and Cash?  I replied with a big grin; “Not quite the answer I was looking for, let me explain this concept to you”.  He proceeded to draw a diagram on a napkin because like many others I am a visual learner.

The learning curve…

Below you will find a circle which we will refer to as your circle of wealth, within that circle you have three kinds of money. Lifestyle, Transferred, and Accumulation.

AAEAAQAAAAAAAAavAAAAJDIzOGFiYzk0LWY1ZDYtNDhhZC04MjRkLTQ5YTE0OGYzYzQ0YgLifestyle: In its simplistic form are the things that we can afford to do and have while we enjoy the merits of living for today and days to come.

Accumulation: Is the process of collecting assets, through purchase or by obtaining them, an activity of collecting for a particular purpose in the future.

Transferred: This is money that is being directed away from your Lifestyle and Accumulation of funds that will not help you lead life the way you want in the future.

So now that you understand the three kinds of money above:

Which would you least want to change moving forward?

If you said Lifestyle you would be correct. No one wants to change the way they live  on a daily basis. So we cannot take away from your Life Style.

Which would you want change the most?

If you said Accumulation you would be correct. We want this to be the biggest piece of the circle moving forward because our accumulation will help us keep the Lifestyle to which we have become accustomed to in the future.

So by default that leaves us with Transferred, we want this to be the smallest piece of the circle in our future because this is money that we are losing unknowingly or unwillingly.

Does all this make sense?

Well, then I have three Questions for you?

1. If we could change the accumulation value in your circle would you be interested?

2. If we could change the amount of money being lost unknowingly or unwillingly would you be interested?

3. If we could do all that with a very minimal change to your lifestyle would you be interested?

The answer to the three questions above, YES! of course you would be interested!

Let me show you how we can make one simple change that will increase your Accumulated Money and decrease your Transferred money.

Example:  Romeo and Juliet buy a house worth $560,000, they put 10% down as a down payment. When they sign the papers at the bank they are told they must buy Mortgage Insurance and Critical Illness Insurance as security on their mortgage.

Therefore:

House $560,000

Mortgage $2.9% @ Bank X

Down payment $56,000

Monthly Mortgage Payment: $2,359

Insurance needs: $504,000 each for Life Insurance, and $250,000 each for Critical Illness coverage.

Life insurance  $504,000  = $112.00/month

Critical Illness $250,000  = $295.00/month

Total Monthly payment increased to $2,766/month.

If Romeo and Juliet had bought the same Life Insurance and Critical Illness coverage from an independent Financial Advisor, which will be underwritten at the time of sale and would also be fully portable.

Their monthly premium would be as follows…

Life Insurance $504,000  = $52/month

Critical Illness $250,000 = $201/month

Therefore, they would have saved $154/month or $1,848/year of unwillingly spent money which they could put towards their own Accumulated money.

Coincidently if they put that Transferred money back into their Accumulated money  and it earns them 5% per annum compounded over the next 25 years. Which is the length of their amortization on the mortgage they would have an extra $100,000 saved in their accumulated fund.

This is only one of the many ways to stop spending money unknowingly or unwillingly.

Contact me @ Henley Financial and Wealth Management  to learn more about how to increase your Accumulated money and your Lifestyle money, while decreasing your Transferred Money which you are doing so unknowingly or unwillingly.

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

 

 

 

Life is unfair on many levels… Protect yourself and your family!

Life is unfair on many levels… Protect yourself and your family!

We are often told by many people we interview, “We don’t need Insurance”, “We are healthy”, and “We live a healthy lifestyle”. “I’m not buying what you’re selling”. I respect that many of them are healthy and live healthy lifestyles, unfortunatly 100% of our population will die at some point in time.

Very often we have no reply because you can’t get someone to buy into the reason they need  protection if they don’t want it to begin with. We have a plethora of lifetime stories that explain the reason there is a need for the products we sell. Again we are met with… “Yeah, but it will not happen to me”.

What do we do?  How do we prepare someone who is invincible?

Yes, we get paid to sell a product that will ensure that your family is financialy secure. What we get paid is pennies on the dollar of what you can do for your families financial security in the future.  Yes, you may not need the products we sell at the time we ask you to purchase protection for yourself and your family, because you are indeed healthy. But should an unfortunate event happen when you are not ready or prepared for it you will have protection. The security of knowing you are covered has to be worth something moving forward.

Here is an unfortunate story of one of the healthy ones, if you told me after the 2012 Olympics this great athlete would pass away within the next four years I would have said you were crazy.

How is this possible?   She was one of the healthiest athletes in the world within her sport. It is unfortunate that I am profiling an athlete in this attempt to show that life threatening Illness does not pick and choose its partner.

Below is an excerpt of a healthy, strong, and very competitive athlete who has recently passed away at a very young age and is survived by a young family. This is a story that unfortunately helps us dipict the need for the protection we provide.

My symapthies go out to her family. Life is unfair on so many levels.

Olympic silver medallist, has died of cancer, aged 33. Tributes have flowed in from around the world, her rowing career was cut short when the mother of two was diagnosed with cervical cancer three years ago.

The three-time Olympian, began rowing while at her high school in Perth. Her talent for rowing was quickly discovered and as a 17-years-old she made the junior national team, where she went on to finish second in the junior women’s four. Two years later she made her first senior national team competing at the World Rowing Cup in the women’s four. The crew then went to the under-23 championships and won gold. She followed it up with a win in 2003 in the under-23 women’s double sculls…

…She competed again in the eight at the Beijing 2008 Olympic Games. She then took a year off from competitive rowing to have her daughter…

…In 2012 Olympic Games she won a Sliver medal in the women’s pair…

… A year later she had her second child and soon after the birth she was diagnosed with cancer. She continued to be involved in rowing, but in February 2014 she stepped away from the sport to concentrate on her health.

The world of rowing will always remember her with love and respect.

Her legacey will live on but unfortunately life can be taken from us at any time.

There is always a need to protect yourself and your family. You have the ability to make a difference, please look at the big picture when deciding your families future.

Financial Security  is what we do and do well, let us help @Henley Financial and Wealth Management. 

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

A living Benefit: Critical Illness Insurance; Do I need It?

A living Benefit: Critical Illness Insurance; Do I need It?

 

  1. Do I need it?
  2. Isn’t it expensive?
  3. Is it too complex and confusing?
  4. What about the underwriting?

Let’s examine each of these four questions.

 1. Do you actually feel no need for this product?

Research tells us 77% Canadians are concerned with lifestyle and health costs if they became critically ill.  A further 84% were concerned with the government’s ability to fund the current healthcare system.  Those concerns are not unfounded.  A survey from 2014 found that 41% of retirees retired because of personal health.

Just like life insurance, critical illness coverage is likely suitable for people under age 65 (CI coverage is often cost-prohibitive after that age).  CI coverage can help anyone whose illness would cause financial liabilities (e.g., debt, bills) for a spouse or dependent.  Often, the money is used to replace lost income when disability coverage doesn’t pay out, which can happen if the insured’s condition is not severe enough to satisfy a doctor’s opinion of someone’s inability to work for a sustained period.  CI simply pays out upon diagnosis of specific illnesses.  Also, single people who don’t see a need life insurance could benefit from CI coverage as they could use the payout to replace lost income and pay for caregiving services.

2. Is critical illness expensive?

Every person who qualifies for CI insurance should own at least enough to cover a year of lifestyle expenses (salary).  This would give most people up to a year of expense coverage to allow them to make choices that focus on recovery from illness.  A 35-year-old Female non-smoker can buy $100,000 10 – year term  for around $35 per month.

There are various ways to set up your CI policy depending on what you want out of the product.  If you want the product to cover you short term while your family is young and you are concerned about the cost, the 10-year term coverage is a good option.  There are options that allow you to keep the coverage over a longer period, and there is even an option to return all of your premiums if you do not use coverage after a specified period of time.  When looking at this coverage it can be built to fit your needs and wants with regards to cost.

Cheap and expensive are relative terms.

What impact would $100,000 of protection have on your finances?  If you had to withdraw $100,000 from your RRSP, it could cost up to $150,000  before tax, depending on your marginal tax rate.  That $150,000 could have been worth $300,000 or more at retirement, depending on time and growth rates.  Remember that $35.00 a month for 10-year Critical Illness coverage could have change that equation in your favor.

3. Is CI too complex to understand?

The product which was originally designed by a doctor in South Africa to aid patients in paying for treatment upon diagnosis of a life-altering illness.  This idea is somehow deemed to be more complex than any other insurance product on the market.  I think it’s all about understanding why you need this coverage.

Let me ask you these two questions below:

Do you know someone that is close to you that is healthy?

What if they went to the doctor because they have not been feeling well for a little while. But it’s nothing that resonates as a major illness. Remember they live a healthy life and they are healthy.

After a brief consultation with the doctor, blood work and diagnostic tests are ordered. The results come back and the doctor office calls your healthy friend to set up an appointment. During this appointment, the doctor informs them that they now have a Life-Altering Illness.

But they were healthy… how is this possible?  A critical Illness does not pick or choose!

If they don’t have Critical Illness coverage how would they fund the treatment and recovery they will require?

All of a sudden this coverage does not seem very complicated to understand.  As we know life altering Illnesses can happen to anyone and has happened too often amongst our friends and families.

4. Is critical illness insurance hard to qualify for?

Anyone who has a family history of hereditary issues will have a tougher time qualifying.  That is not to say you will not qualify, there is a rating system in place to provide coverage if you are deemed high risk.  The majority of people who apply will qualify for standard offers if they are healthy.

You need to take a holistic, risk management approach and determine all risks so that illness protection and a life insurance plan work together.

The banks are the number one writers of this coverage for their Mortgages and Lines of Credit products.  What you need to know is it always cheaper when dealing directly with an insurance company.  Put the money back in your pocket!  A good Financial Planner will help you find money you have been spending unknowingly or unwillingly. This is just one example of you spending money unknowingly – find an advisor start saving now.

As always if you have any questions regarding Living Benefits Insurance, Financial Security or Financial Planning please contact us at Henley Financial and Wealth Management.

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