Family
Investment | Family | Retirement | Hardship
A financial security planning strategy that incorporates the following services and plans can help ensure that money will be available to support and protect your family and/or business interests.
Your Family Protection Checklist:
Will/Power of Attorney (POA)
A will is drawn up in order to dictate how your assets and estate will be distributed among beneficiaries after death.
Power of attorney for finances designates a person of your choosing the authority to make legal/financial decisions on your behalf should you fall ill, are unable to make decisions. Should you pass away, your will makes these designations.
Things to consider
- Who would you elect as your POA?
- Have you worked with a lawyer or legal advisor to create a will? If so, when and is it current?
- Who are your beneficiaries and what assets are you looking to pass on to them?
Budget
A household budget will allow you to see the full picture of your finances. You should understand how much money is coming in each month and how much is allotted to expenses.
Godfrey Wealth Management Inc. can help you prepare your budget and guide you through planning for monthly expenses, thinking about where to invest additional income and/or managing your current debts.
Things to consider
- If you had more money, what would you do with it (freedom, security, novelty, etc.)?
- How much debt are you currently holding (credit cards, loans, lines of credit, etc.)?
- Do you have a household budget? If so, what is your current total monthly budget?
Life Insurance
Participating Life Insurance
This insurance combines permanent life insurance with a tax-advantaged accumulation component. It is built on a foundation of guaranteed values, including guarantees on basic premium, death benefit and basic cash value.
Participating life insurance is particularly attractive to clients who:
- Have low to moderate risk tolerance (for at least a portion of their total investment portfolio).
- Don't want to be actively involved in the day-to-day management of the investment component of their life insurance policy.
- Are attracted by the historical long-term stability and performance of the rate of return on participating account assets.
- Are looking for a core of guarantees with an opportunity to receive dividends.
Term Life Insurance
Term life insurance is well suited to meeting high, short-term protection needs for the lowest initial cost. I offer clients the following term solutions: 10 year, 20 year and term to 100.
Universal Life Insurance
This insurance provides permanent life insurance with a tax-advantaged investment component. As your cash values accumulate, you can use it to pay the cost of insurance or, depending on the option you select, to increase the total death benefit. This type of policy is generally non-participating and is attractive for people who want to actively manage their life insurance policy.
Godfrey Wealth Management Inc. would like to ensure that the details of your life insurance are arranged to your advantage.
Things to consider
- Life insurance can be arranged to assist your retirement.
- Do you plan on using your insurance for any other purpose (other than proceeds at death)?
- Who or what are you most concerned about helping out?
- Do you feel you have the plans in place to provide for yourself and/or your family? Would it impact where you live?
Critical Illness and Disability Insurance
Unlike life insurance, people who incur a disability or critical illness are around to witness the economic costs of these events. When income is protected through either an individual or group disability plan or other salary continuation arrangement, or protection from a critical illness is put in place, there are usually no or fewer financial concerns. Business owners and employees can focus on getting well and returning to work.
Living benefits allows you to plan ahead, protecting against the potential financial consequences of a total or partial disability. The cost is reasonable and payments can be structured into budgeted monthly payments. The variety of products available allows for a reliable income stream during disability and saves investments and other forms of savings for their intended purposes.
Things to consider
- A tax-free amount of money may be beneficial should you experience a critical illness.
- What costs would need to be covered if you were unable to work (rent, mortgage, bills, etc.)?
- Do you have family history of disease or health issues?
Mortgage
Buying a home may be the most significant investment of your life – chances are you need help with your financing.
Godfrey Wealth Management Inc. will refer you to a London Life mortgage planning specialist, who will guide you through the mortgage financing process.
Things to consider
- What kind of home are you looking for? What size?
- How long do you plan on living in this home?
- Have you already been looking? In what price bracket are you searching?
- Before you begin looking for a home, you may benefit from a pre-approved mortgage.
RESPs (Registered Education Savings Plans)
A Registered Education Savings Plan, or RESP, allows you to save for your children's (or grandchildren’s) post-secondary education.
The advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income.
Things to consider
- How big is your family? Are you continuing to grow?
- Have you already started providing for or saving for your child/children’s education? If so, how much have you set aside?
- Where are your children hoping to attend college/university and for how long?
RRSPs (Registered Retirement Savings Plans)
A registered retirement savings plan (RRSP) is an arrangement between an individual and an issuer (an insurance company, a trust company or a bank) under which retirement income commences at maturity. Contributions are made by individuals and are deductible under the Income Tax Act thus lowering your taxable income and the income tax payable on that amount. Earnings in the plan remain tax-free and payments out of an RRSP are taxable on receipt. Contributing to an RRSP is still one of the most popular and tax-effective ways of saving for your retirement.
Things to consider
- When do you want to retire?
- What provisions have you made to have your retirement nest egg outpace inflation?
- How much and how often are you looking to invest in your RRSP?
TFSA (Tax-Free Savings Account)
The TFSA is a flexible and registered investment account which allows you to earn investment income (interest, dividends, capital gains, etc) tax-free.
Unused TFSA contribution room is carried forward and accumulates year over year.
Things to consider
- What are your saving goals?
- How much money do you have to invest in your monthly budget?
- How much have you already contributed to a TFSA?