RSSAugust 2009 Newsletter
Volume II, Issue v, August 2009
In this issue:
- Women, Health & Finance
- Upcoming Events – PINK Seminar
- The Basics of Personal Finance
- Travel Insurance
- Our Services
Women, Health & Finance
Canadian women today are taking control of their financial security.
With every new generation, Canadian women are achieving remarkable success. Yet as the dynamics of their personal and professional lives evolve, many are faced with unique challenges.
Family Health Coverage
Today more than ever, physical health is directly related to financial well being. Due to their unique roles as caregiver, dual income earner and family advocate, Canadian women have an urgent need for protection from health risks. Despite greater awareness and healthier lifestyles, the incidence of heart attack, stroke and cancer among women are at an all-time high. Critical Illness Insurance (CI) can help protect Canadian women and their families from the personal and economic impact of illness, disability and disease.
Tax and Estate Planning
Historically, Canadian women have not been adequately insured. Canadian women need solutions to effectively secure their assets, cover their mortgages, shelter more earnings from taxes, or simply leave more to their beneficiaries. Permanent and Universal Life are central elements of a total financial plan and can be customized to the needs of female professionals, mothers, homeowners and entrepreneurs.
Wealth Management
Canadian women today have yet to fully capitalize on their potential to accumulate wealth. Despite earning over 81% more than three decades ago, just 4% is derived through principal investment. Female investors need to be educated and equipped with effective strategies and solutions customized to their specific investment goals and risk tolerances.
Retirement Planning
Baby Boomer women are the single largest portion of the Canadian population and are on the verge of beginning an active and affluent retirement. However, longer life expectancies, competing priorities and irregular employment histories compound the complexity of their retirement needs.
Our Vision
I want to educate, empower and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for their retirement and protect their personal, family and business assets for life.
Educational Seminars
I will be hosting an educational series of seminars developed for women by women to support women and their loved ones in making more informed financial choices during critical decision-making stages in their lives.
Our first seminar of the series will be held on Tuesday September 29th at the Willows Golf & Country Club from 6:30 pm – 9:00 pm. Please watch for invitations and details to follow.
Upcoming Events
This fall we are hosting P.I.N.K, a four workshop series designed exclusively for women by women. P.I.N.K is designed to educate and equip Canadian women of all ages and income levels with the information, acumen and solutions needed to help grow their capital, provide for retirement and protect their personal, business and family assets.
P.I.N.K embraces all the key elements of a financial plan:
- Protection – preserve your capital and protect your family
- Investment – grow your money and manage your wealth f
- Need – understand the unique financial challenges facing women
- Knowledge – access to insightful financial information and a network of expertise
Join us for this exclusive four-seminar event presented For Women By Women!
To register, or for more information email janea@performancefinancial.ca
You must RSVP to register as this event is by invitation only.
The first seminar is scheduled for Tuesday, September 29, 2009 at the Willows Golf & Country Club
The Basics of Personal Finance
My mother and father taught me many great things growing up – how to be a good person, how to cook, how to sew a button, how to mend my clothes, and how to shop!
But more importantly they taught me about MONEY and PERSONAL FINANCE! Personal finance can sometimes seem frustrating and complex, but it doesn’t have to be; knowledge of some basic principles will make your life much, much easier. And these simple rules you should pass along to your children to make them good managers of their personal finance.
Spend Less than You Earn
This may seem common sense, but it really is an issue when it comes to trying to save money. There are hundreds of folks who are spending more than they earn and putting themselves into more debt, most likely with the help from credit cards. Cutting spending habits or aiming for a large pay increase are the only two options available to help you.
Pay Yourself First
Financial expert David Bach, author of Start Late, Finish Rich tells everyone to throw out the dreaded “family budget” for this simple reason: It doesn’t work- if it did we’d all be doing it and we’d all be rich. According to Bach, as long we all save a percentage of our pay each month, what the rest is spent on really doesn’t matter. If you “Pay Yourself First”, meaning that before you sit down to pay your monthly expenses, pay yourself in savings and retirement the equivalent of one hour per work-day (or 10% to 12.5%) before anything else.
Buying a House/Mortgages
Get pre-approved for a mortgage before you start looking. When you put in a bid on a house, the seller looks at more than the amount you are willing to pay. The seller will give more consideration to a lower bid amount that is already pre-approved by your mortgage broker than a higher bid without definite financial backing.
Always Try to Pay More than the Minimum Mortgage Payment
By paying one additional principle and interest payment (mortgage payment minus any escrow payments) onto your mortgage balance each year, you will knock years off the life of your mortgage. It all adds up- to a lot! Talk to your current mortgage broker about it.
Don’t Try to Keep Up with the Joneses
Yes, the Joneses next door might have a colossal house, landscaped backyard with a kidney-shaped, in ground pool and two 9-series BMW’s parked in the driveway, but they also might have $40,000 in credit card debt and owe on their three cars. Giving into social pressures or compulsions as an excuse to buy elaborate items is nothing short of silly.
Pay Off Credit Cards Before Other Debts
The world of compounded interest is alive and well within the credit card industries. While these companies love it when you only pay the minimum, paying a more than the minimum, no matter how much, is better than nothing at all.
Always Pay Credit Card Bills on Time
Not only will you have to pay a late fee (as much as $35) for not making your credit card payment on time, but that new fee could put you over your credit limit, which would, in turn, warrant another fee added to your balance. And don’t forget that your interest rate will most likely increase after all of these tiny instances, which will make it even harder for you to get rid of the balance. (Remember, balance transfer cards are only a temporary solution.)
Shop Off-Season
When you want a new patio set, buy it towards the end of the summer and you’ll pay roughly half of what you would have at the beginning of the season. The same goes for clothes and shoes, including for the kids. By stocking up during clearance time, you can save yourself a bundle of cash over purchases at peak times.
Buy Life Insurance with the Hopes of Never Using it
Life insurance should be purchased to help care for your dependants in the unfortunate event of your untimely passing- and that’s all. Mortgage payments, groceries and a college fund should be the goals, not making your family millionaires.
If Your Employer Matches RRSP Investments, Absolutely Get the Entire Match
This is FREE money that your employer is giving to you towards your retirement, but they won’t give a dime out until they see you putting money in it, too. Plus, RRSP paycheque deductions are usually pre-tax, so you’re getting even more free money.
Saving Money is a Positive Habit, not a Negative Burden
Parents who save money have children who save money, as long as the parents make a positive impression when it comes to the savings part. A habit can also be considered an addiction-and an addiction to watching your hard-earned money grow is not a bad one either.
Save 10 Cents From Every Dollar you Make
The 10% rule has been around since my mom’s mom, I think that it was just misplaced along the way. If I would have saved just 10 cents from every dollar that I ever made, well…wow.
Always have an Emergency Fund Available Equal to 3 Months Pay
Just in case of illness, auto accident or you’re the victim of corporate downsizing, the 3 month rule should be enough for you to get through without having to dip into any long-term investments.
One Final Tip – Money is important, but it isn`t everything
Health and happiness are the most important things in life, but that doesn’t mean that you should be foolish with your money. Fighting and worrying about money aren’t going to solve any problems and could, in fact, destroy your health and happiness. A bit of planning, a common goal and some serious focus will help lay the building blocks for a strong and sturdy financial future.
Planning a Trip? Talk to me about TRAVEL INSURANCE!
You can now purchase travel insurance online at:
http://www.janeabellay.com/living-benefits/travel-insurance/
Janea Bellay, Insurance & Investment Advisor
Janea Bellay is an independent insurance and investment advisor, specialized in a unique 360 degree financial planning approach for individuals and families:
Liquidity accounts – Your spending, savings and retirement accounts
Family Security - Maintaining life insurance for all life’s unexpected financial needs
Family Protection - Maintain your current lifestyle even if there are unexpected illnesses such as cancer, heart attack or a stroke
Retirement Planning – Are you putting enough away and into the right investments to retire successfully?
Performance Financial Services Inc.
217—3501 8th Street East
Saskatoon, SK S7H 0W5
Tel: (306) 281-3891
Fax: (306) 956-3141
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Questions or comments? E-mail us at janea@janeabellay.com or call 306-281-3891.
LEGAL DISCLAIMER
Janea Bellay is an independent self-employed insurance and investment representative, licensed to sell insurance and investment products and services through Performance Financial Services Inc. This is an independent MGA brokerage, and part of the United MGA Group of Canada. Mutual funds are offered though Desjardins Financial Security Investments Inc. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investment. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this article is not intended nor should it be considered as providing specific legal or tax advice. Individuals should consult with their individual advisors to ensure that any information is applicable and appropriate to their specific situation.