What retirement benefits will I receive from the government?

Many times questions arise as to when CPP and OAS should be applied for as individuals approach retirement. How much CPP are you entitled to and when should you take it? It is important to note that CPP and OAS should make up only a portion of your retirement planning to supplement your retirement income. The rest should come from your RRSPs and your pension plans.

According to the Department of Finance, the following make up the sources of Canadian Retirement Income:

  • 28% – CPP/QPP
  • 28% – OAS & GIS
  • 44% – RRSPs and Pension Plans

What is the Canada Pension Plan (CPP)?

The CPP is a federal program that provides pensions to qualified contributors in retirement. Any benefits paid by the CPP are taxable both federally and provincially. CPP operates throughout Canada. Quebec has its own similar but not identical program, the Quebec Pension Plan (QPP), which is closely associated with the CPP.

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Saving for a home – HOW??

I was pleased to read an article in the Financial Post today if couples (or singles!) should use an RRSP or a Tax Freee Savings Account (TFSA) as a vehicle to save for a new home.

In the past Financial Advisors would recommed to their clients, who were buying their FIRST home, to possibly utilize their RRSP under the Home Buyers Plan. Under this plan, you can take out maximum $25,000 of your RRSP as a loan to purchase your first home, tax free. You must repay this loan starting in 2 years from when you take it out, and must pay it back into your RRSPs within 15 years. This is a great tool for someone who is young enough to repay the loan back and who has some savings in their RRSP.

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Smart Financial Strategies

The markets are down; Stocks are falling; Ottawa projects a $34B defecit this year and $30B defecit next year. Although the world is experiencing a decline in the economy there are smart ways for you to keep a well-positioned money strategy and stay secure through this changing economy.

What can you do to keep investing in your future and take advantage of potential growth?

1.  Pay Yourself First -

Do you have a pre-authorized monthly savings plan set up that follows your pay schedule? Setting aside part of your income, one for savings and one for retirement, even if its small amounts will grow significantly over time.

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Tips For Starting a TFSA

10 Ways to Benefit From Contributing to a TFSA

With the launch of the new TFSA accounts this year, many are wondering if they should contribute to one and what the benefits are. Let’s explore 10 reasons why contributing up to $5,000 per year to this savings account is the best plan for your short and long term savings goals.

1.  Emergency Funds

Emergency funds or rainy day funds, parked in a high interest savings account, guaranteed investment certificate (GIC) or money market fund, if they are non-registered savings will generate taxable income each year. Save yourself some taxes and keep your savings in the same type of account, but switch it into a TFSA to save you tax money.

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Knowing Your Risk Tolerance

Stock markets can be wildly unpredictable, but knowing your risk tolerance will set you up for success

There is no doubt this has been a very difficult year for investors. As the economic situation here at home and around the world continues its bumpy ride, we are all left feeling a bit helpless, and concerned about our own financial security and well-being.

To help reassure you, I thought I would take a few minutes to remind you of some of the steps you have taken to protect your assets.

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What will 2009 hold for my investments?

29DEC2009 – Looking back on the last half of 2008, it has been a scary time in the market for investors. Some analysts say this has been the worst bear market since the 1930s. Yet, as the holiday season passes, I still see people spending money like its going out of style, and not concentrating on their future.

For 2009, I encourage people to choose the FUTURE! Set yourself up for success by saving and investing now while the markets are low.

I have included a couple of articles of what the analysts are predicting for a 2009 turn around:

Should I open an RESP for my child?

10NOV2008 – Saskatoon – Star Phoenix “Meet RESP deposit deadline to get matching grant”

An RESP can give the next generation a head start at landing a good job and achieving financial security. The key to growing your child’s RESP is to start early and maximize the government grants each year.

For every dollar you deposit to your RESP, the government will add a 20 per cent matching Canada Education Savings Grant (CESG) of up to $500 annually to boost your savings. The grant formula is even better for low-income families.

Click here to read the full article in the Star Phoenix from November 10, 2008

Canadian Cancer Society 2008 Statistics

Click here for the full report

  • Cancer incidence is rising in women age 20-39
  • On the basis of current incidence rates, almost 40% of Canadian women and almost 45% of men will develop cancer during their lifetimes
  • On the basis of current mortality rates, 24% of women and almost 29% of men, or approximately 1 out of every 4 Canadians, will die from cancer

Cancer in children creates a disproportionate impact on health, economic and social welfare systems, as a consequence of the loss of young lives. As well, both child and family are affected by emotional trauma and life-long consequences. Families affected by childhood cancer must often provide care for other young children in the home while attempting, at the same time, to navigate their way through the health and social welfare systems. Parents often work less or stop working altogether, which creates financial stress.

Surgical wait time rising

Saskatchewan patients face longer delays than other Canadians

Anne Kyle, Saskatchewan News Network; Regina Leader-Post

Published: Wednesday, October 08, 2008

REGINA — Saskatchewan has the longest total surgical wait time in the country, says a report published Tuesday. The median wait time for Canadians seeking surgical or other therapeutic treatment has dropped this year to 17.3 weeks compared to 18.3 weeks last year, but Saskatchewan’s wait time rose, said the Fraser Institute report. Saskatchewan’s surgical wait time of 28.8 weeks was the longest in Canada, while Ontario recorded the shortest at 13.3 weeks. Click here for the full article.

You can survive cancer…but can your bank account?

I recently read the article that was posted in the Star Phoenix and Leaderpost entitled “Life After Lung Cancer”. Randy Moore describes how he was healthy, he never saw it coming, and then one day BOOM, he is diagnosed with lung cancer and his whole life changes.

I love this quote he says:

I think there’s a lack of education where people don’t realize that in fact you can live if you are diagnosed with something like this [lung cancer]. So I think there should be more education.

I love it Randy Moore. You are right on with what I strongly believe. With advances in medical technology today, your chance of survival is very high. In fact the Canadian Cancer Society says you have a 55% chance of survival from cancer (includes all types). And the Heart and Stroke Foundation says you have a 95% of surviving a heart attack and an 85% chance of surviving a stroke.

So again, I put the questions out there. What are you going to do about your bills, your mortgage, your retirement fund, your child’s education, if you find yourself sick one day and realize that your provincial health plan is not covering 100% of the costs of your medication. It sure as heck isn’t covering any of the new drugs out there — as those take months/years to pass through legislation. So if you want the best and newest drugs to cure your cancer, heart attack or stroke, how are you going to afford? Do you think your doctor is going to order you back to work asap? Probably not.

You need time to heal, regain your strength, beat cancer. But can you do this with no income? Some people believe that their disability plans will cover them. But disability plans only pay out 60% of your current salary, and they don’t cover the added costs of medication and treatment.

Look at Randy Moore. Who do you think paid for his flight to Vancouver? He did. And the PET scan he talks about is not covered by most provincial health plans. The Canadian Cancer Advocacy stated in April 2008 that the average cost of a PET Scan is $22,000. I wonder how Randy Moore afforded this.

This is why Dr. Marius and Dr. Christian Barnard created critical illness insurance. It wasn’t created by actuaries and insurance people, it was created by doctors. So you can heal yourself and still pay your bills. So you don’t have to rush back to work. So you can take care of life’s money problems and only worry about getting better.

Because chances are you will survive!

Janea Bellay
Life & Heath Insurance Advisor and Mutual Funds Advisor
217-3501 8th Street East Saskatoon, SK S7H 0W5
Office - (306) 956-3344
Direct – (306) 281-3891
Fax - (306) 956-3141
janea@janeabellay.com