Volume II, Issue ix, January 2010

As you experience life’s inevitable transitions, your need for financial advice will change. These articles contain valuable information and insights on a variety of issues you may need to consider during this time in your life. I would be pleased to meet with you to answer any questions and to review your evolving financial needs.

Protecting Your Family With Proper Planning

The birth of your baby is the ideal time to review your insurance policies, your will, and power of attorney, and how your tax situation will change.

It is now even more important to ensure your loved ones are well looked after if anything should happen to you.

Here are a few topics to consider helping you prepare for some of the unexpected events that can happen in life.

Life Insurance

If something happened to you tomorrow, how much financial assistance would your family need to manage everyday living expenses – and for how long? Let’s discuss how much coverage you need and what type of coverage is best, as well as ways to save on your insurance costs. For example, if you and your spouse purchase policies together you can save significantly, and some plans will discount your costs by up to 15% if you pay annually instead of monthly. Remember that your premiums are lower when you’re younger, as statistically you’re generally healthier and will likely live a long time. If you are a non-smoker, you can also ask for ‘preferred’ rates, which may also reduce your premiums.

Disability Insurance

An employer often offers about two-thirds of your pre-tax employment income as part of a basic disability insurance package. In fact, according to Today’s Parent magazine, a 35-year-old woman is seven times more likely to suffer long-term disability than die before she turns 65. Th e last thing you want to worry about if you are sick is your finances. If you do not have disability insurance through your employer, ask me for a recommendation.

Critical Illness Insurance

This is a type of insurance protection that pays you a lump sum if you are diagnosed with a serious disease like cancer, or have a stroke or heart attack. This lump sum can help cover costs of treatment or child care or household costs as you look after your health.

Update Your Wills and Powers of Attorney

It is always important to keep your Will and Power of Attorney up-to-date with changes in your life – especially the birth of a new baby. When you have a legal Will, you control who receives your assets and money. Without a Will, the government decides who gets what. It’s also important to name a guardian for your child in your Will.

When choosing a guardian consider these issues:

• Will they be comfortable with the emotional and financial responsibilities of raising your children?
• What are their attitudes on how to bring up children – and are they very different from yours?
• If you are thinking of a married couple, how old are they? If something happens to them, who will be the backup guardians for your children? What will happen if they divorce? It may be better to appoint one as the primary guardian.

• How do they get along with the rest of your family, who will likely want to remain involved with your children and continue spending time with them?

Use this personal record keeper to gather important information that you can share with your loved ones including your executor or executrix.

Filing Your Tax Return

According to a recent study, having kids in Canada doesn’t save you much money in taxes. In 2004, couples with family incomes of $40,000 and two kids saved 9% in taxes because of tax implications of supporting children. However, if your income was over $80,000, the difference was only 1% and if your family income was over $120,000, there is no tax break for having a child.

However, there are some ways that your tax returns will change. Let’s discuss which tax breaks you can benefit from.

Child Care Expenses

If both partners work outside the home, the lower-income spouse can deduct a certain amount of child care expenses. For every child who is under the age of seven at the end of the year, you can claim up to $7,000 for daycare expenses. For every child over seven but under 17, you can claim up to $4,000 for daycare expenses. I can provide you with the rules and how this deduction can benefit your family.

Universal Child Care Benefit (UCCB)

This provides a $100 benefit per month per child under six years old. The money is taxed in the hands of the lower-income spouse. You will have to apply for this benefit.

Child Fitness Credit

You probably won’t claim this for an infant but as your child ages, you can claim a credit of up to $500 a year for eligible programs that enhance the child’s fitness.

I will be pleased to provide you with additional information on the various tax and insurance issues.

Individual Health & Dental Benefits

Your family is greatest asset. Health related expenses that are not covered by your provincial health plan can result in substantial costs. Now you can take advantage of a range of benefits and services for you and your family.

There is a plan to suit everyone’s health and budget. Dental services, prescription drugs, vision care and registered specialists are a few of the health expenses each of us faces without coverage.

By selecting a health plan and any combination of additional coverage options that bests fits your life, you can provide cost effective benefits for your family. You can also add new coverage options each year you renew your plan.

Individual coverage can be affordable and there is a plan to suit everyone. To obtain a quote or application form, call Janea Bellay at Performance Financial Services Inc. (306)281-3891 in Saskatoon or email janea@performancefinancial.ca.

Your family is important to you. Find out how you can get additional benefits!

Performance Financial Services Inc. 217—3501 8th Street East Saskatoon, SK S7H 0W5 Tel: (306) 281-3891 Fax: (306) 956-3141 janea@performancefinancial.ca www.janeabellay.com

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?

 

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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.