Volume II, Issue viii, November 2009

IN THIS ISSUE:

• It’s Never Too Late
• Financial Planning for Women Only – PINK
• Individual Health Benefits now offered

It’s Never Too Late

If you are 40 or 50 years old and, until now, your efforts were focused on financing your children’s education and paying off the mortgage, you need a wake up call! Nothing has been done to prepare for your retirement. Is it too late?

 You may have discovered that government benefits such as Canada Pension Plan and Old Age Security will not provide adequately for your retirement. Don’t worry, you are not alone: a large number of people are approaching retirement without an established retirement financial plan.

 A recent study by Desjardins Financial Security shows that one half of Canadians who were hoping to retire by age 58 now believe that they will have to work longer. Other similar studies also reveal that many Canadians defer their retirement and seek part-time work to cover their shortfall.

 The key is to get going NOW

In case of a late start, it’s important to stop and assess the current situation. A comprehensive and integrated financial plan prepared by a consultant is the best way to get started and clarify things. The plan will consider your current lifestyle, your financial resources and the means of protecting your assets. Such an analysis will generate an action plan, which will focus on how to achieve your retirement objectives.

 Three options for retirement

One obvious solution to improve your retirement planning is to start immediately to save more. But be careful with volatility: a shorter investment outlook means that risk management becomes a key factor. You could be tempted to try and make up for lost time with inappropriate, high-risk investment vehicles. Not a good idea – get rich quick schemes rarely work out.

If you are in a position to invest larger amounts, you need high quality information. Do not hesitate to consult an investment professional.

 Living with less: compromising

The second option for late starters is to reduce their current standard of living in order to generate additional savings for retirement. In fact, several recent studies suggest that many Canadians are prepared to do exactly that. Upon retirement, it will be easier to bridge the gap between disposable income and standard of living. In addition to increasing the funds that you will have upon retirement, it is also important to pay off your mortgage and any other debt. The combination of increased funds at retirement combined with little or no debt can be a winning strategy.

 In addition, the value of your home can become a powerful financial resource. Imagine that your $400,000 house is entirely paid at retirement and your children have left the nest. Assuming that you could find an alternate home for $275,000, this would leave you with a tidy tax-free profit of $125,000 to generate supplemental income.

 Deferring retirement

The last option is probably the most prevalent. You can simply take up part-time work during the early years of their retirement in order to achieve your retirement objectives. This means continuing your professional activities and, in effect, choosing a progressive transition towards retirement.

 It is never too late to initiate retirement planning. The key is to start as soon as possible.

Upcoming Events

Join me this fall for this exclusive women’s only financial planning series.

P.I.N.K. embraces all the key elements of a financial plan

• Protection –  preserve your capital and protect your family from the risks
• Investment – learn how to grow your money and manage your wealth for the long term
• Need –  gain a better understanding of the unique financial challenges facing women
• Knowledge – access to insightful financial insurance and a network of expertise

Did You Know?

1. Less than 50% of all Canadian women own life insurance
2. 1 in 3 women are predicted to develop heart disease in their lifetime
3. 250,000 women were diagnosed with Cancer in 2002 (70% survived)
4. Women live 5-10 years longer, retire earlier, yet contribute 30% less to their RRSPs
5. 48% of women polled did not have a plan or regular meeting with an advisor

 

Seminar Dates:

• Life and Estate Planning – Tuesday, September 29, 2009, 6:30PM at Willows
• Protecting Family Assets – Tuesday, October 20, 2009, 6:30PM at Willows
• Introduction to Investing – Tuesday, November 3, 2009, 6:30PM at Willows
• Retirement Planning 101 – Tuesday, November 24, 2009, 6:30PM at Willows

RSVP: janea@performancefinancial.ca

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.