Volume II, Issue vii, October 2009

IN THIS ISSUE:

•   Invest In Your Life – October is Breast Cancer Awareness Month
•   Financial Planning for Women Only – PINK
•   Individual Health Benefits now offered

 

Invest in Your Life

October is Breast Cancer Awareness Month.  I thought I would dedicate this newsletter to informing you of the options available to you to protect your retirement income, to protect your income now and protect your family against a financial hardship, should it occur.

 There’s never a good time to get a critical illness. But there is a bad time. Just ask one of the almost 14,000 Canadians diagnosed with cancer last month. With all the turbulence in the markets, you may be wondering about your financial plans.

 However those diagnosed with cancer, instead of worrying about their retirement, they’re wondering how they’re going to pay the costs of getting better. With their savings cut in half, will they only be able to get 50% better? Of course the answer’s no. But getting better does cost money. There’s the mortgage to pay, lost income, time off work, spouse’s time off work, and medical expenses only partially covered by provincial health plans. Things that can set them back thousands of dollars.

 And if they thought using some of their RRSPs would be the answer, well now what? Not only do they have a lot less money than a few months ago, cashing some of their RRSPs in will make it even more difficult getting their retirement back on track financially.

 The solution is Critical Illness Insurance.

 FOR EXAMPLE: Nancy just turned 45 years old and works full-time. Her husband Michael also works full-time and they have two school-aged children. In the June 2008, between the two of them, they had $250,000 in their RRSPs and were well on track to the retirement they wanted. They always felt that if either of them got sick and needed money, they would simply tap into their RRSPs. By the end of November, the value of their RRSPs had decreased by more than $100,000 due to the hits the market took in 2008.

 Nancy had always been healthy, so when she was diagnosed with breast cancer, it was a surprise to everyone. The doctor recommended a program of radiation and chemotherapy.

 The good news – The doctor believes they caught it in time and Nancy will recover.

The bad news – Nancy will be out of work for six months and is faced with lost income and thousands of dollars of additional medical expenses not covered by her provincial or work health care plan. Michael will also take time off work to be with Nancy and care for the children.

 Michael and Nancy’s only option is to take $50,000 from Nancy’s RRSP, which they know will be taxable (they figure they will need about $42,000 after tax).

 The recent market downturn has reduced their projected RRSP value (based on $10,000 annual contributions and a 5% annual rate of return) when Nancy is 65 by almost 25%, but having to withdraw $50,000 has reduced it almost 15% further.

 But, luckily, that’s not Michael’s and Nancy’s only option. They listened to their Licensed Life & Health Insurance Advisor on the importance of critical illness insurance and recommended they buy a $50,000 critical illness insurance. For about the cost of a cup of coffee a day,

Michael and Nancy could have had 15% more in their RRSPs at retirement and they’d have a better chance of enjoying the retirement they had planned.

 There’s never a good time to get a critical illness. But as Michael and Nancy learned, there is a bad time. When you’re planning for your future, plan for the unexpected. Consider a critical illness insurance plan as part of your financial plan. It can provide you with the peace of mind you need to focus on what really matters … getting better. Talk to your financial advisor to incorporate it into your financial plan.

 

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!

 

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?

Janea Bellay

Performance Financial Services

janea@performancefinancial.ca

Tel: 306-281-3891 

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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.