Custom Solutions For Your Family
Building a career, saving for retirement, paying down debt, and protecting your assets all while raising children is a challenge. Let us find the perfect balance for you.
A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a person or organization (the promoter). Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries.
Be careful which type of RESP plan you choose. Some RESP contracts can be very restrictive. Tax-deferred income and Federal grants are an RESP's main benefits.
The Federal grant has two parts:
Basic Canada Education Savings Grant:
- This will give you 20% on every dollar of the first $2,500 you save in your child’s RESP each year.
Additional Canada Education Savings Grant:
- Depending on your net family income, you could receive an extra 10% or 20% on every dollar of the first $500 you save in your child’s RESP each year.
The maximum lifetime grant a child can receive is $7,200.
Your biggest asset is your ability to earn an income. Did you know that at age 35, there is a 50% probability that you will occur a disability lasting longer than 90 days prior to age 65? Disability coverage will pay you a monthly benefit if you’re not able to work due to illness or injury.
If you have group disability insurance through work that is great, but have you read what your definition of disability is? With most plans, that definition changes after 2 years and you may be forced to work in an occupation that you wouldn’t want to.
Also, most group plans don’t insure as much benefit as you need. If you’re after tax income is $4,000 per month, it is possible that your group insurance will only pay $2,500 per month.
Private disability coverage through our office can be used to complement your group coverage and top-up your income so that your standard of living is not affected if you get sick or injured.
In order to fund your financial goals, we will recommend various investment vehicles including: RRSP’s, TFSA’s, and Non-Registered accounts.
Cash Flow Planning
Do you need help to efficiently use your cash to fund your goals? Our office will create a customized cash flow plan to help you do that.
How long would your family’s current lifestyle last if your or your spouse’s income was gone? Is there enough money to continue to pay the mortgage, vehicle loans, and other debt? Do you have enough saved up for your children’s education? In your short working career, have you saved enough for retirement? After thinking about these questions, would you like to ensure that there is enough money in case you or your spouse weren’t around? Because for pennies on the dollar, we can design a life insurance plan to make sure you never have to worry about any of those expenses while ensuring the premium stays within your cash flow.
You may have group life insurance at work, but it is commonly far less than what most families require.
Also, many people carry life insurance on their mortgage through their lender. This is very unwise for a number of reasons. Please visit the insurance resources page to find out why.
Here’s a common scenario:
- 2 child family with a $300,000 mortgage.
- Parent 1 is earning $75,000 and Parent 2 is earning $50,000.
- They each have $200,000 of group life insurance.
Should one of them pass and assuming there is enough life insurance to cover off the mortgage and debt, the survivor would still like to have $5,000 per month after tax ($60,000/year) to fund other expenses and save for their child’s education and retirement.
It is pretty clear that there is not enough life insurance for this family to maintain their standard of living. If they’d like to have the mortgage paid off, start an education fund of $50,000, pay for final expenses such as a funeral, and the survivor eventually retire they will need more coverage. The good news is that it can be incredibly affordable to purchase quality life insurance to make sure all of these things can be accomplished.
Contact us so that we can customize a life insurance plan to meet your needs and cash flow.
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We look forward to helping you fund your dreams!