How to Survive a Layoff?

employee leaving a job

A layoff is a traumatic experience. I experienced it first hand, 9 years ago, roughly a year after migrating to Canada.

In the Philippines, there’s no such a thing as lay off, well at least before the pandemic hit. I was never laid off from a job before. Like most people experiencing this surprising event, my initial reaction was to panic. Realizing that I could qualify for Employment Insurance (EI), I panicked less but I needed to come up with a plan fast!

Losing a job means losing your income source, and you have to be quick to get another one to maintain your household’s financial security.

In Canada, being laid off is just part of the game, yes, even after your probation period. If the company you work for experiences some difficulties, the lower-ranked employees are always the first ones to go.

How to Open a Self Directed TFSA

how to to open a self-directed tfsa - featured

This article aims to answer the frequently asked question from new self-directed investors:

How to open a self-directed TFSA?

Generally, there are two options you can consider when opening up a TFSA, one is through an independent broker, and the other, through a financial institution, like banks and credit unions.

Self-directed TFSA is a different breed, this is aimed at those who would like to take matters into their own hands, manage their own funds, and save on management fees on the process.

Opening a self-directed TFSA is simple, and quite straightforward. All you have to do is visit an online brokerage website, like QuesTrade,  and sign up for an account.

Once your account is approved, simply select TFSA as your account type, and you’re off to the races.

Is Life Insurance Worth It for a Single Person in Canada?

is life insurance worth it for a single person canada

One of the many questions we get asked as independent financial advisors in Canada:

“Is life insurance worth it for a single person?”

Now, this one is somewhat of an open-ended question since it depends on the person’s specific situation. Some people asking this question are those who are in their 20s, who are single for now but may have a family in the future, while some are middle-aged individuals who are in their mid-30s and 40s, who may remain single.

In my point of view, as a financial security advisor, life insurance is of vital importance if you have loved ones who may experience some sort of financial inconvenience as a result of your passing. They may be dependent on you financially,  or they may be responsible for paying your final costs such as internment, taxes at death (if any), etc.

Life insurance is a powerful financial risk management plan that protects our loved ones from the potential financial impact of our death.

Health Benefits for Self-employed in Canada

self employed health benefits canada

As a self-employed business owner or a full-time freelancer, you get to enjoy a lot of perks that are otherwise not available when you’re working for someone else. You get to choose how many hours you work, whom you work with, and when.

These and many more are benefits of self-employment in Canada.

What I like most about working for myself is time flexibility, of course, in no way whatsoever an indication that I work less. In fact, I work long hours for my business compared to when I was working a regular job, and if you’ve been self-employed for a little while, I know you can relate.
With all its perks, choosing the self-employment path, however, comes with its share of challenges.

How Long Should You Carry Term Life Insurance?

how long should you carry term life insurance

On average, you should carry a term life insurance policy for at least 20-years especially if you’re raising a young family where your income needs replacing at least until your children are capable of financially supporting themselves should something were to happen to you.

Common financial obligations such as the ones listed above have end dates to them, and most insurance companies have flexible term life insurance lengths. The shortest-term life insurance that you can carry is a 10-year term policy. So, say, for example, you have a business loan from angel investors such as your parents that you can pay-off in 10-years, you can protect your lender’s, in this case, your parent’s financial interest on your loan by carrying a 10-year term life insurance so in the event that you pass-away prematurely, your debt is paid off by putting them as your beneficiaries.

Understanding Financial Security

understanding financial security

What is financial security?

A couple of decades ago, they say that you can find another job a day after losing your previous job.

This no longer holds true nowadays, most people have to rely on employment insurance for a couple of months before they can get back to the workforce.
And if you didn’t know yet, EI only pays 55% of your average insurable earnings.

Assuming that you don’t live with your parents, you may encounter difficulties trying to meet your financial obligations while on employment insurance.

When you cease to work due to a lay-off, your income from work STOPS.

How Life Insurance Works In Canada?

Life Insurance Agent - Canada

There are a few variations as to how life insurance work in Canada as compared to other countries. For example, if you’re an immigrant and have had insurance policies from your home country, you’ll be surprised as to how different life insurance works in Canada as compared to the ones you’ve had in your home country. Each country have their own sets of rules and regulations when it comes to the insurance industry and honestly, I’m not quite familiar with all of them but what I can tell you about is the insurance policies in Canada. The basics of life insurance, however, are technically the same.  What is Life Insurance Life insurance is a contract between the insured and the life insurance company, where the insured pays a certain amount of contribution toward the policy in exchange for a certain amount of death benefit that the policy beneficiaries will receive in the event that the life insured passes away during the term of the life insurance contract. As long as the insured fulfills his or her part of the contract, the policy will stay in force and will cover the beneficiaries in case the life insured dies. To personalize this definition, here’s what it means to you and your loved ones… Life insurance is an effective financial risk management tool that can guarantee your loved one’s lifestyle and future in case of premature death of any one of the breadwinners, or at least pay for funeral expenses so your loved …

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How Much Life Insurance Do You Need In Canada?

how much life insurance do i need in canada

One of the major questions we get asked in our financial advisory practice is: “how much life insurance do I need in Canada? While death is a topic that most people turn away from, it is as certain as the sunset; sadly, death is an inevitable path that all living beings will have to pass through at some point, hopefully not prematurely, yet such an event isn’t a matter of “if” but of “when”. The financial impact that comes with premature death can be devastating to our loved ones or dependents when a solid financial plan for such an event isn’t implemented, as not only will it affect the survivors emotionally but financially as well. One of the best ways we can safeguard the financial security of our loved ones is through a well-thought-out life insurance policy that has the ability to replace a person’s income. As you may know, a life insurance policy is a contract that transfers the financial risk of one’s death to a life insurance company. In exchange for premium payments, the insurance company agrees to pay a lump-sum payment to beneficiaries upon death. This is essentially a guarantee that the dependents of the policyholder will be taken care of upon the person’s demise. Ideally, the amount of life insurance a person should have must reflect the person’s economic value to his or her loved ones, hence, the value of a person’s life at death. This seems paradoxical considering the fact that a price tag can’t …

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The Cheapest Life Insurance in Canada

cheapest life insurance canada

What Is the Cheapest Life Insurance in Canada? Generally speaking, there are two main types of life insurance. Permanent life insurance and term life insurance. Permanent life insurance provides coverage for your entire life. The monthly contribution is higher as compared to a term life insurance policy but it does come with added benefits such as the opportunity to build equity (cash value growth), earn dividends, and of course, lifetime coverage. Term life insurance, on the other hand, is simple and straightforward. As long as you pay the monthly contribution for the specified term of the policy, you’re covered for the term, with the option to renew for another term each time the policy term comes to an end. Three Primary Elements of Term Life Insurance  1. Term  The term is the predetermined amount of time the policy will remain active for. It is a set period, usually 10, 20, 30 years or up to age 65, and 40 years. 2. Premium The premium is the contribution you make to keep your policy in force. Usually, you have to contribute either on a monthly or an annual basis. The amount of your contribution stays the same for the whole term of the insurance policy.  3. Death Benefit A pre-determined amount of money that the insurance company is obligated to pay the life insured’s beneficiaries in case he or she passes away during the term of the policy. Generally speaking, term life insurance is the simplest form of life insurance you …

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