As independent financial security advisors, we help Canadians realign their spending toward things that really matter to them and their loved ones.
Like most Canadians, we are constantly bombarded with opportunities to spend our hard-earned money; as such, most people find themselves in a situation where there really isn’t enough left-over at the end of the day to finance the things that are really important to them due to desire-based spending.
The key to achieving financial success is in realigning our spending from desire-based toward one that protects our financial security and builds our assets.
If you work with us, we’ll help you uncover these important things, then develop a plan to ensure they do not get left behind.
We also work with you to identify certain risks that may “roadblock” your plan and together, we design a solution that mitigates or eliminates their potential financial impact.
1. Risk Management
Risk management is an integral part of a solid financial strategy and no sound financial strategy is complete without a plan to protect yourself and loved ones from the potential loss of or reduced income due to a serious life event.
Contrary to popular belief, your savings and investments are not the foundation of your financial plans.
Risk management is!
Risk management protects you and your loved ones’ lifestyle and future in the event that you or any of the breadwinners lose their ability to actively work in a business, job, or profession.
The most important factor in managing risk is in insuring our most valuable asset.
So, what is your most valuable asset?
Is it your house, car or the most expensive of your jewelries?
Your most valuable asset is
YOU, when you are at work.
It is your ability to actively work for a living that enables you to secure your current lifestyle and your loved ones’ future.
Therefore, it is necessary to insure that ability, so you or your loved ones need not experience a financial loss, should you lose your ability to actively work for income.
We help our clients implement the necessary insurance measures to mitigate the financial impact of these risks.
Generally, there are three serious life events that could affect a person’s ability to actively work for income:
- A serious illness
- Disability, or
- Premature Death.
If a person is seriously ill or disabled, he may not be able to do the things he normally does to provide for himself or loved ones.
A well-planned risk management strategy takes away the financial stress by having the necessary funds or income in place, so you could focus more on getting well, instead of worrying about money.
Premature death, on the other hand, represents a completely different risk. As such, it’s a topic that most people shy away from but is an equally serious life event that could affect one’s loved ones’ financial well-being.
It may or it may not happen, well – hopefully not but sometimes it happens to some families, where one of the breadwinners would pass-away unexpectedly.
While it’s impossible to replace a person emotionally, a well-planned risk management strategy can replace a person financially by putting in place the necessary financial measures to replace his or her income in the event of premature death.
2. Wealth Accumulation
The school system was invented to develop smarter and more productive workers for the elites. The whole scope was to develop the skills that are necessary to work for someone else.
While there’s nothing wrong with working for someone else, our traditional education system, never taught us what to do with the money we earn from our jobs so we could build wealth.
As a result, majority of the population was trapped in the cycle of paycheck to paycheck living.
The school equipped us with the necessary skills to earn a paycheck, the society taught us what to do with the money we earn.
Unfortunately, we live in a world of consumerism, where we are taught to consume things we don’t necessarily need, to spend all and even more than what we make. At the end of the day, there really isn’t enough left for most people to finance their financial security, what more to build wealth.
Wealth building requires a shift in mindset. It requires an understanding that money is finite and that if one kept spending, then one wouldn’t be wealthy.
Money grows on trees… rather, money grows like trees!
According to an old Chinese proverbs:
The best time to plant a tree was 20-years ago, the second best time is NOW!
To put it in perspective, if you haven’t started your wealth accumulation journey, the best time to start is today – NOT tomorrow, the day after, after 10 years, or when you’re done paying off those debts.
If you’re young and are just getting started, do keep in mind that the best time to start investing for retirement is the moment you’ve earned that first paycheck!
There are various ways on how you can accumulate wealth and for various purposes. The best ones are those that allow you to reduce taxation and ones that maximize government grants.
Depending on which stage of life you’re in as of the moment, your financial goals are, most likely, different from that of someone else’s.
We help our clients build wealth through various tax-efficient wealth building strategies, depending on your goals, you can build wealth through the following tax shelters and tax deferred investment vehicles:
- RESP (Registered Educations Savings Plan)
- TFSA (Tax-Free Savings Account)
- RRSP (Registered Retirement Savings Plan)
If you’ve maxed-out these registered investments, there are non-registered investments available for you but before you put your investment dollars into non-registered investment accounts, you may want to take advantage of an insured retirement plan, which also allows you to grow asset, tax-deferred from within your insurance policy which gives you a near similar advantage with that of a registered account while having life insurance coverage at the same time.
As our client, we’ll explore all these strategies with you and, depending on your goals, preference, and comfort level, implement ones that will help you achieve your goals in the most efficient manner.