Get Rewarded for Living Healthy!

Life insurance has never been a topic people like to discuss and it is definitely considered a grudge purchase by many. Part of the reason for the grudge purchase is that people feel their past health style choices will affect their insurance cost now and they will not be rewarded for making healthy choices in the future.

But there is good news on the Life Insurance front! Manulife is determined to change the way people look at Life Insurance with their new coverage called Manulife Vitality. This is a whole new kind of Life Insurance program designed to reward people for healthy living. It is a win/win for you, the consumer. A better price and better health!

Manulife Vitality allows you to earn points for making healthy choices and being active. All new members receive a Garmin wearable device (for free) and discounted GoodLife membership. Vitality has its own website and app to help you track your points, rewards and discounts.

Should You Put Money into Your RRSP?

Many of our clients come to us initially with the goal of putting money into RRSP’s, which they expect they will use once they get to retirement. While it often makes sense for at least some of your portfolio to be invested within an RRSP, it is not always the best option for your savings when all things are considered.

RRSP’s do have some advantages. When you deposit money into your RRSP (up to 18% of your income plus unused contribution space from previous years), you receive a deduction from income for tax purposes. Once invested within your RRSP your money will grow on a tax deferred basis until you withdraw it, at which point it is taxed as income.

As I have mentioned before in my blog posts, as the boomers retire they are going to be living longer, but not necessarily healthier lives. We will have less people contributing to the system and more taking out. At the end of the day if nothing changes, there will be a shortage of money available for the government to pay for all of the services we are used to.

“Even if the province wasn’t facing serious economic pressures, the health care system would still need to transform to address the coming demographic shift. Today, health care consumes 42 cents of every dollar spent on provincial programs. Without a change of course, health spending would eat up 70 per cent of the provincial budget within 12 years, crowding out our ability to pay for many other important priorities.”

Ontario’s Action Plan for Health Care. (Ontario 2012, p. 5)-

Based on this coming demographic shift, I often ask clients, “Do you think that tax rates will be higher or lower in the future?” Almost everyone agrees taxes will be going up. We have already seen it happen in the last year. The top marginal tax rate is now over 53%!

Time to Review Your Insurance Portfolio?

Estimated Reading Time: 120 seconds

Most of the people I meet with for the first time cannot give me any details about the insurance they have purchased in the past (or not purchased). They do not know what they are paying, if it is term insurance or permanent and the most shocking thing is they do not know if it even takes care of their needs.

Just like your will, or your retirement plan, you should take time to regularly review your insurance portfolio with a professional, to make sure it is still relevant for you, your family and your business.

Here is a list of some things you need to consider when reviewing your own insurance portfolio:

• Is your Life Insurance a permanent or term policy?

Have You Insured Your Retirement Goals?

Estimated Reading Time: 90 seconds

Most people in Canada are aware of the fact that they need to start putting money away for retirement when they are young. While some people are still lucky enough to have a defined benefit pension, most Canadians will need to contribute to their own retirement nest egg. The vehicle of choice for these savings is the Registered Retirement Savings Plan or RRSP for short.

During this time of the year, it is hard to go anywhere without seeing or hearing ads reminding us of the RRSP deadline and encouraging us to contribute to our own RRSP. Aside from consumer awareness and a deadline, there are other motivating factors to contribute to our RRSP, including the dream of not needing to work one day in the future and the income tax deduction applied to our income.

Unfortunately, for many Canadians, most of their net worth is wrapped up in their RRSP, their home and maybe their business. What they have not taken the time to consider is what they can do to protect the retirement goals if things do not go exactly to plan. How would your retirement be affected if you suffered a heart attack, stroke or were diagnosed with cancer?

The 3 Types of People Who Buy Life Insurance

Estimated reading time: 90 seconds

Life insurance is the most effective way to make sure your family is taken care of financially.  In my experience, there are three types of people who buy life insurance:
  1. They love someone and don’t want to burden them with debts or cash flow concerns
  2. They hate the government and don’t want to pay 25-50% of their assets as estate taxes
  3. They don’t like paying lots of taxes and would prefer to grow their assets on a tax free basis, access them tax- free while alive or pass them along tax-free to their family or favourite charities.

Today’s post will focus on point #3 and how to keep more of your money.

Joe Curry’s Blog – Welcome

Estimated reading time: 60 seconds

I want to personally welcome you to my blog. The purpose of this blog is to provide readers with my professional insights and observations coupled with the latest industry information to keep you informed. This is where you can have your own questions answered to help you make well informed decisions to protect yourself and those you love.
People often ask me what I do. I have played hockey my entire life including NCAA and a few games of minor pro. For that reason I find using hockey allows me to best describe what I do in simple terms. Every hockey fan loves to watch the pretty goals and passing plays made by the great skilled players like Crosby and Ovechkin. That being said, every year the team who hoists the Stanley Cup has the best defence and goalie. This year Duncan Keith of the Chicago Blackhawks is the perfect example. What I do is work with busy and successful professionals, business owners and their families to help them build their own personal financial defence.
During my time in the business I have found that when it comes down to it, most of the people I talk to want to have three questions answered:

Coming Soon

The Curry Financial Group will begin publishing news and financial planning information to this blog soon.