3 Things to Ask When Looking for a Financial Advisor

Congratulations! You just got a new job, a new home, got married, or received unexpected money. On the flip side, perhaps life has thrown a curveball and you have the temporary setback of losing a job or a loved one.  Life is always changing and your finances can be drastically affected by any of these situations and more. Throughout life’s phases, having one constant in the form of a financial advisor that you can really trust, will make all of the difference.

Studies show that those who work with a financial advisor for an extended period of time are more likely to have growth in financial assets. ADVOCIS, The Financial Advisors Association of Canada, shares the value of having financial advice throughout the entire life cycle of Canadians here.

This pattern, however,  will only hold true if you are comfortable with your advisor and trust them to act in your best interests. When looking for an advisor, it is encouraged to ask them questions to see if they are a good fit. The better a fit they are, the easier it will be to have those difficult conversations and to make important financial decisions. PPI suggests the following questions to ask:

1.       Needs Assessment

·         Ask how an advisor will determine your financial needs. They should ask you questions related to your goals, income, assets/liabilities and retirement plans. Without doing the research to understand where you are coming from, assumptions may be made resulting in a financial plan that doesn’t meet your goals.  

2.       Privacy Protection

·         As a result of such thorough questions in a financial advisor’s needs assessment, they will have a lot of your personal information on file. Do not hesitate to ask them what procedures they have to ensure that it is kept confidential.

3.       Compensation

·         You can always ask advisors how their business operates and how they get paid. Often an advisor will have a document outlining where they do business, who they represent, and how they get paid.

If any of an advisor’s responses to these questions make you feel uncomfortable, consider working with another advisor. The value of good advice is too high to pass up just because you feel uncomfortable with a particular advisor. There are many honest, hard-working, and critically helpful financial advisors who would be more than happy to help you. If you are looking for an advisor, do not hesitate to contact us today and we will find a good match for you!

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”

22nd Annual Associate Appreciation Golf Tournament

A huge shout out and a sincere THANK YOU to David and Bryan Bulinckx for hosting the 22nd Annual Wayne Joyce Memorial Associate Appreciation Event (Golf Tournament)! Thank you to all of the sponsors who made it possible. It was a beautiful, sunny day out on the course at Cedar Hill Golf Club followed by cocktails, a delicious meal and an evening program at the clubhouse.

Congratulations to the following prize winners from the tournament!

Closest to the Pin (Men's) - Tav MacPherson

Closest to the Pin (Women's) - Susan Lucas

Longest Drive (Men's) - Clayton Snow

Longest Drive (Women's) - Susan Lucas

Putting Contest (Men's) - Colin Hewitt

Putting Contest (Women's) - Mary Shiefer

Winning Team: Clayton Snow, Lance Burrows & Jason Hatch

Most Honest Team: Brianne Dromey, Caitlin Hatch & Danielle Powell

Thank you to everyone who came and participated, it was a great day. Have a wonderful and enjoyable summer!

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”

3 Ways Life Insurance Policies Can Give Tax Relief through Charitable Donations

You have a big heart. Walking down the street you can’t help but stop and look at the adorable puppies and kittens playing in the window of your city’s animal shelter. You want to round them up and bring them all home to be yours, but the more rational part of your mind knows you don’t have enough space.  What you may have though that can help, is an existing life insurance policy that you no longer need. Trash it? You could. Or you could transfer it as a charitable donation and save some puppies and on your taxes!

David Wm. Brow from Advisor.ca shares some strategies to effectively use life insurance policies you no longer need to provide valuable tax deductions while still supporting a cause dear to your heart. One effective way to do this is via policy donation. This is done by changing both the beneficiary and owner of the policy to your favourite charity while you continue as the payor. This allows the premiums you pay to be deducted on your annual tax receipt, which in turn will save you some money. Everybody wins! Another option if you want to donate to a charity, is to name them as a beneficiary on a policy that you still own and pay for. While this does not give you the same tax deductions on ongoing premiums, it still allows you to reduce your estate upon death by the amount of the death benefit. It also ensures the anonymity and privacy of the charity if you do not want others to know about it in the event of a pay-out.

Mark P. Cussen, CFP writing at Investopedia, suggests one more way you can give and still benefit on your taxes. Many life insurance policies grow dividends. These funds, accessible by you as the insured, can be withdrawn and then donated to your charity of choice. The amount donated will of course be tax deductible that following tax year. This allows you to keep the whole death benefit, but still give something back to your community.

Charitable giving doesn't have to benefit the receiver exclusively, it can be good for you as the giver too! These three tax relief strategies through charitable donations can make you think twice before letting your policy lapse when you no longer need the coverage.

1. Policy Donation: Take full advantage of the tax deductions available for charitable giving by fully transferring your policy to a charity while you continue to pay the premiums.

2. Name Beneficiary: Naming your favourite charity as a beneficiary doesn't provide the annual tax deduction from premiums like donating does, but it will reduce your taxable estate upon death by the amount donated and thereby reducing the taxes owing and the corresponding probate and executor fees (which can be quite substantial).

3. Dividend Donation: Some policies have dividends that you can access. Donate these to a charity and you will receive a tax deduction for the amount donated.

Just think of those puppies in that city shelter window! Wherever your generous heart cares to turn, there is a cause that you can help by using any of these strategies. Have any questions? Contact an advisor today to learn more.

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”

Why Critical Illness Insurance? 3 Ways to Make it Work For You and Your Budget

You wake up early in the morning after a busy weekend and your throat feels scratchy. You move on with your day but it just gets worse. Your nose starts to get stuffed up and your stomach doesn’t feel so good. You make it through the day, but when you get home all you want to do is lie down on the couch and watch some Netflix with your favourite hot soup and call it a day.  Unfortunately, you can’t. Your house needs cleaning, you don’t have anything to eat at home, and you don’t have enough cash to afford cold medicine so you’ll probably be sick until Thursday.

Wouldn’t it be nice to be given an extra $500 for the week? Go ahead! Treat yourself. Buy the healthiest soup money can buy, hire someone to clean your house, and go clean out the pharmacy of every product and trick to help you get better. Being sick shouldn’t be so stressful that you can’t get better. How do you feel now? Relieved? No longer overwhelmed? Remember this feeling. This is what critical illness (CI) insurance can do for you. A cold or stomach flu is nothing in comparison to the overwhelming emotional stress and physical strain of experiencing a Heart Attack or being told you have Cancer.

The likelihood of suffering from a critical illness is as high as 1 in 3 according to the Heart and Stroke Foundation as referenced by PPI Solutions in their article, ‘A critical step towards fighting critical illness’. With the odds so high, why wouldn’t you protect yourself and your family against as many of the stresses of contracting a critical illness as possible? A lump sum benefit upon diagnosis, and subsequent survival of a critical illness, can give you the freedom to pay for any treatments or assistance if not covered by healthcare. Take some time off work, hire some help, and focus on yourself until you are better.

Below is an excellent Infographic from a company that services our neighbors to the south: Criticalillnessplanning.com. LifePlan Financial Group and it's many Associated Advisors are ready and able to provide these very same services and information to Canadians like yourself to help you make an informed decision on what plan is right for you and your loved ones.

Infographic credit: Critical Illness Planning

Simon Avery from Globe and Mail gives 3 tips to decrease cost of CI insurance if you can’t afford a contract with all of the bells and whistles.

1)      Affordable Coverage Amounts. While a $100,000 policy may be unaffordable, even $25,000 can make a huge difference in the event of a critical illness. Talk to an advisor to determine what coverage amount would best suit your needs.

2)      Tackle the Big Three: Heart Attack, Cancer, and Stroke. Full CI products will cover between 28-32 illnesses, but 80% of claims will be from a heart attack, cancer, or stroke. Consider what you can afford, and if you need to, opt for coverage with fewer illnesses.

3)      Buy Now. Insurance policies only get more expensive as you grow older. The price can go up by as much as 8% between some years so buy early and get a good deal.

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”

Small Business Owners: Are you Protected with Business Overhead Expense (BOE) Insurance?

Sometimes life happens. As a small business owner, you have important protection in place including life insurance and personal disability to protect you and your family. However, during a period of personal disability, how would your business stay afloat? Would you have to make the difficult decision between using your personal disability benefit towards paying for your business lease or towards your personal mortgage? Don’t put yourself in that situation. Consider Business Overhead Expense to rest assured you, your family, and your business are protected.

Whether you are a dentist, an engineer, an accountant, or have an active storefront, your business has payroll, rent, and other monthly expenses that demand your attention regardless of your personal health. Investopedia explains in this article that Business Overhead Expense (BOE) can help cover your business expenses for a short time if you become disabled. This can be invaluable if you are a keyperson to your company’s monthly profits. Usually the duration of coverage for monthly expenses is for one or two years and will kick in after 30 or 90 days of disability. From the tax side of things, the monthly benefit is taxable, but all premiums paid towards a BOE policy are fortunately tax deductible.

Photo Credit: Insurance Journal

Neil Paton, President of Edge Benefits cautions in this article, “Small business owners walk a thin tightrope when they make the smart purchase of personal disability for themselves but rebuff guidance to also buy business overhead expense disability insurance”. Primarily for companies with only up to five employees, this coverage provides enough cash flow to stay afloat until the keyperson can get back on their feet. Mark Hardy further advises, “It needs to be understood that if they become disabled, their expenses don’t stop – the income supporting them does”.

While personal disability is an incredibly important piece of coverage for any business owner, BOE insurance may be something you should consider if you meet any of the following criteria:

1)      My business has monthly expenses like rent or payroll that I rely on my monthly profits to afford.

2)      I have a small business with no more than five employees.

3)      My business’ monthly profits would be affected significantly by my absence.

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”