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Financial Planning
Financial Planning Everyone has their own special dreams and aspirations. For some, it's endless travel. For others, it's home ownership. And others, it's a comfortable retirement with a cottage by the sea. Unfortunately, most dreams never become reality. Why? It's because most people lack the knowledge and discipline to attain their goals. These people assume the burden of planning for their own future but there plans crumble in the face of everyday events such as marriage, children, divorce, career change, personal injury or the death of a loved one. B.C. Land & Insurance and Partners in Planning are a team of independent professionals with the skills you require to navigate life's mine field while building a strong, secure financial base. With our help, your dreams can - and will - become a reality. Your Financial Plan is your personal financial playbook. In much the same that a football coach prepares for a game, your Financial Planner helps you prepare for your future by developing a game plan based on your aspirations, financial reality and growth potential. Your Financial Plan will take into consideration your aspirations and expectations - and your ability to sustain risk. Like any good game plan, it will have the flexibility to rapidly adjust to life's changing realities such as marriage, divorce or the birth of a child. It will provide income protection for yourself and your family and provide for the education of your children. Your Financial Plan will anticipate your ultimate retirement without sacrificing your ability to enjoy today. However, the most important feature of your Financial Plan is its flexibility. A Financial Plan is never carved in stone. As your life and lifestyle changes, your financial game plan must be flexible enough to keep pace. Who Needs a Financial Planner? Everyone who earns an income will benefit from having a Financial Planner working on their behalf. However, the need becomes even more acute for anyone who is married, contemplating marriage or raising family. Why? After careful analysis, your Financial Planner will provide you with valuable insight into your financial circumstances, earning potential and investment opportunities. Your planner will then develop an individual comprehensive strategy designed to help you achieve your goals and ambitions. Your Financial Plan provides vital fiscal discipline and security to meet the challenges of the ever-changing world. It also provides the innovation and flexibility needed to adjust to evolving personal needs. Your Financial Planner is a skilled professional with the knowledge and training required to guide you through the complex and confusing world of investments, insurance and taxation. The earlier the process begins - the sooner you will reach your goals. How Should I Select My Financial Planner? You should select your Financial Planner with the same care that you would select any other professional such as a family doctor, lawyer or accountant. All of these people have vitally important roles in your future success and well-being. Every licensed Financial Planner has received extensive training. However, there are important differences in the roles they play in the financial community. There are three basic criteria that you should consider before selecting the person to put you on the road to fiscal security.
What Products and Services are Available? The financial services industry has its own unique jargon. Your Financial Planner will help you through the maze of strange terminology, crazy acronyms that have great meaning to some professionals but muddle the mind of the average individual. At B.C. Land & Insurance, we offer a vast array of products and services including: Mutual Funds A Mutual Fund is an investment product in which your money is pooled with the money of many other investors. A professional investment manager uses the pool of money to buy a diverse portfolio of investments or securities and monitors each of the investments on an ongoing basis. When you invest in a mutual fund the value of your investment rises and falls depending on the performance of the entire portfolio. Segregated Funds A Segregated Fund is very similar to a Mutual Fund in its investment philosophy, however Segregated funds can only be offered by a Life Insurance Company. It is the underlying Insurance Company that will offer the guarantees in the contract that are payable to a client. These funds are usually associated with death benefits, maturity guarantees, and credit protection. The guarantees provided vary from company to company and should be carefully researched on purchase. Tax Planning Tax planning is a process rather than a product. It allows investors to increase investment and decrease the amount of tax paid. It is an ongoing process that varies from individual to individual depending on changing social and economic circumstances. Estate Planning Estate Planning is a more than a will. It is a process that will limit taxes and fees that might be payable in the event of your death or that of a family member. It also details what will happen to your home, your investments, your business and your life insurance in the event you die or become disabled. It is security for your family and others for whom you care. Life Insurance Life Insurance guarantees that, in the event you die, the person you name as a beneficiary on your policy will have some form of financial security in the event of your death Disability and Group Insurance Disability Insurance guarantees continuation of a percentage of your income in the event that a permanent injury prevents you from working at the vocation for which you have been trained. The injury does not have to occur on the job site but must prevent you from earning income. Group Insurance is method insurance companies use to offer health, dental, life and long-term disability to employees of certain companies and industries for relatively low rates depending on the number of people being covered. In some cases, group coverage can be extended to one or two people in an industry group - such lawyers or accountants. Guaranteed Investment Certificates (GICs) A Guaranteed Investment Certificate in a form of investment in which you deposit money over a fixed period of time. In return, you are paid a set rate of interest. Registered Retirement Savings Plans (RRSPs) A Registered Retirement Savings Plan allows you to save money for retirement by investing a proportion of your income in a tax-exempt shelter. The original investment is tax deductible and the interest you earn on the money is tax free as long as it is left in the plan. Registered Education Savings Plans (RESPs) A Registered Education Savings Plan is similar to an RRSP, except that it allows you to invest money in a tax-exempt shelter based on the anticipation that one or more of your children will ultimately pursue a post-secondary education. When that happens, the money can be withdrawn to help offset the costs. Registered Retirement Income Funds (RRIFs) A Registered Retirement Income Fund pays you a prescribed amount each year but continues to shelter your remaining assets from tax. Life Income Funds (LIFs) Life Income Funds are similar to pension plans. The are locked-in investments that shelter your earnings from tax while providing you with an income. Total payments in a year are restricted by pension standards legislation. Locked-In Retirement Accounts (LIRAs) Locked-in Retirement Accounts are registered plans that shelter your pension money and investment earnings after you leave a company that offers a pension plan. Government Bonds Government Bonds are a form of loan. You lend a sum of money to the government that issues the bond and you receive a certificate that guarantees repayment. Bonds are issued for a set amount of time for a fixed rate of interest. Pension Plans Pension Plans are designed to provide you a steady income after you retire. Many large corporations, governments, government agencies, financial institutions and unions offer pension plans to their employees. Sometimes enrolment in these plans is mandatory and sometimes you may opt out. In addition, you may have the option of increasing payments in order to retire early. Annuities Annuities are tax-deferred contracts that provide you an income for a specified time period. There are two types of annuities: deferred annuities and immediate annuities. Deferred annuities allow you to grow your assets and defer the tax payable until you start to receive payments. Immediate annuities allow you to receive income payments right away. Who is in Control of My Finances? The money you invest is your money and you retain ultimate control of your portfolio. However, some investment opportunities provide a higher degree of financial flexibility than others. For example, enrolment in a company pension plan will require that a fixed percentage of your paycheque is deposited in the plan every payday. You have no option. However, the loss of flexibility is offset by the pension fund stability and any corporate contribution to you plan. By way of contrast, you can make an investment or withdrawal from a mutual fund with few restrictions. However, this flexibility is offset by the uncertain nature of the stock market. Your Financial Planner will help you decide the what level of investment, flexibility and security best serve your long and short term interests. How Much Will My Financial Plan Cost? The services of your Financial Planner and the development of your personal investment strategy will not cost you a penny. Your Financial Planner works on your behalf but the rewards for countless hours of meetings and research are accrued through fees and commissions offered by the investment community and insurance companies. Since there is no difference between the cost of financial products bought over the counter and those recommended by a Financial Planner, most successful people take advantage of the advice and guidance of a trained professional. How Do I Begin? The first step in developing a winning financial strategy is a phone call or email to Susan-Lee Verna at B.C. Land and Insurance. Susan-Lee will arrange a meeting to discuss your goals and aspirations. With your consent and valued input, she will then begin the process of preparing your personal Financial Plan. She will answer your questions, explain your investment options and monitor your financial growth in the days, months and years ahead. Her sage counsel is only a phone call or email away. B.C. Land & Insurance a Partners in Planning - a Winning Team In the Financial Planning arena there are two distinct and separate areas of products that are offered: Investment Products and Insurance Products. Normally a company that specializes in Investment Products such as stocks and bonds is prohibited by law from selling Insurance Products such as disability insurance or life insurance. However, B.C. Land & Insurance believes that the products are interrelated. Both are essential ingredients in a winning financial strategy. As result B.C. Land & Insurance formed a strategic alliance with Partners in Planning Financial Services Ltd., one of Canada's most successful investment companies. Susan-Lee Verna is an authorized representative for both companies and qualified to offer you the broadest possible range of products and services. For more information about Financial Planning contact B.C. Land & Insurance by email: financial@bclandinsurance.com or by phone at 250-478-5588. |