Is this really RRSP season?

While RRSP planning should take place throughout the year, I’ll be the first to admit that many turn to their financial advisors in the first two months of the year, and often the last week (or day). That time of the year is here! For an income tax deduction to be used for the 2008 tax year, the deadline is March 2, 2009. Each advisor or institution will have a specific time deadline, and you have to remember that there will be others leaving it to the last minute. Typically, contributions must be made within the first 60 days of the year. However, because the last day is a Sunday this year, the deadline becomes the next business day of March 2, 2009.

There are different options for your RRSP investments, and you should also discuss whether the RRSP and/or the new Tax Free Savings Account (TFSA) is best for your situation. To allow your advisor to give you the attention your financial matters deserve, please don’t wait until the last day. Talk to your advisor now. You may even just want to know more about the RRSP and TFSA, so be sure to ask.

You may have arrived at this blog page from Twitter, Facebook, or another source. You are invited to go to the main page to learn more about Tony Ratcliffe and Ratcliffe Wealth & Risk Management.

 

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

Newsletter Uploaded, Insight Into Financial Planning

A newsletter I provide to clients and visitors to my website is Insight Into Financial Planning. It has now been uploaded to ‘News & Tips’ under the ‘Resources’ tab. This edition provides an introduction to the Tax Free Savings Account, information about Spousal RRSPs, and a tax tip. I hope you enjoy it, and I welcome any comments.

Access Insight Into Financial Planning here

 

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

A Money Management Webinar for You

Creating an online Money Management seminar is something I have been thinking of for some time, and I think that now is the time to move ahead. I would, however, appreciate a little input. Here’s what I have in mind as an initial session.

Participants would be led through a process to identify their cash flow, their current net worth, and creating a household inventory. We would discuss RRSPs and the new Tax Free Savings Account. Income protection (paycheque insurance) will be covered, including group benefits from employment. Of course, other money tips could be expected.

You could help me by replying to this post on the blog, by email, or by phone. Please let me know if there are specific topics you would like to see in an initial or followup webinar. I would also like to know whether you would prefer to have an interactive session with others, watch a prerecorded broadcast, or actually attend a group seminar that is not online. If attending a live webinar, what time of day and day of the week is best?

Season’s greeting to all!

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

The new Tax Free Savings Account

You have probably heard about the Tax Free Savings Account (TFSA) for Canadian residents. Do you understand what it means and how it might fit into your financial plan? It is apparent that there are misunderstandings, or a lack of knowledge, about how it can be used.

You can open an account now, with deposits taken as of January 1, 2009. Okay, due to the holiday, January 2 is more realistic! Every Canadian resident, age 18 and older, will have contribution room of $5,000 each year, regardless of income. This will also be indexed and rounded to the nearest $500. Unlike the RRSP, contributions are not tax deductible. However, any gain in value is not taxable, so no tax is payable when withdrawals are made.

A real advantage to the TFSA is the fact that amounts withdrawn are added back to the contribution room. In other words, you can withdraw and later return the amount to the account. This can be beneficial for a lot of financial planning strategies. You should also be aware that the types of investments vary widely from daily interest savings accounts to longer term holdings.

The TFSA will be an ideal way for people to establish their emergency fund, or rainy day account. It can have other short-term or long-term uses, so be sure to talk to your financial advisor.

 

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent insurance agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

Left without adequate group benefits?

Many people find themselves without group medical/health benefits. This may include the self-employed, and it may be individuals who work for an employer that is unwilling or unable to provide coverage. I have also seen employees decline coverage thinking they were fully covered by their spouses’ employers. The latter may be true of health and medical coverage, but that does not extend to disability insurance. Others may have coverage that is inadequate for the employee needs.

If you do have benefits, I would like you to obtain a copy of your benefit coverage booklet. If you do not have one handy, ask your human resources department. Read the coverage carefuly–particularly limitations on prescriptions, life insurance, and disability insurance. Disability coverage will be limited in amount and, by virtue of the definitions, the duration. Your prescription costs may not be high at this time, but the it can be staggering if diagnosed with conditions that call for very expensive drugs. These may be beyond reach without adequate coverage. If you have any questions, ask for clarification.

If you do not have benefits, or you feel they are limited, do not leave yourself without coverage. Talk to a financial advisor who is licensed for life and accident & sickness products. Find out how an individual plan can provide the protection you and your family need. In financial planning, an important consideration is risk management. You do not want to build your wealth and suddenly lose it due to unforeseen circumstances.

 

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent insurance agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

Understanding the guaranteed income for life offerings

During one of our recent social media group meetings, the Social Web Meetup in particular, I happened to mention the guaranteed income for life products, known also as Guaranteed Minimum Withdrawal Benefit. My friend asked if I would arrange a small coffee meeting to provide some information. Of course I will! As I explored what I would present in that meeting and in a webinar, I realized there was a great presentation all ready to go. One of the companies I represent, as an agent, is Manulife Financial Services. They introduced the first such product, known as IncomePlus. Manulife has some really good material on their website. Included is a 15 minute video that describes IncomePlus. There are also shorter videos breaking it down into segments.

I’m definitely ready to meet over coffee to discuss how IncomePlus and other products might fit into your plan, but I feel the benefit of this professionaly prepared video is too good to pass by. Please have a look and then consider talking to me or your financial advisor. If you are interested in the coffee meeting, just let me know and you can join us or we can meet separately.

Please visit the Manulife IncomePlus website. It opens with a short introductory video. The other videos are accessed through a link on the left side.

 

Passions Resolved

Questions often asked of me, and by me, relate to identifying my target market and my ideal client. This is not always an easy task, but over time the answers have become clearer.

My passions are distance education and personal financial security. I do both, and they fit together nicely. It allows me to associate with those interested in these areas such as faculty, course developers and designers, graduates from professional programs, and security/risk management professionals who understand the need to protect their own financial security (in addition to that of their employers). These passions evolve from my past career experience, my postsecondary educational studies and teaching, and my desire to help clients create a personal financial security plan to build and protect their wealth.

You will see my focus in those areas, including attending conferences and joining online discussion groups. Resources will be developed on my site to address these interests. However, I do welcome clients from all walks of life whom are genuinely interested in creating a personal financial security plan. It is especially rewarding to connect with those with whom I have worked or taught in the past.

In the near future, I will be entering my 5th year as a financial advisor. I also continue to teach as an online instructor for the University of Calgary. Emergency Planning for Industry was taught in the spring, and Risk Assessment is scheduled for January 2009. Does it feel right working as a financial advisor and an online instructor? It sure does!

By the  way, I welcome the opportunity to speaking with anyone about financial services or course development/teaching.

 

 

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent insurance agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

Points to Ponder

I am sharing 4 points that I presented last night to those I met in Speed Networking. This event is a periodic event of the Edmonton Chamber of Commerce. It is an opportunity to meet a variety of people in a business networking setting.

Since I only had about 45 seconds with each person, the following points were made in pretty much this brevity. Of course, I welcome the opportunity to discuss them in more detail with you, or you may wish to discuss them with your current advisor.

1. Term life insurance rates are now lower, so review your needs and coverage.
2. Life insurance, yes, but protect your most valuable asset—your ability to earn a living.
3. Insurance policies can include a Return of Premiums.
4. Guaranteed investments and income for life may make sense.

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

What is important to Tony?

This question could be addressed in different ways, but I am going to focus on my work and business and my current activities. First, as many know, I am passionate about distance education and lifelong learning so, if I may, I will write about my continuing professional education. I regularly attend educational sessions presented by my various suppliers and by Advocis, The Financial Advisors Association of Canada. In addition, I take other courses. Right now, I am registered in the first of two courses toward the Registered Health Underwriter (RHU) designation. This program focuses on critical illness, long-term care, and disability insurance, in addition to group benefits.

The Chartered Life Underwriter (CLU) designation requires completion of four courses in the Certified Financial Planner (CFP) program plus 3 more. I completed the first four plus the first CLU course. Should I wish the CFP designation, I have a comprehensive and CFP exam to write. For the CLU, two more courses to go!

In my business, this is the time that I need to be talking to people. There are concerns about the volatility in the markets and the recent account statements being received. This is certainly the time to talk about the income for life programs that guarantee the amount invested, provide bonuses each year, and pay a guaranteed income. These programs take some explanation, so that is the focus of future meetings with prospective new clients. If this is not appropriate for the client, there are still principal guarantees with other investments I recommend.

Another area of concern to me is paycheque insurance. What happens if you are ill or injured? Will you have a continuing stream of income? If you do have the satisfaction of employer benefits, do you fully understand the limitations? I enjoy the opportunity to sit down and review coverage, even if just to educate. Remember, lifelong learning is a passion. Those who teach learn twice, so helping others often involves new learning for me.

Last, you should also know that I have the pleasure of being an online instructor for the University of Calgary in the Business and Professional Programs. In the spring, I taught Emergency Planning for Industry. Now, I am developing my January course, Risk Assessment. This just makes sense to me for two reasons. Everything is risk management related, from my dealings with clients to the risk management related courses. And, my graduate degree is a Master of Distance Education.

I would like to run some educational sessions for my clients and others. Please let me know your thoughts as to whether you would prefer to attend a session in person or thorugh a webinar.

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

The Origin of Critical Illness Insurance

The development of Critical Illness Insurance is an interesting story. Do you recall the name of Dr Christiaan Barnard? He led the team of surgeons who performed the world’s first human heart transplant in Cape Town, South Africa, in 1967. One of the members of the team was his brother, Dr Marius Barnard. Although the first transplant patient died 18 days later, continued success there and around the world saw patients surviving much longer, with their eigth living for 23 years. However, while medicine allowed lives to be saved from critical illnesses, Dr Marius Barnard saw patients suffering due to the financial hardships to which they were subjected.

After a lot of time and frustration, Dr Marius Barnard was instrumental in the introduction of a Critical Illness Insurance policy in 1983, providing a sum of money to make life better financially when physical health was affected. Such a policy pays a lump sum when the insured is diagnosed with one of the covered conditions, including heart attack, stroke and cancer. Modern policies cover much more.

Please take a few minutes to watch this Marius Barnard Movie. More readings on the life of Drs Marius and Christiaan Barnard if the subject moves you.

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.

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