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Ask a Financial Planner

Welcome to Ask a Financial Planner!

Gary (CFP, FMA, PFP) is currently a Financial Planner with The Investment House of Canada Inc. and has been in the financial services industry for over 9 years. Gary and his family have been proud residents of Whitby Shores since December 2000. As a Certified Financial Planner and Financial Management Advisor, Gary is able to assist individuals with advanced Financial Planning advice, investment planning and Wealth Management strategies. Gary has been awarded the Certified Planner designation (CFP) from The Financial Planners Standard Council, the Personal Financial Planner designation (PFP) from The Institute of Canadian Bankers and the Financial Management Advisor designation (FMA) from the Canadian Securities Institute.

To ask Gary a financial planning-related question, click here.


Disclaimer: The expert and this site accept no liability or responsibility for any advice/information provided.

Menary - Your Friends in Real Estate

What should I know about Critical Illness Protection? 
 
Studies conducted by Statistics Canada, the Canadian Cancer Society and the Heart and Stroke Foundation suggest that one in three Canadians will develop cancer during their lifetime and that one in four is likely to have a heart condition, a blood vessel disease or a stroke-related illness. 

Critical Illness insurance is designed specially to meet the financial needs associated with recovery from a life-altering illness. It provides you with a cash payment if you are diagnosed with a specific illness covered by your insurance policy. Your benefit could allow you to:

  • avoid withdrawing money from an RRSP or other savings or investments
  • pay down debts such as your mortgage or loans
  • choose medicine and treatments not covered by group, personal or government plans
  • replace lost income so you have choices – for instance, your partner can take time off work to help you
  • maintain your business by hiring a person to run it until you return to work

 
While critical illness insurance is fairly new to the marketplace, a variety of products are available. Here are some things to consider when choosing a plan: 

•           Make sure you choose a reputable company. Since critical illness insurance is relatively new, you’ll want to deal with a company with a solid foundation.

 •           How solid is the protection offered for the conditions that matter most to you? For example, cancer presents a significant health risk for Canadians – one-third of the population will be diagnosed with some form of the disease. How strong is the cancer coverage? Does it cover the early stages of the most prevalent cancers (breast and prostate)? Does your contract remain valid if you’re diagnosed with cancer in the first 90 days?

 •           Will the product deliver when you need it? What are the waiting periods (that’s the period of time from diagnosis to payment of a claim)? Do they always have to be satisfied? 

•           One plan does not fit all. Most plans provide coverage for the “big four” conditions: heart attack, cancer, coronary artery disease requiring surgery and stroke. While this is often a less expensive alternative than a plan that covers more conditions, think ahead and assess your financial plan in its entirety – perhaps you’d feel more comfortable with a plan that covers more conditions and treatments. 

•           The plan you choose today may not provide the coverage you’ll want tomorrow. Is there flexibility to change your coverage after purchase?

 •           Does the plan provide the option to purchase coverage for your children?

 •           Does the product offer coverage for treatments that might be recommended? Coronary angioplasty is performed as often as bypass surgery for coronary artery disease. Does it cover both?

 •           Does the plan provide a premium refund if you die and have never claimed the benefit?

 When investigating critical illness insurance plans, consider your current financial plan, the product’s flexibility, the strength of the coverage offered for the conditions that matter most to you, its range of features and options, and the company’s reputation. Developing a personal checklist will go a long way to ensure you purchase a product that will provide the best value and security.

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What are the basics of estate planning?

Contrary to what many people believe, you don’t need to be rich to have an estate plan. In fact, all you really need is the desire to have a say in where your hard earned money and assets will go in the event of your death. Here are some personal questions for you to consider:

 Do you have a will? If not, you have essentially given up your right to make any decisions about who receives your property when you pass away—the estates of those who die without a will are divided according to a formula established by provincial legislation.

 Do you have debts that need to be paid? Proper estate planning can ensure that, if something were to happen to you, your partner would still be in a position to maintain his or her current lifestyle.

 Do you have a power of attorney? This document allows you to name someone to make decisions on your behalf should you become unable to do so due to illness or for some other reason. Without it, the government may be the one making decisions for you.

Do you have dependent children? You may wish not only to appoint guardians for them in the event of your death, but also to establish a trust to provide funding for their education and/or ongoing support.

 Are you interested in leaving money to charity? There are a number of ways you can arrange to leave money to a favourite charity—some strategies offer tax benefits to you while alive, while others provide credits to your estate at the time of death.

 Remember, estate planning is a key part of sound financial planning. Having spent so much time and effort building and maintaining an investment portfolio, it just makes sense to plan for its orderly distribution in the event of death.

 Don’t leave money to the government that you could leave to your loved ones!

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How can a Financial Planner help with my finances and
investment objectives??

Whether a new or experienced investor, your objectives and needs are unique to your situation. It’s important to manage these critical aspects of your financial health with the benefit of expert advice. There are a number of reasons people seek professional investment advice, including:

  • Major life events such as financial windfalls, marriage, divorce or illness
  • Lack of time or expertise to research opportunities and monitor investments
  • Immediate money worries such as debt reduction and tax minimization
  • Long-term goals such as education funding, and retirement planning
  • Information overload – access to more information still requires time to research without any guarantee of its authenticity

Advisors are not only for the rich and many advisors work with clients who have less than $50,000 of investment assets. As a Certified Financial Planner, I encourage every client to work with a professional to develop a personalized plan that will help to improve their knowledge and access to suitable investment products.

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