Understanding the Financial Repercussions of Life Events

Understanding the Financial Repercussions of Life Events

Whether you are facing a job loss or going through a lengthy divorce, these huge changes don’t just affect you personally, they also have a major impact on your finances. If you are lucky, you will have enough time to discuss and prepare for these life-changing events by putting together a financial plan. Unfortunately, these types of life changes tend to happen right out of the blue. Either way, it is important to be certain you are prepared to deal with any potential scenario. We have provided a few tips on how to keep your personal finances intact through a number of trying life events:

Job Termination

In the unfortunate event where your company deems your position expendable, what should you do? You will have a decent severance package to get you through the next few months, but you’ll need to find gainful employment quickly. If you happen to land a new job quickly, you can invest the money from your severance or use it to pay down debt. You could even use it to help kick-start a business venture you’ve been thinking about. You’ll land on your feet quick enough, but sitting at home with a few weeks’ worth of severance on your hands can help you re-evaluate your career and your life aspirations.

Separation and Divorce

Divorce not only involves personal consequences, but financial ones as well, especially if you have children together. You will need to update your will and your beneficiaries on any savings plans or life insurance you may have. If you need to start providing child support, you could need term life and disability insurance to protect those future payments. If you eventually re-marry, you may need to create a spousal trust so that your new spouse will have income while still leaving some inheritance for all of your children.

Taking care of a special-needs child

Caring for a child with special needs will require a lot of time and attention. Parents need to be devoted to their child’s development and health every step of the way. This situation also has financial repercussions. You might want to open a Registered Disability Savings Plan (RDSP) to ensure your child’s financial security. You may also establish a trust fund in their name.

When you experience a life change, contact The Beacon Group of Assante Financial Management Ltd. and they will help adapt your financial plans to fit the changes in your life.

Reining in Retirement Anxiety

Reining in Retirement Anxiety

Retirement is something we can dream about and look forward to for most of our adult lives. It can be a constant point of worry, though. It doesn’t matter if your retirement is months, years or even decades away, either. Will you save enough to keep your current lifestyle? Will your investments grow at an expected rate? Will you outlive your savings? Financial advisors agree that the best way to ease your worries and anxiety about retirement is to get a firm grip on your financial future. Here are three steps you can take to properly plan for your retirement so you can put your mind at ease:

Choose your year of retirement

The first step is to choose when you want to retire. If your retirement is decades away, it’s tough to predict exactly what you will be doing and how much you will be earning. It’s still a good idea to pick an age and then work towards that goal. The date is never set in stone, but having an estimate will help you and your financial advisor plan your retirement.

Project the value of your savings

The second step is to estimate how much your future value needs to be worth in order to retire. A retirement planning specialist at The Beacon Group of Assante Financial Management Ltd. can help you plan your future contributions and estimate your rates of return in order to get your savings to hit your retirement goal. The amount of money you need to save will depend on what kind of lifestyle you plan on maintaining when you hit your planned retirement age.

Decide your type of savings

The last step is to decide how you would like to save to reach your projected value. If you are worried that you will outlive your savings, you can choose to build a dependable income source that covers your basic lifestyle needs for your lifetime. This may come in the form of guaranteed or highly secure plans like life annuities or government pension benefits. A portion of your nest egg can be invested for growth as well.

Taking these three steps can help alleviate your retirement concerns and start you on a path to meet all of your life goals. If you need help or guidance with retirement planning, contact a financial advisor at The Beacon Group of Assante Financial Management Ltd. They will work with you to put together retirement projections and plans that will help you solidify your retirement.

maximize your business

How to Maximize the Value of Your Business When You’re Ready to Sell

Whether it is time to sell now or if you are planning to sell in the future, there is always work to be done to prepare a business for sale. Here are five steps to take to increase the value of your business and entice the right buyer.

Improve Balance Sheets

Get tough on clients who have outstanding accounts and ensure that your business has as much money in the bank as possible. A successful business runs on a steady flow of money and without that, your business may not be desirable to an outside buyer. Be careful not to take money out of the business as you prepare to sell.

Lower Expenses

Take a hard look at your operating costs and see if there is room to make any cuts. Look for areas where you can cut expenses without hurting the productivity of your business. Perhaps you are paying high premiums for a software that is underutilized, or you have been using a supplier who charges quite a bit more than the competition and should consider making a switch in order to cut your costs. There are always ways you can lower your expenses without lowering your product or service quality, you just need to proactive and receptive to the changes.

Seek the Advice of a Professional

You are the master of your own business, but you may not be the master at maximizing your business’ potential. The financial advisors at The Beacon Group of Assante Financial Management Ltd. can help you review your financials and show you where you can make improvements. It is best to have a professional on your side to ensure you receive top dollar for your business come sale time.

Continue to Invest in Your Company

Just because you are seeking a buyer for your company doesn’t mean that you can walk away from it and let it deteriorate, especially if you are seeking top dollar. If your company requires new equipment, provide it. If maintenance is required in order for things to run smoothly, provide it. Do not let your desire to sell hurt the growth and stability of the company.

Build Up Your Brand

There are few industries without competition. Make your company stand out from the rest and be an example in your field for what success really is. Make your company look desirable to potential buyers through marketing and brand development. A buyer will be more interested in buying a well-known company with an established reputation as opposed to one with no presence at all. Even if your plans to sell are off in the future, keep in mind that planning can start early and getting your brand to be recognized as an industry-leading company is a fantastic way to begin.

For more advice about maximizing the value of your business as you prepare to sell, consult with your financial advisor at The Beacon Group of Assante Financial Management Ltd.