Key Person Business Insurance — Why is it Essential?

Key Person Business Insurance — Why is it Essential?

Do you own or operate a small business? If so, are you prepared in case you, a partner, or one of your key employees are unable to perform their duties? Most small businesses are not ready for the financial risk of suddenly losing an integral person in their business, like a manager or co-owner. Without a plan put in place, sudden disability, illness, or death can have a devastating impact on the financial future of your business and entire estate.

That’s why Key Person Life Insurance is essential to safeguard your financial situation now and into the future. Learn how to plan for the unexpected with an insurance plan that will help protect your business.

What is a “Key Person?”

A Key Person is any business owner, partner, or employee whose skills are invaluable to the survival of the business. This person generally plays such a vital role that if they were to pass away, become disabled, or were unable to work, there would be few people able to step in and replace them immediately. This can equate to severe financial losses and closure of the business in some cases.

Why is it Essential?

Key Person Life Insurance is essential for keeping your operations running smoothly. The benefits payable from a Key Person Life or Disability Insurance plan could help to keep the business running while easing lenders concerns, paying off debt, and hiring a replacement. Without this insurance, you may not have the working capital to keep the business afloat once a Key Person is unable to perform.

How to Arrange for a Policy?

There are no shortages of options when it comes to arranging Key Person Life Insurance policies, so the challenge is narrowing down which insurance provider is right for you. We recommend beginning by researching the group you are planning to go with beforehand to get a better idea of their work culture and service techniques. Additionally, reading Google (and other) reviews will shed some light on their customer service skills and any red flags.

When it comes to your business, you should never put off preparing for tomorrow. You need to plan today to protect what you’ve built for the future. Our financial advisors at the Beacon Group of Assante Financial Management Ltd. aim to help you maintain success and propel your business forward.  Contact us today to learn more!

5 Common Investing Mistakes

5 Common Investing Mistakes

Protecting your wealth is arguably more important than growing it. Even if you make smart investment decisions, pay yourself first, and put some money away for your retirement, there are still a number of common investing mistakes that could drain your finances dry. Don’t waste your hard-earned money on poor financial decisions — be prepared for success by avoiding these common investing mistakes.

Not Funding a Retirement Plan

As a Canadian, you have access to a number of retirement plan options, whether through your employer or through the bank. One of the biggest mistakes many people make is not setting up a plan in advance and adding the maximum amount to it every year. Why is this important? Because most retirement plans are tax-sheltered, so you can protect your money until after you retire and your tax rate declines. Besides the tax advantages, you might also be eligible for a match program with your employer. Some will match your contributions which is essentially free money (that will steadily grow over time).

Forgetting to Rebalance

One mistake most investors make is forgetting to rebalance their portfolio back to its target asset allocation annually. Without a routine check-up and rebalance, your asset classes could end up overweight or underweight, neither of which is a good thing for your performance. If this sounds familiar, contact a financial advisor to help get the proper allocation to increase your overall expected return.

Doing it All Yourself

Unless you have industry experience in trade and finance, it’s best to get a helping hand from a seasoned professional. An experienced financial advisor can help you understand all the relevant risks to you and your portfolio, including what the appropriate benchmarks are, which asset allocation will achieve your goals, and how to diversify for steady long-term gains.

Not Planning for the Long Term

Short selling and day trading can make you a lot of money, but it can also gut out your entire savings if the market takes an unexpected swing. Instead of chasing performance and focusing on short-term gains, you should create a long-term plan and stick to it. Having a sound investment plan is not as much fun as playing the market, but it’s much more profitable in the long run.

Not Creating an Investment Strategy

Investing is not just about growing your assets, it’s also about using cost-efficient structures and tax planning to keep more of your money. Without an investment strategy, you could essentially be missing out on much of your opportunity for growth. Therefore, successful investors are ones that ensure they operate under a prudent investment strategy — the best plans are not only ones that offer significant growth opportunities but also help to shelter against taxes and minimize risk along the way. Always remember that each individual will need a strategy that fits within their goals — no approach will work for every investor.

When you’re ready to move forward with an investment strategy that’s tailored to your specific needs, contact us at The Beacon Group of Assante Financial Management Ltd. We’ll create a plan and implement strategies by choosing the best-in-class products and services that will excel through the market’s ups and downs, creating long-lasting wealth for you.

5 Reasons Why Charitable Gifting is Integral in a Prosperous Community

5 Reasons Why Charitable Gifting is Integral in a Prosperous Community

Charitable giving can do a lot more than help support a family, organization, or group in need — it can help improve the entire community structure for everyone. Here we’ll show you the reasons why charitable gifting is integral in a prosperous community and how you can take advantage of all the benefits of donating to those around in you.

Makes a Lasting Impact

When you make charitable donations, your gift is often pooled with other people’s contributions, which helps create a more significant impact on the group or cause. This results in larger-scale giving which can have a drastic effect on those in your community who receive the donation.

Improves the Health of All

Just because you live in a wealthy community, it doesn’t mean that everyone is flourishing. A bad investment decision, loss of job, or loss of business could put one of your neighbours in a tight money situation. A charitable gift can help those who are struggling. Donating also has been proven to increase feel-good hormones while improving both the nervous and immune systems.

Influences Others to Give too

Charitable gifting is integral in a prosperous community because it sets an example for your peers and increases the overall involvement of those around you. By sharing online or through social media about the causes you support, you can offer your friends and colleagues a little extra motivation to join in and help make your community flourish.

Enhances Business and Service Growth

You don’t just have to donate to people or causes — you can also help a business, project, or school succeed. By giving to your local school district, you could help them start a technology initiative, scholarship, or after school program that they may not have the funding for. Lifting other businesses and public services up is a win-win for everyone.

Brings People Together

Charitable events bring people in the community together. This can help neighbours get to know each other better, fostering healthy relationships and promoting a sense of community spirit.

Fostering charitable work in the community is the right thing to do. It helps those less fortunate or those who have fallen on unexpected hard times. Not only will it make you feel great, but you’ll also feel proud of giving back and helping to make your community a better place to live for all. Are you looking for a way to make a charitable gift but aren’t sure how? Contact us at The Beacon Group of Assante Financial Management Ltd. — we can help teach you about all the possible ways to give back to your community.

5 Methods to Determine Your Retirement Savings Goals

5 Methods to Determine Your Retirement Savings Goals

Do you know how much you need to save for retirement? Most people don’t. Fortunately, there are a few questions you can ask yourself to determine what retirement savings goals you need to implement today to have a brighter future tomorrow. Don’t worry if you’re far from ready; we’ll also explain what you can do to give your savings a well-needed boost.

What are Your Current Expenses?

One method to determine your retirement savings goals is to find out how much you’ll realistically need for retirement. As a rule of thumb, each person should have one year’s salary saved for every three years of income. To figure out this number, you’ll need to identify your individual expenses, like food, transportation, healthcare, mortgage and debt expenses, and then adjust your strategy to ensure you can afford the lifestyle you desire. Remember — it’s always better to save too much than too little!

How Long Have You Been Investing?

If you’ve been taking advantage of compounding interest for decades, it’s likely that you will have a significant nest egg brewing in the wings. However, if you only started investing a few years back, it’s unlikely that you’ll have much saved once you retire. Depending on how many years you have left, you’ll either need to invest more aggressively or rely on your pension, social security, and RRSP more heavily. Either way, talking to a financial advisor can ensure you’re on the right track no matter how many years you have to go until you retire.

Have You Been Maxing Out Your RRSP Contributions?

Not everyone can afford to max out on their RRSP contributions every year, but if you have done so, you’ll likely be well positioned for retirement. Every little bit counts, so if you can start adding more to your RRSP today, it’s wise to do so. Any money you contribute now will be tax sheltered until you withdraw it in retirement, providing you with some extra income.  

Do You Have an Employee Retirement Plan?

If your company has a retirement plan in place, you’ll have to save less on your own. This is because each month a specific dollar amount will be deducted from your account and automatically deposited into your RRSP. Even better, if your employer offers a match program, you’ll get dollar-to-dollar contributions from your company for every dollar you put in. That’s free money!

Do You Have any Other Sources of Equity?

Investing isn’t the only way to boost your retirement savings. If you have a Life Insurance plan or income property, it can easily be sold for equity when you retire. Another popular way to access money for your retirement is through a reverse mortgage. A reverse loan pays you each month by accessing some of the equity in your home. It’s only available to help retirees who have accumulated wealth in their home to cover basic monthly living expenses.

Most Canadians do not have enough money saved by the time they retire, and it’s often not because they couldn’t save enough, but rather because they didn’t have a retirement plan in place. To help prepare you and your family better for retirement, contact us at The Beacon Group of Assante Financial Management Ltd. We’ll help you get the maximum return on your investments, reduce your risk level, create a tax strategy that works for you, and ensure that you have the most amount of money possible so that you can fully enjoy your retirement.