How to identify and overcome stress triggers

How to Identify and Overcome Stress Triggers

by AgingBusinessLifestyleUncategorised

Whether you are an entrepreneur, a consultant, or a C-suite executive, you are bound to have days where the stress feels too difficult to overcome. Stress can hamper your mood, reduce productivity, lead to illness, and negatively affect those around us. The key to handling your stress is to understand it on a deeper level. Generally speaking, there are two types of stress triggers: external triggers and internal triggers.

External Stress Triggers

These are things that are completely out of your control that cause you stress. There is no limit to what can cause stress and much of it leaves us powerless and helpless. Things like environmental disasters, accidents, random illness, or even death; all of these things are uncontrollable and can be the cause of great stress.

Unfortunately, there is no prevention for external stress triggers. The only thing you can do is arm yourself defensively against them. By living a healthy lifestyle and maintaining a healthy body you will be able to handle more stress than you might think. If you have a healthy body and mind you will be able to obtain a positive perspective when things may appear to be grim. A certain level of “roll off your shoulders” attitude is required if you want to live as stress-free as possible. Many things in life are out of your control and it is your choice how you deal with them. Empower yourself by responding to stress triggers in a healthy, constructive way, rather than reacting to stress negatively.

Internal Stress Triggers

These stress triggers are much more difficult to overcome than external triggers. Internal stress triggers are thoughts and feelings we invoke upon ourselves that cause us to feel inadequate, anxious, or overwhelmed. This can be taking on too much at work or at home, or letting our fears overtake our daily routines. Whatever your internal stress triggers are it is important to address them before they take over your life.

Dealing with internal stress triggers involves taking a good look at the expectations you put on your own shoulders and evaluating their attainability. It’s difficult to tell yourself that you can’t or shouldn’t do something when you have spent your entire life building yourself up for greatness. Humble yourself and ask for help when needed. It is also important to set aside some time for you to relax in a day. Pick up a relaxing hobby such as yoga or meditation to allow your body and mind time to destress and rejuvenate.

Stress can be a life-altering thing. Don’t let it take over everything you have worked so hard to achieve.

Understanding critical illness insurance

Understanding Critical Illness Insurance

by Aging

Mortality and critical illness are not common conversation topics around the dinner table. The discussion and preparation for such events is almost taboo to discuss, however being prepared for the worst could prove to be the wisest preparation of your life.

The Impact of Critical Illness

Critical illness is certainly not a welcomed or anticipated infliction, but it is all too common for Canadians of all ages. Although Canada offers free health care for treatment of most critical illnesses, there are plenty of expenses that are not provided for. Things such as in-home nursing care or power wheelchairs will all come at an additional cost to you and your family. Even if you earn a steady income and are financially stable, things can be quickly derailed with an unexpected turn of health.

Critical Illness Insurance Payments

Payments for critical illness insurance differ from regular health insurance. Regular health insurance typically pays amounts distributed over an extended course of time. Critical illness insurance is a lump sum payment, typically payable 30 days after the diagnosis of a covered illness. The lump sum payment offers some financial flexibility to improve quality of life, such as purchasing home medical equipment or financing a home accessibility renovation.

Stay-at-Home Spouse Insurance

Often forgotten in matters of insurance is the stay-at-home spouse. Since the spouse is not earning an income it may not seem logical to add extra insurance for them, however this is a misconception. The stay-at-home spouse is keeping the house in good order and may be raising children, so in their absence quite a few things will be neglected. Critical illness insurance can ensure that house cleaning and daycare bills can be paid for should the need arise, as they were not anticipated expenses but turn out to be necessary ones.

Critical Illness Insurance for the Small Business Owner

It is also wise to have critical illness insurance if you are a small business owner. Someone who runs their own business cannot afford to be away from work for extended periods of time and may need to hire a replacement in their absence. The funds received from a critical illness insurance payout can also bridge the gap for expenses not covered under the employee group benefits, if there are even benefits available in the first place.

Although insurance is sometimes an annoyance to research and pay for, it has proven time and time again to be a life-saving utility. Allow your financial advisor to guide you on the path to critical illness insurance and discuss other risk management options to strengthen your family protection net.

Reining in Retirement Anxiety

Reining in Retirement Anxiety

by Aging

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.

How to Cope With the Sandwich Generation Squeeze

How to Cope With the Sandwich Generation Squeeze

by AgingEducationFinancial PlanningInheritanceInvestment PlanningTax Planning

 

Picture a sandwich. The top slice of bread is the responsibility of taking care of your elderly parents. The bottom slice is your young adult children who have boomeranged back home or are involved in post-secondary education. You are the meat stuck in the middle, trying to take care of both while working towards your retirement. This, in a nutshell, is the crisis the “sandwich generation” faces today. If you find yourself in this situation, take heart that you aren’t alone and you have people fighting for your best interests. The following are steps you can take to manage being stuck in the middle of caring for two generations:

Eldercare

The health insurance provided by the government leaves many elements of care uncovered or only partially covered, including nursing care at home. If one parent is still independent of you, you may wish to ask this parent to sell their home in order to downsize for extra monthly cash flow. If you are personally assisting your parent with their care, there is community care available in most regions and there is always private caregiving assistance.

Kids’ Education

The cost of post-secondary education is rising every year. Parents with two children that are close in age really feel the squeeze when both kids are enrolled at college or university.

The first step is to plan ahead and start investing early in Registered Education Savings Plan (RESP). You should consider supplementing the RESP with Tax-Free Savings Account (TFSA) investments, family trusts, in-trust accounts, or a combination of these. The Beacon Group of Assante Financial Management Ltd. can help you reach your education savings goals.

Boomerang Kids

25.9%[1] of young adults in Canada between the ages of 25 to 29 live at home with their parents. This boomerang generation can burden their parents with extra cost or prevent them from a planned downsize of their home. The key to handling this situation is communication. Talk openly with your adult children about their plans, responsibilities, and expectations to help maintain a healthy relationship with them.

Contingency fund

Nobody can predict the future. You should consider setting money aside during your prime working years to cover the potential costs of supporting your parents or adult children. The Beacon Group of Assante Financial Management Ltd. can develop a plan to help alleviate the pressures of being in the sandwich generation while setting your family up for future care as well.

 

[1] Statistics Canada, Living Arrangements of Young Adults Aged 20 to 29 (2011 Census)

Withdrawing from Your RRIF

Withdrawing from Your RRIF

by AgingEstate Planning

When you are retired, you will have the choice of drawing from a number of different registered and non-registered accounts. You may choose to withdraw from your Registered Retirement Income Fund (RRIF), Tax-Free Savings Account (TFSA) or your non-registered accounts. Choosing which account to withdraw from first may seem like an easy decision, but there are a number of things you need to consider.

Which should you choose?

Conventional wisdom would dictate that you should draw from the TFSA first, followed by your non-registered accounts since they are the least-taxed sources. If you followed this practice, you would be living on these funds while only making the minimum withdrawal from your RRIF every tax year. This does make sense from a tax perspective (and will help you save money in the short-term) but there are also some tax implications to consider for your estate.

Estate Considerations

After you pass away, your Registered Retirement Income Fund assets will be taxable as income on your final tax return. If you have sizeable RRIF assets remaining, your money will be subject to the highest tax rate, which can range between 40 to 55 percent depending on where you live. Subjecting your assets to the highest tax rate can be avoided though. If your RRIF assets are received by your surviving spouse, they won’t be taxable on your final return. You can also avoid these taxes by taking a different approach to your retirement withdrawals.

Withdraw more than the Minimum

During your retirement, you should consider withdrawing more than the minimum from your RRIF, even if you don’t plan on spending it all. These withdrawals will be taxable, along with being subject to withholding tax, but the rate will most likely be lower than the final rate on your last tax return. You can then contribute some of the withdrawals to your or your spouse’s TFSA (if you have contribution room) so that all future income generated will be tax-free. You could also add them to one of your or your spouse’s non-registered accounts.

If you need help getting a handle on your retirement planning, the retirement planning advisors at The Beacon Group of Assante Financial Management Ltd. are here to help. They will guide you towards a prosperous retirement by helping you with the decisions that will benefit you both today and tomorrow.

Are You Prepared for the Unexpected When it Comes to Retirement Planning?

Are You Prepared for the Unexpected When it Comes to Retirement Planning?

by AgingFinancial Planning

The simple fact that Canadians are living longer and longer means that we are more likely to come face-to-face with unexpected events that can have financial consequences. A Canadian in their 60s has a very good chance of making well into their 80s. This increased longevity means that Canadians need to plan to have their retirement income last for at least 25 to 30 years. Unfortunately, a lot can happen within those 30 years of retirement that can affect a serious effect on your savings. Read on to learn more about how to best prepare for the unexpected when planning your retirement.

Long-Term Health Care

Canadians can expect to experience at least one major life event that will upset their financial life in their senior years. The most expensive events typically involve the cost of health care. Depending on your situation, you may face higher than expected health care expenses because you are no longer covered under your employer’s group health insurance. This may lead to you facing costly expenses such as dental, vision, and prescription expenses that are not covered by government plans. The largest potential health expenses you will need to plan for is long-term care. The government only foots a minor percentage of that bill, so most of it will need to be paid out of pocket. A stay of even a couple of years can put a major dent into your savings, which is why it’s a smart idea to allow for these potential expenses by planning accordingly. You should purchase long-term health care if you won’t be covered by your employer anymore.

The cost of living

It’s easy to convince yourself that your cost of living will decrease during retirement. Expenses like transportation will go down because you are no longer commuting, but you will see an increase in many other ways. Your time spent travelling and participating in recreational activities needs to be factored in as well. You can’t forget about inflation either. Even low-level inflation will devalue your savings somewhat. The key is to be a bit aggressive and aim for investments that will outpace inflation, instead of being completely safe and having inflation cut into your retirement savings.

Expect the unexpected

Retirement savings is all about planning for the expected and accounting for the unexpected. If you want to be sure that you have everything covered, you should talk to a retirement planning advisor at The Beacon Group of Assante Financial Management Ltd. to get started.

Finding Investment Common Ground with Your Spouse

Finding Investment Common Ground with Your Spouse

by AgingFinancialFinancial PlanningInvestment Planning

It can be hard to find common ground between two unique individuals, even when they are in a relationship. This kind of dilemma can occur when dealing with investments. Just because you love each other doesn’t mean you have the same risk tolerance as investors! You may not be able to sleep at night if the market has taken a hit, while your spouse may be sleeping soundly right next to you, knowing your investments are bound to go back up. If you find yourself in this kind of situation with your loved one, we can help. Here are three approaches that can help you find investment common ground with your spouse.

Agreeing on a goal and timeline

There are three key factors to take into consideration when creating an investment portfolio. They are called investment objective, time horizon and risk tolerance. Even if you and your spouse don’t have the same risk tolerance, you may be able to come to an agreement because of your circumstances. For example, if you want to save for a down payment on the home of your dreams, you may be able to convince the aggressive investor to stay away from high-risk investments knowing that your home purchase may rest in the balance. You both can agree on your objective and time horizon and come to an agreement on your risk tolerance for this investment.

Meeting halfway

You may be able to find common ground with your spouse by creating a diversified portfolio. This means you can adjust the risk level of the investment to please each spouse. You should be able to find a mutual fund with an agreeable mix of equities and fixed income that creates a suitable compromise for each spouse’s risk tolerance. This would eliminate the more aggressive and conservative holding, allowing you both to meet halfway. This strategy can be very beneficial as diversifying your portfolio is a smart investment strategy.

Separate portfolios

You won’t always be able to come to a compromise, so you may just have to agree to disagree. If this is the case, you may have to each keep your own separate portfolio. This actually isn’t a bad investment strategy; it can be considered a well-rounded approach to investing. You may be able to strike a nice balance between the two of you. One portfolio could focus on long-term growth while the other focuses on capital preservation.

If you and your spouse need help with your investments, you should talk to a financial advisor at The Beacon Group of Assante Financial Management Ltd.

Why You Need an Estate Plan

Why You Need an Estate Plan

by AgingEstate PlanningInheritance

Estate planning is more than simply writing a will, although that is an extremely important part of estate planning. Planning for a time after your death might be a morbid thought process to undertake, but it is important to organize your estate in advance of death in order to make the process simpler for those ultimately involved in the administration process. It also allows the future deceased to be extremely clear where and how the assets are to be distributed upon death. Even if death is not in the foreseeable future, having a plan already laid out will mean that you have complete control over the situation.

Assess Your Assets

If the majority of your assets are in liquid form in bank accounts, simply add whomever you have as your executor as joint on all bank accounts and investments. This will help to minimize the necessity for probate and will provide immediate access to all funds. Be certain the person you have listed as joint on all accounts is someone you trust as they will have full access to all money with their name attached to it.

Have a Say in Your Funeral Process

If you have personal preferences as to how you would like your funeral to be conducted and how your body is to be treated after death, be certain to outline this clearly in your estate plan. There is no communicating once you have passed on, so make your wishes and desires abundantly clear in advance.

Guarantee Business Continuity

If you play a major role in a business and your death would change the dynamic of daily operations, it is important to outline clearly what it is you would like to have happen with your share. It is not always possible to predict your death, accidents happen all the time. If you play an integral role in your business it is the responsible thing to do to set up a contingency plan for future operations in the event of your death.

Not Just for the Wealthy

Estate planning is not a task simply for the wealthy. Everyone should plan their estate, even if by just writing a simple will and having your say on who will be in charge of handling your estate once you are gone.

Planning for death is not a desirable topic of conversation. It is, however, a very realistic and intelligent conversation to have. No one is going to live forever, so by taking some time to do diligent estate planning while you are still capable, you can help ensure the future of your loved ones. The Beacon Group of Assante Financial Management Ltd. offers estate planning and inheritance planning services to make the transition easier for your family.

Planning for Retirement as a Small Business Owner

Planning for Retirement as a Small Business Owner

by AgingBusinessFinancial PlanningReal Estate

When you own your own business you might live under the mantra that your business is your retirement plan. This can sometimes work out to be true, but it’s not always a guarantee. You do not want to enter your retirement years without a solid financial plan already in place. It’s not enough to rely on CPP to cover all of your living expenses and maintain the quality of life to which you have grown accustomed. Here are some financial plans that might be helpful to have in place long before retirement is on the horizon.

Equity in the Business

It is possible that your succession plan is for you to retain shares in a class where you can claim dividends to supplement your retirement income. If your company is large enough to do this and still thrive then that is certainly a viable option; however, many small businesses would not be able to sustain this type of dividend. It’s important to talk with your financial advisor well in advance of your retirement years to plan if this is the right move for you.

Registered Retirement Savings Plan

Investing in an RRSP is the most secure way to ensure you have money available to you when you need it in your retirement. By making sizable and regular contributions to an RRSP portfolio, you can ensure that your retirement fund has grown to a sufficient size by the time regular withdrawals need to occur. With different investment options available you have the potential to grow your retirement fund over the course of many years.

Real Estate

Since small business owners can’t depend on a pension plan it might be wise to invest in real estate. This can be done by purchasing income property or simply by ensuring your own mortgage is paid in full. Having your own property be mortgage free by the time you want to retire leaves you with the option to sell and make a nice deposit into your retirement fund. Real estate has been known to be a dependable source of income over the years.

As a small business owner you have to juggle many different things on a daily basis. You may not be close to your retirement years but it is imperative that you invest in yourself and in your future in order to retire in a way that is comfortable for you. It’s never too early to start. Speak with your financial advisor from The Beacon Group of Assante Financial Management Ltd. to make the best choice for your future.

An elderly couple drinks coffee in their backyard

3 Steps to Help Aging Parents Stay at Home

by AgingLife Changes

As your parents age, mobility limitations combined with an increase in care demands often require the move to a long-term care facility. Though long-term care facilities have their benefits, many seniors prefer to stay in the familiar and comforting environment that is their family home. In order to accommodate this request for your aging parents, there are three steps that must be taken.

Step 1: Assess Your Parents’ Needs

Many aging parents are able to live active and independent lifestyles well into their elderly years. For others, physical and cognitive difficulties necessitate 24/7 care from a healthcare professional. It is important to assess your parents’ needs for support and care and the level to which they can continue to conduct an independent lifestyle.

There are some conditions that clearly necessitate care, such as Alzheimer’s disease or an accident that has rendered your parent physically incapacitated. In other instances, you will need to keep a vigilant eye out for behaviours that indicate that your parent needs assistance. These behaviours may include mobility difficulties, forgetfulness with medication and bill payment, and trouble with daily tasks like meal preparation or bathing.

Once you have a better understanding of your parents’ needs, you will be able to draft a plan for support and arrange an appropriate level of funding to keep them at home.

Step 2: Evaluate Support Options

Once you have identified the particular needs of your parents, next you must evaluate what support is required and what is available. Between family support, provincial home care programs, private home care services, volunteer organizations, and errand services, can all of your parents’ needs be covered?

Some parents may only need occasional family support with running errands and providing companionship, which costs nothing but time. Others will require a 24/7 live-in caregiver to stay at home. You may be able to access many free or subsidized services, but there will likely be additional expenses required to help keep your aging parents at home.

Step 3: Arrange Funding

If your parents require the use of private services, you can calculate the monthly cost. Long-term care insurance, if purchased by your parents, can be used to cover some or all of the care expenses. If not, you must make arrangements to cover the cost of private home care.

The Beacon Group at Assante Financial Management Ltd.’s financial planning services can assist you with evaluating how to manage these monthly obligations. Your parents may also require financial planning to manage their savings.

As you navigate this process with your parents, it is wise to look ahead to your own future. Should you also decide to live out your older years at home, the financial decisions you make now will make this possible down the road. For more information about retirement planning, contact the Beacon Group at Assante Financial Management Ltd.