Debt Strategies

What is debt consolidation?
Debt consolidation is a technique often used to better manage debt problems. Instead of paying off several separate bills each month, the debt is consolidated into one lower monthly payment extending over a period of time.

How can debt consolidation improve my financial situation?
Debt consolidation can help lower debt payments and immediately increase cash flow that can be used for savings. Debt consolidation can decrease the amount of interest paid over time, and eliminate harassment from creditors.

What's the difference between unsecured and secured debt?
Unsecured debt is debt for which a creditor holds no collateral in the event of a default, including credit cards, department store and gas station cards, unsecured personal/signature loans, student loans, payday loans and collection accounts.

Secured debt includes debt for which a creditor does hold collateral, such as home mortgages, car loans and income tax.

Retirement & Savings

When should I start financial planning for my future?
As soon as possible. Often times, investors do not maximize their savings potential and retirement contributions. By adopting a "pay yourself first" philosophy, making monthly contributions and leveraging the growth potential of compound interest, you can ensure you will be able to maintain your lifestyle when you retire.

Why should I contribute to an RRSP?
Quite simply, there are two major reasons to contribute to an RRSP-to lower the amount of tax you pay now, and to ensure financial security for you and your family after you retire. Consult the sites to the left for more in-depth information on RRSPs.

What are Segregated Funds?
Segregated Funds combine the growth potential of mutual funds with the security of insurance. A Segregated Fund essentially constitutes an insurance contract that is subsequently invested into an underlying mutual fund. The return on your Segregated Fund generally corresponds closely to the underlying mutual fund, even though you do not own units of the mutual fund. Segregated Funds include guarantees to protect your money from market volatility.

Disability Preparedness

How does disability insurance work?
Disability insurance ensures that you will have a monthly income even if an injury or sickness prevents you from working.

Why do I need disability insurance?
Disability insurance protection ensures the security of you and your family by guaranteeing the income needed to pay for ongoing costs and to remain financially stable during the term of your disability or sickness.

Life Insurance

Why do I need life insurance?
Life insurance can ensure the financial protection and security of your loved ones into the future. The need for life insurance often becomes more acute as your responsibilities increase (after marriage, purchasing a home, having children, retirement, etc.)

You can also use life insurance during your lifetime, for things such as cash withdrawals, loan collateral, retirement income and tuition costs. Perhaps most importantly, life insurance offers the peace of mind that your family will be taken care of.

How much life insurance do I need?
The decision to buy life insurance, and the amount you require, depends on your responsibilities and your future financial needs. Based on your stage in life and the lifestyle you want to maintain for your loved ones, an insurance specialist can help you determine the appropriate amount of life insurance.

What's the difference between term and permanent life insurance?
The main difference is that term life insurance has an end date, whereas permanent life insurance provides coverage for life.

Term life insurance is generally lower in cost, as it provides a death benefit for a set period of time and builds no cash value.

Permanent life insurance offers both protection and cash value. Part of the premium goes towards the death benefit, while the rest goes into savings.

Should I opt for mortgage life insurance when buying a new home?
While the decision to purchase a specific type of life insurance is a personal one, it is generally accepted that it is harder to find the best value in mortgage life insurance.

These policies are generally high in cost, and become more costly with time-premiums generally stay level, but the death benefit is reduced on the same schedule as the debt reduces.

In addition, while your mortgage will be paid off, mortgage life insurance does little to help your family's ongoing income needs. Consult a qualified life insurance broker for more information on mortgage life insurance.