Simple Wealth Creation

Sitting with people and hearing their stories, reading many books on wealth creation, it seems creating wealth is simple.  Many high net worth people have average incomes, and a great lifestyle.  The story seems to always be the same, saved money while quickly paying down their mortgage and avoid other debt.  It never seems to take very long for things to really start to grow for them.

It always amazes me how common this story is how simple it is and yet how hard it is for many to get there.  I guess it is no surprise with all the marketing to buy, the need to keep up and maintain an image, and the general desire for stuff.  The most ironic part is that for those who wait to get what they want, life has more for them and it is much easier to get what we want.

Why Review Your Insurance?

Too often reviewing your current insurance coverage is left too long, so why is it important?  Often in reviewing a new client’s existing coverage we discover cost savings, errors and that the coverage no longer fits their situation.  I have included a few examples below.

  1. On Life insurance it is important to make sure you beneficiary is correct, and the name is right.  Often the name changes due to marriage and the policies are never updated.
  2. Is a term about to increase?  It is common to see a term insurance policy (Critical Illness or Life) that has renewed and is now costing more than the client needs to pay.  Know when your term is due and look into changing the term 2 years before it is due.
  3. How many policies do you have?  Often people have a life insurance policy, a policy at the bank and insurance on the credit card.  Often the policies at the bank and credit cards are expensive and not always to be trusted (read the fine print). Many times people do not even realize they are paying monthly for insurance on the credit card.  Reviewing to make sure you had a policy that fits you is important.
  4. Does your insurance still make sense for your current situation?  Life changes fast.

These are only a couple of the things that should be reviewed on an annual basis.  Being proactive with your finances is important, if you are not you will be?

This blog is referring to life insurance, Critical illness insurance, Disability insurance and long term care insurance.

2011 Award

AwardChristopher Nelmes was awarded the Five Star Award for 2011 for highest overall satisfaction by clients, peers and industry experts for the Vancouver area.  Complete list of winners and details can be found in the June issue of Vancouver Magazine.

The Unexpected is Predicable

I find that many who are in debt tell a similar story, “I was ok then I was hit by a couple unexpected expenses.” Personally I cannot remember a year in my adult life that unexpected expenses have not shown up, and this is excluding property tax or other annual expenses that often get lumped into the unexpected category.

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