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.

Continue Reading >>

RRSP to Pay Down Credit Cards

Often once you get behind on a credit card it is hard to catch back up at the often high interest rates.  In some circumstances an RRSP (Registered Retirement Savings Plan) can help. If you are making a credit card payment each month at a high interest rate, it is often close to the payment required for an RRSP loan.  Let’s say you were at a 40% tax bracket, if you were to take a $10,000 RRSP loan, you would likely get $4,000 back in taxes.  You could use the $4,000 to pay off your credit card and the RRSP loan would usually be at a much lower interest rate.  Replacing a credit card payment with a payment on an investment and wiping out the credit card debt can be a good option.

The key to any plan that involves paying off credit cards, is keeping the credit card balance at zero.

Continue Reading >>

RRSP Deadline

The 2010 RRSP deadline is March 1 2011.  If you are planning to get an RRSP (Registered Retirement Savings Plan) this year time is running out.

Investing with Values

There is no doubt many things in the world are currently broken, and it no secret that money is often a motivation for many of these issues.  When choosing where to invest your money there is an option that I like, as it fits with my values.  SRI or Socially Responsible Investing.  This option varies between the providers; however the concept remains the same.  First there is a list of areas that they will not invest.  Second they rate all companies left and have a minimum score for them qualify for investment.  Third is advocacy, where they consult, make recommendations and use shareholder rights to encourage positive change in the companies they own.  The three areas of focus are Governance, humanitarian and Environmental.

What I really like about this style of investing is they are clear on the filters, then work with the companies to make things better.  This collaborative process not only improves the company, but in most cases improves profitability.  Doing the right thing works and this process has many success stories to prove it.

SRI investing offers the ability to grow your investments, while supporting positive change in the companies you invest in.

RRSP Calculator

It is common to wonder how much difference your RRSP (Registered Retirement Savings Plan) contribution will make.  Below is a link to a great online tool that can help you plan and make sure you get the most from your money.

Tackling debt

Managing debt has become an essential in creating a strong financial future.  I have written a short eBook on how I would tackle most debt.  The link to download is below.  We encourage any feedback on any of our strategies, so please let us know how it worked for you.

Debt Repayment Guide

Vancouver RRSP Solution

We do maintain an office in Vancouver, however for many our mobile solution seems to be much more convenient.  We are happy to come to your office, home or local coffee shop.  We can offer full RRSP (Registered Retirement Savings Plan) service, RRSP loan service and a full array or solutions where you are.  No need to fight traffic or wait in lines.  Investing in your future has never been easier.

If you are interested or would like more information please call our office 604 637 7422.