Guaranteed Withdrawal Benefits, or GMWB, are options in some segregated fund contracts that allow the policy holder to receive a guaranteed income for life. These types of contracts can be appealing for retirees looking for a guaranteed income stream and who are nervous about market fluctuations.
Participating insurance can serve a variety of purposes for both individuals and businesses. For business owners, it may work well as a tax planning vehicle. For individuals, it may serves as a way to provide a modest inheritance to their loved ones after they are gone. Whatever the purpose of the policy, Participating insurance comes with a set of characteristics that offer great value to the policy owner.
Having a child with a critical illness can take both an emotional and financial toll. Having a critical illness policy on your child can give you the peace of mind that if your child become seriously ill, you’d have the financial resources to care for them.
Many people may worry as they get older about what will happen if they are no longer able to manage their finances and personal property. It can be a good idea to be proactive in planning ahead for a time when you may need help managing your affairs. One option available to Canadians to address this financial planning concern is appointing a Power of Attorney.
While uncomfortable to think about, effectively planning ahead for when you are no longer here can save your loved ones a great deal of time, money, and emotional hardship. Estate planning can be complicated, but there are some basic “must-do’s” that should be regularly updated and reviewed. Below is a simple checklist for making sure your estate plan is up to date.
Life insurance is the foundation of solid financial plan and it is important to make sure that you and your family are protected if there is an unexpected death. While each family has a unique situation that will determine their insurance needs, there are some factors that hold true for most people. Below are some typical considerations to help you calculate how much insurance you should have.
Since recent tax changes imposed by the federal government, it has been a topic of debate whether or not trusts hold the same advantages they used to. It is true that from a tax perspective trusts aren’t as advantageous as they used to be, however trusts can still be valuable when planning for unique family situations. In the broadest terms, trusts are used to pass money down through generations in a controlled manner. Many families utilize trusts to control how money is dispersed to certain family members and to ensure their loved ones are taken care of when they are gone.
Probate is the process of getting your will approved by the courts. This process validates your will and allows your executors to distribute your assets. However, probate can often be an expensive and long process. Each province has probate fees which can end up being quite substantial on a big estate. Probate can also cause serious delays in the distribution of assets from the will because once a will is probated it becomes public record. This means that it can be contested and potentially delayed while the courts settle any disputes. The good news is that with proper planning, it is possible to minimize or even eliminate the number of assets that have to go through probate.
Avoiding the Old Age Security clawback is typically a top priority for retirees and their advisors. Understanding how different types of investment income can affect your OAS benefit is vital when trying to keep your income under the clawback threshold.
Though not something many people want to think about, planning for the death of a spouse or common law partner is an essential part of a financial plan. Unfortunately, many people are shocked when they realize that the survivor benefits that they receive from the government may not be as much as they were expecting. Below is a quick guide to CPP survivor benefits and how much you can expect to receive.