by Caroline Hanna
You’re never too young to make smart financial decisions. Whether you entered your 20s with a solid savings portfolio funded by your parents, saved up some of your own money, or spent it all on education, here are four tips on how to get ahead financially.
01 Start now
A lot of 20-somethings feel they’ve missed the savings boat. You haven’t. You may have missed out on high interest rates, but the principles of savings apply, even when rates are low.
The Cascading Life Insurance Strategy
If you are a grandparent wishing to provide an asset for your grandchildren without compromising your own financial security you may want to consider an estate planning application known as cascading life insurance.
How does the Cascading Life Insurance Strategy work?
- The grandparent would purchase an insurance policy on his or her grandchild and funds the policy to create significant cash value;
- The grandparent would own the policy and name their adult child as contingent owner and primary beneficiary;
Canadians aged 85 and over represent the fastest-growing segment of the senior population. Start thinking about how you’ll care for your loved ones in this age group.
By Gail Vaz-Oxlade | for www.MoneySense.ca
Have you thought about what you’ll do when the time comes for your mom and dad to need extra help? It’s not something most of us think about. Used to parents who have been vital, who have been the ones doing the guarding, many of us are ill-prepared for the years when our parents may need extra care.
Canadians aged 85 and over represent the fastest-growing segment of the senior population. Eventually many of us are going to have to come to terms with parents who have fallen prey to the ravages of age. Our first instinct may be to bring them into our own homes. That’s the way it was when I was a girl growing up in Jamaica. My great-grandparents lived with my grandparents. Home care worked well because there were always bodies available to help. Here in Canada, where my grand aunt lived with my aunt and uncle, they eventually ran into the problem of having a parent who needed constant supervision when they both worked outside the home.
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Available until January 1, 2017
A New Approach
A new method of structuring an insured annuity has restored its favourable results. The new approach involves combining the prescribed annuity with a Universal Life policy.
- The UL policy is funded with a single deposit to provide lifetime coverage.
- The remaining capital is then used to purchase the prescribed life annuity.
- On the death of the insured/annuitant, the annuity income ceases.
- The Universal Life policy now returns the full amount of the capital to the intended beneficiaries.