WOMEN AND THEIR MEN AND THEIR FINANCES

I actually had something else planned for today's post but after a gruelling, banging-my-head-against-the-wall kind of a day I decided to vent...I mean, WRITE, about something else.

There are times I am eternally grateful as a woman that I am in control of making my own financial decisions.  Days like today just make me want to be single forever!

I am going to talk about a client but no privacy will be breached.  I am not in fear of them reading this as they are older and not very computer literate. 

Admittedly, as I dealt with first the wife, who was in tears, and then her arrogant husband, stories from my various friends situations rose to my mind.  By the time I got home tonight I was so angry but I am not sure if it is with myself or the man or our education system- the worldwide (this couple came to Canada, educated elsewhere.)

One of the reasons I wanted to get out of accounting and into financial planning was due to what I saw happening with women, men and finances.  Too many women had their lives destroyed due to money and financial issues.  Too many women had relinquished control to their mates.  Some want control, and want their husbands to be involved, but can't get the guy to budge! So much of all of this could be prevented with proper planning.

Don't get me wrong, I do have quite a few clients who have worked out their financial plans comfortably together, but too often the wife says, oh let him worry about it!

I base so much of what I do on education.  I spend a lot of time with my clients making sure they understand risk; management of risk; product options; pros and cons of the decisions they make.  Many companies have many product solutions, but what it boils down to is your advisor.  Your advisor needs to be involved, caring and after your best interests.  It is a life time relationship.

For the most part I generally have the men who have pretty good knowledge of insurance and wealth management; then there are those who tell you they know more than you:) 

If I am setting a good environment then there should be no intimidation or fear for the client to admit they are not so knowledgeable.  Women are generally pretty quick to tell me they may not understand everything. I am not afraid to tell them if there is something I am not sure about.  No matter what my qualifications are- each situation is different.  I have access to a lot of resources and specialist- that way I can offer much more to my clients- I don't have to know it all! Lastly, I spend a lot of time looking at all the angles to ensure my clients are well looked after.

My frustration comes in when the woman looks to the man and says, "Dear, how much do I make?"  Or "I don't know, he looks after all the finances."  What angers me is the man who, like today, does not allow his wife to be independent and make choices about her own finances.

I have worked with this couple together and separately. He believes he knows a significant amount about financial planning.  I give him the info I am compelled to for compliance reason.  If he chooses his own path, this is his right.  It is what it is. 

However....

STARTING FINANCIAL PLANS FOR CHILDREN

I am often asked about what kind of financial plans would be good for children.  You can start a financial plan for your child from when they are newborns. 

(Note:  I can not be held responsible for how you use this information.  Always consult your financial advisor, accountants and tax specialists.)

Here are some frequently asked questions and some approaches:

What would be the purpose of getting a life insurance policy for a baby or a child under the age of 18?  They do not have any assets or tax issues.

Starting a permanent (whole life) or permanent participating plan for babies/children is a very wise decision.  

Although we do not want to think of our children passing away before us, we do not have a crystal ball.  If they should, the cost of a funeral is quite high. In addition, you will need time for the grieving process.  The last thing you want to deal with is financial issues.  I urge every single parent to make sure they have a small policy.

Permanent life insurance policies for children are very inexpensive.  For anywhere from $10 a month cdn and up, you can have a very nice plan.  Especially if they are participating plans.  (Participating means that the policies are pooled and then dividends issued once a year to the policy holders.  Dividends can be used to purchase more insurance within the plan or can accumulate or pay out.)

Insurance is based on age, health and gender.  If you purchase a plan while the child is young, you lock in the premiums for life. (If the plan costs $10, the premium will stay at $10.00 for the life of the insured.)  Many companies have plans that can be paid up in 10 15 or 20 years.  The premiums are higher to cover the cost of insurance.  After the 10, 15 or 20 years, you have a paid up plan.  We have policies that are paid up by age 65.  There are lots of choices.  Pick a plan that meets your objectives.

OUR HOODWINKED SOCIETY

Yes, I know, you expected a knitting pattern.  And, I will post it. But not today.

I am not able to post it tonight as I am highly agitated and, frustrated- feeling as if I need to mobilize. 

It is true you know, when you need information, all you need to do is ask the Universe, your guides, angels- whatever you believe in.  Ask clearly and directly- then let it manifest itself.

I am deeply troubled by the Canadian Health Coalition Pledge.  Not by anything they have done, but because of our Government.  Having worked with National organizations and committees on issues of poverty, child care and human rights, I know the solution is so very simple.  It angers me that we live in such a wealthy, beautiful country and we see our safety net in health, welfare, pension, employment insurance- desecrated before our eyes.

And Prime Minister Harper is standing there oh so woefully- yes, it is going to cost billions and oh my, just how are we going to fund it!  Well, Prime Minister Harper, you may think we are all unsophisticated, easily hoodwinked country bumpkins, but there are many many people in this country that know the truth.  The answer is - tax the wealthy and our corporations.  Now, before you stop reading in disgust, let me tell you here and now that if you think for one second that the wealthy people and corporations are fairly taxed - you truly are hoodwinked.

So, I stopped fuming and put it out to the Universe- answers please!  Then I took my kids off to a used book store as they needed some magazines for projects they were working on.  As I lost myself in the miles of books (truly in heaven)  I came across Linda McQuaig's book- "Behind Closed Doors- How the Rich Won Control of Canada's Tax System...And Ended Up Richer".  Well, I also grabbed her other extremely controversial book of the year (1995) "Shooting the Hippo".  Interestingly enough, on the back of the latter book, Conrad Black is quoted as saying " She should be horsewhipped."  Hmmmm- definitely need to read! I am familiar with Linda McQuaig's newer books such as in "It's in the Crude, Dude".  (Go to your local bookstore-used or new; the library- you will be in for a real education.)

We got home and I could not wait to start reading.  Utter and total disbelief! This book was published in 1987.  Nothing has changed, in fact it has gotten worse. 

What are we hood winked about?  How deeply entrenched our government, our money, our lives, our future is with the wealthy and the BIG Corporations.  Laws governing our taxes, the investment industry, tax shelters, getting rid of the inheritance tax, increasing the principal residence deduction, no taxes on capital gains, tax subsidies, tax credits and best of all- corporations deferring taxes and simply not paying them at all.  Billions of dollars lost. Billions.

What it all boils down to is huge grants being given to corporations and using our tax system/governance as a gigantic ATM machine!!!

MANAGING YOUR RISK TO RISING HEALTH CARE COSTS

(Note:  I cannot be held responsible for how you use this information. Please contact the professionals in your life.)

(Note #2: I am adding this link for an article in the Globe & Mail: Protect Your Biggest Asset: Your Future Income from Nov 16, 2010.  Added Nov 18, 2010 at 4:05 pm.  Someone brought this to my attention- synchronisity!)

Watch this and come back to the post....Suzanne Aucoin Story

One burning desire I have is that financial information be taught in school.  It is so important in this changing world to be knowledgeable about risk management.  Everything from life insurance to vehicle insurance- this MUST be taught in high school. 

I think of the months I spent studying my courses- often people do not pass on the first try- it is a lot of information!  Even with all my financial background, I found I was so sadly misinformed about risk management and wealth management.  (I was able to pass my exams on the first go!)

The foundation of my business is education to my clients.  From my reading of our professional journals, it seems the Federal Gov't is waking up to the reality as well.  More on this later.

Earlier this week I invited you all to join the Canadian Health Coalition's campaign.  

I know what to tell you how you can minimize your risks, protect your assets and your future in this day of raising health care costs.

Not sure- need proof- check out the documentary Poor No More. Or what about Suzanne Aucoin - she had Group Benefits.  She eventually succombed to her cancer.  See more on her story

LIVING BENEFITS...

Living Benefits have evolved to fill in the gaps left by our Health Care System, Employment Insurance and Workers Compensation, Canada Pension Plan Disability - name a few.

Most advisors can offer:

• Disability Insurance
• Critical Illness Insurance
• Long Term Care Insurance 

All of these plans were designed to a) work together  b) provide an income benefit should you become disabled, critically ill, unable to perform any two of your daily living activities.  There are usually provisions for dementia, mental illness, alzhiemers etc.

Here is a quiz for you....

1. What are your chances of having your house burnt to the ground?
2. What are your chances of having your vehicle demolished in a car accident?
3. What are your chances of dying before age 65?
4. What are your chances of suffering a disability for longer than 90 days before age 65?
5. What are your changes of becoming critically ill before age 65?

MYTH #3: CANADA IS GETTING RICHER AND POVERTY IS DECREASING

...THE RISING TIDE OF WEALTH CREATION IS LIFTING ALL THE BOATS....

"On the whole, Canadian wealth, by net worth 1, is increasing, but essentially only for the top 50% of Canadian Households, in particular for the richest 30% of households, and even more specifically for the top 10% of households, driven principally by massive gains for the top 1%. 

Over the past several decades, Canada's poverty rate (inferred from the Low Income Cut-Off After Tax) had generally oscillated between 10-16%" Extracted with permission from  "Debunking the Myths of Poverty" Prepared and presented by Rob Rainer, Executive Director, Canada Without Poverty- Yellowknife, NWT Oct 2010.   1 Net worth is the total assets-liabilities

Check out the reports and graphs prepared by Dr. Lars Osberg, Dalhousie University.

HOW ABOUT THIS...DID YOU KNOW...

HELLO THIS IS YOUR ADVISOR CALLING…

And your financial advisor should be calling and you should be meeting with your financial advisor at the bare minimum once a year. More often if you are developing your financial plan or going through major life changes.


Wednesdays are dedicated to Financial Planning. Each week I will touch on a separate topic. Below you will see a TABLE OF CONTENT.


I am a financial advisor. I am life licensed in the Province of Ontario, Canada. I am mutually fund licensed in the Province of Ontario. I am not responsible for any personal/professional liability for the information I am providing to you. Always speak to your advisors and seek the proper opinion of your lawyer/accountant etc. Notice I said Proper, not Popular. I will accept full responsibility if this information TRANSFORMS your life.


I have a passion for ensuing my clients are well informed and well educated. I have a passion for what I do because of what I experienced and witnessed over my years on this planet.


I have personally experienced the humiliation and been felt the coldness of a life in poverty. I sat on the board of the National Anti-Poverty Organization (now, Canada Without Poverty) www.cwp-csp.ca/Blog/poverty-in-canada I had the privilege of sitting as the International Secretary and Chair of the Women’s Committee. I travelled with other Non-Government Agencies to participate at the Beijing +10 Conference in New York City, then to Geneva Switzerland to present to the United Nations Committee on Economic Social and Cultural Rights. My presentation was on the Child Tax Benefit Clawback. I joined the thousands of women across in hosting the relay for the Global Charter for Humanity in Yellowknife, NWT. The stories I heard and women who told them made me very determined to make a difference through my work as a financial advisor. Women come to poverty in many ways and each story is different. Perhaps with education on financial planning from an early age can go a long way to helping segments of women in poverty.


If you have not started your financial plan, or, if you depend on your husband or partner, or, your group plans, or think you are invincible, well, the time to start is now.


CONTENT series


Getting Started with Your Financial Plan-


• Insurance: Whyshould I care? I am going to be dead.
• What are the types of insurance?
• Why do I need Life Insurance?
• Why don’t I just buy term and invest the rest?


Living Benefits:
• Disability Insurance
• Critical Illness Insurance
• Long Term Care Insrance


Savings & Income
• How to save on taxes.
• What kind of savings plan should I have?
• What are the definitions for all these funds?
• What is Non-Registered, Registered?
• What are Segregated funds; annuities?


Budget, Fudgit
• Should I have one or not.
• What about Debt?


Estate Planning- only for the rich and famous- right?
• Why do I need a Will?
• What is a Power of Attorney and why do I need one?
• What does it cost to die in Canada?
• What is an Estate and what is its purpose upon death?


Misc:
• What about my children?
• Yeah, but you are paid by commission!
• Selecting Your advisor
• Resources
• Readers Q&A


Love and All Good Things, The Peaceful Matriarch

I am whole, perfect, strong, powerful, harmonious, loving, joyous and happy. 
Think this statement all day long.