What kind of common coverage pitfalls for wisdom teeth removal should you be concerned about? Sifting through all of the different plans offered by the major companies can be a daunting task. There are Guaranteed Acceptance Plans, Different Levels of Coverage, Different Benefits, and more. What sorts of things can you expect from your Wisdom Teeth Dental Coverage?
1. A lot of the major corporations have no dental coverage for the most basic plans. This means you may want to look at having more coverage if your family includes children who may need to get their wisdom teeth out. If you haven't had your wisdom teeth removed, you may also want to go with more wisdom teeth dental coverage.
2. Most plans offer between 50-80% coverage for wisdom teeth removal. The amount of wisdom teeth dental coverage varies typically with the comprehensiveness of the plan.
3. There are often waiting periods involved in the plans. Some plans have three month no claims waiting periods (Great West Life Sonata Plan), while other companies have a standard 6 month no claims waiting period (Blue Cross).
4. Plans frequently offer greater maximum dental coverage after several years into the program. Initially you can expect lower coverage, and as time goes on from years one, to years two, and often into year three you can often receive more coverage in cash value. If your current health plan isn't very good, you can switch easily and be back at maximum coverage within three years. However, be wary of switching often, as your overall coverage over the long haul will suffer.
5. Accidental Dental coverage varies between different dental service providers. Some offer 100% coverage on all plans except their Guaranteed Acceptance Plan. Other providers only offer accidental dental coverage on their more comprehensive coverage policies.
Remember that getting adequate dental coverage in your health plan is important. Typical dental expenses that are often covered in a dental plan include:
Checkup $128
Fillings $50-$217
Root Canals $390 - $806
Denture Relines $149 - $361
Removal of four impacted wisdom teeth $423 - $1318
Be sure to consult an agent who is familiar with the different health plans available to you. The plans are quite comprehensive, and it takes a lot of time to get up to speed on what all the different major providers offer. Insurance brokers shop around to all the different providers, and find the plan that offers the best benefits for you and/or your family.
Friday, July 22, 2011
Tuesday, July 19, 2011
Life happens and it can foul up your RRSP for you
Mr. X just collapsed an RRSP for nearly $50,000. I explained the deep tax consequences he would experience, suggested alternatives, but still he insisted, so we got him his money. Why was he drawing this cash from his RRSP?
His wife had gotten a better job offer to improve her career, and this involved relocating. Since his RRSP was a spousal RRSP the last three years of her contributions were taxed back at her higher tax rate when they withdrew that money. Also the extra income in his name will bump him up into a higher tax rate. The good news is they had about $35,000 left to use for their relocation moving expenses.
On the broader picture why do so many people raid their RRSPs before retirement?
Some take advantage of the Homebuyer Plan or the LifeLong Learning Plan; these have been introduced in recent years. Excluding these two programs how much money comes out?
StatsCan reports that nearly 39% of RRSPs are raided and about half of these people make several withdrawals before retirement. Many times these withdrawals bump people into higher tax brackets so they actually pay more in taxes than the tax deduction they got in the first place.
This is only one reason why I suggest that people who are not over age 35 and don't have over $35,000 saved outside an RRSP shouldn't start an RRSP program. Another reason is that careers frequently lead to higher incomes in later years so wouldn't it be smarter to tax advantage of the higher taxes associated with those incomes involved with career advancement?
Using up RRSP room in early years may not be so smart. Invest outside the RRSP first. Always check with a financial planner, but remember many financial advisers do buy into the large company advertising which is geared to making money for their shareholders and is not always a good deal for the client.
Using up RRSP room in early years may not be so smart. Invest outside the RRSP first. Always check with a financial planner, but remember many financial advisers do buy into the large company advertising which is geared to making money for their shareholders and is not always a good deal for the client.
Monday, July 4, 2011
If you are in business there are only five ways out.
You sell your business, you retire, you die, you go bankrupt or your become disabled. Are you prepared?
Entrepreneurs are optimists in general. They believe they can achieve their dreams and move ahead into ventures where many people who fancy themselves to be realists would not dare to attempt. The problem with this optimism is when we discuss disability. They tend to realize they are doing what many would not, so they believe they can do what others cannot. Many of them under value their contribution to their business. So here are a few questions to answer honestly for yourself:
Could your business operate profitably without you if you were sick or injured for six months?
If you said yes, and you believe that is true, then why don’t you take six months vacation each year? Honestly, if you are not needed why do you show up each day?
Could your spouse take over your responsibilities while you are sick?
Really? Can your spouse do what they do now, and in addition to that take care of you plus run your business for you?
Do you believe you will be able to run your business from a wheelchair or bed?
Have you given proper value to your sharp decision making ability? What if your disability or your medication or treatment lessen your alertness or altar your thinking? What if you feel ill and aren’t up to decision making? What happens to the business? What happens to your employees? Your family?
There are several solutions and many variations of these which can be adapted to suit your particular situation. Consider a buy sell agreement in the event of illness. Many people get it all set up in the event of death, but fewer business have a proper buy sell that deals with disability. Another option is disability insurance for your personal income protection, so your business doesn’t get drained paying you when you are not helping out at work. Another form of disability insurance for business owners is business overhead insurance. Business overhead Insurance will pay your routine business expenses such as phone, hydro, office expenses and in some cases even office staff usually up to one year or at the most two years while you recuperate or arrange a sale of the business.
If there are partners or several executives there is an income replacement agreement which can reduce after tax expenses that can range into thousands of dollars annually when compared to individual disability insurance policies. The Tax Planning and Financial Planning pay off. Make sure you have a life insurance and disability insurance specialist as part of your adviser team. Accountants and lawyers are necessary but they are not the whole team.
By Gordon Hughes CFP who can be reached at www.SmartChoiceLife.com or call 1-800-471-0411
Tuesday, June 28, 2011
Does your family earn less than $40,000 a year? Do you want free cash to go towards their education?
The Canada Learning Bond is a program setup by the government. The program allows people to claim $500 in free cash to go towards a child's education. Although this money is available for all families, 80% of people who qualify never apply. We would really like you to spread the word for anyone who earns less than $40,000 a year for a family. This program is $500 free cash for anyone who has a child that is under the age of 7, born since 2003 for this year.
Children can also qualify for the national tax benefit, which is a supplement to the baby bonus. All they need to do is fill out the forms to get the benefit. We have the forms available in our office at Smart Choice Life. The government will even put in extra money. There is another education savings grant from another program which matches 20%, for up to $2500. All that has to be done is for forms to be filled out.
We can help this for you. We open the accounts, fill out the forms for you, and send them in. It is simple, easy to do, and takes minutes. It's a simple one page form, check mark, and signature. We look after everything for you.
If you have an infant and deposit every year until that child is 17, you would end up with $3000 to help them start with their education. This represents a significant boost, and makes a big difference in a child's life. This could be a turning point in their lives, because it may affect their decision to go to University, College, or seek further secondary education.
Their decision if they have $3,000 extra to go to University could be significantly effected. Visit our website or give us a call at 1-800-471-0411.
Children can also qualify for the national tax benefit, which is a supplement to the baby bonus. All they need to do is fill out the forms to get the benefit. We have the forms available in our office at Smart Choice Life. The government will even put in extra money. There is another education savings grant from another program which matches 20%, for up to $2500. All that has to be done is for forms to be filled out.
We can help this for you. We open the accounts, fill out the forms for you, and send them in. It is simple, easy to do, and takes minutes. It's a simple one page form, check mark, and signature. We look after everything for you.
If you have an infant and deposit every year until that child is 17, you would end up with $3000 to help them start with their education. This represents a significant boost, and makes a big difference in a child's life. This could be a turning point in their lives, because it may affect their decision to go to University, College, or seek further secondary education.
Their decision if they have $3,000 extra to go to University could be significantly effected. Visit our website or give us a call at 1-800-471-0411.
Thursday, June 2, 2011
What does it cost to leave a $50,000 legacy?
Jake, age 65 with a $40,000 income could leave $50,000 to a charity, non-profit sport organization, church or other organization that qualifies with CRA as a charitable donation, for only $1,046 a year.
How is this possible?
Jake has a $40,000 income and a marginal tax rate of 27.5%, but when he gives to a charity he gets a 43.3% tax credit on everything he donates over $200 up to 75% of his income. How is that possible? It is possible because a tax credit is more valuable than a tax deduction.
So how does he turn $1,046 a year into $50,000?
Jake buys a $50,000 life insurance policy. He makes a charity the beneficiary and the owner of the policy. He pays the premiums of $1,786 a year. The charity issues him a receipt for his premiums which triggers tax credits of $740. That’s how it costs him only $1,046 a year to leave $50,000.
Sally, age 50 could leave $100,000 for $486 a year after calculating tax credits.
How is this possible?
Jake has a $40,000 income and a marginal tax rate of 27.5%, but when he gives to a charity he gets a 43.3% tax credit on everything he donates over $200 up to 75% of his income. How is that possible? It is possible because a tax credit is more valuable than a tax deduction.
So how does he turn $1,046 a year into $50,000?
Jake buys a $50,000 life insurance policy. He makes a charity the beneficiary and the owner of the policy. He pays the premiums of $1,786 a year. The charity issues him a receipt for his premiums which triggers tax credits of $740. That’s how it costs him only $1,046 a year to leave $50,000.
Sally, age 50 could leave $100,000 for $486 a year after calculating tax credits.
Wednesday, June 1, 2011
Recession Proof Investments
To identify with real life experience
Printed with permission of my clients Roberta and Marty. Here are their comments:
In the summer of 2007 and early in 2008 Gordon warned us several times that a market crash was coming in 2008 or 2009 and wanted us to invest in these new Guaranteed Minimum Withdrawal Balance segregated funds. He said they would help us avoid the major cost of a market downturn.
We were dealing with other advisers and wanted to think things over before we shifted our business to Gordon. By the time we got our funds moved into these new GMWB products the crash had actually taken place. Ouch! We wish we had acted sooner.
We were dealing with advisers at two different banks and a mutual fund company before we shifted to the GMWB funds. What we find hard to believe is why didn't any of those advisers see this coming?
In any event these GMWB funds guarantee a 5% annual increase to your retirement portfolio. In 2010 our funds grew well over the 5% so our adviser was able to manually reset our funds into a new contract. Now your guarantee is over 6% annually if you calculate back to when we first invested. The reason for the higher rate is not a change in the GMWB product, rather it is due to the reset to the higher amount arranged by our adviser. Where else can you get a 6% guarantee annual increase in your retirement portfolio?
That ends their comments.
There is no better time to get involved with Guaranteed Minimum Withdrawal Balance (GMWB) funds that today. They work to save your investment in down markets and are also a great tool to increase wealth during rising markets.
Another client, Bob, did move before the downturn for safety sake, but stayed invested in equities. His funds dropped nearly 20% in 2008 but his Withdrawal Balance increased by 5% in 2008, 2009, and 2010. He wants to retire this year. Even though his investments are only back to the value they were in early 2008 he will get 5% of the higher amount guaranteed for life. Let's look at actual figures:
June 2008 funds $100,000 which dropped to $80,000 in the fall of 2008. They are now back to $100,000 three years later. That is the way equity funds work. But Bob's withdrawal balance has grown to $115,000 (5% per year) so he is now guaranteed a minimum of $5,575 per year for the rest of his life even if his funds run out his income will never run out.
Bob is happy, as he knows if markets rise enough his income will also rise. Every increase he gets will be guaranteed for life. It takes the financial worries out of retirement and the fear of outliving his money is gone.
Printed with permission of my clients Roberta and Marty. Here are their comments:
In the summer of 2007 and early in 2008 Gordon warned us several times that a market crash was coming in 2008 or 2009 and wanted us to invest in these new Guaranteed Minimum Withdrawal Balance segregated funds. He said they would help us avoid the major cost of a market downturn.
We were dealing with other advisers and wanted to think things over before we shifted our business to Gordon. By the time we got our funds moved into these new GMWB products the crash had actually taken place. Ouch! We wish we had acted sooner.
We were dealing with advisers at two different banks and a mutual fund company before we shifted to the GMWB funds. What we find hard to believe is why didn't any of those advisers see this coming?
In any event these GMWB funds guarantee a 5% annual increase to your retirement portfolio. In 2010 our funds grew well over the 5% so our adviser was able to manually reset our funds into a new contract. Now your guarantee is over 6% annually if you calculate back to when we first invested. The reason for the higher rate is not a change in the GMWB product, rather it is due to the reset to the higher amount arranged by our adviser. Where else can you get a 6% guarantee annual increase in your retirement portfolio?
That ends their comments.
There is no better time to get involved with Guaranteed Minimum Withdrawal Balance (GMWB) funds that today. They work to save your investment in down markets and are also a great tool to increase wealth during rising markets.
Another client, Bob, did move before the downturn for safety sake, but stayed invested in equities. His funds dropped nearly 20% in 2008 but his Withdrawal Balance increased by 5% in 2008, 2009, and 2010. He wants to retire this year. Even though his investments are only back to the value they were in early 2008 he will get 5% of the higher amount guaranteed for life. Let's look at actual figures:
June 2008 funds $100,000 which dropped to $80,000 in the fall of 2008. They are now back to $100,000 three years later. That is the way equity funds work. But Bob's withdrawal balance has grown to $115,000 (5% per year) so he is now guaranteed a minimum of $5,575 per year for the rest of his life even if his funds run out his income will never run out.
Bob is happy, as he knows if markets rise enough his income will also rise. Every increase he gets will be guaranteed for life. It takes the financial worries out of retirement and the fear of outliving his money is gone.
Monday, March 8, 2010
Did Warren Buffet see the Collapse of Banks Coming in 2008?
Did Warren Buffet know ahead of time that banks would fail? Do you remember the 5 billion he invested in Goldman Sacs on Sept 23,2008? That was in the midst of the bank collapses in 2008. Granted Mr. Buffet is very rich, but did any bank have 5 billion to lend him? Did he have it set aside in cash?
The markets were growing in 2006 and 2007. A shrewd investor could reduce his exposure by selling a portion of his shares periodically and still grow his assets by letting other stocks run with the bulls on wall street. That could leave him with $5,000,000,000 cash to jump back in with when the opportunity arose.
Making a newsworthy investment like that would help slow the panic and subdue the fears of jittery investors. This would help convince the clients of his investment firm to not jump ship. In fact it would have an impact across the board. It was the correct thing to do at that time as it calmed fears a little. Perhaps it only helped turn panic back into fear but any show of hope and investment savvy was assuring to smaller investors. Mr Buffet's noteworthy investment was also a wise decision as it would quiet fears of clients of his company, Berkshire Investments.
So if Mr. Buffet did know this crash was coming ahead of time why then didn't he warn us? The answer is obvious. He couldn't.
Why couldn't he? Because if the most esteemed investor in the western hemisphere was to say I'm selling my investments because some banks may go bust soon, couldn't you just hear people running down the sidewalks to withdraw money and cash in stocks?
No, it's not up to Warren Buffet to look after your investments. That's your investment adviser's job.
Warren Buffet did exactly the right thing and he did it at the right time.
So does your adviser just mimic what the super wealthy do? That's not what she/he should be doing. If they were watching behind the scenes they would have forseen that the crash in 2008 was inevitable. I staked my reputation on it in 2007. My procedure of operation during 2007 and early 2008 was advising my clients they would see at least a 40% or 50% drop in the markets sometime in 2008 or 2009. Each one who was invested with me was contacted several times unless they believed me the first time. They needed to move their money out of equity investments and into interest bearing products. At this point we need a clarification. No matter how sure I am that a shift is needed I never recommend 100% shift. In this case I recommended moving from 50% of their funds to 80% to low risk products.
There isn't a one size fits all investment program. What works for Warren Buffet isn't good enough for you unless you also have billions to work with. Every good plan is individual.
One key issue is to watch out for systemic failures. The dot.com fiasco of 2000 and the mortgage melt down of 2008 were both predictable. Both events had some things in common. These things to watch for are rapid or extended growth period in the markets coupled with an abandonment of sound business norms in favor of paper wealth.
The sound business norm in 1999 and 2000 that was tossed aside was 'price to earnings ratio' in evaluating stocks. Investment bankers sold those that would believe them that we no longer needed to use time tested guidelines. They said that in the 'new economy' where dot-com companies could grow so fast that we could guess what they might make down the road instead of looking at what they were earning today. The P/E ratios were multiples of sensible norms and well beyond common sense.
The disruptive business practice that affected markets in 2008 was lending money without doing due diligence. That was a no brainer, especially when we were warned by reliable media reports that these risky mortgages amounted to trillions of dollars.
Greedy, incompetent CEO's who sell the public that they are increasing company values to benefit their shareholders, meanwhile reaping extremely huge bonuses in spite of that incompetence is a further factor. When you have these indicators showing up together watch out. Who knows where the next wave of falsified profits may show up? Could it be pharmaceuticals? Flu vaccines? What we need to do is to not worry. Excessive wealth in Dubai or other places around the world could pose problems in the future. Watch your step. If problems arise they will be kept hidden by big business if possible for a few years, the next drop of over 25% should be a few years out. But who knows for sure?
Gordon has over 30 years experience in banking and financial services industry. He shares his awareness of behind the scenes practices that work to the advantage of banks, investment houses, and big business in general but seldom benefit consumers. He also shares insights into how to improve your financial health and wealth without worry and stress.
Give a FREE ebook to a teenager or young adult. Help them to appreciate the value of money and avoid common financial mistakes. They'll appreciate it.
Visit http://www.smartchoicelife.net/ and download my ebooks at no charge.
Also check our NO CHARGE INSTANT LIFE INSURANCE QUOTING system at http://www.smartchoicelife.com/free-quote/. While you are there check out our Unique Anonymous Personal Financial Planning System which was designed by Gordon to serve internet cleints where you get direct personal access to Gordon and ongoing coaching is included with your plan.
The markets were growing in 2006 and 2007. A shrewd investor could reduce his exposure by selling a portion of his shares periodically and still grow his assets by letting other stocks run with the bulls on wall street. That could leave him with $5,000,000,000 cash to jump back in with when the opportunity arose.
Making a newsworthy investment like that would help slow the panic and subdue the fears of jittery investors. This would help convince the clients of his investment firm to not jump ship. In fact it would have an impact across the board. It was the correct thing to do at that time as it calmed fears a little. Perhaps it only helped turn panic back into fear but any show of hope and investment savvy was assuring to smaller investors. Mr Buffet's noteworthy investment was also a wise decision as it would quiet fears of clients of his company, Berkshire Investments.
So if Mr. Buffet did know this crash was coming ahead of time why then didn't he warn us? The answer is obvious. He couldn't.
Why couldn't he? Because if the most esteemed investor in the western hemisphere was to say I'm selling my investments because some banks may go bust soon, couldn't you just hear people running down the sidewalks to withdraw money and cash in stocks?
No, it's not up to Warren Buffet to look after your investments. That's your investment adviser's job.
Warren Buffet did exactly the right thing and he did it at the right time.
So does your adviser just mimic what the super wealthy do? That's not what she/he should be doing. If they were watching behind the scenes they would have forseen that the crash in 2008 was inevitable. I staked my reputation on it in 2007. My procedure of operation during 2007 and early 2008 was advising my clients they would see at least a 40% or 50% drop in the markets sometime in 2008 or 2009. Each one who was invested with me was contacted several times unless they believed me the first time. They needed to move their money out of equity investments and into interest bearing products. At this point we need a clarification. No matter how sure I am that a shift is needed I never recommend 100% shift. In this case I recommended moving from 50% of their funds to 80% to low risk products.
There isn't a one size fits all investment program. What works for Warren Buffet isn't good enough for you unless you also have billions to work with. Every good plan is individual.
One key issue is to watch out for systemic failures. The dot.com fiasco of 2000 and the mortgage melt down of 2008 were both predictable. Both events had some things in common. These things to watch for are rapid or extended growth period in the markets coupled with an abandonment of sound business norms in favor of paper wealth.
The sound business norm in 1999 and 2000 that was tossed aside was 'price to earnings ratio' in evaluating stocks. Investment bankers sold those that would believe them that we no longer needed to use time tested guidelines. They said that in the 'new economy' where dot-com companies could grow so fast that we could guess what they might make down the road instead of looking at what they were earning today. The P/E ratios were multiples of sensible norms and well beyond common sense.
The disruptive business practice that affected markets in 2008 was lending money without doing due diligence. That was a no brainer, especially when we were warned by reliable media reports that these risky mortgages amounted to trillions of dollars.
Greedy, incompetent CEO's who sell the public that they are increasing company values to benefit their shareholders, meanwhile reaping extremely huge bonuses in spite of that incompetence is a further factor. When you have these indicators showing up together watch out. Who knows where the next wave of falsified profits may show up? Could it be pharmaceuticals? Flu vaccines? What we need to do is to not worry. Excessive wealth in Dubai or other places around the world could pose problems in the future. Watch your step. If problems arise they will be kept hidden by big business if possible for a few years, the next drop of over 25% should be a few years out. But who knows for sure?
Gordon has over 30 years experience in banking and financial services industry. He shares his awareness of behind the scenes practices that work to the advantage of banks, investment houses, and big business in general but seldom benefit consumers. He also shares insights into how to improve your financial health and wealth without worry and stress.
Give a FREE ebook to a teenager or young adult. Help them to appreciate the value of money and avoid common financial mistakes. They'll appreciate it.
Visit http://www.smartchoicelife.net/ and download my ebooks at no charge.
Also check our NO CHARGE INSTANT LIFE INSURANCE QUOTING system at http://www.smartchoicelife.com/free-quote/. While you are there check out our Unique Anonymous Personal Financial Planning System which was designed by Gordon to serve internet cleints where you get direct personal access to Gordon and ongoing coaching is included with your plan.
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