I don't need help with that....or do I?

A lot of the time we are focused on product. What will this product provide for me? We look at price and we look at return on investment. Dollars in and Dollars out.

I realized last week when I was considering a sleep consultant to help us get a better system with the kids, to maximize everyone health and happiness when it comes to sleep and bed time, that I wasn't searching for a product but rather a service. This, my friends, is a different beast entirely.

I have read the "Selling the Invisible" by Harry Beckwith, where he talks about providing a service rather than a product you can see and touch and measure the effectiveness. But this was the first time in a long time that I was researching something I knew nothing about and had to gage the likely hood of me using this service based on so many things.

~ First, I had to decide why I needed this service - was there a problem, or and issue that I wanted to improve? The answer was most definitely a friggen yes. I really need sleep and so do the kids. I want to enjoy bedtime.

~Second. Was the service provider someone I could rely on and trust to help us? Was she offering what I was needing? Well, I searched her website and it looked wonderful. So many beautiful testimonials, not to mention she had been referred to me from someone with high praises. So I will check this one off as well.

~Third. Could I clearly understand her method, process and effectiveness? This was also laid out on her website and I spoke to her on the phone to find out how she thought she could help us, once I explained our individual needs. She was confident, and not only that - she finished most of my sentences, which let me know what we were going through was normal and she understood completely.

~Fourth, what was the cost and was I willing to pay the price? Her price was very well laid out and was a one time fee for $400 for a plan and instructions that will work and be effective for each family member involved. To me sleep is invaluable.

To be honest, in the beginning I didn't know what I wanted, I just knew there was a problem that was causing us stress. Because I have no idea how to make my situation better, I had to search for help. Most importantly, I had to first admit that what I am doing isn't working and that I don't know what else to do. I am not an expert on children, believe it or not, and I must be doing something wrong if we are still up in the night with our 3 and a half year old and bed time takes 2 hours plus. This is the hardest and most crucial part of moving beyond a problem - reaching out for help and admitting you can't quite figure it out on your own and then of course accepting this help graciously.

This is why services exist.

Personal trainers, life coaches, nutritionists, and counsellors alike - what they provide you cannot see, or touch but you can feel whether it is right for you and if it will be helpful to get you to your end goal. The people providing these individualized services are non-judgemental of your issues and they know a lot of people go through them, that is why they set out to help in that specific area. Look for signs of passion, commitment and a genuine desire to help - not what is in it for them (money or recognition).

I have a chart at my office that shows the difference for families of all age groups if they use an advisor and if they do not. The difference is staggering. Money is an emotional force driving us to do strange things - buy on impulse and false promises of making our lives better or easier. A lot of the time we see boxed products with flashy pictures and guarantees to make life better but we are still masking the root problem and that is where the help of a real human being can make the biggest difference in the world! Having a financial counsellor to help guide you to your own personal ideal success is you taking a stand for what you want and reaching out to someone who specializes in that area. And most of all, reaching out to someone who you feel cares very much for your financial security and happiness or just cares about helping and changing the lives of those around them - period.

Big love,

Grace & Erin

What are RRSP's and why is there a season?!?

Let's break this down. It's a bit boring but bear with me.

First off - taxes right! What a b*tch! "You don't pay tax, they take tax" as Chris Rock would say. We have taxes taken off our cheques and then we pay more tax when we go our and spend that reduced work dollar! Boo-urns.

So RRSP's - and tax here we go -

RRSP's stand for Registered Retirement Savings Plan.

What does Registered mean?

Well, you have declared to the government that you are taking action for your retirement and that means you won't be totally dependent on them for money!

You can choose any kind (portfolio mix and risk) or vehicle of investments and 'register' it. That means a mutual fund can be registered or non-registered and by the same token your stocks can also. People often say to us that they mutual funds, and that means they are RRSP's. Not necessarily - you can use any type of savings and register it.

They (the government) like this, and so they say "whatever you put into that registered savings plan, you will be allowed to take off your income at the end of this year and not pay tax on it."

This is why you get money back.

You paid tax on this money when it came off your pay cheque, so you get the tax you paid returned to you once you do your tax return.

Ex: If you made $40,000 in 2011 and paid tax on your pay cheques all year, then you contributed 10,000 into your RRSP's you will deduct 10K from 40K = 30,000 in income. So your tax bracket will be lower in some cases and also you will get back what you paid on that money in tax. So it's just a return of your taxes paid up front at the end. Clear as mud?

What's the catch?

You will have to pay tax on it later - when you finally use it as income, when you are retired or if you pull it out early for a major purchase (if you use it as a first time home buyers you have an exception to this rule). It's not a penalty per say, it's just you can't have that money without the government getting their precious taxes!! So if you use it now or later you will have to fork over the tax at whatever point you withdraw that money OUT of your RRSP's.

RRSP's are not the perfect or the only savings tool for everyone. We have to assess a few things to figure out if it's something that will benefit you. Our parents generation were brain washed a bit into thinking that RRSP's were the best and only way to structure their savings! Now they may find themselves with a pile of registered money that has never been declared as income and therefore the tax man is knocking the door down!

So, if you are wondering about RRSP's and or you think you may need some tax write offs (we can discuss this concept as well) this year because your income was high or you moved up a tax bracket - please give me a call. I would be happy to clear this up for you and give you some tax planning ideas. I promise to make this as painless as possible, and well you know me - I will make you laugh in the process :)

Because hey - no one likes to pay tax! Am I right or am I right?

To see your tax payable and also to an RRSP contribution calculator you can visit - http://www.ey.com/CA/en/Services/Tax/Tax-Calculators

Hamster wheel, or Everest?

I had a really cool conversation last night with a family member about keeping track of money in and money out. Actually, this topic has come up a lot lately. Everyone has this burning question about how to budget and take care of their disappearing money problem.

Erin and I have put a lot of thought and time into this and recently we have even done a challenge ourselves where we make conscious decisions to move our money into savings instead of buying something unessential (teas, coffee, lunch, dumb crap at walmart etc.) These things are what financial experts say are the most detrimental to financial success. Our challenge was eye opening, but I don't know if it's a long term strategy.

I have heard all kinds of ideas from clients and advisors who do everything from using cash only, writing it all down, setting aside money in different categories, having more than one account etc. What we have found has been the most effective for those fearless enough to try it -is (drum roll please)....Having it done for you!

You can argue that this strategy is a lazy one or a bit too passive, I mean you aren't really doing anything? I disagree whole heartedly. You are taking a stand against something stressful and overrated such as budgeting and placing it in the hands of a professional who is more capable of making unemotional decisions about your financial achievements. No one, no one likes to budget! We can see the sweat beads form on our client's brows when we even mention it. People pull at their collars and say "I didn't bring one..." aka I couldn't put myself through that kind of torture and Dancing with the Stars looked so much more inviting. We get it.

So what does "have someone do it for you" mean you ask? Well we propose that after we figure out your fixed expenses, we then take a percentage (usually aiming to start around 10% is possible) of what is left over and have it automatically come out of your account into a secret hiding place that you will have to call your sponsor for release of it when you relapse. Money issues must be treated like an addiction, because I know from experience - it is an addition of the worst kind.

Taking this money and investing it, or even parking it for a later opportunity or emergency will guarantee success. After all the Wealthy Barber says it best "pay yourself FIRST".

It's one of the most crucial habits to build - delayed gratification always means two marshmallows! (See video of the marshmallow experiment, super cute).

No one has yet to return to us after their 3 month probation and tell us that it's too tough, and we have not seen anyone after that period either. I know it works because I have done it myself.

The best part? NO more buyers remorse. You then know you have done your due diligence to your planning and your financial freedom, so you can spend the rest on $500 boots or a fancy TV if you have enough money left over. After all we just spend what we have in the account - shave some off the top and do what needs to be done = problem solved.

Again, this is no rinky dink passive plan for wussies. You have to feel the fear and do it anyway. You have to part with money temporarily in order to get off the hamster wheel. It seems scary at first, but remember it's not set in stone and we only do what we can do while ensuring we have taken all measure for it to be our best given our situation. Your plan is reviewed whenever you need and we can always make adjustments to accommodate.

I have seen people save on the most modest of incomes and that is inspirational. I welcome you to make a change today.

Part roman numeral II - the most important part

I saw a friend's status posted and it read "What do you love most in life". Well it had a heart instead of the word love so not a direct quote. Anyway, it made me think that I left out a very important part of why I feel so strongly about critical illness insurance.

Family.

The number one thing people posted was 'Family' and their 'kids', in response to Gary's status. I looked down at Lilly and Oliver who were cuddling me while watching the Backyardigans (a tolerable kids show) and it made me think. I know that if I was sick I would be away getting treatment most likely and I would want Danny to be able to afford to take time off of work and come with me with my kids. The biggest stress of them all would be to be away from those who give me reason to live each and every day.

I can't predict nor do I want to create or manifest thoughts of being sick, but I know that with all the crap I have done, ingested, thought about and stressed over in my life, the possibility is there. There are poisons we can't even see, feel or touch. For now, I continue to do those preventative things are essential but I have to ask myself (and obviously because of what my line of work, no, passion is) if unforeseen unfortunate events took place what could I do ahead of time to ensure that it could be handled with ease?

People say to me quite often "If I was sick, the last thing I would be thinking about would be money." And I say "yes, I hope it would be." But where does our money come from? Our energy and ability to put forth this energy in exchange for cash. Shouldn't you ensure you own energy source?

Unfortunately, I have been there with people while they see their last days and one of the things they say to me is "if I only had the money..." Fill your blank - to seek new treatment, not wait in lines, have my family take time off work, hire someone to care for me in the comfort of my home. All these preferences cost money.

I use to tell people "you could pay off your mortgage, pay bills, go on a trip after treatment is over." But those are all monetary luxuries, what about something as simple as survival? I feel that within the provisions of that insurance cheque I could be handing someone their survival. If they can afford that treatment or get private care, see a specialist in another province or country without having to sell their house or make choices that will compromise their family wouldn't that be the greatest gift of all, the gift of choice?

In our lives we witness things going on all around us and we have a choice - to learn from others situations and do something or hope that we never end up in them. I am writing this blog because one of my most important and loved tasks in this life has always been to spread the word - inform and help the people I know and the people I have yet to know. I hope that my passion for what I do spreads far and reaches wide because like I said earlier I would love nothing more than to be the only person you are happy to see showing up at your door with a big casserole dish full of hope.

Let the choice be yours.

I hate to say it, but I told ya!

Ok so not a great way to start this blog but it caught your eye didn't it!

I have been saying to many friends and clients that critical illness insurance is not only the MOST important part of your financial plan, life and insurances but the HARDEST type to get. The reason for this is that it's the insurance company knows you are most likely to claim on. So take a minute and list out all the types of insurance you have and pay for - I will help you.

1. Car/boat/motorcycle insurance - you have no choice right?

2. House insurance - if you have a flood ya better have it.

3. Life insurance - you have a financial commitment to your families well being whether you are here or not.

4. Fire and theft - nuff said

5. Disability/Critical Illness - most people have the other 4 but do not have anything to cover themselves unless their employer is kind enough to provide it, WCB (as if that's reliable) or EI (because 15 weeks of income is good enough right?) - YOU ARE YOUR BIGGEST asset, without you none of the other insurances get paid, no food on the table, and certainly no big screen TV or trips to Maui.

Interestingly enough the last one is the where the most claims are made however it is where people seem to think "I'll be ok." If you are sensing a bit of a sarcastic undertone to this it's because I am blown away by this everyday - the lack of understanding people have for their own human frailty. We are not invincible - Superman fell off a horse and is a quadriplegic people!

So the point of this entry today is because I have been saying for the past 4 years that Critical Illness insurance prices will increase (not for people who already own policies though) due to the fact that they are claimed upon so much. The insurance company has reassessed the risk and because the risk is so huge they have to charge people more to have this type of coverage.

It's not too late, this first price increase is not enormous, but there will be more as the incidence of illness and survival increases. Due to our life style, both internal and external we increase our chances of getting sick but also because of medical advances, holistic options and our determination to live healthier more aware lifestyles we are very likely to live through it with but with an altered quality of life. Critical Illness policies were not created by an insurance company - but by Marius Barnard, in 1983 the first cardiologist to do a human to human heart transplant. He found that he was giving people back their lives but they could not go back to living them because they had exhausted all financial resources during their illness. Rock meet hard place. "Barnard argued that, as a medical doctor, he can repair a man physically, but only insurers can repair a patient's finances.^[7] On 6 October 1983 the first critical illness insurance policy was launched"

http://en.wikipedia.org/wiki/Marius_Barnard_(surgeon)

This planning tool is one that touches close to my heart. I have lost many friends since diving into this career choice and each time I find out someone is critical ill I wish I could be the one to show up at their door with a big fat cheque instead of scrounging to bid on Canucks tickets at a benefit, which of course I would do - and I don't even watch hockey. Don't put your freedom in the hands of someone who hasn't planned for your sickness. No one has an account that is called "the if Grace got sick account" we don't even have this for ourselves.

We have all lost someone we love and if you had $100,000 to give to them to help them choose their treatments, pay off financial obligations which would eliminate more stress in an already extremely stressful situation - wouldn't you? So if you would do that for someone you love, if you could, why wouldn't you do it for yourself?