June 2010
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As the weather outside heats up, the same can't be said for the markets. But things aren't as bad as they appear. See our note below for more information.
Also in this issue, a short story about a woman who was thankful she had critical-illness insurance--it helped her maintain her family's financial stability during a trying time.
Finally, do you have a
Tax-Free Savings Account? You'll read why you should.
As always, if you have any questions, suggestions or comments, don't hesitate to contact us!
Now, enjoy a little more Insight!
P.S. Have you visited out website recently? Have a look!
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 | Volatile markets: time to
take a deep breath
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It's not nearly as bad as it may appear
To read the headlines, you'd
think the European financial problems have most economies, once again, on the
brink of an economic crisis. Read the rest of the story, however, and you'd
find that the uncertainty created by Europe's sovereign debt crisis caused
ripples in financial markets in the past month but had little effect on the
pace of North American economic growth.
Major indices show that, in general,
stocks are up year-over-year.
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Data confirms that recoveries
are underway here with Canada exceeding expectations while the U.S. economy
posted solid growth.
So, while we've seen
uncertainty in the markets, our advice is to avoid overreaction. This is not
the time to make big moves and risk serious losses. We remain--as always--intimately
familiar with our clients' portfolios. If we see the need to move, our job is to
talk to you about it. And we will.
In the meantime, feel free to
contact me if you have any questions or concerns.
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| Critical-illness insurance
can be, well, critical
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Financial stability in trying times
 Life was humming along as it should for Sandi Anderson (a
real person but not her real name). Then, late last year her world seemed to come
crashing down around her after her doctor uttered three simple words, "You have
cancer."
A single mother in her early 40s, she feared the worst. Although the
prognosis was good, how would she take care of her children while she was
treated? She remembers thinking immediately about her insurance and being
comforted by the fact that she had purchased critical-illness insurance. And this was at a time when she had no reason to concern
herself with it.
A recent study by the Canadian Breast Cancer Network found
that 80 per cent of breast-cancer patients experienced financial repercussions,
with an average $12,000, or 10 per cent, drop in annual household income. The
study also noted that to cover treatment costs and make up for lost income, 44
per cent of those surveyed depleted their savings and retirement funds while 27
per cent took on debt.
How would a critical illness affect the financial security
of you and your family? For more information about this most important issue, call me at 613-841-0944 or contact me by email today.
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| Over 18? You need a Tax-Free
Savings Account
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TFSA can save you real money
 No, it's not necessarily a savings account at the bank. In
fact, there are much better way to take advantage of the Tax-Free Savings Account
(TFSA). So, what's it all about?
Starting in 2009, anyone over the age of 18 has been able to
invest in a new savings vehicle called the Tax-Free Savings Account (TFSA). You
can deposit $5,000 per year so if oyu haven't opened an account yet, you can contribute $10,000. And any portion of the allowable contribution not used now can be carried over
indefinitely.
Although the contributions are not tax-deductible, any money
earned on those contributions is tax-free. What this is giving you is tax-free
growth for life and you can withdraw from it any time without penalty.
What many don't realize is that your TFSA may incorporate
the same types of investments as an RRSP, including cash, government and
corporate bonds, mutual funds and stocks.
Don't underestimate the power of the TFSA. If you don't have
one, you should.
Want to learn more? Contact me by email or call me at
613-841-0944.
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