Hello Every body!!!  Although its very cold here in Ottawa, I just wanted to take this opportunity to wish everyone a happy and successful 2010!  And with the New Year still ringing in our ears, maybe it’s a good time to make a new resolution.  A “Financial Resolution”.  Please don’t confuse this with dieting or starting back up at the gym. Think of this as a simplified financial plan for 2010 that can help you reach your goals for the coming years.

Did you achieve your financial goals this past year?  How about this past decade?  Whether you did or did not, this may be an excellent time to make up a new plan, updated to include any changes from the past years.  Did you buy a new house? Get married? Have children? All these things can have a large impact on your financial situations, so make sure to adjust your plan accordingly.

The main goal of a financial plan is financial freedom.  I think most people would agree with me on that.  So what does financial freedom look like to you?   Take a minute and picture where you want to be in 10 years, then 20 years and so on till you have a clear picture of where you would like to be.  Then sit down and try to imagine how to get to that first step.  Proper money management is crucial to the maintence of your plan, so don’t be scared to ask for help.  Your financial advisor is a prefect place to start.  Here are a few ideas to get you started…

Cash flow

It’s a good idea to keep track of the money coming in and out of your accounts.  Look at where the majority of your out flow is heading and see where you can save money in your spending.  Budgeting is a huge aspect of financial freedom.  Also review your portfolio to see if your investments are inline with your goals.  Some plans were set up years ago and should be reviewed regularly to ensure they are still on course. 

Insurance and Emergency Funds

Protecting yourself and your family’s lifestyle are another important aspect of your plan.  Have an “Insurance Needs Review” done to make sure you’re properly covered; especially if there have been any major changes in your life.  You can find these on many insurance web sites if you don’t have an insurance broker you can talk to.   Also, start an emergency fund if you don’t have one, as unexpected events can be managed when you’re prepared.  A good place for this may be the “tax free savings account”, and with the New Year comes more contribution room, so be sure to look into this option.

Tax planning is not just a year end topic.  Tax planning and preparing can be done through out the year and are important factors to a financial plan.  The type of investments you hold and the tax bracket your in will influence your return, so examine these components carefully and make sure that taxes are working effectively for you, and not against you.   It’s also a good idea to keep careful documents of all your transactions and purchases so when tax time does come around, you have all your necessary information handy.

Financial Education

How about some plans for increasing your financial knowledge? Even the most experienced investor needs to keep up on changes to tax laws and new government incentives like the “tax free savings account”.  You can find a wealth of information at your local library, on line threw blogs and financial websites, and in many magazines and newspapers. 

And many others…..

There are many factors to consider when drawing up a financial plan that I haven’t mentioned, such as risk tolerance, mortgage payments, estate planning, etc…  So it may be in your best interest to ask for some help from a qualified financial advisor.  I am simply hoping to get you thinking about your finances and to get you started on your way to a healthy financial future.  Remember financial freedom is the goal, so stay on track and update your plan regularly.

Adam Myers

Financial Advisor

Professionals for Independent Planning

Email: adam@pfip.ca

Financial Advisor

As millions of Canadians hit the roads and book flights to criss-cross the globe for the holidays, an alarming percentage don’t fully understand key aspects of their insurance coverage or their need for out of province travel insurance. An accident can happen to anyone, even during a short business or recreational trip. Some health services are not insured by the province and you may have to pay the full costs for those services.  Many health services outside Canada cost much more than coverage by OHIP, and you are responsible for any difference in cost.  Let’s take a closer look….

OHIP will pay very limited amounts for physician services and hospital facility services if certain conditions are met. OHIP will only pay for insured, emergency out-of-country health services that are rendered to an insured person.  To qualify as an ‘emergency’ there are a number of criteria that must be satisfied.  The treatment must be medically necessary, and the treatment must be performed at a licensed hospital or licensed health facility, and the treatment must be rendered in relation to an illness, disease, condition or injury that is acute and unexpected, and arose outside of Canada, and requires immediate treatment.  A lot of “ands” I know, let’s take a look at what they won’t cover.

OHIP does not cover treatment that is not medically necessary, health services that are completed at a facility that is not a licensed hospital, treatment that is generally accepted as being experimental, treatment rendered for an illness or injury that arose inside Canada or ambulance services/transportation costs.  That last one can be a real burden.

Back in Canada, your provincial health insurance plan looks after your hospital and medical expenses and you rarely see a bill. But, once you travel outside of Canada or even outside of your own province, coverage under your provincial plan is limited, and only some of these expenses may be covered. The good news is that the difference can be made up by travel health insurance.

Travel health insurance is designed to pay for certain unexpected costs that may arise when

you are traveling. These can include emergency hospital/medical costs, trip cancellation, lost baggage and accidental death insurance. But, not all plans cover all of these components.

For instance, the trip cancellation insurance you buy when you book your holiday may not include health insurance. Be sure you understand what protection you are buying, and whether it meets your specific needs.

When purchasing travel insurance there are a few key questions you should ask, such as:

• Will your policy cover you for the entire length of your trip from Canada or your home province? If you decide to extend the length of your stay, can your policy be extended? How would this be done?
• What types of restrictions and limitations does this policy have?
• Does your policy deny any benefits if your medical emergency arises because of a pre-existing condition?
• Are there exclusions about specific activities/events i.e., sports, war, suicide, substance abuse?
• What maximums, deductibles and/or co-insurance would apply in the event of a claim?
• Does your policy pay for emergency return home?
• If you are traveling with family or friends, does each individual need a separate policy, or can one policy cover everyone?
• Are there certain countries that are not covered under the policy?
• Does your policy provide for trip cancellation, baggage loss and other damages?
• If you have out-of-country coverage through your group plan at work, are there any restrictions? Does it cover you for business travel only?

So where can you find travel insurance? Well there are a number of places you can go, such as you credit card company or through you group health insurance.  But it is generally recommended that you talk to your insurance advisor or broker to guarantee you get proper coverage customized to cover all of your travel insurance needs.  So whether it is a day out of the province or a year out of country, make sure you’re protected with travel insurance.

Adam Myers

Financial Advisor

Professionals for Independent Planning

Email: adam@pfip.ca

Phone: 613-224-5511   X108

www.pfip.ca