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Bridgeland 1212.indd - Calgary Communities and Community ...

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Family Financial Health<br />

How much do you know about pyramids? This month we are<br />

going to begin talking about one particular type of pyramid – the<br />

financial planning pyramid.<br />

Speculation<br />

Growth & diversification<br />

Savings & wealth accumulation<br />

Protection<br />

Let’s start with the base. We need a strong foundation to build a<br />

plan just like you need a solid foundation for your home. The base or<br />

foundation is PROTECTION. What do you need to do to protect<br />

your lifestyle? There are 7 components:<br />

1. Debt reduction – we hear this in the news every day. How<br />

Canadians are mired in debt.<br />

2. Emergency fund – this can be a savings account untouchable<br />

except for emergencies or establishing a Line of Credit with your<br />

financial institution.<br />

3. Life insurance – would you really expect your spouse <strong>and</strong> children<br />

to move in with your parents if you didn’t show up for dinner<br />

tomorrow evening?<br />

4. Income replacement insurance - how long could your family<br />

survive if you had already received your last pay cheque? Your greatest<br />

asset is not your home. It is your ability to earn an income.<br />

5. Critical illness insurance – who do you know that had a heart<br />

attack, a stroke or cancer? Did they see it coming? Would a lump<br />

sum of cash have helped alleviate some of the stress?<br />

6. Regular savings – usually setting up a Tax Free Savings. The<br />

limit this year has increased to $5,500 a year for everyone 18 <strong>and</strong><br />

older with a SIN.<br />

7. Will – who do you want to raise your children? Would you like<br />

your money to go to the government? Separated but not divorced<br />

– do you want your estranged spouse to inherit?<br />

I look forward to your questions <strong>and</strong> comments! Please send them<br />

to me at newsletter@brcacalgary.org<br />

Happy Valentines Day!<br />

Jill Chambers, BN CFP<br />

Jill Chambers is a Wealth Management Advisor<br />

• Accredited Daycare<br />

• Non-Profit<br />

• Hot Lunches<br />

• Qualified Staff<br />

• Ages 19 mths - 12 yrs<br />

February 2013 <strong>Bridgel<strong>and</strong></strong>-Riverside Bridges<br />

13

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