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