May 2025
Let’s Talk Life Insurance
Our tagline has three words – Plan | Invest | Protect. Three simple words, but they are loaded with potential. This month, we’re talking about “Protect” and how a comprehensive financial plan includes protecting you, your family, and your legacy.
How’s that done? Life insurance. It’s the elephant in the room because no one likes to face the fact that someday, we’ll no longer be here. But it’s crucial to understand your options for insurance as a way to financially protect those you love.
Understanding Life Insurance in Canada
Most of us are familiar with insurance – we must have auto insurance to legally drive our cars, home or tenant insurance for mortgages and leases, and perhaps we get health insurance benefits with our work. Life insurance is another form of protection, but it’s not going to affect you directly. Instead, it’s protecting the people you love.
Choosing life insurance is one of the best ways to provide financial security and assurance when you pass. A life insurance policy is purchased, premiums are paid on the policy, and when the policyholder passes away, the value of that insurance policy is given, tax-free, to the named beneficiary.
There are a few different types of life insurance in Canada.
1. Term Life Insurance
Term life insurance is one of the most straightforward and affordable types of life insurance. It provides coverage for a specific period, known as the term, which can range from 10 to 40 years. If the policyholder passes away during the term, the beneficiaries receive the death benefit. If the term expires and the policyholder is still alive, the coverage ends, and no benefit is paid.
Benefits of Term Life Insurance:
- Affordability: Term life insurance typically has lower premiums compared to permanent life insurance, making it accessible for many families.
- Flexibility: You can choose the term length based on your needs, such as covering the duration of a mortgage or until your children are financially independent.
- Simplicity: The policy is straightforward, with no investment component, making it easy to understand and manage.
2. Permanent Life Insurance
Permanent life insurance provides lifelong coverage, as long as premiums are paid. There are several types of permanent life insurance, including whole life, universal life, and variable life insurance.
Benefits of Permanent Life Insurance:
- Lifetime Coverage: Permanent life insurance ensures that your beneficiaries will receive the death benefit regardless of when you pass away. One small caveat here-most policies automatically end at age 100.
- Cash Value: These policies accumulate cash value over time, which can be borrowed against or used to pay premiums.
- Estate Planning: Permanent life insurance can be a valuable tool for estate planning, helping to cover estate taxes and providing a legacy for your heirs.
3. Whole Life Insurance
Whole life insurance is a type of permanent life insurance that offers fixed premiums, a guaranteed death benefit, and cash value accumulation. The cash value grows at a guaranteed rate, and policyholders can access it through loans or withdrawals.
Benefits of Whole Life Insurance:
- Stability: Fixed premiums and guaranteed cash value growth provide financial stability and predictability.
- Savings Component: The cash value can serve as a savings vehicle, offering a source of funds for emergencies or retirement.
- Long-Term Planning: Whole life insurance is ideal for long-term financial planning, ensuring lifelong coverage and financial security.
4. Universal Life Insurance
Universal life insurance is another type of permanent life insurance that offers flexible premiums and death benefits. It also includes a cash value component, which earns interest based on market performance.
Benefits of Universal Life Insurance:
- Flexibility: Policyholders can adjust premiums and death benefits to suit their changing financial needs.
- Investment Options: The cash value can be invested in various accounts, potentially increasing the policy’s value over time.
- Tax Advantages: The cash value grows tax-deferred, and withdrawals may be tax-free if structured correctly.
Choosing the Right Life Insurance
Selecting the right life insurance policy depends on your individual needs and financial goals. Here are some factors to consider:
- Coverage Amount: Determine how much coverage you need based on your financial obligations, such as mortgage, education costs, and living expenses. This is where a strong financial plan comes into play-talk with your advisor.
- Budget: Consider your budget and choose a policy with premiums you can comfortably afford.
- Policy Features: Work with us to evaluate the features and benefits of each type of insurance to find the best fit for you.
Other notes
Life insurance premiums are based on a few factors:
- Policy type
- Age of applicant
- Amount of coverage
- Length of term
- Medical conditions/risk factors (policy dependent)
Depending on your age and the amount of insurance coverage you are buying, a medical questionnaire and/or tests may be required.
A vital part of your financial plan
Life insurance is a vital component of financial planning, providing security and peace of mind for you and your loved ones. Whether you opt for term life insurance for its affordability and simplicity, or permanent life insurance for its lifelong coverage and cash value benefits, we’re here to help you make an informed decision that meets your needs.
April 2025
Managing Fear in Unstable and Unpredictable Economic Conditions
Written by Aviso Wealth
No doubt you’re familiar with FOMO, the fear of missing out, but maybe not its less famous cousin FOBIA – frozen out by information anxiety. Okay, that may be a bit of a linguistic stretch, but hopefully it makes the point that fear can run the spectrum from knee-jerk reaction to paralytic inaction.
The key is to understand that emotions always exert some influence on investment decisions, but when fear is the main driver, things can veer into undue influence territory. To keep it in check, you can contain that fear in its appropriate place as part of your emotional filter, the one that you apply only after reviewing relevant economic impacts and current personal priorities.
The nature of fear
To start, the source of fear is typically uncertainty, either about present conditions, future developments, or both. Facing such unknowns, we naturally speculate what could be, with bad outcomes often dominating our thoughts.
That negative bias served a pivotal purpose in our evolution, prioritizing survival in the face of potential danger.
But we have indeed evolved. We are rational creatures who can investigate, gather and analyze information, and then use it to more reliably anticipate the direction, scope and magnitude of what may lie ahead.
Of course this must go beyond mere academic inquiry, so that you can gauge the impact on you personally. Ultimately that means looking at your financial planning, but before we go there, let’s first consider where this current episode of fear originates.
The terror of tariffs
The unfortunate prompt for whatever kind of fear you’re feeling in early 2025 is the threat of US tariffs – and the use of the word “terror” in the heading above is not just for the sake of alliteration. The threat of a tariff, its on-and-off timing, and its eventual application, all conspire to create an environment of uncertainty and fear, regardless of the motivations or intentions behind it.
A tariff is a fancy word for a tax that is levied on domestic purchasers of foreign goods or services. Though commonly premised on encouraging domestic production (by artificially increasing the cost of imports), there is scant historical evidence to show that it leads to much other than a redirection of capital to less efficient uses (in both the producing and consuming countries), in turn reducing economic activity.
Indeed, it’s seldom clear which individuals, sectors or jurisdictions bear what proportion of the final cost, with the only observable result likely being the reallocation of market profits into government revenue: a tax grab.
As to how long these or any tariffs may continue, in theory that’s up to the administration that created them. It could be weeks, months or even years before there is a redirection or reversal, but market forces weigh heavily when political policies suppress economic growth and individual liberties, especially in a free-market economy such as the United States. In concept, the market votes according to its concerns, and in due time, people have the final vote according to their satisfaction.
From effect to affect, within your financial planning
That was a look outward at the effect of the challenge at hand. Now let’s look inward at how this may affect you personally, and set out some steps you can take to mitigate possible harm that could follow.
Financial planning provides a framework of the money interactions that connect your life to the world around you.
By understanding and organizing these connections, you gain the control, comfort and confidence to know where you are, where you’re going, and when to adjust. Below in broad strokes are some candidates for adjustment.
- Spending – Containing your outflow
Cost of living affects us all, though to varying degrees depending on the household and stage of working life.
The REDRESS acronym can help identify immediate measures to cushion the impact of tariff turmoil, and ideally serve as a guide for ongoing budgeting habits after economic conditions stabilize:
R emain calm to quell fears, putting yourself in the best mental state to review and organize your finances
E xamine budgeting categories and components using a Necessary-Discretionary-Luxury lens to focus action
D efer discretionaries to a later week or month, being practical that in time these too often become necessaries
R educe (reasonably) grocery consumables, informed by per-serving cost and perhaps facilitated by bulk buying
E liminate luxury purchases until both the economy and your household can sound the all-clear signal
S tretch semi-durables like clothing and shoes to season-end, then buy replacements (second hand?) next year
S ubstitute house/no-name for cachet brands (particularly commodities) if they otherwise satisfy the purpose
- Earning – Protecting your inflow
Job disruption is a major concern right now, especially for those working in industries directly targeted by US tariffs.
While maintaining a positive outlook, this is a prime time to review and make use of employment benefits while they’re available, perhaps starting with mental health support, and then looking at big ticket items like kids’ dentistry.
Also, if you have not yet booked your current year’s continuing education and training (paid by your employer), be sure to lock that in, perhaps with emphasis on transportable skills.
The spectre of being between jobs is a reminder why we all need to have an emergency fund designed to bridge the time from displacement to re-employment. Check that yours still aligns with current conditions and bump up your deposits if needed. And if you do find yourself in that unfortunate position, use those spending suggestions above to help carry that fund through until you’re re-situated.
- Investing – Sustaining your wealth
We can see the financial markets have pulled back in response to the tariff threat, but it’s important not to panic and run for the exits. Any action (including considered inaction) must be based on investment fundamentals and one’s time horizon and risk comfort level. That may include identifying under-valued opportunities, while at the same time being careful not to cave-in to overly exuberant FOMO or a desperate desire to recover losses from elsewhere.
Specifically, resist the urge to use your investments as a tool to make up for any spending or earning pains you experience. Each of your investment accounts should have a defined purpose, with coordination among them, so any midstream maneuvers can cause corresponding gaps and shortfalls that will have to be filled. Influenced by fear, it is tempting to think one may be able to exploit a perceived market dip for a quick profit, before returning the money back to where it belongs. Don’t believe it: Market timing is gambling, particularly so in a short-term window.
Instead, think of your investments like a cruise ship on an extended journey, with occasional rough waters along the way. When that happens, you don’t run for the life rafts and abandon ship. No, you trust in the solid engineering and seasoned crew to keep you safe, and get you to your destination. To the point, a well-constructed portfolio and a qualified advisor are your best bets – without the gamble – for you to sail through these turbulent times with minimal damage to your finances.
For more information, please consult your advisor and tax professional.
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. This document is published by Aviso Wealth and unless indicated otherwise, all views expressed in this document are those of Aviso Wealth. The views expressed herein are subject to change without notice as markets change over time.
March 2025
Periods of economic uncertainty can be concerning for investors, but history teaches the wisdom of maintaining a long-term perspective and the importance of diversified portfolios.
Events like the global financial crisis of 2008, the COVID-19 pandemic, and the 2022 market downturn demonstrate that the most challenging times to invest often turn out to be the best opportunities.
Please click below for the Aviso Commentary:
Navigating the Impacts of US Tariffs on Canada
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Spring into Financial Organization
Spring is the perfect time to refresh and reorganize various aspects of our lives, including finances. By organizing your finances, you can set yourself up for a more stable and prosperous future. We have some practical steps to help you spring into financial organization.
Organizing Your Finances
The first step in any organizational process is to assess your situation.
You’ll need to gather financial documents, including bank statements, credit card bills, loan agreements, and investment records. List your assets (savings accounts, investments, property, etc.) and liabilities (debts and loans). This will give you a clear picture of where you stand financially. Even a simple piece of paper with two columns will work for this exercise; you just want to get a sense of where you stand.
Set up a financial system that works for you. You can choose from many tools, whether it’s budgeting apps, spreadsheets, or financial software. You’ll want a filing system for physical and digital documents to keep everything organized and easily accessible. This will help you stay on top of your finances and make informed decisions.
Debt Review
Now, let’s examine your debts a bit closer. Understanding your debt is crucial for effective financial management. Review your debt list, including credit cards, personal loans/lines of credit, car loans, and mortgages. Note the total amount owed and the interest rates for each debt. This will help you prioritize which debts to tackle first.
There are several strategies for managing debt. Focus on paying off high-interest debt first, which can save you money in the long run. If you have many debts, you may want to consider debt consolidation options to combine multiple debts into a single payment with a lower interest rate. Create a debt repayment plan that outlines how much you will pay each month and stick to it. This will help you reduce your debt systematically and avoid falling into deeper financial trouble.
Tracking Your Money
Part of sticking to your debt repayment schedule is creating a budget, which is essential for tracking your money. Start by identifying your income sources and your expenses. Put the expenses into fixed (such as rent and utilities) and variable (such as groceries and entertainment) categories. Set realistic spending limits for each category to ensure you live within your means. Find an easy and free budget tool on the CRA website.
Monitoring your spending is equally important. Options include:
- Low tech as they get — grab a notebook and start recording what you spend
- Embrace tech – use a spreadsheet, your banking app, or find a low-cost app to track your expenses
- Keep your receipts – and review them monthly to see how you’re doing.
What’s Your Financial Plan?
A good financial plan involves setting both short-term and long-term goals. Short-term goals might include saving for a vacation or paying off a credit card, while long-term goals could be buying a house or planning for retirement. It’s always good to make sure your goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
Not sure what a good plan looks like? We can help you evaluate your current investments and savings to ensure they align with your goals and risk tolerance. Adjusting your investment strategy to maximize returns and minimize risks is also part of a sound financial plan. Regularly reviewing your financial plans will help you stay focused and make informed decisions.
Tips for Saving Money
Saving money is an integral part of financial organization. Some easy ways to save money:
- Cut unnecessary expenses like underused subscriptions.
- Reduce your dining out and opt for home-cooked meals. Even doing this once or twice a month can really add up.
- Shop the sales – check weekly grocery flyers, use coupons, and buy frequently used items in bulk when they’re are on sale.
- Save on energy by switching off lights, making sure your appliances are energy efficient, and turning the heat down a degree or two. Grab a sweater instead of turning up the heat!
- Consider public transit as an option over hopping in the car. Or, if it’s doable, plan for a walk or bike to the grocery store — good for your wallet and your heart!
- Pay yourself first! Automate your savings by setting up regular transfers to your savings accounts. Be sure to put them in your budget for tracking.
Use Our Expertise
Last but certainly not least, we’re here to help. Our financial advisors have nearly 500 years of experience, and we are always a phone call or click away! Reach out to us if you need assistance tidying up your financial house this spring.
February 2025
Tips to Futureproof Your Investment Portfolio |
The threat of tariffs, the back-and-forth negotiations between governments, and the markets’ ups and downs have meant a bumpy start to 2025. Canadian investors are concerned and looking for ways to mitigate risk and weather this latest economic storm. Just like in life, there’s no surefire way to eliminate all risk, but there are guidelines you can follow that may futureproof your portfolio. Have a Plan The first step is working with your financial advisor to develop a solid financial plan. The investment world is complex, and they can help. The benefits of working with an advisor include:
Diversify Your Investments Diversification remains one of the most effective ways to reduce risk. Chat with your advisor to ensure your portfolio includes a mix of stocks, bonds, real estate, and alternative assets. Diversifying across different asset classes also cushions against market swings and ensures your portfolio can weather different economic climates. This may also be a great time to embrace sustainable investments — Canada is home to many companies leading in clean energy, technology, and sustainable agriculture. Mitigate Currency Risks As Canadian investors, we face potential currency risk due to investments in international markets. The value of the Canadian dollar fluctuates, impacting the returns of foreign investments. To hedge against this, talk to your advisor about currency-hedged investment products or allocating more of your portfolio to Canadian-based assets, such as the TSX (Toronto Stock Exchange), which provides exposure to both domestic and international markets. Time Is Your Friend Now is NOT the time to panic. Similar challenges have existed in the investment world in the past, and we’ve learned that focusing on the long term is the best course of action. Let’s be clear, what’s changed for most of us is the influx of constant information, whether it’s via social media or 24-hour news channels. That overload of media can be overwhelming, and that’s where we come in to help! Think of the Opportunities Ask your advisor about the potential opportunities in this current market climate. It may be a good time to pick up some market bargains that fit into your financial plan. Talk to Your Advisor Their expert guidance will be key to building a resilient portfolio and a financial plan that works for you now and in the future.
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January 2025
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