Page 11 - Best Magazine Summer Edition 2017

The importance of a Will and Power of Attorney:
You want your money to be transferred in a tax efficient way to your loved ones at the time of your death. You want your children to be taken care of with the right person, not in a foster home. You want someone who cares to make decisions on your behalf when you are incapacitated.
Non-controllable events:
1. If you die, you need Life Insurance to replace your future income that your loved ones will need.
2. If you are sick or hurt and can’t work, you need either Critical Illness, Disability Insurance or Long-Term Insurance, or a combination of them, to get the income that you won’t be able to produce.
Controllable priorities:
1. In your productive years, you need to control your cash flow to reduce debts, pay less taxes, maximise your RRSP’s, and have enough money for your children’s education.
2. When you retire, you will need approximately $ 1 million dollars to be able to spend $ 60,000 dollars a year before taxes. You need to know how much you will get from CPP (Canadian Pension Plan), OAS (Old Age Security) and pensions from work to complement your retirement income.
Growth opportunities:
1. You need to know how much taxes you will pay at death (Estate), how much money you want to transfer to the next generation in a tax efficient way.
THE BEST MAGAZINE WINTER 2016 - 2017 11
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