Page 2 - A Canuck's Guide to Financial Literacy 2020

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Table of Contents
Disclaimer ........................................................................................................................... 5
Investing for Beginners ...................................................................................................... 6

Step 1 - Set a Goal ............................................................................................................ 7
Step 2 - Determine your Risk Appetite .............................................................................. 8
Step 3 - Choose the Investment Vehicle ........................................................................... 9

Step 4 - Choose Your Investment ..................................................................................... 9
Step 5 – Working with Your Advisor ................................................................................ 11

Understanding Investment Risk ...................................................................................... 13
Risk & Reward ................................................................................................................ 14
The Different Risk Profiles ............................................................................................... 15

Types of Risks ................................................................................................................. 17
Systematic vs. Non-Systematic Risk ............................................................................... 18

Measurement of Risk ...................................................................................................... 19
Investment Accounts in Canada ..................................................................................... 22

The Six Pillars of Financial Planning .............................................................................. 26
Pillars of Financial Planning ............................................................................................ 27
Cash Flow Management ................................................................................................... 30

Employment Insurance .................................................................................................... 31
Maternity & Parental Benefits .......................................................................................... 35

Sickness Benefits ............................................................................................................ 37
Child Care Deduction ...................................................................................................... 39
Dealing with Debt ............................................................................................................ 41

Professional Dues ........................................................................................................... 43
Risk Management ............................................................................................................. 44

Life Insurance .................................................................................................................. 45
Types of Life Insurance Policies ...................................................................................... 46

Critical Illness .................................................................................................................. 54
Disability Insurance ......................................................................................................... 56
Life Insurance Policy Provisions ...................................................................................... 60

Policy Riders ................................................................................................................... 62
Corporate Insurance........................................................................................................ 63

Tax Planning ..................................................................................................................... 66
Registered Education Savings Plan ................................................................................ 67