1. FINANCIAL SEMINAR
Brett Cranson, Insurance & Investment Broker

2. Agenda
Introduction
Reduce Your Debt & Budget Planning
Financial Strategies To Help You Reach Your
Goals
Protection You Can Count On

3. Good Debt vs. Bad Debt
• Element of Good Debt:
1. Underlying Assets Expected to Appreciate in
Value
• Reconsider Canadian Debt
Type of Debt Tax Deductible Asset Appreciation Good or Bad?
Credit Card X X Bad
Car Loan X X Bad
Mortgage/RRSP X Good
Loan

4. Credit Card Debt
Pay off high interest credit cards first
Look for lower interest rate credit cards
Pay more than the minimum payment
Transfer credit card balances

5. Create A Budget
1. Determine your monthly net income
2. List your expenses
 Fixed expenses (rent/mortgage payment, loans, car payment, credit card
debt,etc.)
 Variable expenses (Food, entertainment, etc.)
3. Set money aside for savings
4. Stick to your budget

6. Establish Your Future Short, Medium, And Long-Term
Goals!
Buying a house
Having a family/more children
Travel
Buying a car

7. Financial Strategies To Help You Reach Your Goals
Retirement savings
The best way to save more
The benefits of starting early
Tax-Free Savings Account

8. There Are Three Sources of Retirement Income
1. Government Benefits
2. Employer Programs
3. Personal Assets

9. Government Retirement Benefits
Canada Pension Plan (CPP) Old Age Security (OAS)
2010 Maximum payouts
OAS only
OAS/GIS $8,429.64
CPP/QPP 11,210.04
19,639.68
Low-income cut-off Single: $19,000 - $22,000
(2008)
Couple: $23,600 - $27,600
(Source: Statistics Canada 75F002M)

10. Saving options
What are the options for filling the
savings gap?
• Savings account
• Investments in Tax-Free Savings
Accounts or Open Accounts
• Investments in RRSPs

11. RRSP Investing Benefits You
You get:
•Tax benefits – contributions are tax deductible
•Compounding – investments compound tax-
free as long as they are in the plan
•Selection – a wide range of investment choices

12. The best way to save MORE
Save automatically through a
pre-authorized chequing plan (PAC)
Take money from your paycheque
before you see it
Out of sight, out of mind
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13. Maximize Your Efforts
Investment Strategies
•Start investing now – start a Pre-Authorized
Chequing Plan (PAC)
•Diversify
•Benefit from a spousal RRSP
•Consider borrowing to contribute

14. The Benefits Of Starting Early
Jennifer
$930,511 Age: 30
Invests $5,000 / year
@ 8% for 35 years
Lucy
$247,115 Age: 45
Invests $5,000 / year
@ 8% for 20 years

15. The power of compounding
$100,000
Amount contributed $91,484
Investment value
$80,000
$60,000 $57,266
$40,000
$33,978
$30,000
$24,000
$20,000 $18,128 $18,000
$12,000
$6,000 $7,341
$0
5 years 10 years 15 years 20 years 25 years
This hypothetical example is based on monthly $100 contributions and assumes an average annual return of 8%.
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16. Tax-Free Savings Account!
•Non-deductible contributions - $5,000 per
year
•Investment income AND withdrawals tax-free
•Withdrawals allowed at any time for any
purpose
•Unused contribution room accumulates AND
withdrawals create new contribution room

17. Advantage TFSA???
TFSA RRSP Non-registered
Deductible
contributions?
Tax-exempt
income/withdrawals?
Re-contribution of
withdrawals?
No maximum age for
contributions?
No impact on
government benefits?
Advantage? 4 1 2

18. TFSA Growth - $5,000 Per Year Over 20 Years
$173,596
*Assumes 5% rate of return

19. Registered Education Savings Plan!
•The best way to save for your children’s
education
•Money that you contribute to the plan gets to
grow tax-deferred
•Contribute any amount up to a lifetime
maximum of $50,000
•To help you save for your children’s
education, the government offers a grant of
20% on the first $2,500 contributed

20. What if the beneficiary doesn’t pursue post-secondary
education?
•Wait a while. Accounts can remain open for
36 years
•Choose a new beneficiary
•Roll over to RRSP
•Withdraw contributions

21. •Life Insurance
•Critical Illness Insurance
 How does it fit into my financial plan?
 Why do I need it?
 What should I look for when I look at this type of
coverage?

22. Life Insurance
•Provides capital in an estate to cover taxes,
expenses, etc. payable on death
•Can provide for children
•Low cost when compared to other alternatives
•Creditor protection may be available
•Tax-free accumulation of cash values
•Access to cash value through policy loans,
withdrawals, collateral loans

23. What types of Life Insurance are there?
•Term
 T10
 T20
 T100
•Permanent
 Universal Life
 Whole Life

24. Term Life Insurance
Low upfront cost
Temporary protection for time of high risk
Coverage will end at a certain age
Cost may increase each 10 or 20 years

25. Whole Life Insurance
Stable lifelong protection
Over long term generally a better financial
choice than Term Life Insurance
Premiums do not change
Guaranteed lifetime protection
Accumulates cash value

26. Universal Life Insurance
More Flexible type of Insurance
Combines long term insurance with an
opportunity for tax-deferred savings
Guaranteed lifetime protection
Policy features many options to tailor it to
your needs

27. Life Insurance - What to look for in a contract
•Healthstyles underwriting
 Rewards the healthy
•Conversion privledges
 Gives the ability to purchase something affordable
(term) and move to a permanent product with no
underwriting

28. Beyond healthiness – why buy young
• $500,000 of T10 coverage male/female – average health
(monthly);
 25 - $25 / $19
 30 - $30 / $21
 40 - $37 / $30
 50 - $82 / $57
 60 – $226 / $159

29. What is critical illness insurance?
• One-time lump sum if diagnosed and survive a
covered condition
• Monthly benefit if Long Term Care benefit is included
• Flexible use of benefits
• Payment based on diagnosis, not functional ability or
loss of income

30. Who Do You Know?
• Life-Threatening Cancer
• Heart Attack
• Stroke
• Alzheimer’s Disease • Loss of Speech
• Aortic Surgery • Major Organ Transplant
• Benign Brain Tumor • Motor Neuron Disease
• Blindness • Multiple Sclerosis
• Coma • Occupational HIV
• Coronary Artery Bypass • Parkinson’s Disease
• Deafness • Paralysis
• Heart Valve Replacement • Severe Burns
• Kidney Failure
• Loss of Limbs

31. Incidence…
Male Female
Risk to age 65 Risk to Risk to Risk to
age 75 age 65 age 75
30 27.2% 55.3% 21.5% 42.7%
40 25.4% 54.2% 19.9% 41.5%
50 20.6% 51.4% 15.5% 38.4%
55 16.6% 49.0% 12.0% 35.8%
Source: Munich Re.

32. Survival is one thing
•9/10 heart attack victims survive 30 days
•75% of stroke victims survive the initial event
•On average 3,340 Canadians will be diagnosed with Cancer
every week
•In the last 30 years, the cancer survival rate has nearly
doubled
Source: Manulife Marketing Database & Taddingstone Group

33. CI realities summarized
1. These things happen a lot
2. The good news is people aren’t dying nearly
as much, but their lives are still hugely
impacted
3. And unfortunately, it’s often the healthiest
person you know

34. Why do I need this insurance?
• Accessing of alternate •Taking stock / catching
care your breath
• Lessening family impact •Costs to retrofit a home or
• Mortgage pre-payment vehicle
• Comforts during •Fund career or schedule
treatment change
• “Yes” pot of funds •Debt reduction
• Accessing medications •Early retirement
• Accessing non-traditional •Pebble Beach / Paris
treatments

35. It’s not always about treatment
•Hotel beside the hospital
•Cafeteria or eat out during treatment
•Hire a nanny (even though you never had one)
•Flat screen for home, visits from buddies
•Book trip for post-recovery – Pebble Beach /
Paris

36. What does my solution look like?
•Term or Permanent
•Return of Premium
•Definitions

37. Plan Ahead
• Seek professional advice
• Set your objectives and goals
• Put together a plan
• Stay focused on your long-term investment
plan
• Today’s market presents many opportunities

38. Taking charge…
The biggest risk
you can take
is to do nothing at
ALL!

39. THANK YOU!
Questions & Comments
Draw for Baby R Us Gift Cards