How Much Money Does Life Insurance Cost?

How Much Money Does Life Insurance Cost?

Life insurance is important, but how much life insurance should you purchase? How much money does life insurance cost? And how can you fit the monthly premiums into your current budget?

These are important questions. Life insurance is an important tool, and it can be relatively inexpensive, but the cost of life insurance can quickly change depending on certain factors.

Life insurance is important when you have people who are dependent on your income. Young families in particular have a high need for life insurance, but at the same time, young families also have a lot of demands on their cash flow.

Purchasing affordable life insurance is an important part of a financial plan and the cost of life insurance needs to fit into monthly spending without causing a lot of stress.

In this post we’ll explore some life insurance costs for a family in their 30’s with a young child. We’ll see how life insurance costs can vary depending on certain factors. We’ll also see how much life insurance costs in a real life situation.

If You Had To Purchase Your Home Again Today, Could You Afford It?

If You Had To Purchase Your Home Again Today, Could You Afford It?

One disconcerting phenomenon we’ve noticed recently is that many people, if they had to purchase their home again today, likely couldn’t afford it.

With changes to down payment rules and mortgage qualification, plus the recent increase in home prices, the “numbers” needed to qualify for a home purchase are higher than ever.

The fact is that many people, if they were to purchase again today, would be priced out of their own homes!

There are a few reasons for this, which we’ll explore below, but based on affordability today, many of us might not be able to afford the home we live in today if we had to purchase it again.

We will also share three examples below of people who purchased their home in the past but likely couldn’t afford the same home today if they had to purchase again.

Four Financial Risks Worth Taking

Four Financial Risks Worth Taking

Sometimes you have to take a risk. But not all risks are created equal. Some risks have rewards that greatly outweigh the potential downside. These risks can pay off big-time down the road, but its important to pick the right ones.

When it comes to personal finance there are lots of risks (and lots of rewards!). Taking a few strategic risks can do wonders for your long-term personal finances. But it’s important to understand the trade-offs.

Almost nothing in the world of personal finance is completely risk free (except maybe a guaranteed deposit with an insured bank) but there are four financial risks that can be worth taking.

If you understand the potential downsides, these financial risks can have a huge positive impact on your finances.

Two (Less Obvious) Financial Benefits Of Owning A Home

Two (Less Obvious) Financial Benefits Of Owning A Home

There are a number of personal and financial benefits when owning a home. There is the stability, the forced savings of mortgage payments, the potential for appreciation etc. etc. But there are two somewhat less obvious benefits of owning a home.

These benefits will help homeowners financially, both before retirement in the accumulation phase and also after retirement in the decumulation phase. These benefits will make it easier for homeowners to achieve their financial goals, decrease taxes, and minimize government benefit clawbacks.

In this post we’re going to explore two, perhaps hidden, benefits of owning a home.

Get Your Free Credit Report

Get Your Free Credit Report

Credit reporting has turned into a multi-billion-dollar business but getting your credit report doesn’t have to be expensive, in fact, you can get a free credit report mailed to you once per year and all it takes is just 5-minutes.

A credit report represents all your recent credit history, mortgages, credit cards, vehicle loans, lines of credit, and even some bill payments. It’s often referred to as a “consumer disclosure” or “credit file disclosure” but most people call it a credit report.

Every piece of debt you’ve recently owned (even if paid off or closed) should be represented on your credit report. It will also capture your current and past addresses, phone numbers, even employers.

In today’s world your credit report is very important. It directly impacts your ability to qualify for new debt. Plus, it often gets pull as part of a thorough background check. It can also help identify fraud and identity theft early on, limiting the damage.

Your credit report is so important that it’s a good idea to check and review it on a regular basis.

The Tale Of Two Pandemics

The Tale Of Two Pandemics

The global pandemic has impacted all of us differently, our personal finances have gone through many changes and some have “weathered the storm” better than others.

FP Canada, the board that governs the Certified Financial Planner (CFP) designation in Canada, recently came out with a survey called “The Tale Of Two Pandemics” and it highlights both the positive and the negative impact that the pandemic has had on our personal finances (more details on the survey results at the end of this post).

There are some troubling stats within the survey, for example 14% of those in Ontario have been forced out of the labor market, 21% have seen an increase in expenses, and 14% have seen a reduction in work hours/income.

But the survey also highlights the opposite side of the pandemic, many people have not experienced a job loss, or a reduction in income, or an increase in expenses over the course of the pandemic.

In fact, looking at the statistics, it looks like there is a large group of people that have not been affected by the pandemic at all, and another group of people who have actually benefited financially from the pandemic.

This is consistent with the conversations we’re having with clients.

For those who have been fortunate enough to remain gainfully employed, for those who own a home or recently purchased a home, for those with a mortgage or other debt like student loans or HELOCs, and for those who are investing on a regular basis, the pandemic has actually improved their personal finances in a number of ways.

The pandemic has impacted us all differently, but for many people there have been one, two, three or more positive changes that may have actually improved their personal finances. As it turns out, this is especially true for those who had a financial plan already in place.

Here are some ways that a person’s personal finances may have improved during the pandemic…

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