Being the best you…a new series on taking steps in self improvement

As a Life Coach and a Financial Coach / Financial Advisor, I have seen many people who are stuck…in a job, a relationship or another situation, which they want to change but just do not know how to take those first steps.  My role is to help people find out what those first steps are but also to carve a bigger path which will, not only lead them out of the hole they feel they are in, but also will get them from where they are to where they want to be.  No matter what the choices are, no matter whether it is work, personal or other, the first steps are the same.

STEP ONE:  DECIDE

Yes, it is that simple.  Decide that you want change.  That does not mean think about it, argue with yourself or find every reason not to do it.  That is all before DECIDING.  “YES.  I want change.  I am ready for change.  I will do what it takes to bring about change.  Change can be scarey but staying where I am is scarier.  I want change NOW.”

STEP TWO: IDENTIFY

You must clearly now identify and define what it is you want to change.  Do you love where you work but hate the job you have?  Do you love the job you have but hate where you work?  Are you in a relationship that is leading nowhere and you prefer to be alone than with that person?  Do you love him / her but have lost that passion for each other?  Have you always played life safely and now you are ready for adventure and excitement?  Do you love something that you have not allowed yourself to indulge in such as travel, collecting something or maybe it is a new body / lifestyle which would help you find that hott sexy body you know is hiding inside you, somewhere?  Whatever it is, you need to identify it and define it.

STEP THREE: FACING REALITIES

Okay, so now you know precisely what it is you do not want or do want.  It may be awhile until you figure out what you do want exactly because there are so many options available.   Planning is not an easy step as there are many realities you need to deal with, realities which likely include money, emotions, suitability, legalities, responsibilities.  These would particularly be important to those leaving a relationship or leaving a career for a completely new one.  Nothing is impossible and almost everything is possible.  Personal circumstances will play a huge part in the planning.  Being a parent of young children, mortgage and car payments or even where you live will need to be factored in.  Sometimes you may need to put your plans on hold for awhile, perhaps even a few years. that does not mean you cannot be planning ahead and preparing for it, but it may not be able to be enacted yet.  If you are a parent, your needs are not primary.  A change of careers or a decision to leave your spouse / family will have a tremendous impact on people who have not been given the option to keep things as they are. Let me say this once again.  If your decision will have a life altering affect on others for the negative,you may need to modify your plans or seek out other ways to manage them until the impact is significantly lessened and coping mechanisms are in place.

STEP FOUR: PLAN

The single most common reason for not changing anything (other than the above mentioned reality of impact on others), is money.  Whether you want to go back to school so as to have the background to start a new career, or you will need enough income to pay a mortgage or rent on a new home for you alone or perhaps it is traveling the world, you will need money.  Most people in North America, live pay check to pay check.  We have not got money saved for emergencies, for being out of work or for major upheavals in your life.  We mindlessly use our credit cards as if they do not need to be paid back, we buy a $5.00 coffee out of habit without asking ourselves if it is really so much better than that $1.50 cup of coffee and we go out for a $25.00 dinner (often x2 as we do not like to dine alone) after a long day because we deserve it….right?  How much do you want the BIG change and how ready are you to make the little changes in order to prepare for the big one?  If you do truly want the big change, then do some quick math here…. $5.00 x twice a day x 5 days a week = $50.00, $200.00 / month, $2400.00 / year.  Dinner out once a week….  $ 50.00 x 4 weeks = $200.00 / month, $2400.00 / year.  Add to that eating lunch out versus brown bagging it, say twice a week = $10.00 x 2 x 4 weeks = $80.00/month = $960.00 / year.  Total from three small changes? $5760.00 / year. Spend that on a credit card (or the equivalent) and you will incur a further $1150.00 approximately in interest charges. These are rough numbers of course, You know your life style, but be honest about it.  Buy a small coffee maker for work and make your own.  you won’t have to go out in the cold to get it.  The little things really do add up.  sit down with a financial advisor to discuss your finances and figure out how much you need and how you can find it.  A good advisor will possibly be able to help you find tax savings and other alternatives to put more dollars into your future.  Part of this, of course, is finding out, as precisely as possibly, what your change will cost.  Education can be anywhere on the scale from relatively inexpensive to costing two arms and a leg.  Travel can also vary greatly but there are ways to mitigate those costs.  Hobbies such as collecting coins, stamps, antiques etc, can be very expensive but are possible.

STEP FIVE: ACTION

At some point, you will need to being to put into place your plan.  It will need to be carefully laid out and skipping steps may lead to backwards sliding at some point.  In the coming weeks, I will discuss specific steps and opportunities for each major area of your life you may want to change.  I will discuss changing relationships, work places, careers, and lifestyle and attitudes.  This post is made to get you thinking about what YOU want to change in your life.  Comment below and if you have specific questions, feel free to get in touch.

andrea@unleashtheknow.com

andrea.blaustein@f55f.com

Spring is here….(or so the calendar says)

According to the calendar, Spring has arrived.  while snow is still falling occasionally and we are still wearing our winter coats, it is Spring!!  We are used to short springs…it seems so often, to go from winter cold to summer heat with very few reminders of this season we generally love.  so beyond the date marker, how do we know we are reaching that pinnacle of seasons, the one that symbolizes rebirth, renewal and redemption from shoveling?

We start with thinking about spring cleaning…opening the windows, airing out the house or apartment and turning down the furnace.   We think about painting, renovating, redecorating or moving.  We often choose to move during the summer so that children can be settled in a new neighborhood before school starts again, it is the time when moving is easier, apartment leases are up and the cycle of homes on the market, for the same reason as you are thinking of moving, opens up.

What steps do you take to buy a house, whether it is your first or not?  You need to know what your needs are and what neighborhood you want to be in.  Then, in order to ensure you are planning within the realms of reality, you should be pre-approved for your mortgage.  If you already have a mortgage and have been happy with the terms, you may be tempted to stay with whatever bank your mortgage is with.  Rates are low and housing options are plenty.  But does your bank have the same vested interest in your long term commitment?  They will sell you on mortgage insurance without disclosing all of the facts about it.  They will sell you what they want you to have, in both mortgages and insurance, without taking into consideration what you want and NEED for the long term.

Meet with a mortgage specialist who can explain all of it to you, giving you the options that fit your life.  Pre approval is smart, getting it from the right lender is smarter.  Get in touch with me today for your mortgage pre approval and say hello to Spring  🙂  Make an appointment today…..

Andrea

andrea.blaustein@f55f.com

Angels and Spirits…

This is not being written necessarily for the believer or the non believer.  It is written for those who are curious, who are unsure and who want to believe.  It is not written to convince anyone of anything, but is merely my personal experience which I am choosing to share.  This is the foundation of my personal belief system, It is not religious per say but is rooted in the ultimate belief that there is something…an unknown “being” in existence.  I do not care what you call that being…it is irrelevant in the context of this blog.

“What this power is, I cannot say.All I know is that it exists” – Alexander Graham Bell

The manifestation of this power, for me, is in the power of the angels and spirits I feel around me.  Let me begin with a couple of stories.  They are true and told to you here, honestly and fully, although perhaps briefly.

When i was about three years old, I began nursery school.  This was back in the early 1960s so seatbelts and other safety norms of today, were very optional.  The school bus was a red station wagon, the driver was “Uncle” Jack.  Kids were piled into the “bus”.  I was painfully shy and did not want to get into this crowded strange vehicle.  I cried.  The next pickup was Wendy.  She too was in tears.  We clung to each other, instant best friends, brought together by tears.  It was hard to separate us after that.  skip ahead to the last day of school,June 1970.  Wendy and i always walked home from our local elementary school via my house.  She was going on a family vacation and was so excited.  She hugged me and said she would call as soon as she got back.  Wendy, her mom and one of her sisters died in a plane crash on July 5, 1970.  Her father and other sister were travelling separately, so although everyone on the plane died, her dad and oldest sister Lynda survived.  (I strongly recommend that you read Lynda’s book, Repairing Rainbows as it talks about surviving and living after tragedy).  I was 9 and Wendy was 8 years old…it was just prior to her 9th birthday.  My child’s mind could not fathom the devastation so as I grew up, Wendy came to me in my dreams.  We chatted and hung out.  As I grew older, so did Wendy, but always looking the same as when i saw her last, just older.  She guided me through troubling times and was with me always.  Now some may say she was only in my mind, but she was in my heart, my mind and my thought processes.  She was tangible.  I could touch her and was hugged by her often.  When i cried, she was with me.  She was my spirit guide, my guardian angel and my friend.  I saw her and felt her and heard her.

When my dad died, three years ago, I felt the loss as any child does when a parent passes.  However my father had had Alzheimer’s for several years so I had actually felt the loss begin long before he passed.   I did not feel his presence and I did not wonder if he was with me.  My childhood had been difficult, not because of him, at least not wholly, but related to him.  I will come back to my dad in a minute.

A couple of months ago, a dear friend of mine spent a few weeks on life support, then he passed away. It was sudden and devastating to many people. While he was on life support, he came to visit me.  I did not want to acknowledge what that meant, but in my heart, I knew he was not coming back as a man I could call or hang out with.  He told me he was happy, he was fine and not to worry.  He held me as I cried.  He came back several times after passing and always told me not to worry, not to cry, then he would hold me and dance with me, slowly and lovingly.  The last time he came, that I could tangibly feel him, he told me not to question things that were coming for me.  I was not to wonder where they came from, how they happened or why.  “Just accept them” he said to me.  No questions.  Five things.

In the past month, I feel like my dad and my friend have come together for me.  Four things have happened for me that I want to question but I dare not.  They are good things that have changed my life around.  I do not feel the need to ask one question…I know where they come from.  For the first time in three years, I feel my father’s presence.  I feel that he and my friend are collaborating to support me, love me and guide me.  I can now talk to my dad and feel like he is with me when I call or cry for him.  I feel his fatherly embrace.  He has found a peace that he never had in life and is choosing to share it with me.  He found a friendship with my friend as two men who both love me and want me to be joyful.  they had a lot in common in life but never met.  They are collaborating and are my guardian angels.  Wendy’s sister is a mom and now a grandmother.  Her family needs her and she is with them.  She no longer visits me but is still in my heart.

Why have I shared these stories with you?  What message am I trying to convey?  I want everyone reading this to know that, whether we feel them or not, we have guardian angels, spirit guides, an immortal presence.  If you do not believe in them, they are still with you.  They do not have the power to bring as much change in your life as those changes start in your heart.  They are present though.  Angels and spirits are one of the ways our loved ones come back to us.  I also believe in re incarnation.  My experience with angels has made me ask why some come to us in that form and some are reborn in other bodies but the same spirits.  I believe that my daughter has my grandmother’s spirit, back to spend the time with me we did not have enough of when she was alive.  Perhaps that is why some are reborn and some are not.  Some spirits still have important things to do which requires a mortal body.  I believe that I have had at least two previous lives.  I am also of the belief that those fears which we have which seem insurmountable and very powerful, are the result of events in those past lives.

I am not trying to convince anyone of anything.  I do ask, however, that you give the energy inside you a minute to meditate.  Feel the presence of the energy around you and allow yourself to hold it in your heart and mind.  Angels and spirits are yours to receive and love.

I am a Master Certified Life Coach.  I do not claim to have any ability to communicate with those who have passed beyond those directly connected to me.  I can help you find your joy and your spirits that are within you.  Contact me at andrea@unleashtheknow.com

Tomorrow Will Arrive……Eventually. Be Ready.

Don’t do today what you can put off until tomorrow….That is the procrastinator’s creed.   Don’t put off to tomorrow what you can do today …….the creed of Strong Type A personalities. What about you and I…the average man or woman who is a Sometimes Type A, sometimes child, sometimes teenager?

No matter what, you KNOW that tomorrow is going to arrive, eventually.   Some things can be put off, but not avoided altogether.  Some things cannot be avoided or put off, no matter how much we try to not acknowlege them.  The harder we try, the harder they will hit us.  Taxes, health problems and our children becoming teenagers are the top three things we like to avoid but just cannot.  Those of us who are self employed, need to put aside money for our taxes.  it is hard…so very hard.  It is there, it would pay bills and maybe cover a much needed holiday away too.  So how do you not spend it?  It is calling your name.  But save it we must.  Or pay a much higher  price later on.

Health problems can often be eliminated when you go to the doctor early, when symptoms appear and for your annual check up.  As for teenagers, well the harder we fight our children’s independence, the harder the struggle will be.  We raise our children so that they will become adults, but so many parents want to skip that middle step….the years between 12 and 25.  Why 25 and not 18? I raised three children and at no time did a magical leprechaun come to my house on their birthdays and transform them literally overnight.  Age 18 has been deemed by bureaucracies as adulthood, but if I am the only one who never was visited by that leprechaun, I feel pretty hurt.   So I will assume I am not alone.  The teenage brain does not really develop good reason until it reaches age 25, and it truly only begins there.  That is not to say that some teens and young adults are not mature.  Some are far more responsible and mature than some twice their age.  These are the exception.  Some people NEVER grow up, never take responsibilities and accountability as a part of life. Some women will laugh now and start listing men who have not grown up, in their opinion.   To be fair, why do we expect anyone….man or woman…..to grow up if they are not taught how or if it is expected too young.  Yet that is what we want them to do….skip  that step of the process and wake up magically touched  on their eighteenth birthday……….and eliminating the 12 to 18, skipping right to the maturity of 25 years of age.

Back to the topic….if you will excuse my having gone off on a tangent.  Being ready for the tomorrow that will inevitably arrive.

I have already mentioned that you need to stay on top of your health issues.  A minor cyst today, when dealt with immediately, will always have been just a minor cyst.    Ignored, it may be a pre cancer or malignant growth.

Taxes are also something you need to stay on top of.  More than any single topic, it is likely that this will give you more heart palpitations than anything else.  Get to know a good accountant.  And find yourself a trustworthy and reliable financial planner.  Someone who can show you legitimate and accessible  tax shelters. Someone who understands tax implications for you and your family should something happen to you and who is equipped with the knowledge to ensure your secure future.  At this time of year, many programs are advertised which tout themselves as being your tax solution, as if one glove will fit all.  Leveraging, RRSPs, TFSAs, etc etc are on signs everywhere.  Are they all right for you?  Is life insurance an alternative to RRSPs (Canada) /  401K (USA) or the other way around?  Only when you talk to a qualified financial planner will you really know. Take  advantage of this time of year to start building a relationship with your financial planner. If you already have one, but are not sure he or she is doing all they can for you, talk to another one.  A meeting should not cost you anything except some time and it is time well spent, a solid investment in your tomorrow.  Be ready for tomorrow….and  be grateful that it arrives.  The alternative is deadly….

Contact me at myfuture@unleashtheknow.com for your financial future

FINDING PEACE IN YOUR LIFE

FINDING PEACE IN YOUR LIFE
As summer 2014 is now in the past and holiday seasons are upon us, for Jews, Christians and Muslims, we often find ourselves evaluating our lives and our success…and failures. What did I do right? What did I do wrong? Who do I owe apologies to and how can I create a better life for myself? We assess all of the things that have gone wrong and some of the most outstanding things that went well.
They say confession is good for the soul. Making apologies is an integral part of most or all 7 step programs. So here are my confessions and my apologies. Mostly though, these are the lessons I want to pass on for those who still have the opportunity to fix the wrongs before it is too late.
Within the past three years, I have lost three people who meant a great deal to me. They were my parents and an aunt. None of them were young. In fact they were age 92,95 and 101 years of age. I loved them all and they all taught me important lessons about life. They each gave me experiences that I now cherish and wish I had taken greater joy in those experiences. I never actually thought my parents would die. Logically, of course, I knew they would. I didn’t consciously recognize it though…their mortality and inevitable passing. I do not live in the same city as they did, but I was not so far that I could not have visited more often. I was always busy with my grown children, grandchildren, work, school, friends, relaxing…something. Always something. I promised myself they didn’t realize how far it was between visits and that they would be there for the next visit. I had not always had the best relationship with my parents and I also used that to justify my actions…or lack of actions. The days came though that they were not there anymore. My father died in December of 2011 and my mother died in March of 2013. My tears have not ended yet. I think it is unlikely that they ever will.
Mummy and Daddy…I owed you so much. I owed you more respect than I gave you. I owed you compassion and appreciation every day of your lives. I owed you the love I know you felt for me. I owed you time. If I could talk to you one more time, face to face, I would say thank you and I love you. I would say I am sorry for not hugging you enough and for not making you a bigger priority in my life. I miss you far more than I could ever imagine I would. It took losing you to understand fully this lesson in life and loss.
The last time I saw my mom, I did hold her hand as she slept. I even cried as I did so. Her skin was so soft and so was her hair. But when she woke up, I said my good bye and I left, promising to be back in a few weeks. A few weeks was too late. I wonder if she knew….
I hope that someone reading this will think about their own parents. He or she will call their mom and dad and say “I love you. I just want you to know that”. If I can save one person the heartache I feel, it will help me find inner peace. At least I hope it does. We each only have one mom and one dad. They may not always be the people we want them to be. But then again, we are not always the children (of any age) that they want us to be. Yet, somehow, in those mixed up relationships and tumultuous moments, they are closer to us than anyone will ever be except out own children. If they did the best they could to raise you, given what they knew at the time, given all of the circumstances they had to deal with, given the era they raised you, then please call them. We do not always know or understand what they went through in their lives. Maybe they hid some things from you to protect you. Perhaps some things were too painful for them to talk about. But they did the best they could…. Now, go see them. Hold their hand as you say thank you. Do not be afraid of looking silly. Do not live with the illusion that they will always be there. Life is fragile and we are not immortal. Make that call or visit and please let me know…

TERM INSURANCE VERSUS PERMANENT INSURANCE: WHAT IS THE RIGHT CHOICE FOR YOU?

Most people, once they finally decide to purchase life insurance (hopefully in part to replace their mortgage insurance), they are presented with options. Depending on who their insurance agent is and where he or she works, they may have many options or very few. It can be overwhelming and confusing and often leads to the wrong insurance being purchased. It may also lead to the wrong amount being purchased. What is the right type, how much is too much and how much is too little? How do I know what to do?
Term Insurance is available in either 10 year, 20 year or 30 year terms. It may be renewed or converted to permanent insurance but that will often come at a great expense. Term insurance is like renting an apartment with 10, 20 or 30 year leases. You might renew when the lease is up but the cost of rent will go up based on the period of time lapsed since the start of initial your last lease (imagine a 20 year lease at 1000 / month for your apartment, no increase for 20 years and then to stay there you will pay 20 years’ worth of increases). The benefits of term insurance are that, like an apartment, it is less expensive than permanent insurance (like rent is usually less than a mortgage). It is beneficial for those who cannot afford permanent insurance due to age of initial application, who are on a tight budget or for those who want to have extra coverage for urgent expenses after death (mortgage, funeral expenses, taxes, etc) An example of this is a 53 year old woman, wanting to replace her mortgage insurance after reading the facts about that https://twitter.com/UnLeashTheKNOW/status/504669970597306368) She is on a tight budget and due to her age, permanent insurance is not an option due to the expense. She wants $275,000.00 in coverage for 20 years (the balance of time on her mortgage). She owes $257,000 on her mortgage at time of application so there would be $18,000.00 left to cover her funeral (commonly $10,000 – 15,000) and the bills for her children for a couple of months. The drawback being that at age 73, she will no longer have this coverage however her house would be paid off and her children would be financially independent. Term insurance is underwritten ahead of time so once accepted, it is guaranteed unless you lie on your application.
Permanent insurance can come in two forms: Universal Life (UL) and Whole Life. Universal is such a superior product that I will not discuss whole life in this article. Universal Life Insurance will remain in place for life and will not expire no matter the length of your life. (great news for those of you with lots of longevity in your family like I have). It is underwritten at time of application so is guaranteed once in place. It is more expensive than Term Insurance, sometimes significantly. Like a mortgage, UL is more expensive than Term (renting) but once yours, and assuming payments are maintained, it builds equity which is yours to use at your discretion years down the road. More on the equity in a minute. So when is it appropriate? When you are under age 40, have commitments which will surpass that 20 year time frame (a disabled child, 25 years plus on your mortgage, strong likelihood of living beyond age 75 years.) and / or when you have sufficient funds available to purchase this wonderful product.
I often recommend a combination of insurance products for my clients. For instance, a man, age 32, with a young family (3 children age 4, 7 and 10), mortgage ($350,000.00) and various other responsibilities. It is determined that he should have $750,000.00 in insurance overage but the cost of 100% of that being UL is prohibitive. I recommend a balance of $100,000.00 in UL and $650,000.00 in Term insurance for 20 years. The UL will cover the mortgage, the children’s education and more. Within 20 years, even the youngest child will have completed all of his education and will most likely be living independently. Once these responsibilities have fallen off the picture, the coverage left will be $100,000.00 in UL insurance. That, with a well balanced investment portfolio, will give the best quality of life for his widow.
Is it that simple and straightforward? Yes, but with one significant bonus in UL insurance. Back to that equity I mentioned above. With paying your mortgage, you build value in your house. With UL Insurance, let us say you are putting $100.00 month into your UL payments. Approximately $40.00 of that is actually covering your insurance payment while $60.00 is invested. It is in fact an insurance savings plan. It is equity. Managed properly, with compound interest, these investment payments in Canada, can become a TAX FREE source of hundreds of thousands of dollars, sometimes up to over a million dollars in investment savings. TAX FREE??? REALLY???? Yes…tax free. There is also no probate on this money in Canada. The built up equity (investment portion) can also take over the payments for your insurance portion once you reach retirement age. So with properly assessed needs and properly managed products, the future for yourself and your family, can be secured.
If you want to know more, write to me at myfuture@unleashtheknow.com. We will set up an appointment and get you on your way to a better future.
Next in this series will be on knowing your FIN#. This is part of the I WISH I KNEW THAT THIRTY YEARS AGO series.
Brought to you by UnLeash the KNOW. Visit us at unleashtheknow.com

MORTGAGE INSURANCE: THE FACTS YOUR BANK DIDN’T TELL YOU

Congratulations!! You have bought a house and are signing off all of the final paperwork. Your bank has mentioned mortgage insurance to you, explaining that if something happens to you, it will ensure your mortgage gets paid off so that your family is not homeless. Makes 100% sense. After all, if something happens, we want our families to be able to maintain their lifestyle and be safe. Sign me up!! Right?

Let’s start with the basics. The rate you will pay for your mortgage insurance will remain the same throughout the time frame of your mortgage. Your amortization period may be 10 years or 25 years or perhaps even 30 years. So based on a mortgage amount of $250,000. 00, you and your spouse being in the 30- 35 age range, your mortgage insurance will, on average, cost you approximately $55.00 / month. With each payment you make, the amount you owe on your mortgage goes down, small amounts at first, a little more as time goes by.
So, scenario one, 4 years into your mortgage, you now owe $220,000.00 (based on monthly payments plus extra payments made occasionally from your tax refund, etc). Your spouse, who is a smoker, dies of a heart attack. You now have a young child and anxiously wait for the insurance to pay off the house so that your unexpected struggles can be relieved. The insurance representative contacts you and asks questions about your spouse’s death. You answer freely so as to move the process along. Weeks later, you receive a letter in the mail saying that the insurance will not be paid out as your spouse’s risk factors (smoker) plus dying as a result of a smoker’s related disease, your safety net turns out not to have been quite so safe after all.

Scenario two. Your spouse has no major risk factors and dies in a not at fault car accident. The insurance is paid out many weeks after the passing of your spouse, directly to the bank. You were paying for insurance of $250,000, owe only $220,000, so you assume you will get the balance of $30,000. 00 which will help cover funeral and other minor expenses. Unfortunately you are wrong and will not see the difference.

So what happened? At the worst time of your life, you do not want to have to deal with these problems and expenses. Let’s start with the important things you need to know before buying mortgage insurance. It is always underwritten after death. This means that the medical questions and risk factors are not calculated when you the purchase the insurance. They will all be investigated however, with close scrutiny, after you die. So if you have a risky lifestyle in either your activities (extreme sports etc) or lifestyle (obese, smoker, etc) the claim is likely to be turned down. Furthermore, no matter how little is left on your mortgage, the bank is the one that gets paid and ONLY for the amount owing on the mortgage.

What are your options? Life insurance, whether Term or Permanent (these will be discussed in my next blog), will be underwritten prior to acceptance and will remain in place for the full amount ($250,000) and will be paid directly to your beneficiary (spouse, children). If your mortgage amount is down to $220,000.00, you will be able to pay off the mortgage, pay for the funeral and have a little left over for other immediate expenses. The cost will vary based on what type of insurance you purchase, your age and risk factors, however it will often be in the same range as your mortgage insurance payments.

The bank / lender, will never tell you these details and will never disclose to you the refusal rate on mortgage insurance claims. Get in touch with me to discuss your options. Let me help you take care of those you care about the most.

Write to me at myfuture@unleashtheknow.com. Protect your family even when you are no longer there to do it in person. Leave them with fond memories instead debts.

This is part three in the I WISH I KNEW THAT THIRTY YEARS AGO series, brought to you by UnLeash the KNOW.
http://www.Unleashtheknow.com

ARE YOUR INVESTMENTS KEEPING UP WITH INFLATION?

ARE YOUR INVESTMENTS KEEPING UP WITH INFLATION?

 

I have been watching with fascination, the recent run of ads on Canadian radio and television for various banks.  They run the gamut from Canada’s chartered banks to banking co-ops.  What are the new ads talking about?  Something that is limited in time, special and amazing and something we should all be running to these institutions for…..HIGHER INTEREST RATES THAN WE HAVE SEEN IN A LONG TIME!  Yes indeed….holy lucky us!!!  From 1.75 to an entire 2% interest rate!!!!   SERIOUSLY?????

Let’s begin with a few facts.  The average rate of inflation in Canada, is 3%.  It has been this for many years and is likely the minimum rate of inflation for the foreseeable future.  Any bank account or investment account where the interest rate is less than 3% is, in fact, negative interest.  Given common bank fees $5.00 – $30.00 MONTHLY), you are in fact, technically at least, better off keeping your money in your mattress.  When you deposit money into the bank or purchase common investments (also paying between .5 and 2.5 % interest), the bank borrows that money and re invests it to help THEIR bottom line…..at rates of 7 – 12% interest.  You get your 2% but they make an extra 10% on YOUR money and, on top of that, charge you service fees unless you keep a minimum of $5000.00 (on average) in your account.  Is it any wonder bank profits are in the multi billions quarterly?

I am not advocating using your mattress as your savings account.  It is an exaggeration (if only a small one). I am however, advocating ensuring that you ask questions and get informed.  A free financial checkup, where you can see all of the facts of your personal financial situation, is an investment of time which you will never regret.  Know and understand what your FIN# is (financial independence number), understand how what you are doing now is getting you towards that number and what you can do in the immediate future to get you there faster.   Many people I talk to these days, respond to the question “at what age do you plan to retire?” with a quick chuckle then say maybe age 70…or 80….or never will be able to.  Their investments, whether they be RRSPs or GICs or savings accounts, are simply being depleted by inflation, faster than they can grow.

So you only have $100.00 per month to invest.  You are paying $150.00 per month into mortgage insurance (by the way, do you know the facts about that “investment”?) and you do not have any way of coming up with more money than that to invest.  With so little money, 5% or more is just a dream as a rate of return on any investment or account.  It is just a dream…right?  If only you could save taxes, you could invest more…but Canada Revenue Agency doesn’t make that possible so $100 / month it is. UNLESS……….naw…..or maybe…….is it possible?

Contact me for your financial check up.  I will teach you about everything from mortgage insurance to life insurance how to grow your investments beyond the rate of inflation.  There is no cost for this service and you may be surprised at what you can learn.  I am available to do this whether you live in Ontario or Quebec or elsewhere including the USA.  Book your appointment soon.

myfuture@unleashtheknow.com

 

This is the second article in the series, WISH I KNEW THAT 30 YEARS AGO.  Part one was published on July 6^th.

What is your financial plan??

As a single mom who didn’t receive child support, life for many years was about getting through that day, each day, making sure the phone didn’t get cut off, the children were fed and the roof stayed over our heads.  I had no plan and frankly, no concept on how to create a plan to change my life and the lives of my three children.  It took me many years to see a way forward and to make real changes in my life.  I am not “there” yet…but I am on my way and the way forward seems so obvious now.

In school, we are taught so many things which we are told “you will surprise yourself someday and find yourself using this”.  Well the fact is, I have never used many things I was taught in school.  I am in my mid fifties and while I am glad that I know what I know, where were the basic life skills on the school curriculum?  We need to teach our young people about credit scores, how to spend and how to save.  We also need to teach them how to make a plan for your finances.  How many of you reading this know your FIN# is?  Do you know what a FIN# is?  Your Financial Independence Number, the amount of money you will need to retire in a comfortable style where your needs in your senior years are taken care of.  Having many people in my family living to and past the 95^th year, I have witnessed firsthand, the cost of being very senior, in good health and bad.   It can be very expensive and way beyond the means of many who thought they were safe.

So what can the average person, of any age, do to ensure that comfort?  How do you go from surviving today to living in 40 years?  Barring inheritance or winning the lottery, we need to start with the basics.

Number one: Invest in yourself.  Investigate opportunities to increase your skills.  Explore opportunities you would never think of yourself in but which would give you that freedom.  Do not be afraid to approach others who are successful and find out how they achieved it.  Ask someone to mentor you.  Open up your world.

Number two: Be ready to work hard now for payoff down the road.  The most worthwhile things in life take time and work.  The most rewarding thing in my life and the lives of many, is my children / motherhood.  Nearly ten months of pregnancy per child, nausea, labor, getting comfortable with nursing, worry, stress, money, no sleep and no private time…but the rewards are endless and lifelong.  So why not be ready to make fewer sacrifices than that, for rewards that are also endless and lifelong.  The ability to take care of those you love, travel, giving to charity, the home you want, the education you want, going to concerts, shows and most of all, saving for a quality retirement.  All for a few dollars a month, invested well and being as much of a habit as showering.

Number three: Talk to an expert.  Talk to a lot of experts!! Do not allow one person at a bank or investment company tell you that you do not have enough to invest to make it possible or feasible to participate in the best programs with the highest returns.  There are companies out there who can make it work for you.  You can start your savings plan with only a few dollars a month.  Add to that, possibly switching out certain programs you are participating in for other ones with superior payoffs and even, possibly, at a lower cost.  I know of some families that were paying tremendous interest fees plus insurance and with some changes were able to save up to several hundred dollars a month AND increase their portfolio and the value of their overall plan.

My new plan started when I was at a point in my life when I should have had it all.  My car had been repossessed, I was at risk of losing my house, both of which I had struggled to save for and buy.  I was devastated.   I had worked so hard but the world’s economy changed my world.  I knew I had to work smarter to make my plan work.  If I wanted a change in my life, I had to be that change, once again.  The plan began and life is amazing.  I know now that my future is secure and I am helping others secure their futures too.  I did not take NO for an answer, instead I made sure I KNOW all that I need to create my future.  What is your FIN# and what is your plan?

 

Andrea Blaustein

andrea@unleashtheknow.com

www.unleashtheknow.com

EMPOWERMENT

As a Certified Coach, I have heard from so many people who would benefit from the skills, knowledge and expertise of a coach but who cannot afford the costs.  I am fully sympathetic as I know I would have benefited greatly years ago from one.  With this in mind, I have started a campaign to cover the costs for some deserving folks.  My goal is to help at least one single parent, one teen and one person living with a disability.  I will choose these clients based on their willingness to be a fully involved participant in the process, people who are ready to let the restrictions they face be brought down and who have the drive to make changes, as well, of course, as the inability to pay.  These criteria will be confirmed through a confidential interview.

Most coaches will not negotiate prices, payment plans or other options.  I want to be able to change this so that the lives of good deserving people can change.  I can work with clients in Canada and the USA.  Please follow the link below to make your contribution.  Every few dollars will make a difference in someone’s life.   Thank you so very much in advance and I will keep everyone posted on the progress of the clients you are supporting.

http://www.indiegogo.com/projects/empowerment–3

Karma and the Law of Attraction are watching……