We define Estate Planning as mandatory planning for everyone to:
- Meet unanticipated needs such as in emergency situations;
- Preparation for retirement; and
- Provide for your loved ones upon your death.
Estate Planning should start with your first, and every paycheque or other forms of income. And there are 3 things we recommend:
- Put away 10% of all gross monies that come into your hands into a savings plan such as a Tax Free Savings Account;
- Put away money with automatic deductions for a Registered Retirement Savings Plan; and
- Purchase life and disability insurance.
Saving money gives you the security of building capital. You must be strict with yourself and leave your savings intact for a rainy day. Do not use your savings to purchase investments for they could go awry and leave you high and dry. And if investments appeal to you, save money for that purpose in a different account.
Life insurance is a highly under-estimated and cost-effective means of providing for capital build-up, especially if you buy whole life insurance where the premiums you pay are refunded to you when you reach a certain pre-determined age. And the younger you are when you purchase such life insurance, the more likely it is that your premiums will remain the same despite getting older.
Disability insurance provides for you if you get sick or are disabled. The cost of such insurance pales when you compare it to the benefits you will receive if disaster strikes.
Get yourself a Will, so that the persons you love and care for will inherit your estate after you die. And we recommend a Representation Agreement for those who may need assistance in the event you are alive but unable to fend yourself due to old age, sickness, confinement or disability.
We recommend that you consult with a Vancouver Lawyer or an Estate Planner every 5 years to take advantage of tax credits and loopholes you could use in your advanced years.