In this issue:
Retirement Planning. . . . . . . . . . . . . . . . . .1
Retirees need to plan for longer life expectancies
Male
age 65
83
Female
age 65
89
Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . 4
25% chance
of living to 89
86
50% chance
of living to 86
Trivia . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .4
92
25% chance
of living to 92
www.globalfinancial.ca
At least one person
has a 50% chance
of living to 90
Couple
Both age 65
Age
50% chance
of living to 83
The Five Key Risks to Retirement Income..2
Mortgage Insurance Comparison . . . . . . . 3
80
85
90
94
90
At least one person
has a 25% chance
of living to 94
95
100
Source: Canadian Institute of Actuaries, UP -94 Projected to 2015.
Fidelity Investments Canada ULC.
Retirement Income Planning
If the risks surrounding longevity, inflation, and
health care seem out of one's control, remember
they can be managed with conservative
withdrawal rates from savings and a diversified
portfolio asset allocation that takes into account
investment time horizon, risk tolerance and
financial goals.
A trusted financial advisor can provide an
objective look at your retirement plans and help
with risk assessment and portfolio asset
allocation.
Retirement shouldn't be a time for stress, but
rather for enjoying the personal freedoms we
worked hard to achieve. A sound, written financial
plan is one of the most important steps to getting
there.
Trivia Fun
1. Where would you go to see the Akashi Kaikyo Bridge?
2. Where would you go to see the Coliseum?
3. Where would you go to see the Taj Mahal?
4. Where would you go to see the Mount Kilimanjaro?
5. Where would you go to see the Leaning Tower?
the earth is covered by oceans?
7. In which ocean can you find the deepest point?
8. What is the largest living structure on Earth?
9. What is the largest ocean in terms of area?
10. What country has the longest coastline in the world?
Source: Triviachamp.com
Used with permission of Fidelity Investments Canada ULC.
For more information, please contact:
Global Maxfin Investments Inc
Head Office: 100 Mural Street, Suite 201, Richmond Hill, ON L4B 1J3
B: (416) 741-1544 F: (416) 847-0997 www.globalfinancial.ca
Retirement Planning:
7 steps to a workable retirement income plan
With the help of your advisor, develop a formal,
written plan for building up retirement assets and
drawing down retirement income.
If you already have a plan, bring it out, rethink it,
and revise it as needed to incorporate your
understanding of the risk factors discussed here.
6. Approximately what percentage of the surface of
Answers to the Trivia:1> Japan 2> Rome 3> Agra 4> Tanzania 5> Pisa
6> 71 percent 7> Pacific 8> The Great Barrier Reef 9> Pacific 10> Canada
Conclusion:
Your Privacy
Your privacy is important to us. If you do not wish to receive information of this
kind in the future, please contact your local office.
Disclaimer
The information contained in this document is of a general nature only and
does not take into account your particular objectives, financial situation or
needs. Accordingly the information should not be used, relied upon or treated
as a substitute for specific financial advice. While all care has been taken in the
preparation of this material, no warranty is given in respect of the information
provided and accordingly neither Global Maxfin Investments Inc. nor its
employees or agents shall be liable on any ground whatsoever with respect to
decisions or actions taken as a result of you acting upon such information.
1. Envision the retirement lifestyle you want.
2. Identify your retirement expenses, and analyze
which are essential and which are discretionary.
3. Review the income, accounts, and other assets
available to fund your retirement.
4. Compare expenses to income. Earmark known or
predictable assets to cover essential expenses, and
assign less-predictable assets to fund discretionary
expenses.
5. Allocate your investment portfolio appropriately for your timeframe, your willingness to take risk, and
your overall financial situation.
6. Make sure that your portfolio is set up to help minimize any foreseeable or likely risks.
7. Monitor your plan regularly - at least annually - with your advisor. An out-of-date or unrealistic plan is of
no practical use in helping you achieve income to last throughout your lifetime.
Used with permission of Fidelity Investments Canada ULC.
03873
4
Newsletter was prepared by Brian Lovshin, CFP, CIM, FCSI, National Sales Director, Global Maxfin Investments Inc.
www.globalfinancial.ca
Issue 1, 1st Quarter 2012, Edition 1
Mortgage Insurance
Comparison
The Five Key Risks to
Retirement Income
Each year, increasing numbers of Canadians are
shifting to a new phase in their lives, from wealth
building - saving and investing - to retirement
income - drawing on those savings to provide
income for the rest of their lives. In doing so, they
face a number of uncertainties. How long will their
savings last? What kind of lifestyle can they afford?
How will market fluctuations and other unpredictable
factors affect their capital? How will their health factor into all of this?
The following chart compares Mortgage Insurance offered by the banks with
personally owned Mortgage Life Insurance offered by Life Insurance companies.
As you can see from the chart Personally owned Mortgage Life Insurance offered
by Life Insurance Companies provides consumers more comprehensive planning
options and control over your estate.
Speak to your Global Insurance Solutions Inc. Advisor today, for more details.
Personally owned…
Mortgage Insurance from Bank
Planning for all the eventualities requires an understanding of the five key risks that can threaten
retirement income:
The risk of outliving
one’s savings
The potential for
rising consumer
prices to erode
purchasing power
The problems that
could result from
choosing the wrong
mix of equities,
bonds and short-term
securities for an
individual’s
situation
The risk of
withdrawing too
much from savings
and
running out of
money during
retirement
Excerpt from "After the global financial crisis: the five key risks to retirement income". Used with permission of Fidelity
Investments Canada ULC. (06/11)
2
Am I the Owner of the
Policy as I am the one
paying for it?
NO, The bank is the owner of your
coverage and can cancel it at any
time
YES, You own the coverage and are the only
one who can cancel it. Any changes to the
policy can only be made by you, the owner.
Does the Death Benefit
Remain Same or Level
even though premiums
NO, As your mortgage decreases,
so does your coverage. But your
premium stays the same. The
YES, The death benefit of a personal plan
remains level for as long as you own the plan
unless you decide to decrease the coverage.
always remain same?
death benefit will pay only the
balance of the mortgage upon
death.
The death benefit will be whatever the face
amount of insurance that has been purchased.
Can I choose the
Beneficiary of the
Policy?
NO, You have NO choice as to
who the beneficiary is when you
purchase the bank's mortgage
YES, You have the choice of whom so ever
you want to name as beneficiary of your life
policy. Upon death, your survivor may choose
insurance and Bank is the
beneficiary of this coverage
not to pay the mortgage off immediately as
there may be more attractive investments
other than paying off the mortgage or there
could be some other needs at that time like
children's education or some business
investments.
NO, In the event of a common
disaster ( husband and wife are
both killed in a car accident) the
bank will pay the mortgage
balance only.
YES, When using personal insurance, the
insurance company will pay a death benefit on
both of the lives insured. For example, if a
husband and wife are covered for $150,000
each for their mortgage, the benefit would be
$300,000 versus whatever the balance is on
the mortgage at the bank.
The very real chance
that a future illness
or disability may
have a significant
impact on savings
Even though these are risks to retirement income, they need to be considered well before the onset of
retirement, as well as during retirement. The consequences of ignoring the risks can be long-lasting.
Yet all of these retirement income risks can be managed, provided people understand them and take
action by creating sound plans for post-retirement income.
Mortgage Life Insurance from Life
Insurance Companies
Will the Death Benefit
pay double or
separately in the event
of husband and wife die
together in a common
disaster like Road
Accident?
The comparison chart is courtesy of Empire Life, the article was prepared by Stephen Cairns National Sales Support, Global
Insurance Solutions Inc.
3
Mortgage Insurance
Comparison
The Five Key Risks to
Retirement Income
Each year, increasing numbers of Canadians are
shifting to a new phase in their lives, from wealth
building - saving and investing - to retirement
income - drawing on those savings to provide
income for the rest of their lives. In doing so, they
face a number of uncertainties. How long will their
savings last? What kind of lifestyle can they afford?
How will market fluctuations and other unpredictable
factors affect their capital? How will their health factor into all of this?
The following chart compares Mortgage Insurance offered by the banks with
personally owned Mortgage Life Insurance offered by Life Insurance companies.
As you can see from the chart Personally owned Mortgage Life Insurance offered
by Life Insurance Companies provides consumers more comprehensive planning
options and control over your estate.
Speak to your Global Insurance Solutions Inc. Advisor today, for more details.
Personally owned…
Mortgage Insurance from Bank
Planning for all the eventualities requires an understanding of the five key risks that can threaten
retirement income:
The risk of outliving
one’s savings
The potential for
rising consumer
prices to erode
purchasing power
The problems that
could result from
choosing the wrong
mix of equities,
bonds and short-term
securities for an
individual’s
situation
The risk of
withdrawing too
much from savings
and
running out of
money during
retirement
Excerpt from "After the global financial crisis: the five key risks to retirement income". Used with permission of Fidelity
Investments Canada ULC. (06/11)
2
Am I the Owner of the
Policy as I am the one
paying for it?
NO, The bank is the owner of your
coverage and can cancel it at any
time
YES, You own the coverage and are the only
one who can cancel it. Any changes to the
policy can only be made by you, the owner.
Does the Death Benefit
Remain Same or Level
even though premiums
NO, As your mortgage decreases,
so does your coverage. But your
premium stays the same. The
YES, The death benefit of a personal plan
remains level for as long as you own the plan
unless you decide to decrease the coverage.
always remain same?
death benefit will pay only the
balance of the mortgage upon
death.
The death benefit will be whatever the face
amount of insurance that has been purchased.
Can I choose the
Beneficiary of the
Policy?
NO, You have NO choice as to
who the beneficiary is when you
purchase the bank's mortgage
YES, You have the choice of whom so ever
you want to name as beneficiary of your life
policy. Upon death, your survivor may choose
insurance and Bank is the
beneficiary of this coverage
not to pay the mortgage off immediately as
there may be more attractive investments
other than paying off the mortgage or there
could be some other needs at that time like
children's education or some business
investments.
NO, In the event of a common
disaster ( husband and wife are
both killed in a car accident) the
bank will pay the mortgage
balance only.
YES, When using personal insurance, the
insurance company will pay a death benefit on
both of the lives insured. For example, if a
husband and wife are covered for $150,000
each for their mortgage, the benefit would be
$300,000 versus whatever the balance is on
the mortgage at the bank.
The very real chance
that a future illness
or disability may
have a significant
impact on savings
Even though these are risks to retirement income, they need to be considered well before the onset of
retirement, as well as during retirement. The consequences of ignoring the risks can be long-lasting.
Yet all of these retirement income risks can be managed, provided people understand them and take
action by creating sound plans for post-retirement income.
Mortgage Life Insurance from Life
Insurance Companies
Will the Death Benefit
pay double or
separately in the event
of husband and wife die
together in a common
disaster like Road
Accident?
The comparison chart is courtesy of Empire Life, the article was prepared by Stephen Cairns National Sales Support, Global
Insurance Solutions Inc.
3
In this issue:
Retirement Planning. . . . . . . . . . . . . . . . . .1
Retirees need to plan for longer life expectancies
Male
age 65
83
Female
age 65
89
Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . 4
25% chance
of living to 89
86
50% chance
of living to 86
Trivia . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .4
92
25% chance
of living to 92
www.globalfinancial.ca
At least one person
has a 50% chance
of living to 90
Couple
Both age 65
Age
50% chance
of living to 83
The Five Key Risks to Retirement Income..2
Mortgage Insurance Comparison . . . . . . . 3
80
85
90
94
90
At least one person
has a 25% chance
of living to 94
95
100
Source: Canadian Institute of Actuaries, UP -94 Projected to 2015.
Fidelity Investments Canada ULC.
Retirement Income Planning
If the risks surrounding longevity, inflation, and
health care seem out of one's control, remember
they can be managed with conservative
withdrawal rates from savings and a diversified
portfolio asset allocation that takes into account
investment time horizon, risk tolerance and
financial goals.
A trusted financial advisor can provide an
objective look at your retirement plans and help
with risk assessment and portfolio asset
allocation.
Retirement shouldn't be a time for stress, but
rather for enjoying the personal freedoms we
worked hard to achieve. A sound, written financial
plan is one of the most important steps to getting
there.
Trivia Fun
1. Where would you go to see the Akashi Kaikyo Bridge?
2. Where would you go to see the Coliseum?
3. Where would you go to see the Taj Mahal?
4. Where would you go to see the Mount Kilimanjaro?
5. Where would you go to see the Leaning Tower?
the earth is covered by oceans?
7. In which ocean can you find the deepest point?
8. What is the largest living structure on Earth?
9. What is the largest ocean in terms of area?
10. What country has the longest coastline in the world?
Source: Triviachamp.com
Used with permission of Fidelity Investments Canada ULC.
For more information, please contact:
Global Maxfin Investments Inc
Head Office: 100 Mural Street, Suite 201, Richmond Hill, ON L4B 1J3
B: (416) 741-1544 F: (416) 847-0997 www.globalfinancial.ca
Retirement Planning:
7 steps to a workable retirement income plan
With the help of your advisor, develop a formal,
written plan for building up retirement assets and
drawing down retirement income.
If you already have a plan, bring it out, rethink it,
and revise it as needed to incorporate your
understanding of the risk factors discussed here.
6. Approximately what percentage of the surface of
Answers to the Trivia:1> Japan 2> Rome 3> Agra 4> Tanzania 5> Pisa
6> 71 percent 7> Pacific 8> The Great Barrier Reef 9> Pacific 10> Canada
Conclusion:
Your Privacy
Your privacy is important to us. If you do not wish to receive information of this
kind in the future, please contact your local office.
Disclaimer
The information contained in this document is of a general nature only and
does not take into account your particular objectives, financial situation or
needs. Accordingly the information should not be used, relied upon or treated
as a substitute for specific financial advice. While all care has been taken in the
preparation of this material, no warranty is given in respect of the information
provided and accordingly neither Global Maxfin Investments Inc. nor its
employees or agents shall be liable on any ground whatsoever with respect to
decisions or actions taken as a result of you acting upon such information.
1. Envision the retirement lifestyle you want.
2. Identify your retirement expenses, and analyze
which are essential and which are discretionary.
3. Review the income, accounts, and other assets
available to fund your retirement.
4. Compare expenses to income. Earmark known or
predictable assets to cover essential expenses, and
assign less-predictable assets to fund discretionary
expenses.
5. Allocate your investment portfolio appropriately for your timeframe, your willingness to take risk, and
your overall financial situation.
6. Make sure that your portfolio is set up to help minimize any foreseeable or likely risks.
7. Monitor your plan regularly - at least annually - with your advisor. An out-of-date or unrealistic plan is of
no practical use in helping you achieve income to last throughout your lifetime.
Used with permission of Fidelity Investments Canada ULC.
03873
4
Newsletter was prepared by Brian Lovshin, CFP, CIM, FCSI, National Sales Director, Global Maxfin Investments Inc.
www.globalfinancial.ca
Issue 1, 1st Quarter 2012, Edition 1