Client Line

*Mutual funds offered by

Sun Life Financial Investment Services (Canada) Inc.
Scott B. Beck*, B.Comm. EPC, RHU
Advisor
Duguay, Bryan & Associates Insurance Services Inc.
329 Second Street West
Cornwall, ON K6J 1G8
Tel: 613-937-0489 ext. 28
Fax: 613-937-4223
Cell: 613-362+5213
scott.beck@sunlife.com
www.sunlife.ca/scott.beck
A LOOK AT TIMELY
FINANCIAL ISSUES
Top 10 checklist for your financial health
Here is a list of things for you to do this
month to position yourself well for the
rest of the year!
1) Going into the year deep in debt?
Meet with an advisor to lay it all out
on the table and devise a plan of
action to get off the treadmill once
and for all!
2) Update, review or get a will and power
of attorney for finance and health care.
3) Review your year-end company
pension plan statements. Is all in order?
If you get to choose the investments
yourself, how have they done? Where
should they be?
4) Same as #3 for your personal savings,
RRSPs and RESPs.
5) Catalogue what is renewing this year.
When does your home and auto
insurance come due? Maturing GICs
and term deposits? Mortgage renewing
this year? Start shopping now.
6) How much life insurance do you have?
How much are you paying for it? Your
life insurance portfolio should be
reviewed every three years or as life
changes happen.
7) Between ages 21 and 50? Have you
talked to your advisor about critical
illness insurance and disability
income replacement?
8) Between ages 50 and 70? Want the
insurance company to pay for your
long-term care down the road? Now is
the time to price it out and consider a
20-year paid-up plan.
9) Save more, spend less. The national
savings rate is now less than 1%. Your
goal should be to allocate 10% + of
each pay towards savings and RRSPs. A
take-home of $1,000 means $100 per
pay period should be saved - allowing
you to live on the other 90% guilt-free!
10) Forget product: you need a strategy.
If your finances are like most, your
insurance, savings, RRSP and RESP
investments have been spread over
five to six policies/accounts in three
to four different institutions over the
years. A good advisor can help
quarterback and pull the whole strategy
together to make sure everything is
working in your best interests.
Make this the year that you get a good
handle on where you stand today. Take this
financial snapshot now. Then, if you need a
hand from there, give me a call: I can help!
A LOOK AT TIMELY FINANCIAL ISSUES
Sun Life Assurance Company of Canada, 2013.
How can you reach your retirement dreams
more quickly? Theres a simple yet effective
investment strategy that will help you save
more for your retirement.
Patti and Eric recently got married, and
both have started to invest $100 a month in
a registered retirement savings plan (RRSP).
They often worry that theyre not investing
enough for a comfortable retirement, but
they have just bought a house and have
found that $100 per month is all they can
realistically afford.
Time is working for Patti and Eric
through the magic of compounding
One of the best ways to make your money
grow is through the magic of compounding.
Compounding means that you earn money
on your capital, or initial investment,
as well as on accumulated interest. For
example, if you hold investments that
generate dividends or interest in your RRSP,
that money is reinvested. The value of
your investments increases, so you are now
actually generating income on dividend and
interest income you have already earned.
As a rule, the more time you have to let
your money compound, the faster your
savings grow and the sooner you can retire.
Plus, the earlier you start, the more you
may have when you retire.
Check out the numbers
With a $100 per month contribution, at
eight per cent return per year, heres an
example of how much you could save:
Assuming an interest rate of 10%
$48,000 can yield $322,108, thanks to the
effects of compounding and investing over
a longer period of time.
Can you get your hard earned money
to work even harder?
There is even more you can do to get the
most out of compounding.
Dont delay - The earlier you start
investing, the bigger your return may be and
the sooner you may be able to retire. For
example, if you contributed $100 a month
to your RRSP for 10 years until you were
32, and then stopped - you would have
invested a total of $12,000. If that money
earned an eight per cent return, by the
time you turned 65 it would have grown to
$229,791. If instead you didnt start investing
until you were 32, you would have to invest
$49,896 to have $230,128 by age 65. In this
example, by delaying 10 years you must
contribute over $37,000 more to earn the
equivalent amount of savings at age 65.
Contribute early - By making your
investment in January of the current tax
year, instead of at the last moment in
February of the next year, youll have an
extra 14 months worth of compounding
working to your advantage.
Monthly contributions - If you cant
make a lump sum contribution early, you
can still gain additional income by making
monthly contributions. And to make it
even easier to contribute regularly, you can
choose to have your monthly contribution
automatically transferred from your
savings/chequing account into your RRSP.
Consider an RRSP loan - If you cant
maximize your RRSP contribution, consider
borrowing the money. You can use the tax
refund to help pay down the loan, and take
advantage of the power of compounding.
Pay yourself first - Think of your RRSP
investment as a regular bill you pay to
yourself. But remember to set realistic,
attainable contribution goals.
Even if there are times in your life when
you cant make a contribution, you can feel
good knowing the money you have already
invested is continuing to work for you
through the magic of compounding.
Talk to me and we can find out how to
make the most of your savings to reach
your goals.
Age started Total
amount
contributed,
to age 65
Total value
of RRSP at
age 65
25 $ 48,000 $ 322,108
35 $ 36,000 $ 140,855
45 $ 24,000 $ 56,900
55 $ 12,000 $ 18,012
Making time work for you: the magic of compounding
Mutual funds are offered by Sun Life Financial Investment Services (Canada) Inc.,
registered in Quebec as a firm in group-savings-plan brokerage. Sun Life Financial
GICs and Principal-protected notes are issued by Sun Life Financial Trust Inc.