The TK Advisor - The TK Group Ottawa Blog about Life Insurance, Critical Illness Insurance, Wealth Management and Estate Planning

What is your stock broker , investment advissor or discretionary money manager not telling you ?

A number of investment advisor's are oblivious to potential problems you can face in your golden years from health issues . I have seen a number of advisor's telling their clients to buy permanent insurance , section 148 of ACT , to accumulate wealth through tax deferred growth within a permanent insurance policy . While at " times " this makes a whole lot of sense for " some " clients they are absolutely not seeing a potential problem in later years .

There are a million financial planning tools that can tell you how much money you " may " be able to retire on however they can not show you what happens if you have to take a 450000 dollar withdrawal to get health treatment in US for bone marrow transplant . Think about this , what if you and or your spouse had a 2000000 dollar Critical Illness or Long Term care policy to protect your financial well being . Things like private duty nursing are very expensive but not properly covered by our health system . We all have another huge problem , many of us are baby boomer's , the health system is already busting at the seams and we can not expect it to get any better soon . Insurance coverage like Critical Illness and Long Term care should be considered as buckets of money that many of you may need . So for all you " MONEY " advisor's , for God sake wake up and help your clients protect themselves by sending them to a specialist that is able to help them protect their lifestyle . Unfortunately , bank investment advisor's are only allowed to send their clients to a insurance salesman that works for the bank selling traditional life policies . I must say that there are those bank employees who realize their clients need specialists in insurance and do call us however , they could lose their jobs if caught . There are people who care more about the client then the company or bank they represent , they should be congratulated . Am I being harsh , absolutely not as I am just telling the truth ! Insurance advisor's , take time and learn products from various insurers so you can give informed advice to your clients . Help your clients and do your job by providing them with specialized advice to protect their wealth .

Planning before you buy insurance!

When you are considering your options to buy an insurance product, plan before you buy. The planning process requires you sitting down with your financial advisor and letting her/him know the BIG picture. How much insurance should you own and what type? Can I buy more insurance which is designed for my needs? How long do I need the coverage? Mortgage insurance at the bank is expensive; how much premium can I save by going to an " independent" broker ? Who should be owner and beneficiary of my policy? Do I have a holding company that can pay for my insurance with lower after tax premiums?

Working with all your professionals to get maximum results!

You will gain best results by bringing to the meeting your lawyer, financial advisor and accountant. Why? They are obliged to work for you in a team environment and hopefully on the same page.  Make sure there is no posturing as to who is in control or smarter.  Each professional should be able to add valuable insights to create a better plan which takes care of your needs.  Make sure all advisor's are kept in the loop as you move through development of the plan.  Since a number of professional advisor's are not accustomed to working in a team, sometimes they forget to tell the rest of the team what they are attempting to do for the client.

Why Integrated Planning Works ?

What is a common trait of busy people ? Often they do not take time to slow down and properly take care of their affairs . You may have a lawyer , accountant , investment planner , insurance agent and a banker . When was the last time you had them all together to assist you in your planning and create a working document from which you can proceed to organize your affairs ? Often there is no joint work or a TEAM approach to creating a customized solution and gaps are left open which can cause you , your family and or corporations sometimes millions of dollars !

Shareholder agreements and overlooked problems

When I meet a new client we gather information which will help us not only understand their situation but also asses their risk . I can not tell you how many times we have reviewed Shareholder Agreements and found a number of surprises : all partners not named in the agreement , insurance not properly structured leaving a fully taxable event from proceeds at death , policies that will not pay a benefit as for that to happen on disability there has to be a drawn up section dealing with the event , wrong type of insurance which does not meet corporate needs and often better structures can be created to provide greater value to all parties . Why does this problem and others exists ? There is no one individual that has examined the shareholder agreement and brought it to the attention of all those that need to know !

Why hire the best professionals ?

Simple answer , they do it right the first time and it costs you less money . When was the last time you had a team of professionals all in one room taking care of your planning ? When was the last time you had an independent audit of your insurance policies as well as reviewing how your existing coverage fits the big plan ?

Planning for Business Owners

What is planning for business owners ? Have you taken advantage of creating structures that will save you money and leave a legacy ? A number of people we meet on a daily basis are busy running their business and rarely do they have the luxury to slow down to look at what they should be doing . As a insurance specialist as well as Trust and Estate Practitioner my most enjoyable moments are working with clients to create a team of advisers that will truly take care of their needs . Has your adviser talked about : Trusts ? Holding Company ? Shareholder Agreements , Professional Services Corporations , Reducing your after tax cost on insurance premiums ? Individual Pension Plans ? Estate Freeze ? Creditor Proofing ? R&D Credits ? Call us as wi can be of great value to you and your business ! What have you got to lose if you do not engage professionals ? Lot's !

Business Owners are exposed to huge risk !

Most business owners believe that they are protected adequately with insurance coverage but we constantly uncover in our insurance audits gaping holes . Corporate clients have distinct needs and insurance is only a small part of those needs . Have you thought about : business will ? personal will ? family trust ? spousal trust ? creditor proofing ? shareholder agreement ? testamentary trust ? Working with us your legal and accounting advisers will be invited to assist us in a team environment to create effective structures to meet your needs . When you require outside expertise our network of advisers will provide you with needed expertise .

Why do I focus on serving needs of corporate and professional clients ?

I know that corporate and professional clients are extremely busy . They are also most exposed to risks that often they do not even realize exist and a false sense of " I am ok " exists in their planning process . I have worked with lawyers that do not have a will , shareholders that do not have a agreement or employment contract , business owners that thought they did not need insurance for the office because landlords had that covered , Doctors whose office overhead policies would never pay at time of disability , business owner whose disability policy would pay after 2 year waiting period and many more situations like this . Why do these people continue to be exposed ? They are not putting priority where it needs to be , on their needs !

Insurance Premiums are competing with everything else clients need to buy !

I hate paying insurance premiums for something that will or may happen . People say that insurance is betting against yourself and I look at it differently . Insurance premiums are a sure bet , why ? You will die but do not know when ! Good chance you could face a physical or mental disability in a lifetime ! Critical Illness ! Who do you know who has had a heart attack ? cancer ? stroke ? MS ? Loss of Independence ? Everything else is effected by your health and why do people refuse to face that ? I have delivered cheques into millions for widows , corporations and individuals where there was never a word spoken about how it was too much money they were getting ! PROTECT YOUR DREAMS AND FUTURE !