Buy Financial insurance in Canada
If you are a Canadian and I in the workforce for a decade or more, then you know that your income purchases less today than the first year of his career. Inflation is a part of our society and while our government continues to devalue our money by printing more and more, inflation is, without a doubt, continue. This is not just a Canadian concern, however. Around the world people are feeling the effects of inflation due to excessive money printing; but more of that another time. The long-and-short-of-it-all, is this: to BUY your MONEY-still LESS as the years go by.
A quick 100 years-calculation of the Bank of Canada (BoC) inflation calculator showed that the cost of a fixed “basket” of consumer purchases in the year 1915 was $100.00. At the end of 2015, the cost will be $2,083.61. More recently, in the last 10 years, the prices have gone up 18.01%. Increase their income, that is equal or greater?
The answer is probably not.
If you are a six-figure earner or you make 30k a year, you lose “money” in purchasing power. There are a lot of ways that your money can protect it from devaluation, but we will discuss two common options that people take.
An option of the stock market; put a piece of your savings in a portfolio, and see what happens. Sounds like gambling to me. But if you are willing to leave the finances up to other factors (and people) that proper due diligence, then they are putting their money in the stock market, a good choice for you under the following two conditions:
You have the stomach for the volatility, and,
The main objective is to see an important return on investment in a short time… I hope.
Another option, and this tends to be the simplest and most commonly chosen, is to open a bank savings account. No effort, just open the account, decide how much you want to save and how often, set it to auto-pilot and watch your savings grow.
In today’s economy, the bank’s savings accounts, savings vehicle, are not useful. The majority of the interest rates that it offers, will earn rates below the rate of inflation. The sad reality is that many savers to make a future retreat only to realise that your have lost money on an after-inflation basis.
So, what do you do if you are not an expert investor?
Buy Financial Insurance.
We have insurance for almost all aspects of our life, insurance is something that many of us hope that we never use.
Buy financial insurance in Canada, or anywhere else, for that matter, is to put your money in a vehicle that is protected in the long term, the ups and downs of the volatile economy.
Buy financial insurance, which retain their purchasing power and provides a hedge against inflation.
The global economy will change, but this is just the economy, should be the stuff for you, sell it.
Take the time to continue training here.
As an independent insurance Advisor and the income protection specialist for nearly a decade, Ryan individual insurance and financial solutions disability, life, critical, illness, care of the client, and other personal insurance products, while providing strategies for hedging and income and the receipt of the assets.