Specialty Wealth & Financial       Solutions Newsletter      
May 2014
The Financial Planning for Kids issue
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Life Insurance:
Five good reasons to insure your children and grandchildren


Although not old enough to have accumulated assets, children and grandchildren have different needs for insurance that may have more use in the future for life insurance coverage. Here are five good reasons to start early, planning for the future for savings and risk management...



1. Protect Future Insurability: As children take all the knocks and lumps of childhood, engage in risky sports, get their driver's licence, their future insurability can be at risk, and be extremely costly if not already in place. The Guaranteed Insurability Benefit can be added to child policies, offering further coverage later in life. GIBs offer protection against major illnesses that can affect insurability in the future.


2. Paying for Unforeseen Costs: If the unthinkable were to happen, life insurance can help with final expenses, and funds set aside to allow family time away from work and other unexpected costs.


3. Save Money: Insurance in place before age sixteen can save money on premiums. After age 16, the risk to health of young people increases.


4. Tax Efficient Savings: Compared with other investments, permanent life insurance can help you build a next egg more tax efficiently. While the cash value is growing inside the policy, you are not subject to tax on the growth, within prescribed limits.


5. Financial Security: Life insurance plays an important role in your child or grandchild's future financial security, and one step toward a long term financial plan.

Financial Planning for Kids:
The Rising Cost of Education

The cost of education has risen by an average of 49% since 2003*. The average cost of tuition in 2003 was $4,500 in Ontario and in 2013 had risen to over $7,000 per year. Tuition for professional programs is even higher. Undergraduate students in dentistry paid the highest average of $16,910 in 2012/2013, while students in medicine paid $11,891 and pharmacy paid $10,297.

w Source: Statistics Canada University tuition fees 2012/2013




Not wanting children to be saddled with crippling debt in the future? Consider setting aside funds with the Registered Education Savings Plan (RESP). To help you save more, the federal government contributes 20% on the first $2,500 contributed to the RESP each year up to $500.00 with the CESG. Not just for standard university programs, the RESP can also be used for a wide variety of trade or business schools, apprenticeships, and even for certain part-time education programs. Your family may also qualify for the Canada Learning Bond, or the Additional Savings Grant. Ask us today how to get saving for education with the RESP.


Take advantage of compounding interest when saving with the RESP. Compared to a low interest savings account, the money you invest in the RESP has the potential to grow faster over time, depending on the level of risk and fund selection you choose. Without an established RESP, you cannot take advantage of federal education grants such as the Canada Education Savings Grant, and the Canada Learning Bond.

Saving Money:
 Starting the conversation

If your children are starting to save money, have a part-time job, or other sources of income, it's time to talk about the value of savings. Use the example here to start the discussion:


If you can save $25.00 a month....

w If at 16 years old, you saved $25.00 a month, and it earned only 0.25% interest in a bank account, at the end of 10 years, you would have saved $3.083.13.


w If at 16 years old, you saved $25.00 a month, and it earned an average of 4% interest while invested, at the end of 10 years you would have saved $3,693.02, or $654.89 more.


w If at 16 years old, you saved $25.00 a month, until you were 65 years old, that's 49 years, and it earned an average of 4% interest, you would have saved $45,723.59.


w If you waited to start saving money at age 40, until you were 65, that's 25 years, you would now have to play catch up and save $88.00 a month, instead of just $25.00 to be able to have $45,723.59 by age 65.


Share this information with your children and grandchildren, and start saving early! Forward our newsletter today!

Let's Talk About Money:
Your Guide to Financial Planning for Kids

So you know it's time to start talking to your children, where to start? In our electronic world today, counting cash takes a back seat to the ATM, where kids see parents able to swipe a card and magically money appears. Schools are taking a more proactive approach and offering basic money lessons in their curriculum, however reaching kids today takes patience and time, and a shot of reality. Can children conceptualize the cost of attending school, owning a home, taking a vacation or buying a new car? Will they understand how to pay bills on their own, or manage a budget?


The Financial Planning Standards Council has created a home program for parents and kids to start talking seriously about finances, in their Let's Talk About Money program. Contact us for the E-Version, and get together over a few weeks time to work on the exercises together.


Specialty Wealth & Financial also offers a Seminar presentation, Let's Talk About Money! A Family Approach. The program covers all aspects of financial planning from budgeting for a birthday party to planning for university loan payments. Interactive worksheets get children involved and participating throughout. Contact us for your Seminar booking today with your school or group.

The Value of Advice: Talk to your Financial Security Advisor

We need to expose our children to many experiences as they grow, teaching them how to care for themselves physically, emotionally, and spiritually. Often neglected on the life list is how to care for their financial future. Bring them along on a special visit to the office, and talk to your Financial Security Advisor. Adult children who may be struggling to get started might benefit from a trip for some advice on how to stabilize their finances before things get out of hand, and to lay a strong foundation for their future family life. Times have changed, and preparing now can save financial stress later. Talk to your financial security advisor today. 

Ron King, Investment Representative,  Quadrus Investment Services Ltd.

Insurance products, including segregated fund policies are offered through Specialty Wealth & Financial Inc., and Ron King offers mutual funds through Quadrus Investment Services Ltd. Quadrus Investment Services Ltd. and design, Quadrus Group of Funds and Fusion are trademarks of Quadrus Investment Services Ltd. used with permission.

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This newsletter contains general information only and is intended for informational and educational purposes provided to email newsletter clients of Ron King and Specialty Wealth & Financial. Some of the information and opinions contained in this newsletter are reprinted with permission from sources quoted. While information contained in this newsletter is believed to be reliable and accurate at the time of printing, Specialty Wealth & Financial does not guarantee, represent or warrant that the information contained in this newsletter is accurate, complete, reliable, verified or error-free. This newsletter should not be taken or relied upon as providing legal, accounting or tax advice.  You should obtain your own personal and independent professional advice, from your lawyer and/or accountant, to take into account your particular circumstances

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