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Momentum Newsletter |
July 2008 Vol. 8 |
Welcome to summer! It is
finally here - I hope
that you are getting out
with family and friends
and having some fun... I
am! It was our teams 3rd
year in the Silly Boat
Regatta... a lot of fun
and money raised for the
Nanaimo Child
Development Centre. The
'Silly Dock's' -
'docked' in the water
and revealed our cheque
for $2444.00 ... raised
for the kids at CDC!
Team members: Shari
& Wayne Molchan,
Susan Newman & Brian
Dudeck, Jim Clark,
Jamie Lee Clark,
Cecilia Grinham and
Rich Simpson!
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 Convertible
weather is here - if you
have dreamed about
driving a 1959 TR3 A -
here is your chance! My
uncle is selling your
dream car! Asking price
is $15,000. It is in
immaculate shape!
You can call Keith at
250-616-3552
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Reinventing
Retirement |
 Retirement is not what it used to be;
* 20 years ago, retirement was seen as "the end of life" - "winding down"
* Now retirement is seen as a new beginning people are more active, traveling more, taking on new challenges, furthering their education and they are living longer.
* They expect to live longer and better than their parents.
* Having enough money to pay for retirement is a key factor in deciding when to retire.
* You will have to pay for it under many restraints - you need to make sure you account for the challenges.
Challenge: Longevity
· Longevity risk is about how long we will spend in retirement and how much it will cost to fund that.
· Life expectancy really means that half of the people die before and half live longer than the average age; so shouldn't you be planning to live to 95 or 100?
· Visit www.livingto100.com and use the calculator to help you estimate how long you might live. (Mine was 97!)
Challenge:
Inflation
-
Maintaining
Your
Standard
of
Living
· Think
about
what
a
cup
of
coffee
cost
you
30
years
ago
compared
with
what
it
costs
you
today.
(46
cents
in
1977
compared
to
$1.60
in
2008)
· A
stamp
in
1977
cost
.08
cents
and
in
2008
cost
.52
cents.
· You
need
to
be
financially
prepared
for
20-30
years
of
retirement.
· You
need
to
be
aware
of
how
inflation
can
impact
retirement
savings.
· Inflation
constantly
erodes
what
your
current
savings
can
buy
through
increased
costs
and
diminished
purchasing
power.
Challenge:
Market
Volatility
Investing
in
the
equity
markets
can
help
you
outpace
inflation
and
make
your
savings
last,
however
it
creates
another
significant
challenge
for
those
entering
or
in
retirement: market
volatility.
WHY?
*
When
it
comes
to
retirement
savings,
the
rules
change:
It's
no
longer
about
time
in
the
market
(staying
invested
for
the
long-term,
riding
it
out)
-
it's
now
all
about
timing
of
the
market
(sequence
of
returns).
*
Stakes
are
higher
-
you
clients
can't
afford
the
short-term
losses
that
a
younger
investor
can,
because
they
may
not
have
time
to
recover
from
them.
 This graph shows 5 market corrections in the last 20 years
One year ago Manulife introduced the first product of its kind in Canada, GIF Select with IncomePlus, with its Guaranteed Minimum Withdrawal Benefit.
It has literally taken the country by storm and far exceeded their expectations with $2B in sales in 10 months. Canadians like you are seeing the benefit and value of having an investment that provides a guaranteed stream of income.
 The first retirement product that can provide:
* Predictable income guaranteed not to decrease no matter how investments perform.
* Sustainable income that will last at least until the principal is completely repaid.
* Potentially increasing income FOR LIFE.
* Tax-efficient income when held in a non-registered account.
I will be hosting an educational seminar with Jocelyn Duncan from Manulife on September 11, 2008.
You have your choice 3:00 pm to 4:00 pm or 5:00 pm to 6:00 pm
The location is the new Oliver Rd Community Centre.
Learn how Income plus can help you have peace of mind in your retirement years.
For more information on Income Plus click on http://manulifeincomeplus.ca
To register for the seminar call 250-755-4004
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Children
&
Critical
Illness |
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I have a friend who works with a lady whose daughter has cancer - she is only 17 and may lose her leg. She has a cancerous tumour. Her friends and family are planning fund raisers to help her cope with all the bills that are not covered by the medical system. Being a single working mom - she needs all the help she can get. We have a good medical system but it is not perfect and it does not pay for everything - especially time off to care for your loved one.
Critical illness products can be characterized as relative "newcomers" to the range of insurance products that are available in the Canadian marketplace. In fact, prior to 1983, critical illness insurance was not marketed anywhere in the world. The demand for critical illness products has grown substantially since its initial advent into the marketplace. I have included many articles on critical illness in my newsletter. One company has introduced a child stand alone policy in May 2008 that I thought was pertinent to inform you about.
It is a stand alone policy providing coverage for 24 insured conditions, 5 of which are childhood related illnesses:
■ Cerebral Palsy
■ Congenital Heart Disease
■ Cystic Fibrosis
■ Muscular Dystrophy
■ Type 1 Diabetes Mellitus
With advances in medical science improving the chances of survival after the diagnosis of a serious illness, there is a heightened need for insurance benefits. Children's policies are designed to provide families with the financial resources that will support the recovery and care of a child after the onset of a critical illness insured condition.
The critical illness benefit is payable only once. It is a lump-sum benefit, payable to the owner of the policy, usually 30 days after the insured child's diagnosis of one of the critical illness insured conditions (some exceptions apply).
Children's critical illness insurance must be owned by an adult with an insurable interest in the child. For example; parents, grandparents and legal guardians qualify as owners.
The product is guaranteed with level premiums to age 25. Available from 60 days old to age 17.
The level premium for $50,000 coverage is $14.00 to $15.00 month (depending on age)
You may not want to even think about the possibility of your child becoming critically ill, but what if it does happen? Would you want financial resources to:
* take time off work and be with your child?
* choose the care available?
* focus on your child's recovery and not on other financial concerns?
As Dr Barnard who invented critical illness said; "I help my clients survive medically but not financially."
Both of my sons had critical illness policies when they turned 18 (minimum age that you used to be able to get it). Because their father died of cancer at a young age (43) -it is a mark against them in the insurance world. If you have 2 parents or a sibling that has suffered a critical illness they may not be insurable. They got it while they could.
You are essentially insuring their future insurability.
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Pam's
Corner |
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 Good news for this month.
I have an exciting Real Estate Investment opportunity to share with you.
We have all been hearing the horror stories out of the US of homes selling for pennies on the dollar, people walking away from their homes because they cannot afford the payments, squatters moving in, and in general a crisis of major proportions in the US housing market.
Many Canadian Investors have been monitoring this situation, wondering what role we can play, and waiting for the right time to enter this market.
That time has come. And the good news is this:
Mohawk Diversified has joined forces with my Investment Club (membership has its privileges) and have crafted a program in which Investors can make money, the banks are relieved of the burden of carrying mortgages on properties they can't manage, and best of all the homeowners are helped to either stay in their homes or to buy back into the Real Estate market at a price that they can reasonably afford.
It is a win , win situation for all. And I like it because it is ethical investing.
For $20,000 an investor can purchase a house and property in the US. That's right $20,000! It is all legal, and it is clear title to the property. The model that has been devised is to hold the property for 18 months, enjoy the cash flow during that period, then sell for a profit. Profit margins are expected to run in the 50% to 100% range which is pretty darned good for an 18 month investment!
I am going to a special seminar put on by the club to discuss the opportunity in detail on August 6th. If I still feel as I do now that this is an incredible opportunity than I will be issuing joint venture packages to anyone who would like to join in. I see the possibility for groups of people joining forces on this for $5,000 or $10,000, a reasonably small investment for a short period of time with a tidy profit.
Below is a link for you to see in more detail how this investment works and if anyone would like more info on the joint venture packages please give me a call; Pam Moreside at 250-729-1411.
Hope you are all enjoying the fabulous summer weather!!!
Now let's start making some money while we suntan!!!
www@mohawkreo.com
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Have a fun and safe summer! 
Shari
Molchan
Molchan
Financial
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