Is winning the lottery the same as hearing you have Cancer?

We know it’s not “will we” experience a tragedy, it’s is “when we” experience some sort of tragedy and how we deal with it and how well we are prepared. 

This makes the difference from perhaps foreclosure, bankruptcy, divorce, family divorce, credit or money issues, employment, and emotional depression and loss in the family. 

Other issues always arrive from winning the lottery to a family member falling into a coma! 

You need answers!

Where are their accounts, how do you access them, what do they have, what dog food do you buy, where will the kids go, how do I pay the bills, how do you get in their house?

They are all issues that need to have some planning. 

And if we have a backup plan for coaching a baseball team, because you never know what team is going to play on the field on which day just in case. 

Why not have a plan b for your team? Your family matters.

How do we deal with finding out that you have terminal cancer, or that my partner is in the hospital for 3 months after a car accident? 

How do we know where your “stuff” is if both of you become injured in an accident?

But, being prepared means we have our information all in one safe and secure place, and we have gone through all of the questions asked about “What if” so when something does occur in our lives we have answers and solutions to all of those types of devastating tragedies that can turn any family rich or poor upside down.

www.yourbackupplan.ca

tina@yourbackupplan.ca

Tweet: TinaOlexaBC

As a Business owner how can I protect my wife and kids

A BUSINESS OWNER: 

Q. “A colleague of mine passed away suddenly and I had the opportunity to see first-hand the financial and emotional hardship he and his family are dealing with on an on-going basis because he had no plan for the unexpected events. How can I protect my wife and kids in case something happens to me? ” 

It is understandable that as the provider and protector of your family, you want to ensure that they financially and emotionally secure.  Have a succession plan for your business and leave your personal life in order.  Here are the top 10 tips to protect you, your spouse and family in case of any tragedy--

1-      Short term disability and long term disability policies will ensure that you have sufficient income to provide assistance to you and your family for living expenses, prescriptions, tests or treatments.

2-      A medical care policy that will care for you or a loved one in case of extreme disability, dementia, or sickness is very different than a disability policy. It will provide you with the medical attention, housing or care-aids when required.

3-      A power of attorney with delegation to a family member or trusted advisor will allow temporary decision-making on your behalf a simpler process.   

4-      A current last will and testament, a living will and a medical directive are all important so that your wishes are clear to family, healthcare providers and legal counsel.  If you don’t have these, do it now.

5-      Keep a current contact list for your lawyers, accountants, bankers, consultants, agents, advisors, managers, friends and associations. 

6-      Keep a copy of your birth and marriage certificates on file and easily accessible.  They may be needed when dealing with government agencies and when applying for transfer of benefits to your spouse.

7-      Consider life insurance that doesn't change in frequency, payment or benefit during your lifetime. That way it will be with you and your family forever without having to pay more, or lose it.

8-      Consider creating trusts for your family members. This can be a reliable income stream for family members without it being taxed as income.  Check with your accountant or financial planner on the current regulations.

9-      Organize personal bills and make notations for others that are left behind since so many bills are now e-statements.

10-   Keep a register (list and copies) of all of the aforementioned documents and information PLUS the registered owners of your personal assets such as your accounts, investments, property, safety deposit box, and vehicles in one place that is easy to find by your family.  

Tina Olexa is a financial advisor, mother and a small business owner. In her role as financial advisor for over a decade with many individuals, she has witnessed many tragic events in her clients’ lives – from health-related to sudden, unexpected tragedies.  

Tina developed Your Backup Plan system to ensure that her clients are prepared and their families are protected when hardship occurs. 

Follow her on Twitter @TinaOlexaBC.

To read more about Your Backup Plan, visit www.yourbackupplan.ca

BUILDING YOUR INCOME THROUGH TAXES?

DAY 19 TIP OF THE DAY - 60 DAY CHALLENGE OFFER

Feb 19-2013

Building you income through taxes? What?

Live the dream and work from home.
By creating a home-based business—even a part-time business—you are entitled to claim a deduction for a portion of home costs. This includes: mortgage interest, property taxes, utilities, repairs, landscaping and maintenance costs.

Just remember that you have to have a reasonable expectation of profit in order for the business to be legitimate, according to the tax man.

Let's Expect the Unexpected and get prepared with YOUR BACKUP PLAN!

The Small Business Owner’s Guide to Life Insurance

The Small Business Owner’s Guide to Life Insurance

Small Business Advice

December 6, 2011

By Ryan Hanley

Life insurance is the most important insurance coverage a small business can purchase as it pertains to perpetuating the business. (General liability is most important operational insurance coverage).  When a person dies unexpectedly, the loss of life often has repercussions beyond just immediate family.  This is especially true if the individual was a business owner or a key member of a business.

Some of you are nodding your head saying:

“Yeah, if we lost so-and-so our entire business would be turned upside down.  An adequate amount of life insurance would certainly help us bridge the gap between losing so-and-so and hiring/training so-and-so’s replacement.”  

You are an enlightened insurance soul. You can skip down to the third section of this article if you like.
Some of you are reading and saying:

“Life insurance is a waste of money.  Our business could survive if we lost the owner.  He doesn’t do anything anymore, anyway.”

You have some learning to do.  Pay special attention to the next section of this article.
Learning About Life Insurance the Hard Way
Let’s say you and your business partner own a successful small business that manufactures retail goods on a regional level and employs 40 people from the surrounding community.  You’ve been in business for 20 years and have a solid relationship with your raw material suppliers, your distribution channels and the retail stores that sell your product. Both you and your partner share a common vision for the business, sales are growing, and life is good.
Then you get that awful call.  Your business partner has passed away suddenly after a car accident.  A few months later you get a call from your late business partner’s spouse asking to set up a meeting to discuss the future of the business.
After a lengthy, emotional meeting, you find out your business partner had racked up mountains of personal debt financing some commercial property deals on the side that didn’t pan out.  Your business partner’s spouse, now saddled with that debt, is freaking out and demanding you sell the business to pay the obligations.  Now a 50 percent shareholder in the business, the spouse has the legal right to make such demands.  Now you either have to spend a boatload of money to buy out the spouse or sell the business you’ve worked 20 years building.
Either way, life is not so good anymore.  You wish that you had listened to your insurance professional about purchasing a Buy-Sell Agreement Life Insurance Policy (see below).
3 Types of Business Life Insurance

Individual Life Insurance

• Technically, individual life insurance is coverage for a business owner’s family.  What makes an individual life insurance policy important for a business is defense against a distressed sale.  Many small business owners take loans out using their personal assets as collateral.  When the business owner dies, the surviving family members sell the business to cover the loan obligations.  This creates a distressed sale situation where the business might be sold for significantly less than actual value.  An individual life insurance policy on the business owner for an amount equal to obligations defends against this type of situation.

Buy-Sell Agreements (solution to scenario above)

• In the simplest terms, a buy-sell agreement is a contract created so a deceased business owner’s share of the business is bought at a predetermined price through life insurance.  This is a protection against the deceased business owner’s family members taking ownership of a business they may not have the desire or skills  to operate.

Key Person Insurance

• Key person insurance provides the business with cash if a critical leader or revenue-producing employee were to die.  There are many unacknowledged costs that come with losing a crucial member of a business.  The business may lose clients, contacts or connections that drive revenue. Additionally there is cost to search, hire, and train a replacement. All of these costs add up very quickly, and without the proper life insurance to provide needed cash, the gap between employee loss and replacement can critically injure a small business.

The Rub
Life insurance is a headache and hard to rationalize spending money on.  But the simple truth is that a life insurance policy has the power to change the course of the lives of the people you care about and the business you help build.  Your family and your business are important enough to take the time to do the right thing.  Your independent insurance agent can help you get the necessary and appropriate coverage.
Good luck and be safe!

Image from Arkady/Shutterstock
Thank you Ryan for the article posted in: Small Business Trends

About the Author

Ryan is a licensed insurance agent in Albany, NY. He is also the creator of Ryan Hanley where he blogs on Insurance, Sales, and Social Media. Find out availability for Ryan to speak on Social Media Sales at Ryan Hanley Speaking
http://smallbiztrends.com/2011/12/small-business-life-insurance.html

Your Backup Plan: When Life Interrupts Your Practice

Your Backup Plan: When Life Interrupts Your Practice

Click on the video above to read an article written by, Jenn Sommermann, LCMT in the Massage Today Publication April 2011.