Group Benefits Coverage
Business Owners & Corporate Entities generally face a dilemma about how employees ought to be compensated for their loyalty and dedicated work ethics. Finance departments generally favor providing holiday cheer in the form of bonus at Holidays. However an often neglected yet powerful tool can be used with spectacular results. It is called the Employee Group Health Benefits Plan.
This Plan provides coverage of Life Insurance, Critical Illness, Disability Income, Health, Drugs, Dental coverage to all the employees. It is paid for largely by the management and some portion can be attributed to employees themselves. This is an alternate way to adding Salary dollars to the employee's pay cheque as it does not invite CPP & EI and Income Tax deductions from the employee, whilst effectively boosting employee overall compensation.
Moreover, experience has shown that it enables companies to grow much larger, profitable and fiercely competitive.
HOW TO FINANCE OUR HOME
Most family's have grown accustomed to purchasing their home by taking on a Mortgage on their home. Whilst this is nothing else than a regular leveraged loan taken from a Bank. Based on the amortization period, families must pay off this leveraged loan in 30 + years. It involves both interest + principal = Monthly Mortgage. Take a step back and examine this equation carefully. You would find that by the
Disclaimer:** Mutual Fund License is provided by Shah Financial Planning Inc.
Group Life Insurance
*time 30 odd years have lapsed, you would probably have paid down your home along with an equal amount of interest yet have very little investment savings for Retirement Years and are close to retiring from active work.
By then, you have painted yourself into a corner where the only option left is Liquidating (Selling) Your Home to fund your retirement income.
This equation when examined, means that you may have paid out at least three times the initial market value of your home to the Mortgage Institution in the form of principal, interest and lost future value of your principle.
It has been empirically demonstrated that from 1990 till 2010 (20 Years) the growth of our money put into Real Estate Housing was a factor of 3 (Three). During the same 20 year period, the growth in the Mutual Fund Investments increased by a factor of 8* ( Eight).
Why would you like to get Three times on your Home Investment, if you could get Eight times on your Mutual Fund Investment*. In both cases your Home will always be yours and it's Market Value will continue to rise ...... with OR without your mortgage contribution. Shocking isn't it ?
If on the other hand you were to understand the Method of the All-In -One A/c to fund your Home Finance Options, you may have built up net investment savings of over four times the initial market value of your home. That is, over the same period of time!
The choice is yours, as are your opportunities in life!
Would you want to boost the bottom line for your bank and it's shareholder's or build profitable savings for yourself. What would you prefer?
Knowledge of investment Cash Flow shows, how we can enhance the efficiency returns of the money invested today, to provide enhanced money returns into our future years.
Detach the Interest portion of Monthly Mortgage Payment on your Home from the Principal Contribution. Use the Principal thus saved
to invest in your RRSP, TFSA, RESP, OPEN Non-Registered Investments & Life & Critical Illness Insurance. See how your Retirement Income Grows! Salute Yourself! You have just increased your Cash Flow and turned off the tap for the Bank.
Money applied in small dollar amounts ( Monthly Principal Mortgage Payments), systematically over a number of years in carefully chosen investments, allows for compounding of growth as well as has a multiplier effect on capital growth of the chosen investment itself.
Become Richer by doing this