Undertake a Financial Review at Tax Time
Many Canadians are getting ready to submit their tax returns before the April 30 deadline. Since all of your financial information is already out and in one place, this is also the perfect time to undertake a financial review. Your annual analysis should include assessing financial goals and creating a budget, checking your credit history and reviewing your insurance needs.
List Your Financial Goals and Create a Budget
It’s important to make a distinction between short-, medium- and long-term goals. Saving for retirement will require a different strategy and budget than saving for a new car later in the year. After identifying your goals, create a budget and action plan to meet your financial objectives.
You should also review spending habits to discover ways to cut back in order to reach goals faster. With any additional savings, you can contribute to a tax-free saving account (TFSA) or emergency fund.
Review Credit Report
Many people don’t know their credit score and only get a report when preparing to make a big purchase, such as a home or car. It’s important to be proactive with your credit and periodically check to see if there are ways to improve and to correct any errors. Get in the habit of checking your credit score during a financial review at tax time and you’ll have a yearly credit report.
Assess Insurance Needs
An important part of your yearly financial review should be assessing insurance needs. Would you and your family be financially secure if one of the wage earners was no longer able to work, either from an involuntary job loss, accident or disability? In the event of loss of life, how would surviving members cope financially? This is a good time to review insurance needs and ensure you have a plan in place for a job loss or injury that could impact your paycheque and for how your family would meet financial obligations in the event of death.
Life, Disability and Income (LDI) Insurance provides financial protection to people during a number of trying times — from being laid off to suffering an injury that requires time off from work. With LDI Insurance, you have access to up to $500 a month, for six months, to spend on what you need most. You also have the option to add up to $10,000 in life insurance.
Coverage is virtually guaranteed for everyone between the ages of 18 and 69, and you can easily purchase it online. In addition, you’ll earn up to 4,000 Hudson’s Bay Rewards points when you sign up and every year on renewal.1
For more than six decades, Canadian Premier Life Insurance Company has been committed to providing financial security for Canadians who are facing uncertainties. They now insure more than 1 million Canadians from coast to coast.
1 Each Hudson’s Bay Rewards points offer is limited to one Rewards account per household. Rewards points will be issued within four to six weeks.