Best Financial Advisors in Burlington, ON

Without a doubt, the best use of available cash is to pay down those high interest credit card debts. Eliminating debts on which an interest rate of 18-25% is being charged is the same as an after tax return at this rate. No reasonable investment can project this sort of return.

There is no easy answer to this one as it depends very much on the individual. Buying is generally the superior option for those who can afford the higher monthly payments and who generally drive their cars for many years rather than trading regularly. For these individuals, the advantage is a number of years of payment free driving after the car is paid for.

Determining the amount of life insurance which your require starts with an analysis of your current expenditures and those which you project. You must take into account immediate payment of debts such as mortgage and bank loans and future costs such as post-secondary education of children. Finally, you will consider sources of income such as survivor benefits from the employer, CPP benefits and the ability of the spouse and children to earn. With this information it is possible to calculate the amount of life insurance which will be required to meet the shortfall.

The chances of becoming disabled either permanently or for a period of time during the employment years are much higher than the chance of dying, yet most people have little or no idea of their present coverage, if any. The analysis is more complicated since it is necessary to look at the type of coverage, cancellation terms, disqualification for certain types of disabilities and, most importantly, whether or not the payments from the plan will be taxable. Calculation of the actual amount of disability insurance which you require follows somewhat the same methodology as for life insurance.