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How well does the general picture fit you?
Professionals, in general, are characterized by late-starting careers and serious financial burdens up-front, on the one hand, and high income and expensive lifestyle later, on the other hand. Because of these circumstances, their assets do not always grow as fast as one would expect. Professionals have special skills, which is both a strength, the engine of high income, and a weakness, because it limits their income and lifestyle to being able to use that particular narrow skill-set. Typically, their life is very stressful, and their finances frequently resemble dancing on a tightrope. There are risks all around, and above average amounts at stake.
Many professionals work as self-employed or for their own business. Many have some kind of group insurance protection from their professional associations, but those association plans usually have serious shortcomings. Even if employed, various insurance plans from the employer are rarely good and large enough to provide the peace of mind wanted. When changing employer, even this limited protection can easily be lost. All these factors and circumstances, together perhaps with having a more educated mind, make professionals typically more interested in financial services than the general population.
Long-term disability insurance has traditionally been a major issue for professionals. It is important to make it clear that the recently introduced critical illness insurance is not redundant for people who have disability protection. While there is some overlap, these two kinds of policies are quite distinct, and the best is to own both.
On the investment side, many professionals find their RRSP-room insufficient for the investment program needed to achieve their retirement and other long-term goals. Taxation issues, and other costs limiting the growth of their investments are usually major concerns. Careful application of leveraging, the tax-advantaged nature of universal life insurance, as well as its many features (tax-related and otherwise) can sometimes be very useful for these people.
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These web pages are for information purposes only. The information contained and presented, while based on and obtained from sources we believe to be reliable, is not guaranteed either as to its accuracy or completeness. The content of these web pages is solely the work of the author, Laszlo Kramar.
The views (including any recommendations) expressed on these pages are those of the author alone, and they have not been approved by anybody. Neither the information nor any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any product discussed or referred to in these web sites. These web pages are for educational purposes only and are not intended for use by residents of the United Sates; nor are they intended as an offer or solicitation in any jurisdiction outside of Ontario, Canada. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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