DANIEL ENAYATZADEH FINANCIAL SECURITY ADVISOR
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HOW MUCH DOES LIFE INSURANCE COST?

8/7/2017

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By: Daniel Enayatzadeh

I’ve definitely heard that question before! ‘’I mean really though, if I wanted to buy $250,000 of life insurance, how much would it cost me?’’.

Let me answer that question with another question: If I wanted to purchase a car, how much would it cost? Do you get my drift? As a matter of fact, it’s actually a little more complex than buying a car. I know, I recently just bought a car!

First things first: your insurance needs will determine how much life insurance you require along with what product line is best suited to you. Depending on the type of life insurance product you require, the cost can vary quite substantially: See this article for more on insurance needs. 

However, for the purposes of this article, I will try to simplify things. There is an old saying in the insurance business that goes something like this ‘’life insurance costs as little as a daily cup of coffee’’. If we average out a no frills cup of coffee at $2/day with an average month being 30 days, it brings us to $60/month.

One of the most popular life insurance products on the market is term life insurance. Term insurance covers you for a set period of time, with 20 years being commonly purchased. If the insurance company knows that you are likely be alive in 20 years, they can offer a substantial amount of life insurance for a reduced cost. The insurance company takes less risk and the client is able to obtain life insurance at a very reasonable price. Everyone wins.

So, back to how much term life insurance costs. Let’s say for example you’re a 40 year old male, who is a non-smoker and wishes to purchase a 20 year term life insurance policy with a face amount of $250,000. You would pay on average $30/month. That seems like the price of half a cup of coffee per day!

Most people are quite surprised by how affordable life insurance actually is. Think about this for a moment; you can protect your family with $250,000 of life insurance for a mere $30/month. In my opinion, it almost seems too good to be true!

As mentioned earlier, the insurance policy you choose to purchase should always be determined after you’ve undergone an evaluation of your insurance needs with a qualified financial advisor. You may sometimes find that life insurance is not the appropriate solution for you.

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected]                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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THOUGHTS ON THE MONTREAL REAL ESTATE MARKET

7/17/2017

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By: Daniel Enayatzadeh

The Bank of Canada has increased its key lending rate by 0.25%, to 0.75%. The question is: do we freak out? In short, no!


Although I am not a real estate professional, like many of you, I have been thinking about the real estate market in Montreal. Depending on who you ask, we are either on the brink of a small market correction, with talks of household debt consistently rising along with the impact of rising interest rates. OR the real estate market is completely undervalued compared to Vancouver and Toronto. Who can we trust? Who do we believe, and how can we make sound decisions while surrounded by so much conflicting information?

Truth is, and I am being honest here, nobody knows! No matter how well versed, no matter how much experience or how many degrees one has; nobody can tell you with absolute certainty what will happen in the future.

SO, if you’ve been renting for a while and have been careful and diligent with regards to saving money and you’re finally approaching a time in your life where you’re looking to buy your very first home, what exactly do you do? Do you keep saving, wait it out and hope that the market will become more affordable BUT run the risk of it becoming even more un-affordable? Or…do you jump right in?

This is what my experience as a financial advisor has taught me; like most investment decisions, they must be guided by your timeline. (Not your Facebook timeline!) Meaning, if you’re buying a house and you have the intention of living there for the long term (let’s say 20 years). Then, like most sound investments, given enough time they generally increase in value. NOW. You can never rule out a short term correction in any market, however over the next 20 years I believe it is very likely that the price of real estate will increase in value. 

That being said, a 0.25% rise in interest rates will have an impact on your monthly mortgage payment. If you’re considering the purchase of your first home, it’s important to sit down (or stand) and go over your budget to ensure you do not take on more debt than you can afford.

A friendly reminder that I am not a real estate professional and the views expressed here should not be considered as real estate investing advice.  

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] 
 

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STARTING A FAMILY

4/26/2017

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By: Daniel Enayatzadeh

Are you thinking of starting a family? If you and your partner are exploring the possibility of having children, it’s important to prepare for the financial impact your new little one will bring!

The following are a few key points to keep in mind:

1. Maternal and parental benefits: In my experience, the very first decision couples tackle with is how they're going to adjust their lives and schedules to accommodate the new addition to their family. In some cases, the income they’ve been accustomed to may decrease, please see my points #2 and #3 for more. Gaining a solid understanding of the Quebec maternal and parental insurance plan is the first step in a plan for the future. Please see the following link which includes a benefits calculator. It can provide a good idea as to how much money you can expect to receive. http://www.rqap.gouv.qc.ca/ 

 2. Understanding your budget: Whether or not you’ve been following a detailed budget, you can pretty much throw it out the window! Just joking! Hold onto it because you will likely need to adjust it. Have a sit down with your partner and determine what your pre and post baby costs are. This is an important step in creating a game plan, as well as knowing what you can expect, especially when your incomes may experience a temporary adjustment. 

3. Emergency fund: Children come with all kinds of unexpected expenses. Setting aside some cash, that’s not invested anywhere and available at a moment’s notice will provide you with the peace of mind to tackle the unexpected.

4. Tackle your credit card debt: You can also consider speaking to your bank or a mortgage broker about consolidating your loans. 

5. Talk to a friend: Before you go on a shopping spree for all those baby accessories and items, talk to a friend who’s been through it and ideally bring them with you shopping. It can help narrow down the necessities. 

Last but certainly not least, book a meeting with your financial advisor!
 
Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] 
 




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DO YOU REALLY NEED AN RRSP?

3/17/2017

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By: Daniel Enayatzadeh
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Many Canadians were scrambling to make a last minute RRSP contribution before the March 1st RRSP contribution deadline. The deadline was the last day in 2017 where an RRSP contribution can count towards a deduction for the 2016 tax year. An RRSP (Registered Retirement Savings Account) is an account which provides Canadians the opportunity to invest in a tax sheltered vehicle while affording them a tax deduction for every dollar that is contributed in the RRSP account.

BUT…do you really need an RRSP?

Many people jump on the RRSP bandwagon without taking a closer look at their personal financial situation and determining if contributing to an RRSP is the right call.

Depending on where you stand financially, contributing to an RRSP next year and not this year may be more appropriate. Depending on your income, especially if you foresee a growth in income, delaying an RRSP deposit may be more tax advantageous. Everyone’s situation is unique and it’s important to consult with your financial advisor and your accountant to determine the best course of action.

There is a reason RRSP’s are wildly popular, they have MANY advantages.

Here are a few:
  • The money you invest will grow tax free, until you make a withdrawal.
  • It’s a great way to build up a retirement nest egg, especially if your employer does not offer retirement benefits.
  • You can use it to place a down payment on your first home.

​In conclusion, RRSP’s are a great tool which most Canadians should be taking advantage of, the question really is HOW they incorporate it into their financial plan.

If you enjoyed this article, please share it!

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] 

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COMPATIBLE FINANCIAL VALUES IN RELATIONSHIPS

2/21/2017

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By: Frank Kermit, MA

​There are different ways that a person can show they love their families. Not everyone feels comfortable verbally expressing feelings.  It is important for families to be aware that expressing love has many forms. Some people use words, some offer gifts, some show their love by staying up late at night perched at the window waiting for you to come home. One of the ways that people may express their love for one another is how they manage their finances towards their future relationship goals.

When I coach couples about to get married or who have the intent of become life partners, one of the areas I cover with them is the exploration of their compatible values, including their financial vales. It is important that couples who are planning to build a future together, which may include planning to have children together (or coming to terms with how they will jointly raise any existing children from previous relationships) also talk about financial planning for their futures as well.

Planning to have children together? I get the couple to talk about a possible education fund, or the possibility of a trust fund. Some couples feel that it is a good idea, while others might feel that it is best to let their children earn and pay for their own education after high school. Not everyone has the same financial value system, and it is important to know if the person you want to build a future with has similar financial values than you do.  

Some people make home ownership a goal and thus make saving for a down payment very important, while others prefer to rent as a means of supporting the interests of their lifestyle. Again, the issue is not about which set of values are appropriate or inappropriate, but whether you and your future life partner have similar and compatible financial values. 
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A fun game I have couples play together is the 5 Million-Dollar Question.  I ask each individual in a couple to write down what they would do with their first million, their second million, their third million, their fourth million and their fifth million. The money could be from an earned income, a lottery win, an inheritance…that part does not matter. What is key is that each person must write what he or she would do with the money as it came in, IN THE ORDER they would allocate the money.

The point of this game is to find out if the couples are financially compatible with their financial values. A person whose first plan for the incoming first million is to quit their job and go on an unplanned trip around the world (buying clothes and other necessities as needed) has a very different value system than the person who would first immediately pay off all debts. Again, this is not to judge the financial values of every person. It is about exploring if the person you plan to build a future with has similar and compatible financial values.
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One thing is for certain. The effects of incompatible financial values on the future of a relationship is no game at all.

Frank Kermit, MA, is an Expert Dating-and-Relationship Coach. Learn more about what Frank can do for you at www.franktalks.com 

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​DISABILITY INSURANCE – ARE YOU ACTUALLY PROTECTED?

1/18/2017

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By: Daniel Enayatzadeh

Let’s get straight to the point. Whether or not your insurance company will pay your claim in the event of a disability often comes down to one word: Definition. 

Insurance companies often offer various types of disability insurance products and many vary on the details surrounding their definition of a disability. Let’s say you get injured or sick and want to claim benefits from your Disability Insurance policy. In the event of a claim, and in order to meet the terms of the contract, you must meet their definition of a disability. 
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Before you decide to purchase disability insurance, explore how your insurance company classifies a ‘’disability’’. This may mean the difference between being well protected or barely protected! 

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] 

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3 NEW YEAR RESOLUTIONS THAT YOU CAN START TODAY!

1/9/2017

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By: Daniel Enayatzadeh

The late Jim Rohn said ‘’Motivation is what gets you started. Habit is what keeps you going’’ With a new year comes the motivation to do things differently, to make changes and to start fresh!


​I’ve included 3 New Year’s resolutions that you can start tackling today.


1) Close unused bank accounts

Financial institutions often encourage you to sign up for new credit cards or open a new bank account. Don’t fall into that trap! Take a few moments to review all your bank and credit card accounts, find out how much money you’re paying in fees and what can be eliminated. In addition, the fewer credit cards you have, the less credit you will have access to. This can also prevent you for ringing up too much credit card debt.

 2) Establish a habit of reviewing your finances

The more often you review your spending habits, the more aware you will be of your expenditures. This tends to make you more conscious of what you’ve recently spent the next time you’re faced with a decision to purchase something.

 3) Be kind to yourself

When we’re not where we’d like to be, financially speaking, we can sometimes be hard on ourselves. The fact that you’re reading this right now proves that you’re looking to make positive changes and that in itself is something YOU should be proud of!

If you enjoyed this article, please share it!

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] 


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INVESTING FOR NEWBIES! ​

1/2/2017

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By: Daniel Enayatzadeh

What should I do if I only have a few thousand dollars to invest? Where should I start? This is a common question and a very important one.

​Every multi-million dollar investment account begun with someone saving only a few hundred or a few thousand dollars. There is no minimum amount required to invest your money and if you’ve been thinking about it, then there’s no time like the present to start exploring your options!

Before you begin, ask yourself this:  What is your goal, do you want to invest this money and forget it about it; or are you planning on using the money in the short term?
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Depending on your objectives, this should help you determine how much risk you should take. If you don’t really have a goal, that’s okay too. Not having a goal usually means you may need the money in the short to medium term so keeping things less risky is probably a good idea. Less risky or "safer" investment options are generally referred to in the investment industry, as ‘’conservative’’.

Let’s assume that you will need the money in the short term. This usually means you don’t want to take on too much risk because you don’t have time on your side to make your money back in the event of a large loss.

A licensed financial advisor can guide you on the conservative investment options available to you.

These options may include but are not limited to:
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  • G.I.C’s (Guaranteed investment contracts) & other guaranteed investment products
  • High interest savings accounts
  • A wide variety of conservative mutual funds and segregated funds

The above options requires a conversation with your financial advisor to determine the inner workings of each product and if they fit your particular needs.

I leave you with the encouragement to begin exploring your investment options, no matter how little you start with!


Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​


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​HOW TO AVOID BEING FINANCIALLY SWINDLED 

12/12/2016

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By: Daniel Enayatzadeh

Financial fraud can present itself in many different ways. This article will focus on protecting yourself when dealing with a financial advisor. Before deciding to work with a financial advisor, it’s important to ensure that they are licenced to practice by the AMF (Autorité des Marchés Financiers). You can easily check yourself by searching their name on the AMF website here: http://www.lautorite.qc.ca/

Once you’ve decided to work with someone, do not be ashamed to ask as many questions as you’d like until you gain a strong understanding of the topic. Try and refrain from signing up to anything on the first appointment.

That being said, keep the following red flags in mind because they may indicate suspicious behaviour:
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  • You're being asked to write a cheque to the advisor's name or to their company name instead of writing it to a recognized financial institution.
  • You’ve been told that this particular investment has been recommended or approved by the AMF or another government regulator. The AMF or others don’t endorse investment products.
  • You’ve been promised a guaranteed rate of return which is unusually high.
  • You’re being told that there is a deadline to invest into a particular product, that it’s a ‘’now or never’’ type of situation.
  • Your advisor becomes impatient or avoids answering important questions you have regarding the product you’re interested in.

If you’re suspicious and something does not feel right, call the AMF and discuss your concerns with them. Their mandate is to protect the public; you can reach them at 514-395-0337.

If you have questions, or would like to share an experience you’ve had, please include them in the comments below. 

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​
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WHAT YOU NEED TO KNOW BEFORE BUYING TRAVEL INSURANCE

12/5/2016

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By: Daniel Enayatzadeh

Now that December has arrived, many of us are thinking of going on vacation! It’s important to remember that without travel insurance you may end up paying a large medical bill for even the smallest of medical emergencies. 

The following is a list of tips I’ve put together:
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  • Check your credit cards or your group insurance at work to see if travel insurance is already included.
  • If your current insurance policy includes travel insurance, call your insurer to determine the maximum number of travel days included as part of your coverage.
  • Discuss the main coverage, limits and exclusions with your advisor. Particularly if you have a health condition.
  • If you have a current medical condition, inquire if your policy will cover your pre-existing condition.
  • Make sure to speak with your advisor if you have consulted a physician in the past 6 months, if your health is unstable or if your medication has been adjustment or changed.
  • If you are travelling as a family, inquire about family plans which are generally more affordable than buying individual plans.
  • Ask your advisor if adjusting the deductible will lower your cost.​
  • Be honest. Complete the application as honestly and as accurately as possible.

If you have other suggestions or questions, please include them in the comments below!

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​

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HOW MUCH LIFE INSURANCE DO YOU NEED?

11/29/2016

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By: Daniel Enayatzadeh

Life insurance needs are typically divided into two segments: short term needs and long term needs. An example of a short term need is coverage to protect any debt you’re currently carrying, like a mortgage for example. People often insure themselves for the value of their mortgage so in the event of their death, their loved ones are not burdened with the responsibility of paying off the mortgage. Another example of a short term need is money for your partner. Whether it be a romantic relationship or a business one, the death of either partners can have a significant impact on the survivor’s ability to maintain their lifestyle or to maintain the business. Having money assigned through a life insurance policy provides a much needed parachute during what is usually one of the most challenging moments in someone’s life.

A long term insurance need can be a legacy gift you’d like to provide to an organization that is dear to you.

There isn’t a quick answer to how much life insurance someone requires or what type of life insurance product is appropriate. Whether it’s for long term or short term needs, your insurance needs are established after we’ve undergone a detailed assessment of your personal and financial situation.
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Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​


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13 WAYS TO SAVE MONEY EVERY MONTH!

11/14/2016

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By: Daniel Enayatzadeh

​Most of us would like to save money at the end of the month. The following is a list of tips I’ve put together.
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  • Before buying something new, ask yourself: Is this a need or a want? If you don’t need it, wait a few days and reevaluate. 
  • When you’re out, carry portable snacks, like vegetables or granola bars to avoid buying food impulsively.
  • Do your grocery shopping with a list, and stick to it.
  • Use cash more often than plastic. Studies show we spend less when we use cash.
  • Track your expenses for a few weeks, try to identify wasteful spending trends.
  • Evaluate any subscriptions or memberships you don’t really need.
  • Look out for sales and buy in bulk.
  • Explore generic brands.
  • Incorporate more vegan meals into your diet.
  • Create a plan to eliminate any credit card debt.
  • Review your insurance policies.
  • Have something lying around that you don't need? Sell it!
  • Don’t be afraid to ask a friend for advice on how they save money.​

​How do YOU save money? Include your tips in the comments! 

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​
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YOUR VERY LAST RRSP CONTRIBUTION

11/7/2016

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By: Daniel Enayatzadeh

Most people fail to realize that the tax deduction you receive from contributing to your RRSP can be carried forward to later in life, even when you’re no longer eligible to contribute. Age 71 is the final year in which you can contribute to an RRSP and receive a deduction. Therefore, this final year can be utilized to lower your income later in retirement and by consequence reducing the potential clawback of government benefits, like Old Age Security.  

If you are approaching age 71 and will be shutting down your RRSP for good, it's advisable to consult with your financial and tax professionals to inquire if this strategy is right for you.

Your final RRSP contribution must be made by December 31st of the year you turn 71. 

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​
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TEACH YOUR KIDS ABOUT BUDGETING!

10/27/2016

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By: Daniel Enayatzadeh

According to a survey by the Financial Consumer Agency of Canada, 8/10 young Canadians said they are not confident in their knowledge of financial literacy.

That being said, it’s almost never too early to teach your kids about budgeting, debt and saving. You can start by talking about your own finances, this will help put money into perspective. Talking about how you organize your budget, what you’re currently saving for, even how you pay bills, will help make the whole topic clearer.

Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at [email protected] ​
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