Goal Setting for Every Type of Family

· Establish an emergency fund of cash that is equal to 3-6 months of pay.

· Start saving for college. Any little bit helps. At 7% interest, money doubles every ten years. So by starting when kids are young, you can make one dollar at their birth worth $2 at age 7, $4 at age 14, and $8 at age 21.

· Buy term life insurance for at least twice your mortgage amount. More is better, especially if you have more than one child. A $200,000 policy for a 35 year old male costs about $200 a year. Your objective is to be sure that the mortgage would be paid, that living expenses would be available for a period of transition, and there would be a downpayment made on the children’s education. Some planners suggest much more insurance, knowing that in a one income family the other parent would need time to train, seek a job, etc.

· As your children get to age 14 and beyond, you may wish to encourage after - school employment. Not just for the character building potential, but because they can earn thousands of dollars without paying federal income tax. (see your accountant)

Single / Single Parent
· Set aside three months take home pay for your emergency fund. If you are a single parent you’ll want to strive for six months on hand.

· As you accumulate savings, look for mutual funds or other alternatives to provide a higher return than money market accounts, with measured risk. If you are a single parent, decide when to start saving for college. As little as fifty dollars per month in a savings account can make a big difference. Ask your banker.

· Protect your credit rating. Perfect credit will be helpful in moving, refinancing, or even obtaining a credit line or home improvement loan, when needed. If you have recently divorced you will want to open accounts in your own name with credit cards, department stores, and credit unions.

· Check your homeowner’s insurance to be sure you have sufficient coverage to replace your belongings. “Replacement cost” coverage is preferred.

· Collect child support if you’re entitled to it. For information on your right to child support contact BC Child Support Info Line at 1-888-216-2211 or go to wwwhsd.gov.bc.ca.



Two Income Families
Buy a home or a second home, if appropriate. The wealth created though long term ownership of real estate is unmatched. The tax deductible nature of your real estate payments make for another bonus.

Use and maximize your RRSP’s, or other retirement options. As much as retirement seems far off in the future, it is coming. Anything you can do now can make a big difference in 20 to 30 years.

Empty Nesters
Maximize your savings for retirement

Consider reducing your life insurance if your mortgage is paid off.

Triple check your long-term health care insurance options while you’re still healthy.

Check your Canadian Pension Plan and/or Old Age Security benefits by filling out the proper forms. Call 1-800-277-9914 to get the form.