A Q&A with investment adviser Howard Yancovitch
Most people don’t know the rate they get with a captive agent may not be as good as when they deal with an insurance broker, who has access to many different companies.
How long have you been in the financial services industry?
I have been providing life, health, group and living-benefit insurance, as well as investment advice, for 23 years.
What are the three biggest mistakes people make when buying life insurance?
The first is not being aware of the differences between the types of insurance available. Another is people not properly calculating how much insurance they actually need and the amount of years they want to ensure their loved ones are cared for. Finally, most people don’t know the rate they get with a captive agent may not be as good as when they deal with an insurance broker, who has access to many different companies.
What are the three most important investment strategies you are using for your clients?
The first is helping them achieve tax-preferred income, so they can use more of their income to meet their spending needs, as opposed to giving it to the government unnecessarily.
The second is finding solutions for people who are house-rich and cash-poor, so they no longer have to struggle with their bills, their support for their children, or their vacation plans.
The third is helping business owners and incorporated professionals take advantage of lesser known programs such as Individual Pension Plans or a Unique Capital Gains Strategy. The IPP allows them — and perhaps their spouses — to contribute significantly more into a retirement plan than is allowed within an RRSP. The best part is that it’s paid by their corporation with pre-tax dollars. The second strategy is designed to allow for the smooth transfer of greatly appreciated assets to one’s heirs. This removes the burden of them having to pay a devastating amount of taxes on the gains of those assets, which they might be hardpressed to afford.