If
your investments lose 50%, you would need to make a 100% return
simply to break even. Perhaps there is enough time for a young
person in their 20's to recover and stay on track, but certainly
this is not the case for someone in their 50's with a shorter
time horizon.
Your
mortgage life insurance at the bank may not be renewed if your
health deteriorates! Should you change lenders, you have to
re-qualify for your mortgage insurance, most likely at a higher
rate!
Renewal
rates for 5-10 year Term Life insurance can increase as much
as 300%-400%.
You
can create a sizeable Tax-Free Estate for your spouse and children
for as little as fifteen to twenty cents on the dollar!
Through
an insured annuity concept, you can establish a lifetime income
stream for your retirement and still leave a sizeable sum for
your children/heirs.
Emergency
funds - A contingency fund containing three months to one year's
salary should be part of your foundation. You may consider setting
up a line of credit to free up capital. If you do, shop around
for the lowest rates!
A
provincial family law* exists that may make grown children legally
obligated to support their parents.
*
("Ontario Family Law Act - R.S.O. 1990
Every child who is not a minor has an obiligation to provide
support, in accordance with need, for his or her parent
who has cared for or provided support for the child, to
the extent that the child is capable of doing so.")
