Life Insurance - The Saga Continues

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Note, this is not a sponsored post - just an ongoing commentary about our adventures with Life Insurance.

Before Christmas, I did an initial post on Life Insurance and my thoughts about what our needs are.  At that time, I thought we would need a 500K policy on myself and $400K on Jordan.

I reached out to Glenn Cooke of Life Insurance Canada who is strongly recommended by Gail Vaz Oxlade for some help.  He actually read my blog post, and challenged how I was calculating the financial loss of one of our incomes to the other.

I had worked out a 'gap' in our budget, by simply removing the income line and then making some adjustments to saving and other expense categories based on being a one person household.  Glenn suggested that rather than doing that approach, follow the general rule of thumb that suggests people need to replace about 60% of their income if it's a duel income family and 80% if it's a single income household.

When I do that, and I use the calculator on his website,   We need almost double - $602K for Jordan and $865K for myself based on 20 years to replace the income.

That just seems.....like sooo much money to me.

We don't have kids yet, but would like to soon - and even with kids factored in, I'm just not sure that it's the right way to approach this.  Glenn talked about enough money to replace lifestyle....am I wrong in thinking that some lifestyle changes are expected if a spouse passed away?

What do you guys think?

We did it!

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Today is payday, and because of my recent raise, we were able to top up the Baby Fund and hit 100%.

So...now what to do with those regularly occurring deposits into that account....  We've been contributing $300/month towards it for the longest time.

I'm thinking on one hand we could put the money towards the line of credit...but on the other hand, maybe we should target our next closest savings goal and see if we can get another 100%  Another option would be to stash the cash for a couple of months so that we could take a short trip to visit Jordan's family in May - even another $300-$500 would make that trip totally affordable.

hmm...

We have some thinking to do.

Sooo Close

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Do you see it?

Do you?

We're now over 90% towards hitting our baby fund goal.  We had a big bump from our Tax Return, and from cancelling our Gym Membership (that added $600).

Tax Time!

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I love tax time.

I've just gone through and triple checked and then submitted our tax returns.  We use TurboTax - for under $30 at Costco, it makes filing sooo easy.

I used to do our taxes by hand first, and then use TurboTax - just in case there were discrepancies...and there never has been.  So this year, I just used the Tax Software to skip that step.

We're ear marking the entire refund to our Baby Fund - that will bring us sooo close to being at 100%.  It will feel so good to hit that goal so early on in the year, and then we can look to the next goal we can achieve.

So, where is the refund coming from?

Well we were actually both under taxed by our employers to the tune of $300 when I first entered in our T4's.  The refund is coming from:

  • Medical Expenses - Jordan's second tooth implant and benefit premiums from both employers
  • RRSP Contributions
  • Pension Adjustment
  • Professional Membership Dues
  • Interest on Investments
  • Educational Credits (I was still in school the first few months of 2014)
How are you guys fairing in your tax returns?  Do you owe?  Are you getting a return?  If you're getting a refund, what are you going to do with it?

Salary Review

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Well, it's that time of the year again...salary review time.

Most of you know that my career in in Human Resources. Specifically right now, I work in the Learning & Development department of my organization. I've been with my organization now for about 7 years, and have about 8-9 years combined experience.

Given the state of the economy right now for my industry, there's not a lot of butter to spread around - but that said, I'm feeling very good about the review of my salary.

I'm technically still below the 100th percentile (the mid-point for my job), but received a 5% wage increase when the average was closer to 2.5.  I feel like my manager really went to bat for me, and was able to get an increase that is fair and reasonable.

drumroll please...

I've gone from $75K, to $78,750.  Wahoo!

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