Financial Security in an Insecure World Lorne Jackson, CLU, CFP, CFC and Bold Kere, BSc. A. BOLD CARE FINANCIAL

World’s Biggest Financial Risk World wide debt crisis

Household budget Annual family income: $32,550 Money the family spends: $39,850 New debt on the credit card: $7,300 Outstanding balance on the credit card: $653,324 Total budget cuts: $370

US Debt US tax revenue: $3,255,000,000,000 Federal budget: $3,985,000,000,000 New debt: $730,000,000,000 National debt: $65,332,000,000,000 Recent budget cuts: $37,000,000,000

Personal Debt Over 1/3 of Canadians have debt load over 200% of after tax income According to a stress test scenario by the Bank of Canada, it would take only a 0.5% increase in interest rates for 1.1 million Canadian families forced into bankruptcy “Our greatest domestic risk relates to household debt” —Bank of Canada Governor Mark Carney Dec 2011 Our world has become obsessed with living beyond our means

What is the Media Saying We live in a credit economy. For millions of Canadians, payment of debt is a serious, pressing and debilitating problem. We all know that Credit is a problem – I want to take a few minutes to highlight how serious it is for the Canandian family – this is our problem not just the US or Europe !

Most Secure Investment A can’t lose investment: pay off debt

Getting Out of Debt Make the decision to stop using debt Set aside an emergency fund (1 month income) Snowball your debt (only in Canada) Visit www.compasscanada.org

Solid Financial Principles Spend less than you earn Avoid the use of debt Build liquidity (savings) Set long term goals Give generously

Key Investing Tips Avoid get rich quick schemes Obtain wise financial counsel Never invest in something you don’t fully understand Diversify your investments Be a diligent, patient investor

Investing Wisely Avoid get-rich-quick schemes – (Prov. 21:5) The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty. Obtain wise financial counsel – first check God’s word; 2350 verses on money and possessions (Prov. 15:22) Plans fail for lack of counsel, but with many advisors they succeed. We don’t provide investment advice but just a word now about it: Slow and steady wins the race. If it’s too good to be true then it IS. Financial counsel: I have learned that unwise investments seem even more common in the Christian community than outside it. Randy Alcorn calls this “spiritual credibility” Just because someone goes to your church or talks christianese doesn’t make them Christian

Investing Never invest in something you don’t fully understand. (Proverbs 19:2) It is not good to have zeal without knowledge, nor to be hasty and miss the way. Diversify your investments (Ecclesiastes 11:2) Give portions to seven, yes to eight, for you do not know what disaster may come upon the land. Be a diligent investor (Ecclesiastes) Sow your seed in the morning and let not your hands be idle for you do not know which will succeed whether this or that or whether both will do equally well.

Key Turning Points in My Life Personal Experience Key Turning Points in My Life 1977 1989 2002 2010

Other Financial Methods and Services Bold Kere of Bold Care Financial

Expense Tracking and Analyzing A way to eliminate debt Account for what comes in (income) Greater awareness of speed and purpose of spending Needs vs wants Reduction of spending and freeing liquidity Realistic and efficient budget (paying debt, saving, investing, financial planning...)

Investment Planning Choose the right investments for your objectives Know the taxation consequences of your choices Be diligent to know the state of your investments

Insurance Protect your family, your business, your state Estate planning Health insurance Disability insurance Life insurance Key person insurance Group insurance

The Unknown Story of Joseph Key points learned Personal commitment