My thoughts on Taxes and Insurance

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Income Taxes

Completing an income tax return is surprisingly simple.  I use the software Turbotax which is very user friendly.  They also have different software options to suit everyones individual needs.  I also have a Canadian Revenue Agency account which makes the steps even easier.  Thats all it is, just following through step by step answering questions and filling in blanks, thats it!  People may think I’m joking but far from it.  Taxes are really incredibly easy to do.  Better than an paying an accountant over $100 to do it for you.  If your not doing your own taxes, seriously consider it.  If your a very high income earner or have complex issues and can afford a great accountant that is worth the cost then kudos.

Insurance

Insurance is important for a number of reasons, I believe the best reason is peace of mind.  I have insurance for my vehicle, house and multiple life insurance policies, this should be the norm.  You don’t want to leave your loved ones in need or even worse: leave them in your debt.  It’s a hard topic for some people, the thought of death but it happens to everyone and should be accounted for in your financial plan.

Okay, whats enough?

How much insurance a person needs is a difficult question to answer.  I am not an insurance expert but the absolute minimum I would suggest is enough to cover all liabilities.  This means enough for a replacement vehicle or new house entirely in regards to home and auto insurance.  For life insurance, have enough to cover all debts as well as funeral costs.  Remember this is the absolute minimum I’m talking.  The reason I have multiple life insurance policies is because when I do eventually fade off the planet I want my family to be set.  I am not settling for my wife just having enough to cover costs.   I don’t want her to just be “okay” I want her and the rest of my family to get a pay out and thrive.  Thats just me though, everyones individual needs and wants for insurance are different.

Conclusion

These are two of the less exciting topics around money but they are of the upmost importance and shouldn’t be neglected.  Educating yourself in these two fields to know your own needs is extremely beneficial and can save a tremendous amount of time, money and frustration in the future.

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