epistoli: Air Canada Attendants Reject Deal Over the Pensions of ‘Future Employees’

epistoli: Air Canada Attendants Reject Deal Over the Pensions of ‘Future Employees’.

This news item causes me to do two things:

First, let me warn you about some possible Air Canada schedule disruptions later next month after the flight attendants who just turned down a deal, take their strike vote. Even if the Government steps in (assuming the attendants strike) as it threatened to do recently, any possible strike will last several days.  That’s not too bad unless those happen to be one of the days you’re flying.  So, act accordingly and let the ticket buyer beware!

Secondly, let me talk for a bit about pensions.  But before I do I must declare what some may consider to be an ethical conflict.  Let me admit to you that I do in fact have a “defined benefits” pension plan from an employer with which I had 25 years of service.  It’s a pension plan that guarantees me a certain amount of pension each month regardless of how well or how poorly the company’s pension investments do.   There, I’ve said it, and now I feel free to comment.

This type of plan is different from a “defined contributions” plan where the company puts in a set amount into an investment for the employee.  When he/she gets his/her pension, how much they get depends on how well or how poorly the investment has done.  The amount is no longer the company’s problem, it’s the employee’s concern as he/she owns the investment.

While I have such a plan, many of my friends do not, and my children do not.  In fact, those types of plans are going out of style like Kodak Brownie cameras and Ford Edsel cars.  I never asked for that type of plan — it was given to me in a different economic time and generation, when my company was doing well, at least better than it is now.

Unions that fought hard and got these kind of plans got them when workers of all types were badly needed and they could demand anything in order to keep from striking.  Unemployment was very low and skilled workers were hard to find.  In case no one has noticed, things have changed.

Years ago, living in a more pristine environment, eating our own home- or local farm- grown food, fewer people got cancer.  Now living in the big industrial cities with all the smog and all the additives in our food, as well as a host of other reasons, more seem to be dying from cancer.  We all have to live with it.  I suggest some people learn to do the same thing with the pensions they are fortunate to get.  Many people today don’t get a pension plan at all except what the government may offer in the way of social security plans.

Defined benefits pension plans are very expensive, especially given the economy.   Continuing them for some companies may mean, “we have seen the end and it’ll be here soon” because they can’t afford them.  Unions are being short-sighted in pushing for these plans.  Especially pushing for these plans for employees (or union members) they have never even met.   Air Canada, like other employers, is not killing the ‘living’ defined benefits plans, it just wants to prevent any more being born.

If Unions want to do something proactive here, let them negotiate some other type of bonus if a company’s fortune grows to a certain point, but the day of the “defined benefits pension plan” is over — if not this collective agreement, certainly the next one.  It is not sustainable in a volatile economic world as we are likely to be facing long into the future.

Air Canada flight attendants turn down labour deal – Business – CBC News

Thanks for dropping by. Sign up to receive free updates. We bring you relevant information from all sorts of sources. Subscribe for free to this blog or follow us by clicking on the appropriate link in the right side bar. And please share this blog with your friends. Ken Godevenos, Church and Management Consultant, Accord Consulting.    (Let Accord Consulting help you with your labor relations negotiations and collective agreement administration — you can reach us at kgod@accordconsulting.com .

WHY RAW?

The top 3 things that are zapping your energy & compromising your health.

Dehydration

Your body is over seventy percent water, shouldn’t your food choices mirror this? A great way to get a head start on becoming hydrated is to consume food that has not had the natural water removed from it through cooking. Cooked food does nothing to provide your body with much-needed water and dehydrates you further in your bodies attempt to digest it. Everything you put in your stomach needs to be turned into liquid to be digested. How easily is your current diet liquefied?

Malnutrition

Recent data shows that nutritional deficiencies are most often caused by what we eat rather than by what we do not eat. Your current diet may be robbing you of precious vitamins and minerals. A well balanced diet of consciously prepared raw plant foods contains the full compliment of essential vitamins and minerals, while food prepared using conventional methods destroys over 80% of that foods nutrition. Can you afford 80% less nutrition than is naturally found in your food?

Lack of Enzymes

Enzymes are responsible for every metabolic process that takes place in your body from digestion to healing. Most prepared food is served with up to 100% of the natural enzymes destroyed. One hundred percent! When the lipase and amylase enzymes are destroyed, the body cannot digest fats or carbohydrates and they are stored in the body, causing you to gain weight. When you consume living, enzyme rich food, it practically digests itself. This leaves you with a surplus of energy to play harder, work more efficiently and do more of what you love!

To Learn More about why RAW Plant Food is the best fuel for your body visit www.livingfoodbydesign.com or email us at info@livingfoodbydesign.

WOW Bill Clinton a Vegan I thought he was all about burgers and fries. http://ow.ly/6bQbo

Are You Making These Six Common Money Mistakes?

Successful investing and money management, after all, are not about luck it is about having a plan and following that plan.

Here are the six common and costly errors to avoid:

1. Delaying saving. There are lots of reasons given for putting off saving for retirement, such as low income, unemployment or paying off college loans. But anyone who waits to save misses out on the power of compounding interest over time. For young adults in particular, the difference can be stunning. Someone who saves $3,000 a year starting at age 25 will produce a nest egg of $777,170 by age 65. That’s more than five times the $137,286 balance of someone who starts at age 45. In this example we have assumed an average 8 percent annual return. Even if the person starting at 45 doubles the annual savings to $6,000, the total by 65 will still be just $274,572, far short of the early starter’s total.

2. Letting emotions guide investing decisions. Plenty of investors have been tempted to buy a hot stock because of the buzz it’s generating, as they get swept up in the market fervor; or to sell a stock or their entire investment portfolio in fear when the market is plunging. Making emotional short-term decisions with long-term money can be disastrous, however. Investors who bought shares of high-flying Krispy Kreme Donuts saw just how quickly things can change – the stock took a freefall from nearly $50 a share in 2003 to less than $5 in less than two years. (There are other examples Nortel and currently RIM). You can also ask those who bailed out of stock funds in their RRSP’s after the meltdown of 2008-09, only to see the market’s value double in the last two years.

We advise our clients to make a plan and have the patience and courage to stick to it. Your objective should be to achieve your goals, not outperform the market, your best friend, or your neighbor with the newest, hottest investment idea.”

3. Skimping on an emergency fund. Emergencies that prompt a quick need for cash can set back your finances for months or years if you haven’t set money aside for anything from car repairs to a layoff. Build an emergency fund that can cover at least three to six months of living expenses. First have a rough idea of what you spend in an average month. Check your records and receipts to get a handle on the total of your monthly non-discretionary expenses – housing, food, utilities, and gasoline. Now work at increasing your emergency fund to the necessary level, even if you have to temporarily divert other savings in order to do so.

4. Having an unbalanced portfolio. Maintaining a mix of investments is critical for investors to achieve their goals. But being sufficiently diversified is harder than most think. It involves owning a wide variety of stocks and bonds, or the proper mix of funds. People think if they own a couple of stocks and a couple of bonds, they’re diversified and many do just that. Nearly a third of Charles Schwab’s two million investors hold more than 20 percent of their assets in a single stock, the brokerage reports. That leaves their portfolios vulnerable to a nosedive in the stock because of a slump, scandal or even bankruptcy. Setting and forgetting your allocations within your RRSP plan is another risky oversight, because recent results can tilt your portfolio to be more aggressive, or less, than you intended. You should review your plan at least annually, rebalancing investments and increasing your savings rate if necessary.

5. Paying avoidable or excessive fees. If you’re not careful, it’s possible to rack up hundreds of dollars a year in avoidable bank, airline, credit card and other fees. Using an out-of-network ATM is getting costlier. Free checking is getting harder to find, as banks find ways to charge monthly maintenance fees. Airline fees are ever-higher. Then there are hotel “resort fees,” gift-card activation fees and expensive rental-car insurance fees – one of the most avoidable fees of all, since most auto insurance policies and many credit cards cover your rental.

6. Getting overly conservative with investments in retirement. Many retirees believe they should adjust their portfolios to become much more conservative when they finish working. That overlooks the fact that retirement can last for decades thanks to longer lifespans and improved medical care. It’s essential to continue to seek long-term growth in retirement by investing in stocks and riskier assets than just GIC’s and bonds, the aim is to protect your savings against inflation and minimize the risk of running out of money. We recommend planning for a retirement that could last a full 30 years or more, until age 95. That makes 65 almost the new 35, when it comes to investing.

For more information on how Daniel can help you protect your family and help you have a thriving retirement call Daniel at 1-416-875-1505 or email him at daniel@thewealthgate.com.

Top 9 Reason to Value Your Business

1. Owner Wants To Retire.

• How big is your retirement nest egg?
• It is impossible to say unless you know what your business is worth.

2. Owner Wants To Sell.

• A valuation protects you from low-ball offers as well as unrealistic expectations.
• It also makes your business look more credible to buyers.

3. Owner Has Kids.

• If one gets the business and the other(s) do not, knowing your business’ value lets you treat them all equally.

4. Owner Has Partners.

• To insure business continuity if one leaves or dies, the partners should have a buy-sell agreement pegged to the business’ value and funded with life insurance.

5. Owner Wants To Expand.

• Lenders and investors like third-party appraisals.

6. Owner Doing Estate Planning.

• Do you have an estate tax issue or not?
  Impossible to say without a business appraisal.

7. Owner Has Employees.

• Smart employers use stock options pegged to the business’ value as “golden handcuffs” to retain key employees.

8. Owner Getting Divorced.

• Having the business valued by a nationally respected appraisal firm makes negotiations much easier.

9. Owner Likes Bragging.

• It is fun to know your business grew 25% more valuable last year.
• Having it valued regularly makes it possible!

businessKillers Now In Canada

FOR IMMEDIATE RELEASE                                   Contact Daniel Hanzelka, CFP

416-875-1505, daniel@sixmistakes.com

‘businessKillers®’ Seminar for Small Businesses

to be held in Richmond Hill, May 06, 2010

(Thornhill, Ontario,) Lifestyle Security By Design will participate in the internationally-recognized ‘”businessKillers®” seminar for small and family-owned businesses scheduled for Thursday May 6^th from 1:00 to 2:15 pm at 

95 Mural St., Suite 402 Richmond Hill, ON, L4B 3G2

businessKillers® seminar was introduced to Canada by Lifestyle Security By Design, the seminar focuses on six critical financial, legal and tax planning issues, that if not addressed, can “kill” a business. Developed over a two year period, the developers of “businessKillers” interviewed business owners and leading members of the business advisory industry (Attorneys, CPAs, Financial Planners, and Business/Management Consultants) and asked them to identify the biggest problems they have seen in their own professional experiences.

The workshop format has been featured on TV show “The World Business Review.”

“businessKillers®—Avoiding the 6 Biggest Mistakes that can Destroy You and Your Business” will highlight the importance of knowing the value of your business and updating buy-sell agreements, proper succession planning and estate analysis, the value of disability insurance, diversifying your investments, and tax reduction strategies and retirement plans. The seminar is presented in six video modules featuring real life situations that can arise from failing to plan for these issues.

The presenter is Daniel Hanzelka, CFP from Lifestyle Security By Design.

“Because small businesses often don’t address these important issues,” notes Avery, “close to 70% of all closely-held or family-owned small businesses never make it to the second generation and only 12% survive to the third generation.”

The “businessKillers®” seminar is offered free. Please make reservations by calling 416-875-1505 or emailing Daniel@sixmistakes.com. For more information on the seminar visit www.sixmistakes.com

Lifestyle Security By Design, 300 John St., Suite 201

Thornhill, Ontario, L3T 5W4

www.sixmistakes.com

There when you need it…

We have all heard them – the horror stories about the confusion that can result from settling the affairs of a loved one who has died. Along with coping with grief, there can be what seems like a million other matters to deal with, from canceling credit cards to assisting executors in handling the estate.

And while most people know and understand the importance of having a will, which clearly outlines their final intentions, many of us do not give much thought to the difficulties that can arise for our friends and family members who are left to deal with the tasks that we complete on a daily basis. Without us here to provide the information that we take for granted, such as bank account numbers and the location of important documents, these seemingly simple tasks can become extremely difficult for those responsible for handling our personal and financial affairs when we are gone.

Now think of the difference that it would make to your family members and executors if you could provide this important information to them ahead of time. Instead of wasting precious time searching for missing papers, phone numbers and addresses, they would have everything contained in one place, making their tasks much easier.

With Directory of Personal Documents and Estate Planning Records, you can do just that. Using this directory, you can provide a complete personal and financial picture of you, your spouse or partner and family. Covering a wide range of subjects from banking information to details on insurance policies and benefits, this directory could be of unlimited value to those responsible for looking after you and your affairs in years to come.

This organizer has also been designed to be of use to you right now as well as in the future. As we continue to age, it can become difficult to recall everything that we once knew and while we may not like to admit it, it only makes sense to write down the important stuff and keep it in one place. The Lifestyle Security Organizer can be altered and updated as your life changes to provide a snapshot of your current situation.

Each year in Canada, large amounts of money belonging to estates are left unclaimed simply because there is not enough information available to determine its existence. Without the knowledge that only you can provide, your heirs may be deprived of what you worked hard to obtain and what they are entitled to. When completed by you, the information in this directory will serve as a direct link to all arrangements and investments that you have made.

By using the Lifestyle Security Organizer, you can give your loved ones the peace of mind of knowing that they have all of the information that they need, when they need it.

Contact Daniel to find out more about the Lifestyle Security Organizer.

Daniel Hanzelka, CFP at 416-875-1505 or email him at dhanzelka@email.com.

BusinessKillers® Workshop

The health of privately held businesses in the Canada is one of the foundations of our economy.  These companies are a powerful source of growth, innovation and job creation. Unfortunately, the talented individuals who run these businesses generally share one common flaw the lack of planning.

Not ‘business planning’ in the sense of a marketing plan or implementing new technology…but planning to protect and preserve what they have worked so hard to build.  Consumed with the day-to-day operation of their business, other important topics like business succession, buy/sell agreements, disability, business continuation, tax strategies, etc. are frequently neglected.

Owners understand these are very important issues.  But they don’t make them a priority. In today’s environment time is the most precious commodity and business owners who are focuses on their company will typically push these topics to the back burner. A mistake that can often have devastating consequences.

But what if there was an easy solution?  What if a business owner could invest about 90 minutes to sit down and review important issues that can affect their business without any slides, charts or workbooks?  Instead, what if they could attend presentation and watch short video vignettes?  And what if they could leave that presentation with a concise snapshot of how well or poorly they have protected their individual business?  Well forget the what if’s and let me introduce businessKillers^®.

BusinessKillers^® is an innovative program that has been helping business owners properly protect and preserve their assets.  This program is extremely effective and focuses on crucial topics like: Estate Planning, Buy/Sell Agreements, Disability, Tax Strategies, etc.

Here at Lifestyle Security By Design, we understand that business owners are successful because they thrive in an environment where they have control.  It’s what makes them do what they do.  But without the appropriate planning – by qualified professionals – an unforeseen event could quickly compromise their business and future.

Do yourself a favor – spend 90 minutes with us.  I can assure you it will be time well spent.

We are dedicated to helping business owners properly protect and preserve their business and personal assets.  Call our office today to find out how you can experience businessKillers^®.

Contact our office to check the dates and times for upcoming workshops. seating is limited.  If you prefer, a  businessKillers^® workshop or individual presentation can be conducted in the privacy of your own office. If you have any questions or would like more information contact the office of Daniel Hanzelka, CFP at 416-875-1505 or email him at dhanzelka@email.com.

This 1-hour interactive seminar is geared specifically towards business owners and their spouses. It uses short video clips to dramatize critical mistakes business owners often make in planning and protecting their business and illustrates the impact these mistakes have on the business owner’s personal financial future. This program is designed to help business owners evaluate and avoid these critical errors and ends with a personal “Risk Barometer” which shows each owner where they stand in the business planning process.

businessKillers® is a registered trademark of Lighthouse Strategic Projects Group, Inc. Langhorne PA.

Is Your Business Protected By Design or by Default?

How to Avoid the Six Mistakes that can Destroy Your Business and Your Future.

The Six Mistakes (6 Business Killers)

1. I know what my business is worth.
2. I’m too busy running the company.
3. That’ll never happen to me.
4. There’s plenty of time for that.
5. My business is my retirement.
6. You can’t beat the tax man.

Business Security By Design Program can provide tax-free cash to business owners when they will need it most. It’s assistance for the financial and business challenges caused by illness, injury and death. First, we identify your risk potential and then we design a blueprint for solutions. When you understand the possibilities, it’s simple to decide your greatest concern and where your resources are best directed. We can’t predict health and other problems but we can help you protect your business from the consequences.

We can give owners, employees and their families’ tax-free money to replace income when disabled, when diagnosed with various illnesses and on death. You can stop worrying about the impact of these potentially crippling concerns. The use of select, high quality, tax-favored benefits will provide peace of mind for owners, employees and their families.

And Peace of Mind equals Quality of Life.

Our Design Blueprint is simple and effective. It gets the results and protection you want with minimum effort and expense. It works because we work directly with you to get it done.

We’ll help you.

1. Understand potential Business Killers and how you can avoid them. There are simple, sometimes even tax-deductible ways of making sure an avoidable disaster doesn’t sink your business and your family.

1. Design a Blueprint that will get you and your business past the possible dangers if and when they appear. If they don’t sometimes we can even get you some or all of your money back. Preparation is critical and the key to a successful plan design.

1. Protect your business immediately to make sure the Business Killers have no effect. You need to do what’s right the first time. There are a number of designs that will protect you from possible dangers.

1. Update your Blueprint regularly to stay on track and make sure your goals haven’t changed.

Being the business owner has its advantages but, despite all the tremendous benefits, there are a lot of possible dangers. Some are preventable and some aren’t. I believe that a smart business owner makes sure that the dangers that are preventable are avoided. I will present seven that should be on every business owners list.

1. Keep the Lights on at Work
2. The Disabled Partner Life-jacket
3. The End of Reverse Discrimination
4. The Golden Handcuffs Strategy
5. The Bad News/Good News Program
6. Shareholder Agreement Funding
7. Tax Free Cash When You  Need it Most

In the coming weeks I will review the 6 Business Killers and the 7 Business Threads and how to avoid them. If you have any questions or would like more information contact the office of Daniel Hanzelka, CFP at 416-875-1505 or email him at dhanzelka@email.com.

businessKillers® is a registered trademark of Lighthouse Strategic Projects Group, Inc. Langhorne PA.

Employees Are Out of Control, and It's Costing You Money

By Daniel Hanzelka

Lifestyle Security By Design

1 in 3 Canadian workers report they are in serious financial distress and are dissatisfied with their personal finances. A survey by the Canadian Payroll Association says nearly 60 per cent of Canadians are living paycheque to paycheque and they would be in trouble if one paycheque were to come one week later.

“We were shocked by that number. So many Canadians are now living so close to the line that, if they miss a single paycheque, a majority will find themselves in financial difficulty,” said Janice MacLellan, chair of the Canadian Payroll Association.

This issue of personal debt and poor finance is present in all socioeconomic circles. It does not matter if your employees make $150,000 or $35,000 per year. Personal financial distress affects millions of Canadian workers and it is costing employers thousands of dollars each year. Researchers have found that financial distress spills over into the workplace, contributing to such work-related occurrences as personal finance-work conflict, lower commitment to the organization, less satisfaction with pay, work time wasted dealing with personal finances, more absenteeism, and poorer health. Employees with money problems are like sharks swimming around the work place taking bites out of the bottom line.

Financially unhealthy employees do not make the best decisions for themselves or their employers. They do not manage their personal finances very well. They do not save and invest enough for a financially successful retirement. These things contribute to lower productivity as well as higher health care costs. Work Place Research shows that your employees are worried about their money more than any other aspect of their life, more then their work, family, marriage, or even friendships.

Employers often recognize the issue but do nothing about it. The new trend at many companies is to provide Financial Literacy seminars at the work place. Financial Literacy is not another trendy catch phrase. It is a movement that is supported by all sectors of society and it is based on the belief that people can’t do better if they don’t know better. The definition of financial literacy is “The ability to understand financial choices, plan for the future, spend wisely, and manage the challenges that come with life events such as job loss, saving for retirement, or child education.” Large numbers of employees are not maximizing their retirement plans and do not have any kind of savings for emergency.

Providing employees with the tools to become financially literate about the basics—knowing how to manage personal savings, credit, and create a spending plan—helps improve factors that affect the organization’s bottom line, such as productivity.

“Giving employees a raise is not the only way to help your employees financially and it may not even be the best way.   Another good way, and sometimes better, is to provide them with workplace financial education.”

Quality Financial programs rescue employees and employers. It is in the employer’s best interest to provide employees easy access to quality financial programs. It also is the right thing to do as stewards of the employee’s well-being. Employers do not realize they can improve profits –and prove it to themselves– by helping employees improve personal financial behaviors. Quality Workplace Financial Programs Reduce Employee Financial Illiteracy and can save employer’s $750 – $2,000 per employee. The Personal Finance Employee Education Foundation expects employers to receive a ROI of 3:1 (or more) annually for quality workplace financial programs. Example: Cost of Financial Literacy Program $500 per employee. The employer’s benefit will be $1,500 per employee.

Benchmark employee’s financial wellbeing by asking them to respond to the Personal Financial Wellness Analysis (PFWA). The PFWA consists of a 9-item pencil-and-paper questionnaire that in 3-4 minutes measures financial health. The PFWA is a valid, reliable, peer-reviewed, and published measure over 25 years in development. It’s not an issue of money spent on workplace financial education, it’s an issue of it’s effectiveness! To find more information about the PFWA and how your company can benefit from Financial Literacy Program contact Lifestyle Security By Design.

Lifestyle Security By Design helps HR professionals and Benefits Managers boost their companies bottom line by providing their employees with Financial Literacy Programs. For more information on Financial Literacy in your work place contact Daniel at 416-875-1505 or dhanzelka@email.com.