JSJ Insurance and Financial Group Inc.

DAY OF RECKONING, FEAR, PANIC, COOL HEADS PREVAIL, THIS TOO WILL PASS. These are the headlines and no one really knows where this market is going. The investment outlook is different from all points of view.  An economist with BMO (Bank of Montreal) states that he believes that the TSX will be back up to 14,500 in twelve months and this is a 31% increase. It would be really nice to be in on that . Another economist states that we are in for a recession over the next twelve months. The Federal Banks across the world have this morning cut their lending rates in the hopes that this will loosen up money and ease the panic on the markets. The tight credit is what is creating the worldwide sell off and the power people are looking at this as a buying opportunity and are awaiting the "bottom" before buying back in heavily. When that happens the markets will go up substantially. Most pundits say that if you are in the markets and do not need the funds within the next year then stay the course and you will be rewarded. I tend to agree with these pundits and history has shown this over and over again.

This is just a note to say that I think we should "stay the course", not panic and realize that we are in an opportune time to catch the "upswing" when it arrives.

Jack Wallace  CFP CLU

Check out the latest points of interest for Autumn 2008!

Inside Info Autumn 2008

They’re calling it “Black Monday” as the TSX and Dow Jones dropped over 500 points each in a single trading day – the largest single day decline since 2001.  I think it’s really the first time that we’re seeing the true globalized affects of the US sub-prime mortgage lending and credit crisis.  Unable to garner government assistance like Fannie Mae and Freddie Mac have in recent weeks, Lehman Brothers Holdings Inc. filed for one of the largest historical bankruptcies of $70billion after failed attempts to build capital or find a buyer.  Merrill Lynch is being snapped up by Bank of America at a “discount”.  And today’s big headline is American International Group Inc. (AIG) and whether they can raise the $40billion capital they need with a declining credit rating. 

 What we’re doing here at JSJ:

 For our investors, we’ve always approached the investment part of your plan with a long-term and moderately conservative view.  With that in mind, we’re preventing significant loss by staying away from US equities and remaining with companies that have limited or avoided their exposure to the sub-prime mortgages from the beginning.  Can we all remain unaffected by this global crisis in the financial markets?  No.  But we’re taking the steps to explain that this downturn in the market is not permanent, will have ripple effects, but also gives opportunity for significant long-term growth for those buying into the “right” funds right now.

What if you’re a client of AIG Life of Canada?   AIG Life of Canada is a separate legal entity and as policyholders you are unaffected by the goings-on of American International Group Inc. on a global front.  Please read this letter sent by the President and CEO of AIG Life of Canada.

Recently John Wonfor, a national tax partner at BDO Dunwoody, in conjunction with the Institute of Chartered Accountants of Ontario, released a list of 10 tax tips that students should heed before they venture off into the world of academia,

For the complete list of tips, please go to: www.advisor.ca/shared/print.jsp

The Canadian Broadcasting Corporation (CBC) aired an episode of Marketplace on Wednesday February 6, 2008. An interesting investigative piece on mortgage insurance, it featured an individual who lost their spouse and had their mortgage insurance death claim declined. It serves as education and a reminder that covering your mortgage debt is best done through an individual insurance policy as part of your financial plan between you and your independent insurance advisor. If you DO have creditor mortgage insurance, please consider carefully discussing the replacement of this coverage with us after watching the Marketplace episode linked below.

View Marketplace, February 5, 2008

To see comments from viewers:
View Comments

THE WEALTH-BUILDING ISSUE!
The newest edition of JSJ's newsletter has been launched!
View Inside Info Autumn 2007.
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In a series of articles by Ellen Roseman for the Toronto Star, various insurance topics are discussed weekly.
For your interest, following the below links to read these informative, consumer-driven articles:
Perils of a mortgage life policy, April 22, 2007
Using life insurance to your (tax) advantage, April 29, 2007

* future articles in this series will be added as they are available.

Canada's Toronto Stock Exchange (TSX) saw a drop of 2.72% Frebruary 27th, the largest single-day decline since just after 9/11. This came as a result of activities happening in the China stock market - a large selloff of Global Equities - as China reported they needed to "slow" their booming economy in the coming years.

North American investors didn't panic as would likely be expected, and although Canada's stock exchange took quite the hit as could be expected most segregated and mutual fund companies in Canada reported small losses for the day. An average of low-1% and mid-2% losses were seen by companies JSJ's clients hold funds with, the largest hits being seen in the Global and US Equity funds as a direct result of the correction in the market.

For more info: Globe & Mail March 1, 2007 or contact our offices

THE RETIREMENT ISSUE!
The newest edition of JSJ's newsletter has been launched!
View Inside Info Winter/Spring 2007.

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The Drug System Secretariat was established in June 2005 to lead a review of Ontario’s drug system. Earlier this year the Secretariat presented a series of recommendations to the provincial government. The resulting Transparent Drug System for Patients Act received Royal Assent on June 20, 2006. Initially, most changes were to come into effect on October 1, 2006, however, recent amendments will see some of the changes are deferred to April 1, 2007.

Ask more about how these changes affect your group benefits plan!
Contact us

The newest edition of JSJ's newsletter has been launched!
View Inside Info Autumn/Winter 2006.

If you'd like to receive this e-newsletter direct to your inbox, sign up for our mailing list!

E-Dental is now available!
For group policyholders having self-insured dental benefits with JSJ, electronic dental claim submission is now available!!
For more information, please contact your advisor.

The premiere edition of JSJ's newsletter has been launched!
View Inside Info Spring/Summer 2006.
If you'd like to receive this e-newsletter direct to your inbox, sign up for our mailing list!

Also new to the site are enchanced Services for Group Employee Benefits programs as well as for Self-Insured Group Benefits programs. Ask us about what we can do to help you maintain Employee Benefits costs while offering supreme benefits to your employees!

A new addition to our website this year, the mailing list will enable you to receive directly in your inbox any news items posted on jsjgroup.com, as well as our quarterly news feature which will commence spring/summer 2006!
To join our mailing list, click here or see our News or Contact pages.

The summer officially ends, a new school year begins, and it seems that news reports everywhere are focusing on hikes in post-secondary school tuition costs. Parents send their young children to elementary school and the last thing they want to be thinking of is their child heading to college or university.

However, this is the time that parents should be faced with the inevitable question: "how are we going to pay for our child's post-secondary education?"

The solution? Four letters: R E S P - registered education savings plan.

RESPs are not unheard of, but many are unaware of the details involved and advantages with a savings plan. Not only is long term education savings the most cost-effective way to secure your child's education funding, the market offers many different plans to suit your needs. As well, a grant is offered through the government based on fund deposits to motivate contributors.

When reading through all the information available, the variations of plans and details can be quite overwhelming. Things to be considered in choosing the right plan for you include everything from your investment sophistication, risk tolerance, amount available to invest, flexibility of payments and time horizon - just to name a few. The most popular question for contributors - whether it be a parent, grandparent, aunt, uncle - is what would happen to the funds deposited, and the interest accumulated if the child does not pursue a post-secondary education when the time comes? No one can see the future. In all plans, a refund (less any government grant deposits), will be given to the contributor. With this said, a RESP is clearly an ideal way to save for a child's education.

Your financial advisor can help you to determine the best plan for you, and the deposit arrangement that best suits your needs.

For all our Self-Insured Employee Benefits clients, our claims adjudication and invoicing software will be upgraded on November 1, 2005. Although this will not affect the payment of claims in any way, you may notice that the aesthetics of reports, payment confirmations to employees, and invoicing will have changed. This is all in an effort to offer more services and a smoother adjudication of claims for our clients.... to serve you better.

More than ever before, pharmaceutical companies are racing to develop the newer, better drug for the marketplace. It’s a multi-billion dollar industry that in 2004 saw consumers spending $18 billion on prescription drugs alone – not including the $1.3 billion in drugs dispensed by hospitals. That’s more money than is spent on physician services, and a significant rise from the $2.6 billion spent on prescription drugs seen twenty years ago.

Each new patented drug is reviewed by the Canadian Patented Medicines Prices Review Board, which classifies new drugs going on the market. In the period of 1990 to 2003, the review board was presented with 1,147 new patented drugs, of which only 68 met the criteria of a breakthrough drug. That’s only 5.9% of all drugs reviewed classified as being a “first drug to treat effectively a particular illness or which provides substantial improvement over existing drug products.� The Board also classifies variants as innovative drugs, which in addition to the breakthrough medicines totals 142. That means that 1,005 of the newly-patented drugs released from 1990 to 2003 were variations of already existing drugs.

These "knock-off" drugs are often made by brand name manufacturers, as opposed to copycat drugs made by generic companies after patents expire. They can be variations of a competitor's drug, or of one of their own. Proper marketing can make a "knock-off" a market leader with simple reformulation and repackaging of an existing drug. This helps the pharmaceutical company prolong the patent, and the profits.

With the introduction of these "new" drugs costing more with little or no improvements in treatment potential, one would think that policy-makers would consider whether the current method of regulating prescription costs and determining which drugs are placed on provincial formularies is adequate.

* Source: "'New' drugs too often offer little new" Andre Picard, The Globe and Mail September 8, 2005

"Mothers and children are the foundation of families, communities and societies. When a mother or child dies, that foundation crumbles. If we want to improve the health of future generations, we must start with the health of mothers and children today." World Health Organization Director-General Dr. Lee Jong-wook

The World Health Organization has declared the focus of the 2005 World Health Day April 7th to be "healthy mothers and children" in an attempt to raise the profile of the specific health issues and concerns facing the world's women and children today.

Throughout the ages, women have always been faced with different health concerns, or issues that affect her differently than those of men. These include both the obvious differences arising from simple biology such as pregnancy, reproductive health and menopause. However, according to Health Canada, women tend to suffer more than men from conditions such as arthritis, rheumatism and allergies. They also identify lung cancer, breast cancer, cervical cancer and heart disease as significant threats to the health of women. And then there are health concerns springing from social issues like family violence, sexual abuse and assault, economic inequality and society's role in shaping women's image of themselves and their bodies.

Topping the list of all these health challenges rests heart disease and stroke, taking the lives of 38 percent of all Canadian women, compared to 35 percent of Canadian men (Heart and Stroke Foundation of Canada). According to the Canadian Health Network, women are ten times more likely to succumb to heart disease than any other illness, so heart health is an obvious place to direct education and prevention efforts.
Many people don't realize how the symptoms of a heart attack differ between men and women, which can lead to heart attacks going unnoticed, untreated or even misdiagnosed in women. Before entering mid-life, a woman's hormones provide extra protection against heart disease putting her at a lower risk compared to men of the same age. However, after menopause, her risk will gradually increase until age 65 when it is equal to that of her male counterparts. This risk is increased even further if she is a smoker and/or has high cholesterol levels in her blood.

What can you do as an employer?

Many employers offer Employee Assistance Programs (EAPs), which is a service providing confidential counselling services to an employee and their dependents without affecting claims experience. In the Depression and Anxiety Among Canadian Women in the Workplace survey, about half of the respondents who suffer from depression were aware that their companies offered an EAP, and about 20 percent took advantage of the service. Those who did found the services helpful with 82 percent citing satisfaction with the help that was received. Those who chose not to make use of their employer's EAP noted that they were already seeking help from an outside source, felt they could handle the problems themselves, didn't know about the program, were concerned about the confidentiality of the service, or simply didn't want people to know about their problems.

Virtually all women in the workplace who suffer from depression wanted help from their employers to deal with their condition (Depression and Anxiety Among Canadian Women in the Workplace survey). Suggestions have included having a counsellor or health care professional on-site in the workplace, having more resources available and make those resources better known throughout the company, and being more understanding and educated of an employer with respect to mental health issues. There's good reason for employers to consider these suggestions carefully. People who conquer their depression report a long list of job performance improvements such as feeling more motivated, producing higher quality work and taking fewer days off work for health reasons.

Women make up just over half (51%) of the total Canadian population, so it's important for women's health issues to receive greater exposure and attention in our communities and workplaces.

• Learn more about World Health Day
• Learn more about Heart Disease and Stroke

* Source: Manulife Financial Emmployee Benefit News, Vol 12, Issue 1

As RRSP season draws near, people often find themselves thinking about their future. Many people have a couple goals in mind for retirement, even if it is simply maintaining the lifestyle they enjoyed while still in the workforce.

RRSP Tips

Helpful information you should know

1. Start as early as you can
2. Maximize your contributions
3. Reinvest your refund
4. Maximize your foreign content
5. Pay yourself first
6. Consolidate your investments
7. Seek professional advice

It is proven that investors who seek the advice of professionals tend to do better over time. Not only will a professional advisor help you build a well-diversified portfolio, they can continue to counsel you on the best ways to respond to changes in the financial markets over time.

To help you determine how much you should be investing on an annual basis to achieve your retirement goals, go here and choose the RRSP Calculator:

RRSP Calculator

The Canadian Dental Association has developed the Dental Patient's Charter of Rights, comprised of the following seven key principles:

• Patients have the right to be examined and diagnosed by a licensed dentist
• Patients have the right to an explanation of treatment alternatives and costs before treatment
• Patients have the right to receive treatment according to the standards of the profession
• Patients have the right to be treated in a safe and healthy environment
• Patients have the right to be cared for by the dentist of their choice
• Patients have the right to receive prompt emergency care
• Patients have the right to an avenue by which to express complaint

Ask questions!

Communication is key between dentist and patient. If a patient doesn't fully understand the treatment plan, amount of work and/or urgency of the work that's being recommended, s/he should be encouraged to ask for more information.

Clarify terms used by the dentists to reduce confusion, and don't feel uncomfortable taking some extra time to think about it. This will give the patient more time to seek out additional information, clarify what is and isn't covered by their dental plan, and obtain a second opinion if necessary.

Today, many dental offices are able to submit claims electronically to the insurance carrier for payment. This is a convenient method, however plan members should always make sure they obtain a copy of the claim statement and review it to validate the accuracy of the expenses being billed to their benefits plan.

Employer-sponsored dental plans provide plan members with access to regular and continuous care, greatly reducing the chances of needing excessive or unexpected dental work in the future. Plan members should always be encouraged to understand their role in their own dental care and dental plans. Even though the majority of their dental expenses are paid for by the plan, it's in everyone's best interest for plan members to take ownership for the benefits plan and be wise consumers of the health and dental care it provides.

Retirement security is "a public policy issue that appears to have more urgency in individual Canadian households than within national institutions [such as] the federal government," said Canadian Labour Congress (CLC) president Ken Georgetti recently in a letter to Prime Minister Paul Martin.

In a CLC survey conducted by a Toronto research firm in March of this year asking 1,003 adult Canadians to rate 12 public policy issues on a scale of 1 to 10 based on priority, 72% ranked "protecting retiree's pensions and retirement income" as Priority Level 1, 2 or 4 - second only to healthcare. With an obvious lack of government attention to this public policy, and an aging population in Canada, individuals are having to save for their own retirements.
In a Statistics Canada report released this year, an increase in household spending is mostly attributed to spending for financial services, as aging Canadians have been adding to their financial assets, searching for retirement products and supplementary health insurance coverage. These increases in consumer spending are fueled by added personal wealth and income amongst Canadians.

"The resulting emphasis on longer-term savings products has propelled the demand for financial planning and wealth management," the report states.

The most significant change was a six-fold increase in RRSP holdings from late 1980's to late 1990's, resulting in the largest single asset increase in Canadian households. The proportion of families with RRSP's doubled in 2000 from 1981 to 55%. Do you have your retirement savings program in place?

UNIVERSAL LIFE INSURANCE - An Added Investment Product

With more than every other Canadian family investing in RRSP's, what alternatives are there for investing? One insurance and investment "hybrid" is Universal Life Insurance. A widely popular product, this allows insured individuals to "over-fund" their policy in order to invest in funds offered by the insurance provider.

An ideal alternative for investing when your RRSP's are maximized for the year, however this isn't ideal for everyone. Although the investment aspect of the product is sought-after and deemed as having an advantage over traditional life insurance, if the insured can not afford to over-fund the premium deposits then the advantages disappear. Contact us to find out if Universal Life Insurance is right for you!

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