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Nancy Ackert Financial Solutions hosts successful seminar to help people get out of debt By Liz Dadson |
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About 25 people gathered at the Best Western Governor's Inn Wednesday night to find out ways to get out of debt so they can sleep at night. Hosted by Nancy Ackert Financial Solutions of Kincardine, the seminar featured guest speaker John Uren of St. Marys who has been involved in financial planning for more than 25 years.
He said the best way to get out of debt is to do a needs assessment. This will help focus on eliminating debt, set aside money for final expenses, consider income replacement and critical illness, as well as accident and disability insurance, and a supplementary income. “We have a one-in-17,000 chance of suffering from a major house fire but we make sure our house is insured,” he said. “In fact, we insure all our assets. But we don't insure ourselves, even though there is a one-in-2.5 chance that we will contract a critical illness before the age of 75. Uren said the major part of financial management is remembering to “pay yourself first.” After that, there are other great strategies for paying off debt and having some money at the end of the week, the month or the year. Drawing up a chart of a mortgage for a $100,000 house, he noted that the payments at the start of the life of the mortgage are mostly interest, while at the end, it's mostly principal. “The best way to handle this is to make lump-sum payments against the principal each year,” he said. “This will reduce the length of your mortgage and decrease the amount you pay in interest. For example, he said a typical house mortgage would be over 24 years, with interest and principal paid each month or bi-weekly. However, if the homeowner were to pay less each month on the monthly payments, and save up about $800 per month, he would have about $10,000 each year to put against the principal. That would drop the length of the mortgage to 12 years. “And that saves you money,” he said. “You cannot plow a field by turning it over in your mind,” said Uren. “You need to draw up a plan, and work with a coach who will help you reach your financial goals.” Nancy Ackert discussed the Smart Equity cash flow management system which helps people take money they have available in an account, such as a line of credit, and make it work to pay down debt. She also referred to the front-end mortgage for a house which has mostly interest paid in the first few years, and then mostly principal paid at the end of the mortgage.
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Smart
Equity introduces the “debt-swapping effect”or “reverse
engineering” which helps people pay down their mortgages faster and
paying less in interest, she said.
 Nancy Ackert showed a picture of a house which provides a solid financial
foundation, including wills and power of attorney, life insurance,
disability and critical illness insurance, and an emergency fund
and/or tax-free savings account.
The next level shows debt reduction and savings, by reducing the interest you pay on your mortgage and credit cards and other debt, and investing that in Registered Retirement Savings Plans, Registered Education Savings Plans, and other savings. The top level of the house shows growth and diversification, including real estate, art and jewellery. “As a financial contractor, in what areas can we work together to put your financial house in order?” she asked. Ackert said this is the first time she has hosted a seminar on this topic. “It's the best turn-out we've ever had,” she said. “The energy was phenomenal. I was very pleased.” Also taking part in the seminar was Deb Shelley of Coldwell Banker, Walkerton. Those who attended the financial seminar, or have read this article, are eligible for a one-hour complimentary Smart Equity analysis. Contact Ackert at 519-396-6880 or nancy@nancyackert.ca by Nov. 7. If you have any questions regarding financial planning,
contact Ackert at the above telephone number or E-mail. Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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“There's
a reason you're here,” he told the audience. “You're working hard
but you're not getting ahead. You have increased debt, you're barely
making the interest payments, you cannot afford insurance or the loss
of a pay cheque. You have a lack of savings, you're unprepared for
the future. So, your quality of life has diminished and you struggle
with stress and insecurity.”
