Families Rescued With a Financial Relief Plan, How We Were Able To HELP Them!
It’s now August 2020 and who would’ve believed that the whole world would be going through this life changing pandemic! Some of us have gone back to work with new health and safety precautions in place and a lot of us are still working from home. Quite a few of us had to home school our children and our lives have been turned upside down. Some of us really enjoy working from home while others find it extremely challenging working with their spouse/partner and their children and this has had a huge impact on a lot of families, emotionally and financially. Sometimes it is necessary to have a financial relief plan.
We’ve been extremely fortunate to have been able to help many people and families with their personal and business financial challenges. This automatically reduces their stress and puts a smile back on their faces! Plus it offers a huge relief for them during this time of uncertainty.
Government programs are available to help many families but sometimes that just isn’t enough.
2 More Stories of Families That We Have Recently Helped
Financial Relief Plan for a Couple in their 40’s
This lovely couple are in their mid 40’s and they both work full time. Steve is a self-employed entrepreneur and Tina works as an Accountant. Since the Covid-19 lockdown, they have both been working from home. They have been home schooling their twin girls who are in High School. Like many other families, before Covid-19, they were just getting by. They were very concerned about their family’s financial future as a few of their friends had lost their jobs and were struggling. They didn’t know who to talk to for advice. Fortunately, Steve’s lovely sister referred them to us, as she was referred to us 2 years ago and we were able to help her.
At the Blackmore Levy Group, we sit down with families and individuals and gather all their financial information – the good, the bad and the ugly and custom design a personalized blueprint of their new Financial House. With this lovely family we saved them $2,704/month. And together, we were able to rebuild their Financial House the right way.
Steve is a self-employed Project Manager and Tina is a salaried Accountant.
Home Value: $1,200,000 – Burlington Property
This was their financial situation:
| Debts | Balance | Monthly Payment | Interest |
| Current Mortgage | $350,000 | $2,279.00 | 4.89% |
| All Other Debts* | $210,500 | $3,050.00 | * |
Total Monthly Payments = $5,329.00*
Debts: Car Loans, Credit Cards, Lines Of Credit with varying interest rates up to 24.4%
New Financial Relief Plan
As you saw, this lovely family really needed financial help to reduce their high interest debt and to stop them taking money out of their RRSP’s, as they had a lot of equity in their home. Borrowing money at a very low interest rate to pay off high interest debt is a very smart plan. Borrowing money at a very low interest rate to invest in your future, as you’ll be getting a higher rate of return, compounding over the next 25 years, is also a very smart idea. This would relieve their stress level during this difficult time. We arranged a new first mortgage. Mortgages for self-employed individuals have a different set of rules and as this article points out, an independent mortgage broker like the Blackmore Levy Group can help find lenders that best suit the clients’ needs. With the new mortgage we paid off all their outstanding debt and consolidated it into one lower monthly payment, which gave them a huge financial relief. Now they no longer have to take any money out of their retirement plans
.NEW Monthly Payment of $2,625.00 = A SAVINGS of $2,704.00 per month.
Their New Plan outlines exactly what to do with their freed up money, which puts them in a better financial position for their future. This is what we implemented:
- Life Insurance – So their family and business is now fully protected
- Will and POA’s – They didn’t have them in place, now they do
- Set up an Emergency Fund – So they don’t have to rely on their lines of credit
- They each made deposits to their Saving & Retirement Plans and set up monthly contributions to both – taking advantage of Dollar Cost Averaging
- Accelerated the New Mortgage, to pay it off years sooner, which will save them almost $43,000.00 in interest
Financial Relief Plan for a Couple in their 50’s
Another lovely couple we helped are in their early 50’s. They both work full time and since the Covid-19 lockdown, they have both been working from home. They are home schooling their 8 year old son and supporting their 2 older children that are both in University. Like a lot of blended families, they had some debt and were just getting by financially, before Covid-19. They had no money left in their emergency fund and very little savings. Luckily, they were referred to us before they withdrew the rest of their savings.
At the Blackmore Levy Group, we sit down with families and individuals and gather all their financial information – the good, the bad and the ugly and custom design a personalized blueprint of their new Financial House. With this lovely family we were able to save them $1,796/month. And together, we were able to rebuild their Financial House the right way.
Eric is a salaried employee at a large IT corporation & Sara is a salaried employee at a Bank.
Home Value: $980,000 – Waterdown Property
This was their financial situation:
| Debts | Balance | Monthly Payment | Interest |
| Current Mortgage | $245,000 | $2,056.00 | 5.99% |
| All Other Debts* | $195,000 | $2,250.00 | * |
Total Monthly Payments = $4,306.00*
Debts: Car Loans, Credit Cards, Lines Of Credit with varying interest rates up to 24.4%
New Financial Relief Plan
This lovely blended family really needed financial help. We arranged a new first mortgage since we showed them that they had repaired their credit scores and now qualified for a much lower interest rate. With this new mortgage we paid off all their outstanding high interest debt. This relieved all of their financial stress. While we were gathering their financial information, we learned that they were paying $171.00 a month for Mortgage Life Insurance, Credit Card and Credit Line Insurance and only had Life Insurance through their work. We outlined all the reasons why this is not good coverage and they had no idea that the Bank was actually the Beneficiary and not their family. Even though they had Group Life Insurance through work they didn’t realize that it was minimal coverage and it didn’t stay with them if they ever left their job. Most people need their own personal Life Insurance policy as it will always stay with you. They agreed with us after we showed them this very important video, (In Denial) that we share with our clients. This episode of CBC Marketplace explains exactly how and why Mortgage Life Insurance is not a good choice for most people.
NEW Monthly Payment of $2,510.00 = A SAVINGS of $1,796.00 per month.
Their New Plan outlines exactly what to do with their freed up money, which puts them in a better financial position for their future. This is what we implemented:
- Life Insurance – Now their family is fully protected with the right type and amount
- Will and POA’s – They were not updated, so they were no longer valid. Now they are!
- Set up an Emergency Fund
- Set up monthly contributions to their Saving & Retirement Plans, so they could take advantage of Dollar Cost Averaging
- Accelerated the New Mortgage, to pay it off years sooner, saving them over $35,600.00 in interest
At Blackmore Levy Group, together, we custom design and build or re-build your Financial House the right way. We would love to help you. If you would like to have a FREE, private and non-judgemental conversation, please contact us or call us at 1.888.520.6520. Let us help you smile again.
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