Ozturk Financial Services Ltd. https://ozturkfinancial.com Mon, 25 Jul 2022 17:43:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://ozturkfinancial.com/wp-content/uploads/2019/11/cropped-ozturkfinancial-fav-32x32.png Ozturk Financial Services Ltd. https://ozturkfinancial.com 32 32 Interesting Stats: Critical Illness Claim Payouts https://ozturkfinancial.com/interesting-stats-critical-illness-claim-payouts/ Mon, 25 Jul 2022 17:43:44 +0000 https://ozturkfinancial.com/?p=774
Thanks to medical advancements the survival rates for critical illness are much higher than they used to be. However, nothing can prepare you for the financial burden associated with surviving such an illness. Male or female, young or old, critical illnesses impact people from all walks of life. Plus, experience shows that payout of benefits covers a wide range of critical illnesses1. It is important to have a discussion with your financial advisor and make sure you have the right amount of coverage to protect your income, lifestyle and financial future.
Claims by gender Male/Female 51%/49% Claims by age Youngest/Oldest 23/78
Claims by critical illness Percentage of Claims Cancer 65% Heart Attack 12% Coronary bypass 7% Stroke 3% Multiple sclerosis 2% Other2 11%
That’s why critical illness insurance is such an important part of the conversations I have with my clients. Most plans have 25 Covered conditions, Competitive rates and Tax-free lump-sum benefit payment along with Return of premium options.  

To learn more about Critical Illness products contact us at. email: [email protected] or cell: 204-880-8922

Thought of the Day https://ozturkfinancial.com/thought-of-the-day/ Thu, 06 Jan 2022 20:43:51 +0000 https://ozturkfinancial.com/?p=754 Inflation! A horrible word, and a terrible thing to have. It means that everything you purchase from groceries, to gasoline, to lumber and that sweet can of Coke Classic is now more expensive. The cost of living, your everyday life has just increased with no warning. It just happened, everything costs more. Just two short years ago 2020, inflation was treading water at around 2%. Today January 2022, we are looking at an inflation rate of around 4-5%. What is the cause? Indiscriminate spending by Government. More money pumped into the economy that had no business being there. What is the good news? Simple, make sure that you are fully invested. If you haven’t started putting away money for retirement, start now. Right now!

As the cost of goods and services become more expensive, so too will your investments rise to the occasion. If you are already invested, congratulations! You have seen phenomenal growth since 2019. If you are not seeing that growth, perhaps it is time to speak to another advisor and think about re-balancing your portfolio. Your purchasing power must be maintained and protected. Purchasing power, not capital is at risk right now. As your purchasing power becomes devalued, so does your ability to maintain your standard of living.

Speak to us today. We would be happy to have a frank discussion, in plain language, about investment strategies to deal with the rising costs that inflation brings.

A Permanent Solution: Wealth Building Strategies https://ozturkfinancial.com/a-permanent-solution-wealth-building-strategies/ Fri, 26 Feb 2021 18:27:51 +0000 https://ozturkfinancial.com/?p=715 Creating an alternate asset class outside of your investment portfolios is easier than you think.

Permanent Insurance is a powerful, strategic tool to grow wealth in a tax deferred manner. Building your estate value, retirement income, transferring your legacy to the next generation. All of these things are possible with the right plan.

Most permanent Universal Life insurance plans will grow like an investment because any overfunding, above the premium, will be invested. What does this mean? Simply put, any money you contribute above the base cost of the policy will be placed in a separate account (managed portfolio) and will grow on a tax deferred basis over the life of the policy. This has the benefit of increasing the death benefit of the plan over time and creating wealth.

Term insurance on the other hand, has a fixed expiry date, and rising costs at time of renewal. Permanent insurance can be level, the costs never go up. The younger you are, the more cash value will accumulate over time within the plan and become a future asset.

There is value in using permanent insurance as part of your risk management strategy.

You can mix and match both Term insurance for temporary needs, (Mortgage, consumer debt, family income, child care) and permanent insurance for tax deferred growth, cash surrender value and generating another source of income for retirement. The options are many.

Ozturk Financial Services is here to help you find the right insurance product that best suits your needs.

Speak to us today.

Narrowing the Gap https://ozturkfinancial.com/narrowing-the-gap/ https://ozturkfinancial.com/narrowing-the-gap/#comments Wed, 09 Dec 2020 18:51:55 +0000 https://ozturkfinancial.com/?p=702 I love charts and stats! There is no defense against the facts, no argument that can counter the truth. Let us look at the market cycle post Covid19 and evaluate where we are today. I want to focus on small cap investments along with the market in general.

Here Are The Facts

From peak to trough during the drawdown from Feb. 13 – Mar. 18, the Russell 2000 Index was down 35.72% along with the TSX. As of today, the TSX is almost back up to what it was pre-Covid19, that is 17,640 a mere 220 points away from the 17,860 it was in February of 2020.

A testament to the power of doing nothing. Because just holding on, doing nothing, from March to December is what pays off in the span of NINE months. Pulling out of the market or panic selling, would cost the average investor the growth as well as the power of compounding, reinvested dividends. Seizing the opportunity presented during a downturn and adding more money to your investments would shorten the gap between bottom and recovery giving more potential for growth. Buying cheap and holding on while the price increases.

U.S. small-cap investments are among the best ways to gain exposure to the U.S. economy. Generally, small-cap companies derive more of their revenues domestically than their large-cap counterparts, but also tend to exhibit more volatility. They capture more of the upside as well. Here is where the opportunity is, since Small Caps are hit the hardest during this pandemic the opportunity for upside capture is there. It just takes time. But not as much time as people think.

If you look and compare Small Caps vs large Caps. The following chart highlights the 5 largest drawdowns for the S&P 500 over the past 30 years along with how the Russell 2000 performed over the same periods and rebounds for each. As you can see, the small caps usually get hit harder on the decline but significantly outperform on the rebound.

“There is nothing to fear but fear itself.”

Those profound words spoken by FDR in 1933 during the peak of the great depression is still relevant to investors today. Fear and the counter productive, often times, self destructive behaviors associated with those fears, are a far greater threat to the overall performance of an investor’s portfolio than the market cycle itself. Volatility is part of the market as oxygen is part of life. Take a deep breath and keep going, the surface is closer than you believe.

Speak to us today.

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Moving On….. https://ozturkfinancial.com/moving-on/ Fri, 17 Jul 2020 20:38:14 +0000 https://ozturkfinancial.com/?p=674 The wonderful thing about investing is that no matter what happens in the world, you can have faith in one immutable fact, people want to make money. There is a strong disposition in human beings to be continually unsatisfied. We strive for perpetual improvement in a myriad of ways. One example, is by accumulating and passing on wealth. It is a survival instinct for humans to never be too comfortable nor too content.

We are now in July of 2020. Globally, the pandemic is being dealt with and the markets are recovering. Likewise, businesses are operating again and the unemployment rates have been steadily dropping. Meanwhile, investment returns are looking great for those who stayed the course, continued investing consistently and did not give into panic.

We can assume that this trend will continue with confidence and 2020 will end as a positive year. This is my opinion and optimistic outlook. Only time will reveal the truth.

Human beings have a predilection towards the negative. That’s okay, it is a survival mechanism, to keep us on our toes. As a result, we sometimes allow negativity to define our reality. This reality must be challenged.

The cause of volatility in the market doesn’t matter, an investor’s behavior dictates the end result. Consistency and discipline trumps panic and market timing. See the charts below. The positive moments outweigh the negative ones over the long run. Therefore, it is far more reasonable and probable to expect a positive return over time than focus on the small number of negatives.

Pass me my Corona https://ozturkfinancial.com/pass-me-my-corona/ Sun, 01 Mar 2020 21:47:26 +0000 https://ozturkfinancial.com/?p=663 With the recent hysteria surrounding the corona virus, I felt compelled to add my voice to the fray. Let’s wax philosophical for a moment. ‘We have been here before and we shall be here again.’ Some of you may recall the mid October 2018 correction, when the TSX dropped from its high of 16,204 to it’s low point of 13,780 Dec 24th, 2018, before its rapid rise for the entirety of 2019. You read that correctly, ‘the entirety of 2019!!‘ I’m not even including reinvested dividends during the entire upswing. As I write this the TSX sits at a comfortable 16,263 Feb 28, 2020.

I believe the severity of this sell-off has primarily been caused by panic more than any long-term structural impairment. When evaluating the current market environment however, rational thinking should be applied, keep emotions out of it. The more emotional you get, you allow panic and disordered thoughts to take over, the more prone you will be to making errors in judgment regarding your portfolio.

This is a buying opportunity. Keep investing, this is not the time to switch or make any adjustments to the long term portfolio. Long term, is often tossed around and viewed as a year-to-year analysis of the current market condition. Long term means; just that, LONG TERM! Ten to twenty year time horizon. Not six months, not one year or two. In other words, add to your portfolio, keep adding, keep buying low as the fire sale continues hopefully long enough to get as many people on board before the rebound!

About that Mid October 2018 market correction I talked about at the beginning of this post, most people don’t even remember it. That’s the beauty of market cycles and the human mind in general. We always forget and move on until the next crisis. Do yourselves a favor and replace the word crisis with opportunity, your investments and future retired self will thank you for it.

10 things to remember when volatility strikes:

  • Volatility is a normal part of long-term investing
  • Long-term investors are usually rewarded for taking equity risk
  • Market corrections can create attractive opportunities
  • Avoid stopping and starting investments
  • The benefits of regular investing tend to stack up
  • Diversification of investments helps to smooth returns
  • A focus on income generation (dividends) increases total returns
  • Investing consistently delivers in the long run
  • Don’t be swayed by sweeping sentiment
  • Active investment can offer benefits in periods of increased volatility
Financial Planning, Investor Behavior and Board Gaming https://ozturkfinancial.com/financial-planning-investor-behavior-and-board-gaming/ Mon, 10 Feb 2020 23:55:48 +0000 https://ozturkfinancial.com/?p=642 What I learned from the 18xx System

For those of you not familiar with my favorite past time I will give you a brief overview. I love board games, specifically one system called 18xx. I fell in love with the 18xx group of games TEN years ago when I was introduced to a very bland looking game called 1870. What the game lacked in aesthetics it made up in game play.  The mechanics of the game are simple. Invest in shares of companies that make YOU money, avoid bad investments and at the end of the game, manage your portfolio well enough and have the most personal cash! But the destination from point A to point B is not always clear cut.

Which brings me to my point. Being a disciplined investor isn’t always easy. Most investors operate within the powerful grip of outcome bias; where they assume that good results must be the consequence of skill and will persist, and that poor results are a prelude to ongoing disappointment. This leads to the damaging behavior of performance chasing, where we sell our holdings in laggard funds and reinvest in recent winners. History is only a guide, past performance is not an accurate predictor of future performance.

Performance chasing then, isn’t a goal nor is it, in and of itself, a financial plan. There is no accurate predictor nor indicator of future performance and it becomes nothing more than a moving target. A target that is very difficult to hit consistently. Performance chasing, undermines an investor’s portfolio by diminishing long term returns.

Consistency, rationality and discipline

A game of 18xx, as with investment planning, requires discipline, rationality and control of your emotional biases.

Why did I feel compelled to sell off shares that I knew were profitable and were from a company that was directed by a player I knew had a good run and was making money? Why did I short a strong company, bail out of my position for a quick payout and usher in, disastrous long term consequences for my portfolio?

I could come up with a lot of reasons, excuses and justifications, but the short answer is; I did it because I got scared that things “might go bad” without any factual evidence to back up my paranoia and that’s not a very good reason to do anything.

One of the things that I love most about 18xx, is the almost limitless possibilities of choice. It’s the same with all the available options for investments.  Operationally, I know the sequence and how to play the game.  But while the moves themselves may be sequentially simple, the rationale behind them can be impossibly complex.  Where do I want to go?  What are my opponents trying to accomplish for themselves?  How do I keep the most options open for me while trying to block them out?

In comparison, investors ask similar questions. What’s the best investment option? How do I maximize my return and minimize my risk? What about global warming? The war in Iran? Russia? How do these forces play a role in my decision? But are these questions necessarily good? Or are they simply a manifestation of outcome bias or worse, a form of avoidance behavior?

What do you mean I have to save to retire? But I want it now!

Look, I get it. Life is challenging at best, brutal at worst. It doesn’t get better, unless you start planning right away. What does that mean? It means being honest with yourself, asking the HARD questions. Was it the rate of return that brought your portfolio down? Or did you sell at the worst possible moment? Go on that trip you couldn’t really afford, but did anyway? Squandering your retirement resources to pay for it, setting yourself back. Just like I sold shares I shouldn’t have sold, bought that big shiny train that wasn’t really necessary but looked SO good! I played the game foolishly and came in SECOND LAST. I can’t blame anyone but myself. I played badly. I made impulsive, rash decisions, without thinking about the long term affect on my game. I ended up where I should be.

A financial plan needs to be based on an achievable, realistic goal. Looking for the best rate of return, is not a goal. Without a written financial plan in place that keeps us accountable, or a strategy we can turn too, we tend to veer off course. The worst thing that can happen to your investment portfolio is impulsive, gut reactions, manipulated by outside forces that have no bearing on the quality or performance of your investments. Jumping ship before you reach your destination so to speak. How funds performed in the past year plays a much greater role in investment selection than it should and needs to be avoided.

The Children Are Worth It https://ozturkfinancial.com/the-children-are-worth-it/ Fri, 06 Dec 2019 19:40:00 +0000 https://ozturkfinancial.com/?p=632 I believe that Child Critical Illness coverage is extremely important and something every child should have. I say this with conviction and as a father, who purchased policies for both my children. Child CI, is an affordable way of providing much needed financial support in the event one of our children become critically ill. I’m a strong advocate for this coverage and hopefully after you read this blog, you will feel as passionate about it as I do.

The Benefits

-Coverage amounts between $10,000 to $1,000,000 per child

-Application process is quick and easy

20 year pay. The policy is fully paid up and the coverage is in force for life after the 20th year. (You only pay premiums for 20 years). Coverage will be in force for the rest of your child’s life and you don’t need to pay for it. It can also be transferred over to your child at any time after they reach the age of majority

Refund of premiums optional rider. You will receive a FULL 100% refund of premiums if the policy is cancelled any time after the 20th year

-Covers a wide variety of illnesses and childhood illnesses



-Benefit is paid out tax free

-Take the necessary time off work and seek out of province care if necessary

-Relieve financial stress and focus on your child’s recovery

-Provide for medical assistance/devices, private hospital rooms, travel and life expenses

-You don’t need to deplete taxable retirement assets to assist with paying the bills or replace lost income

I would be happy to go over a Child CI illustration, product summary and answer any questions you may have.

Apply for a quote

Covered conditions are listed from Desjardins Insurance Child Critical Illness illustration.

Would you ever ride in a car with no seat belt or air bag? https://ozturkfinancial.com/would-you-ever-ride-in-a-car-with-no-seat-belt-or-air-bag/ Fri, 22 Nov 2019 17:39:17 +0000 https://ozturkfinancial.com/?p=615 Income protection is an important part of risk management.  Unfortunately, it is a gap that most Canadians don’t realize.

The risk of suffering from a critical illness is greater than dying prematurely. Yet, in general, purchasing insurance to protect oneself from a critical illness and one’s income earning potential, is far less common than purchasing life insurance.

Why critical illness protection makes sense:

While many Canadians have heard of critical illness insurance, they may not fully understand the importance it plays as part of a sound financial plan. Not taking steps to insure your income, is like riding in a car without an air bag. Is it worth the risk?

Hidden and out-of-pocket costs may include:

  • Medication and treatment options not covered by government and employee health plans
  • Increased expenses related to day care, hospital visits (including parking and food)
  • Home care assistance & home renovations to accommodate illnesses
  • Covering losses of income (for both the insured and caregiver)
  • Dipping into investments to cover costs can seriously deplete retirement resources

Click here to learn more

1 According to the Manulife InsureRight risk calculator 2 According to a report published by Canadian Cancer Statistics, Canadian Cancer Society, 2015 3 http://www.huffingtonpost.ca/2014/02/03/canadian-heart-attacks-and-stroke_n_4717180.html 4 Average cost per patient for newer oncology drugs is $65,000 per year with an average co-insurance amount of 20 per cent. Report: Cancer Drug Access for Canadians, September 2009, Canadian Cancer 5 According to a poll conducted by the Heart and Stroke Foundation. 2014 Report on health – Creating Survivors, Heart & Stroke Foundation 6 Based on coverage count of active claims for individual non-cancellable CI products.