By Sheryl Smolkin

This week there were several interesting blogs about life insurance I’d like to share with you.

On Brighter Life, Kevin Press discusses Understanding life insurance. First of all he gives basic information regarding term, permanent and universal health insurance. But for Kevin, the question was never “term or permanent.” It was, “How much term and how much permanent?”

Robb Engen from Boomer & Echo outlines The 4 Best Strategies for Successful Life Insurance Applications including preliminary inquiries, multiple applications, a covering letter and an insurance broker who is knowledgeable and up to date.

In a Toronto Star column I wrote about Eight red flags when you apply for life insurance. If your application reveals you have or had a serious or life-threatening illness the insurer may charge you higher premiums or postpone coverage for specific conditions until you can show the condition has stabilized. Or, the insurer may refuse to cover you. However, you still may be a good candidate for a “simplified issue” policy.

In an archived article Retire Happy blogger Jim Yih tackles the question, Do you need life insurance in retirement? Several of the situations where he says life insurance makes sense for retirees are to:

• Pay off debt
• Cover taxes at death
• Cover final expenses like funeral expenses
• Provide income for dependants
• Leave a larger estate
• Equalize your estate
• Business continuation
• Provide for charities

And finally this week, thanks go to Dan on Our Big Fat Wallet who introduced his readers to The Secret Pension Plan: Saskatchewan Pension Plan. He gives a great summary of the main features of the program.

He says the Saskatchewan Pension Plan is great for anyone looking to invest but not quite comfortable with DIY investing. It’s also useful for the self-employed who have no desire to handle their own investments. The costs of the plan are low and they offer lots of flexibility. You can also get potentially-lucrative cash back rewards for all contributions if you make them on your credit card.

Many employers also offer this easy-to-administer pension plans as an employee benefit. You can get more information on the Saskatchewan Pension Plan here.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

Are the papers on your desk a jumble of bank statements, utility bills and reminders that it’s time to make a dentist appointment?

Does the balance on your credit cards exceed your ability to pay off the balance every month?

Do you know how much discretionary income you have or do you simply write cheques hoping you have enough money in your account to cover them?

If managing your household expenses is an exercise in frustration, maybe this is the year to get your financial house in order.

Every year most of us make at least one or two New Year’s resolutions, but often they are not written down and we do not hold ourselves accountable. Maybe it’s because we make too many resolutions or our goals were not realistic to start with.

Here are some financial New Year’s resolutions that could help you better manage your money and begin saving for longer term goals, including retirement.

1. Get organized: Two accordion files – one for outstanding bills and one for paid bills can go a long way to taming the mess on your desk. Keep a record of when each bill must be paid or when the amount automatically comes out of your account.
2. Reduce debt: Commit to paying off your credit card balances every month. If this is not realistic, consolidate debt at the lowest possible interest rate and pay it off as quickly as possible. Most provinces have credit counselling services that offer free, confidential debt solution services.
3. Understand your expenses: January is a great time to get a handle on your expenses vs. your cash flow. You have all of your 2012 credit card bills and bank statements. Once you figure out where the money went last year, you can more easily determine how you can free up dollars to repay debt and begin a savings program.
4. Pay yourself first: If you set up automatic monthly withdrawals for Saskatchewan Pension Plan, RRSP or other pension contributions, the Canada Revenue Agency will allow you to pay less tax each month instead of waiting for a tax return at the end of the year. You will hardly notice the decrease in your disposable income.
5. Saving at work: Employers offering the Saskatchewan Pension Plan or another registered retirement savings plan typically match all or part of your contributions — often up to 5 or 6%. If you haven’t enrolled, you are leaving money on the table.
6. Benefit claims: Your workplace health and dental plans are terrific tax-free benefits. Resolve to immediately send in all bills for reimbursement so you don’t lose or forget about them. If your spouse also has a health plan, make sure to re-submit for the balance not paid by your plan. Even small amounts can add up.
7. File your tax return early: If you have overpaid, the earlier you file your return, the sooner you will get a cheque back from CRA. However, if you have investment returns you may not get all of your tax slips until the end of March. Sending in your tax return too early could mean that you have to re-file later and even pay interest on taxes not paid by April 30^th.
8. Spending your tax return: Plan to spend at least part of your tax return to pay down debt, contribute to a tax-free savings account  or enhance your retirement savings.

Don’t bite off more than you can chew. Pick a couple of these resolutions that relate to your situation and put them on your “to do” list. Then send an email to so*********@sa*********.com with other suggestions you have for financial New Year’s resolutions. If your idea is posted, your name will be entered in a quarterly draw for a gift card.

And remember to put a dollar in the retirement savings jar for every resolution you make to get your financial house in order in 2013.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

3-Jan	Getting in shape	What to look for in a gym membership
10-Jan	Post-Christmas	How to get the most out of your gift cards
17-Jan	Online shopping	Ways to save by shopping online