Being prepared forunexpectedlife changes(and potentially devastating)“Bad things always happen tosomeone else.” If that phrase soundsfamiliar, it is because we all say it…and, for the most part, we believe it.But, deep down, we also know thatthings can and <strong>of</strong>ten do happen whenthey are least expected…even to us.Unfortunately, many <strong>of</strong> us are not as preparedas we could or should be for those unexpectedoccurrences that can literally alter our entire lives…things like a family crisis, an accident or a medicalcondition such as a heart attack or stroke that canhave long-lasting physical, mental, emotional andfinancial implications. Although individuals workingin government or in large corporations must alsodeal with these situations should they ever arise,independent appraisers working in a private practice,
“If you have plans regarding what you want to achieve in your life, bothpersonally and pr<strong>of</strong>essionally, you must also have plans for effectively dealingwith something as drastic as an accident, heart attack or stroke.”particularly those operating aloneor within the context <strong>of</strong> a smallercompany, and not having accessto large group benefit plans, musttake extra measures in order tolessen the impact. If they do not,such occurrences can be evenmore financially devastating forthem personally, for their familiesand for their companies. The goodnews is that there are steps thatcan be taken in order to be betterprepared.“Something like a stroke is notlike a cold or a broken leg that getsbetter and goes away…it can bepermanent and have far-reaching,life-changing implications,” says<strong>Appraisal</strong> <strong>Institute</strong> <strong>of</strong> <strong>Canada</strong> (AIC)past-president Keith Goodwin,AACI, P. App, Fellow, who speaksfrom personal experience havinghad such a debilitating stroke inApril <strong>of</strong> 2004.Keith is one <strong>of</strong> three partnersin the firm <strong>Appraisal</strong>s NorthwestLtd. located in Terrace, BritishColumbia. Unfortunately, due to hisstroke, he is now a legal partner,not a working partner. He has beenunable to work since his stroke; hewill not be returning to regular work;and he is now <strong>of</strong>ficially designatedas a ‘permanently disabled person’by the Government <strong>of</strong> <strong>Canada</strong> andits <strong>Canada</strong> Pension Plan.According to Keith, “The strokeliterally forced me into retirement,which presents an entirely differentset <strong>of</strong> circumstances than doesretiring voluntarily. Our family hashad to use savings and RSPs tosupplement our daily living needs;my wife, who was looking to reduceher workload and make otherlifestyle changes when my strokeoccurred, has had to re-establishher teaching credentials and returnto a part-time teaching career;and, while we are managing tomeet the costs <strong>of</strong> day-to-day living,we are no longer in a position tobe building any kind <strong>of</strong> reserves forthe future. Fortunately, I had beenworking for many years and hadmanaged to build a bit <strong>of</strong> a nestegg. If something like this were tohappen to a younger person, withless years in the workforce, thereis a good chance that savingswould not have grown to the pointwhere it could provide much <strong>of</strong> asafety net. As well, that individualmay not even be eligible for the<strong>Canada</strong> Pension Plan.”“It is absolutelycritical that you fullyunderstand every detail<strong>of</strong> the insurance policy,including the specificwording andits implications.”As for the company that hehelped establish and build, Keithreflects on such unplanned issuesas the increased workload thateach <strong>of</strong> his partners had to takeon, the extra support staff that hadto be hired, the adaptations andnew relationships that clients hadto make, and the business growthplans that had to be put on hold.“When someone who was a onethirdcontributor to a company’sbusiness and clientele is suddenlyremoved from the picture, theeffects are enormous. Fortunately,I have partners who did everythingpossible to hold things together,to provide stability and to carry onin the most positive fashion. Forsomeone working alone or whois the main principal in a smallbusiness, it could well mean thedemise <strong>of</strong> the company.“If you have plans regardingwhat you want to achieve in yourlife, both personally and pr<strong>of</strong>essionally,you must also have plansfor effectively dealing with somethingas drastic as an accident,heart attack or stroke,” says Keithemphatically. “You certainly cannotanticipate this kind <strong>of</strong> thing, butyou can take measures to be betterprepared so that the impact is notquite as devastating.”What sorts <strong>of</strong> precautions canbe taken to lessen the impact<strong>of</strong> such a life-changing event?Naturally, we would all be wise toestablish RRSP and RESP plansas soon as possible and to makeregular contributions that can beginbuilding resources for needs downthe road. If possible, it is equallyimportant to build some ‘rainy day’savings, since you probably do notwant to deplete longer term retirementor educational funding plansif you can avoid it. Remember aswell that, if you are in the position<strong>of</strong> no longer being able to earnmoney, you likely will not be ableto make additional contributions toany RSPs or RESPs, meaning thatwhat you have in the plans at thetime <strong>of</strong> the accident or illness is asmuch as you will ever have.As for other important measuresyou can take, insurance is the key.According to Keith, “Having basichealth insurance is a must in orderto meet the immediate needsC a n a d i a nAppraiserE CVolume 51 • book 4 • 2007 valuateura n a d i e n 39
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