Insurance Planning for Incorporated Professionals

For incorporated professionals, making sure your practice is financially protected can be overwhelming. Incorporated professionals face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your practice in the case of uncontrollable events such as disability, or critical illness. This infographic and article address the importance of corporate insurance.

The 4 areas of insurance a incorporated professional should take care of are: 

  • Health 

  • Disability 

  • Critical Illness 

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For incorporated professionals, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For incorporated professionals that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your practice if you or a key employee were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your practice running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for you or key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the practice so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For an incorporated professional, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your practice and also be another form of investment for excess funds.

Key person life insurance can be used to provide a lump sum payment to the practice on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess funds not needed for operations to provide for tax-free growth (within government limits) to diversify your portfolio and reduce taxes on passive investments.  

Talk to us to make sure you and your practice are protected.

2022 Federal Budget Highlights

Federal Budget 2022 – Highlights

On April 7, 2022, the Federal Government released their 2022 budget. We have broken down the highlights of the financial measures in this budget into the following different sections:

  • Housing

  • Alternative minimum tax

  • Dental care

  • Small businesses

  • Tradespeople

  • Canada Growth Fund

  • Climate

  • Bank and insurer taxes

Housing

There were several tax measures related to housing introduced in the budget.

Budget 2022 introduced a new kind of savings account – a Tax-Free First Home Savings Account (FHSA).

These are the key things you need to know about the new FHSAs:

  • You must be at least 18 years of age and a resident of Canada to open an account. You must also not currently own a home or have owned one in the previous four calendar years.

  • You can only open and use an FHSA once, and you must close it within a year after your first withdrawal.

  • Contributions are tax-deductible, and income earned in an FHSA will not be either while it is in the account or when you withdraw it.

  • There is a lifetime contribution limit of $40,00, with an annual contribution limit of $8,000. You can’t carry contribution room forward.

  • If you don’t use the funds in your FHSA within 15 years of opening it, you can transfer them to an RRSP or RRIF tax-free. Transfers to an RRSP do not impact your RRSP contribution room.

Two existing tax credits were increased, and a new one was introduced:

  • The First-Time Home Buyers’ Tax Credit amount was increased from $5000 to $10,000, giving up to $1,500 in direct support to home buyers. This tax credit applies to all homes purchased on or after January 1, 2022.

  • The annual expense limit for the Home Accessibility Tax Credit has been increased to $20,000 for 2022 and subsequent tax years.

  • A new tax credit, the Multigenerational Home Renovation Tax Credit, was introduced, which will start in 2023. This tax credit is a 15% refundable credit for eligible expenses up to $50,000 (maximum tax credit is $7,500) for constructing a secondary suite for a senior or an adult with a disability to live with a qualifying relative.

Budget 2022 proposes new rules, effective January 1, 2023, that anyone who sells a residential property they have held for less than 12 months would be subject to full taxation on their profits as business income. However, there will be some exemptions to these rules due to life events such as a death, disability, the birth of a child, a new job, or a divorce.

Budget 2022 also announces restrictions that would help ensure that Canadians, instead of foreign investors, own housing. A two-year ban will be introduced on non-residents buying residential property, with some exceptions, such as individuals who have work permits and are living in Canada.

Alternative Minimum Tax

In Canada, the top federal tax rate is 33% and starts at an income of $221,708. However, many high-income filers end up paying less tax than this due to tax deductions and tax credits.

The goal of the Alternative Minimum Tax (AMT), which has been around since 1986, is to ensure high-income Canadians are paying their fair share of taxes. However, it has not been substantially updated since it was introduced. In Budget 2022, the government indicated they would be investigating changes to the AMT, which will likely be disclosed in the fall 2022 economic update.

Dental Care

For many Canadians without private coverage, going to the dentist is too expensive. Budget 2022 commits $5.3 billion to provide dental care for Canadians with family incomes of less than $90,000 annually. Coverage will start for children under 12 this year and expand to children under 18, seniors and those living with a disability in 2023, with the program will be fully implemented by 2025.

Small Businesses

Small businesses currently have a 9% tax rate on the first $500,000 of taxable income (compared to the corporate tax rate of 15%). However, after a small business’ capital employed in Canada reaches $15 million, it is no longer eligible for the 9% tax rate.

Budget 2022 proposes gradually phasing out the small business tax rate so that businesses are not discouraged from expanding. The new cut-off for the lower tax rate will be $50 million.

Budget 2022 also includes a proposal to create an Employee Ownership Trust. This would be a new, dedicated trust under the Income Tax Act to support employee ownership.

Tradespeople

Budget 2022 introduces the Labour Mobility Deduction. This would allow eligible tradespersons and apprentices to deduct up to $4,000 a year in eligible travel and temporary relocation expenses.

Budget 2022 also commits to providing $84.2 million over four years to double funding for the Union Training and Innovation Program, which would help 3,500 apprentices from underrepresented groups each year.

Canada Growth Fund

Budget 2022 introduces a new Canada Growth Fund, with the goals of both diversifying our economy and helping achieve our climate goals.

The Canada Growth Fund aims to attract considerable private sector investment, support the restructuring of vital supply chains, and bolster our exports. The Canada Growth Fund will also provide backing to reduce our emissions and invest in the growth of low-carbon industries.

Climate

Budget 2022 continues to confirm the government’s commitment to fighting climate change. It commits $1.7 billion over five years to extend the Incentives for Zero-Emission Vehicles Program until March 2025 and also provides funding to create a national network of electric vehicle charging stations.

Budget 2022 also commits $250 million over four years to support the development of clean electricity, including inter-provincial electricity transmission projects and Small Modular Reactors.

Bank And Insurer Taxes

Budget 2022 introduced a new financial measure called the Canada Recovery Dividend. Banks and insurers will have to pay a one-time, 15% tax on 2021 taxable income above $1 billion. This tax will be payable over five years.

Budget 2022 also proposes increasing the tax rate on income above $100 million for banks and insurers to 16.5% (currently 15% for other corporations).

Wondering How This May Impact You?

If you have any questions or concerns about how the new federal budget may impact you, call us – we’d be happy to help you!

Why Insurance Is So Important If You’re A Single Parent

Why Insurance Is So Important If You’re A Single Parent

Your kids mean everything to you – and you want to make sure they’re protected no matter what. As a single parent, you must have the right health and life insurance options in place to make that happen. We recommend you consider all of the following types of insurance:

  • Disability insurance

  • Critical illness insurance

  • Accident insurance

  • Life insurance

Disability insurance

Disability insurance can provide you with an income if you become disabled and cannot work – whether it’s for a short period of time or a long one.

Most workplaces offer disability coverage, but it’s tied to that particular job, so you’ll lose coverage if you leave that job. As well, the coverage from your employer’s plan may not be sufficient to cover your needs if you become disabled.

It’s particularly important for you to look into disability insurance if you work as a contractor or have a job with no benefits.

Critical illness insurance

Critical illness insurance can help you pay for the costs associated with various serious medical issues (such as a heart attack, cancer, or a stroke) that aren’t covered by any other health plans or disability insurance. As a single parent, you may find the payout from a critical illness insurance policy especially helpful for paying for extra childcare or lost income if you cannot work.

Accident insurance

Life is getting busier than ever – and there are more and more of us on the roads. Unfortunately, more people on the roads mean more accidents. If you buy accident insurance for yourself or your children, the payout from the policy can bring in some extra income at a critical time of need if any of you are in an accident. You can use an accident insurance payout to help pay for anything from lost income to private home care.

Life insurance

Life insurance is critical as a single parent as your children are dependent on your income. Generally, we suggest that you get a policy that is worth at least 10 times your annual income, but you may need more if you have a lot of debt or you need the money to last a long time.

Your children should be the beneficiaries of your policy and you can name a trustee (such as a grandparent or other relative) to look after the money on your children’s behalf until they reach a specified age.

We can help!

If you have questions about what kind of insurance is best for you, we’re happy to answer them! We’ll walk you through all your options and put together an insurance package that’s just right for you. Call us today!

Life Insurance after 60- is it necessary?

You may have had life insurance for as long as you can remember. You wanted to make sure that your family would be taken care of and be able to pay their bills if anything happened to you.

But now that you’re older and your children are grown – and hopefully your mortgage is paid off – you may not feel you still need life insurance. This could be a valid assumption; however, there are some circumstances under which it may still make sense for you to have life insurance. They are:

  • You still have substantial debt.

  • You have dependent children or grandchildren.

  • You want to leave a financial legacy.

You still have substantial debt

No one likes the thought of leaving their loved ones to pay their debts if they die. If, however, someone has co-signed a loan with you – for example, for a mortgage or a car – and you die, then they will be on the hook for the entire amount.

If you have life insurance and name your co-signer as the beneficiary, this will help relieve any financial burden your death could cause them.

You have dependent children or grandchildren

If you have children who are still dependent on you because they have a mental or physical disability, life insurance can be an excellent way to ensure they will still have access to funds after you die.  Lifelong care can be expensive, and a life insurance benefit will go a long way to helping fund it.

You may have grandchildren you are caring for or that you are not responsible for but want to leave money they can use towards higher
education.  A life insurance payout can be a great way to help a grandchild get a good start in life without having to go into debt.

You want to leave a financial legacy

You may not have dependent children or grandchildren but still want to leave them something when you die. Life insurance can be a great way to do this without cutting back on your spending during your lifetime.

Life insurance can also help make sure that you have something to leave everyone in your will. If you have a family cottage, it can
be complicated to leave it to more than one person or family. Life insurance gives you the option to leave one person or family the cottage and another person or family the cash equivalent.

We can help you!

If you’re unsure whether or not it still makes sense to have life insurance after the age of 60, we’d be happy to sit down with you and talk through your options. Give us a call or email us today!

Insurance Planning for Business Owners

For business owners, making sure your business is financially protected can be overwhelming. Business owners face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your business in the case of uncontrollable events such as disability, critical illness or loss of a key shareholder or employee.

This infographic addresses the importance of corporate insurance.

The 4 areas of  insurance a business owner should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For business owners, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For business owners that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your business if you, a key employee or shareholder were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your business running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for the key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Buy sell disability insurance can provide you with a lump sum payment if your business partner were to become totally disabled. These funds can be used to purchase the shares of the disabled partner, fund a buy sell agreement and reassure creditors and suppliers.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the company so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For a business owner, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your business and also be another form of investment for excess company funds.

Key person life insurance can be used to provide a lump sum payment to the company on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Buy sell life insurance can provide you with a lump sum payment if your business partner or shareholder were to pass away. These funds can be used to purchase the shares of the deceased partner, fund a buy sell agreement and reassure creditors and suppliers.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess company funds not needed for operations to provide for tax-free growth (within government limits)  to diversify your portfolio and reduce taxes on passive investments.

Talk to us about helping making sure you and your business are protected.

The Need for Personal Life Insurance

At different stages of life, the need for life insurance will vary, here’s a list of reasons for life insurance:

  • Young Singles/Young Couples- cover off any debt including debts with co-signers,  final expenses, does your family history have significant health issues?

  • Young Family – debts, mortgage, final expenses, ongoing income needs, education fund

  • Maturing Family- debts, mortgage, final expenses, ongoing income needs, education fund

  • Pre-Retirees- debts, mortgage, final expenses, ongoing income needs, final taxes

  • Retirees – debts, final expenses, leave a legacy, final taxes

Insurance Planning for Young Families

For young families, making sure your family is financially protected can be overwhelming, especially since there’s so much information floating online. This infographic addresses the importance of insurance- personal insurance.

The 4 areas of personal insurance a young family should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are so fortunate to live in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.. Moreover, if you travel outside of Canada, medical emergencies can be extremely expensive.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before age 65. Disability insurance can provide you with a portion of your income if you were to become disabled and unable to earn an income.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you and your family, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Life: For young families, if your loved ones depend on you for financial support, then life insurance is absolutely necessary, because it replaces your income, pay off your debts and provides peace of mind.

Talk to us about helping making sure you and your family are protected.

The Benefits Of Fitness And Activity Trackers In The Workplace

Millions of Americans use wearable devices to monitor their health and fitness. Sensors on these devices track everything from body movements to heart rate and even blood pressure. They also include audible alarms to remind users to stay active throughout the day.

The focus of these devices up to now has been on individuals interested in working toward specific health and fitness goals; however, wellness initiatives are incorporating technology progressively more into their programs with the aim to improve overall employee health. I’ve been a user of personal technology for years. Specifically, I enjoy tracking my daily activity, exercise and more with my own fitness tracker. As a CEO of a business focused on offering employees health options, I know that this is vital.

Many companies are already jumping on the wearable technology bandwagon. Glassdoor reported in December 2017 that an estimated 13 million wearable fitness and activity-tracking devices were projected for workplace wellness programs in 2018 — a dramatic upswing from 200,000 devices just a few years ago.

Employers are creating more and more benefit programs that focus on wellness with initiatives that support physical health. Many of these are being developed in partnership with health insurers to provide access to activity and wellness devices, along with program designs that are cost-effective to manage for employees. Ultimately, this method leads to a more productive workforce. Plus, it also appeals to prospective employees during the important recruitment process, as job postings now exceed the nation’s unemployment rate.

There are a number of benefits for employers who partner with their health insurer to increase the access to health and activity trackers in the workplace. The top benefits are:

• A Culture Focused On Health And Well-Being: For many years, work environments have made productivity and profits the top priorities, while health and wellness received little to no attention. The good news is that the advent of fitness and activity trackers, along with other wellness devices tied to specific outcomes and insurance requirements, have moved health to the forefront of workplace culture. This, in turn, creates a stronger sense of camaraderie, happiness and overall employee retention.

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• Enhanced Chronic Disease Management: According to the Centers for Disease Control and Prevention (CDC), approximately 84 million Americans — more than one out of three — have prediabetes. Of those, 90% do not realize they have it. Another 30.3 million adults in America are living with diabetes. It is the seventh leading cause of death in the country. High blood pressure is another chronic disease that requires constant monitoring and management.

Fitness trackers allow people to monitor their physical activity, what they are eating on a daily basis and more. This can lead to improved overall health and, ultimately, increased productivity due to a decreased rate of workplace absences related to illnesses and other ailments.

• Incentivize Healthy Habits: The rising use of smartphone apps with built-in incentives, such as points or badges, has turned health monitoring into a game. In fact, both small and large companies have taken the of gamification and expanded it further by putting programs in place that incentivize healthy employee habits. For example, an app that emphasizes accountability, while also encouraging movement toward a common goal, creates competition and, in the end, more engaged employees.

• Health Care Cost Savings: A report released last year by the Kaiser Family Foundation found that premiums for single employees rose 4%, while family health care premiums increased 3%. Coupling wearable technology with employer-sponsored workplace health and wellness programs can help to offset these rising costs. For example, a more physically active workforce may not need to see a doctor as frequently. As a result, employees — and, possibly, their spouse and kids — may have a reduced need for a robust — and often, costlier — health insurance plan. That translates to possible significant savings to the employee and employer.

Technology will continue to play an important role in overall employee health for years to come. Workplace-based wellness programs coupled with personal technology can lead to significant cost savings for both employers and employees while also helping to create a more engaged and healthier workforce.

Oprah Winfrey Uses the Same 3 Sentences to Get Every Meeting Off to the Perfect Start

Many meetings limp to a start. The group sits waiting for people to straggle in late. Others want to keep chatting about “important” but unrelated topics: The dreaded “since I have you here” move that turns the group’s agenda into a personal one. Still others keep texting and emailing while the leader struggles to get everyone focused.

That’s a huge problem, since meetings that get off to a slow start rarely recover.

Brendon Burchard, the author of High Performance Habits: How Extraordinary People Become That Way, says Oprah starts every meeting the same way: She says:

“What is our intention for this meeting? What’s important? What matters?”

Why does she start a meeting that way?

High performers constantly seek clarity. They work hard to sift out distractions so they can not just focus, but continually re-focus, on what is important.

That’s because clarity isn’t something you get. Clarity is something you have to seek — you only find clarity and focus when you actively search for it.

Keep in mind, the same holds true on a personal level. Successful people don’t wait for an external trigger to start making changes. Successful people don’t wait until New Year’s, or until Monday, or until the first of the month — they decide what changes they want to make and they get started.

As Brandon says, a simple approach to seeking personal clarity is to focus on four things:

  • Self: How do you want to describe your ideal self?
  • Skills: What skills do you want to develop and demonstrate?
  • Social: How do you want to behave socially?
  • Service: What service do you want to provide?

Asking those questions — and answering those questions with action — more often than other people do will definitely give you an edge.

The same is true with meetings. Asking the right questions is everything.

That’s why no meeting agenda should include words like “information,” “recap,” “review,” or “discussion.” Productive meetings often have one-sentence agendas like, “Determine the product launch date,” or “Select software developer for database redesign.”

“Information?” Share it before the meeting. If you need to make a decision during a meeting, shouldn’t the group have the information they need ahead of time? Send documents, reports, etc., to participants in advance. Holding a meeting to share information is a terrible intention: It’s unproductive, wastes everyone’s time, and it’s lazy.

Great meetings result in decisions: What. Who. When.

All of which are much easier to get when you start a meeting the right way: by clearly stating intentions — and then sticking to those intentions.

That’s how Oprah gets things done.

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7 Natural Memory Boosters That Actually Work for All Ages

Forgot a name? Misplaced your keys? Taking longer to find the right words? Don’t panic. There’s plenty you can do to improve your memory.

You’re probably expecting us to reveal 7 little known and newly discovered herbs from the forests of the Amazon, the peaks of the Himalayas and the Arctic tundra. No such luck.

Despite Americans spending hundreds of millions of dollars a year on Ginkgo Biloba, Ashwagandha, Periwinkle, Bacopa, Vitamin B’s, Omega 3’s and memory boosting supplement cocktails, there is very little scientific evidence they actually work. [1]

Instead, we’re going to offer you 7 completely natural memory boosters, backed up by scientific research. It may take a little more effort than a magic memory pill, but the benefits will transcend your memory and improve your overall quality of life as well, making you more fit, energetic, happy and sharp.

TABLE OF CONTENTS

  1. How Do We Remember?
  2. 7 Natural Memory Boosters
  3. Conclusion

How Do We Remember?

The first process in remembering is creating a memory.

This is where our brain sends a signal, associated with a thought, event or piece of information our mind is processing, over our brains neural pathways, called synapses.

Think of our neural pathways like roads and information like trucks. The better the roads, the more trucks can be driven.

The second step in remembering is memory consolidation.

Consolidation is when the brain takes that thought, event or piece of information and actually stores it in the brain. So now we’re talking about taking delivery of the trucks and storing its contents in the warehouse.

Consolidation helps us store information and label it properly, so its organized and easy to retrieve when needed.

The last step is memory retrieval.

That’s the step whereby we try to retrieve the information stored in our brains. You know when you have the name of someone on the tip of your tongue.

You have the information; it’s been stored, but you just can’t find it. Our memory recall is typically better the stronger the memory is and the more often we’ve used it.

Memory decline is a normal part of aging. However, new scientific research is discovering many new ways for us to improve memory creation, consolidation and retrieval–no matter our age.

7 Natural Memory Boosters

So how to work on memory and boost your brain power? Here’re 7 brain boosters backed by science that you should try:

1. Aerobic Exercise

Aerobic activity is about as close as we get to a magic pill for our memories. Exercise helps your brain create new capillaries and brain-derived neurotrophic factor (BDNF) which creates new brain cells and connections. To put it in plain english, aerobic activity changes our brains and helps it grow.

Studies have shown that exercising increases the size of the hippocampus and improves memory. In fact, even if you start exercising as an older adult, you can reverse cognitive decline by 1 to 2 years and protects against further decreases in the size of the hippocampus, which is essential for memory. [2]

In another study, reviewed by Dr. Ian Robertson of the University of Dublin, they looked at a group of people of 60 years and older, who engaged in “active walking” for four months.

They compared them with another group of people who only stretched over the same period of time. After testing both groups before and after the 4 month period, the walkers improved their memory and attention considerably more than the stretching group.

So which exercises are best and how much do we have to exercise?

Turns out, it doesn’t really matter whether you run, swim, row or bike. What does matter is that you push yourself beyond your current abilities, keep doing more, keep getting better. Set yourself short term goals and keep pushing the goal posts.

2. Sleep

You need your sleep. The deeper the better. Sleep helps improve your procedural memory (how to do things, like how do I navigate my iPhone) and declarative memory (facts, like what’s my password). [3]

Even short naps from 6 to 45 minutes have been shown to improve your memory. In one Harvard study, college students memorized pairs of unrelated words, memorized a maze and copied a complex form. All were tested on their work. Half were then allowed to take a 45 minute nap. They were then retested. Those who took a nap, got a boost in their performance. [4]

Another study showed that getting REM (deep) sleep can increase your memory and mental performance by 33% to 73%. Getting a deep sleep helps the brain consolidate memories through dreams and “associative processing”. However, the study also revealed that heart rate variability in deep sleep also contributed significantly to increased memory performance. [5]

3. MIND Diet

Healthy eating, particularly more dark colored fruit, vegetables and oily fish has been shown to improve memory and stave off cognitive decline.

The MIND diet is proven to reduce the risk of dementia. It’s a mix of the popular Mediterranean diet and the low blood pressure DASH diet. [6]

The study kept track of the diets of almost 1,000 older adults. They were followed for an average of 4½ years.

The study concluded that “people whose diets were most strongly in line with the MIND diet had brains that functioned as if they were 7½ years younger than those whose diets least resembled this eating style.”

The study also showed that people who followed the MIND diet in the study reduced their chance of getting Alzheimer’s disease in half.

So what does the MIND diet consist of? Lots of vegetables, leafy greens, nuts, berries, beans, fish, poultry, olive oil, whole grains and wine.

4. Relax

We all know that stress is bad for our health. It can raise our blood pressure, impact our immune system and interrupt our sleep. Stress also impairs our memory.

When our body gets stressed, it releases cortisol into our blood stream, which can cause short and long term physical changes to the brain. While cortisol has sometimes been shown to cause increases in short term memory, it can actually decrease our long term recall memory.

To help reduce the stress in your life, try relaxing with meditation, yoga or breathing exercises. Unplug–even for just a few hours. Stop checking your emails, social accounts and news. Release some endorphins with some exercise.

Bottom line, the more anxious and stressed we are, the less clearly we think, the poorer our memory works.

5. Continuous Learning

The mind is like a muscle. The more you challenge it, the stronger it gets. The more you learn, the more you can learn.

Research shows that learning can actually change the physical makeup of your brain. Not too long ago, we used to think that you were born with a fixed amount of brain cells, which declined with age. New research now shows that we can actually increase the number of brain cells we have throughout our life.

Aside from staying physically active, learning new skills and studying can actually keep our brains healthier. Consider taking a continuing education class, studying a new language, learning a new instrument, playing new card games. [7]

Studies show that the more complex the task, the more benefits for your mind. Simply showing up to class is not enough. You need to be actively engaged. Anything that forces you to focus and learn something new and get out of a rote routine will help you sharpen your mind and boost your memory.

6. Stay Social

The more deep and meaningful social connections you maintain, the more you protect your brain. Bottom line, the more friends you have, the more people you work with, the more you’re forced to use your brain.

Social isolation and loneliness are significant risks of dementia. Without interacting with others, our brains wilt. Isolation and loneliness lead to depression, physical and mental decline. [8]

In a 2016 study published in Frontiers in Aging Neuroscience, seniors with a full social calendar did better on memory, reasoning, and processing speed tests. [9]

What to do?

Party! Seriously, get together with friends as often as possible. Have family dinners. Choose social activities or sports like tennis, golf, cards or go for walks with a friend. Bottom line have fun, build meaningful social relationships and stay connected. Not only will it make your mind sharper and your memory better, you’ll be happier, too!

7. Wakeful Rest

This one is getting harder and harder to do. In a world where we can’t sit on a bus, go up an elevator or go to the bathroom without our phones, doing absolutely nothing to distract our minds is becoming increasingly difficult.

But, the results are in. Doing nothing is great for your memory. Quietly resting for 10 minutes, after you learn something will help you remember and help you create more detailed memories. [10]

What we do minutes after we learn something new has a significant impact on how well we retain the new information. In another study, it didn’t matter what you did after you learned something new, as long as you weren’t distracted by outside factors. In other words, you could be thinking of your day, making a grocery list, or thinking of a story. In either case, wakeful rest for a period of 10 minutes helped the brain process and consolidate your memories so that you were better able to recall the information at a later date. [11]

Conclusion

You don’t have to spend a dime on cocktails and supplements promising a quick boost to your memory power. There is very little conclusive scientific evidence suggesting supplements will help improve the memories of healthy individuals–not for Ginkgo Biloba, Vitamin B, fish oils, Vitamin D, Folate or other supplements claiming they a secret formula.

There are far cheaper and more effective ways to boost your memory: exercise, rest, eat well, learn, love, laugh and relax. Who wouldn’t want that prescription?