3 Ways to Retire Sooner!

With the economy slowing, real estate prices dropping and retirement savings shrinking many are wondering what to do now? Put off retirement? Work a second job? Or resign your self to a weekly trip to the mall instead of annual trek to Arizona? Under all this pessimism there is hope.

The reality is all these things have happened before (although for many it has been more severe than expected) and if you are properly positioned and prepared here are three things you can do to give your retirement plan a boost.

1. Increase Your Monthly Contribution

Before I show you how ... the question of course where do I get the additional income to invest? The answer ... as you pay down you debts, decrease your insurance costs and your children move out you should find yourself in a better position to save and invest more.

You'd be surprised how much an additional 200 dollars per spouse per month (400 total )can contribute to your retirement income.

Total deposited (120 payments) 72,000*

Value at 10 % growth rate 159,000*

Based on 6% withdrawal rate 9,540 a year in additional income*

To check out the impact of a monthly deposit try the Mackenzie Financial Investment and Regular Deposit Calculator.

2. Top Up Your RSP using a Loan

By making a lump sum deposit to your RSP you can boost your income in retirement. For every 1o,ooo you add to your RSP account you add $600 a year based on a 6% withdrawal rate. (Keep in mind you will pay taxes on this income).

50,000 investment at 10% over 10 years 129,687*

Based on a 6% withdrawal rate 7,781 in additional income*

A few things to consider BEFORE you embark on an RSP loan.

• Is your job and income stable?
• Are your other bills paid off?
• If you are counting on tax refund ... have you confirmed this with your accountant.
• Can you afford the loan payments?
• Is the benefit worth the cost and the risk?

A good resource to calculate the value of an RSP Loan is Mackenzie Financial RSP Loan Calculator.

3. Downsize Your Home

This is one option I am seeing less of right now ... selling the family home to buy something smaller to invest the difference.

Part of the problem is many have got used to the high property values of their homes and are unwilling to sell unless they get want they think their house is worth.

Hoping to get "as much as possible" is a game few home sellers can every win. If you know how much you will need ... then when you get the right offer you can sell with confidence.

Sell and buy smaller home 150,000 net profit

Based on a 6% withdrawal rate 9,000 in additional annual income*

Which strategy is the right one for you? In my opinion ... all three in varying degrees depending on you situation.

To do anyone either has a huge impact on your cash flow, requires to take out large loan or leaves the success of your financial life on sale of your home.

So where do you start? Before implementing any of the above sit down with your financial professional and review the impact of each on your retirement plan. Come up with your FIN number and work your solution backwards.

If you are closer than 15 years to you retirement ...make sure give me call to update you Financial Needs Analysis. The more time you have to work with the better chance for success.

Contact me Mike Hassard Primerica Kelowna at 250-861-1465 , email me or stop by my office 209-1511 Sutherland Ave Kelowna.

Plan today ... and Retire Sooner!

Mike Hassard Primerica Kelowna

Real People Real Solutions Real Life Success

Protecting Families with Term Insurance, Eliminating Debt and Building Savings with Mutual Funds

*Rates of return and withdrawal rates used above do not reflect an actual investment or product and are for example purposes only. Links to the calculator provided to Mackenzie Financial at http://www.mackenziefinancial.com/en/pub/tools/calculators/index.shtml

Carnival Rio de Janerio - a 5 day Celebration!

Of all the financial goals I hear from the clients "I want to Travel" is always at the top of the list. To help with ideas on travel I have asked a friend of mine Daniel Rae of Vacanza Destinations Kelowna to provide some information on travel ideas.

Daniel has extensive travel experience and is out visiting travel destinations 3-4 times a year. As a travel wholesaler he knows personally the hotels and restaurants he recommends.

According to Daniel if you are looking for something more than Las Vegas, Mexico or Disney Land you might enjoy Rio de Janerio ...

Carnival Rio de Janerio - THE WORLDS GREATEST 5 DAY CELEBRATION FEB 11-16 2010

Carnival is celebrated in towns and villages throughout Brazil and other Catholic countries, Rio de Janeiro has long been regarded as the Carnival Capital of the World. The Rio Carnival is not only the biggest Carnival, it as also a benchmark against which every other carnival is compared and one of the most interesting artistic events on the Globe. Almost everyone has heard of the Rio Carnival. Foreign visitors to it alone number around 500,000 every year.

Rio Carnival is a wild 5 day celebration, 40 days before Easter. It officially starts on Saturday and finishes on Fat Tuesday “Marls gras” with the beginning of Lent on Ash Wednesday after which one is supposed to abstain from all bodily pleasures. Carnival with all its excesses, celebrated as a profane event, can be considered an act of farewell to the pleasures of the flesh.

It usually happens in February, the hottest month in the Southern Hemisphere, when the Rio summer is at its peak.

There are carnival celebrations in virtually every corner of Brazil, the best-known ones taking place in Recife together with the neighboring Olinda (in the North of Brazil) and Salvador. But the biggest and most famous carnival is undoubtedly the Carnival in Rio de Janeiro.

One of the greatest elements of the Rio Carnaval is that it not only provides entertainment for many people around the world but it also gives a chance to learn about the true culture of Brazil. Carnival is very important to the Brazilians, it sums up their culture.

It is a euphoric event where people dance, sing, party and have tons of fun. There are many parties that take place before, during and after Carnival all night and all day. It allows someone's true heart to come out and have as much fun as possible.

Rio Carnival is the result of months of preparation. People eagerly anticipate the start of each year's Rio Carnival. It begins with the crowning of the Fat King (King Momo), who is presented with a giant silver and gold key by the city's mayor. Then it is Carnival all over the place, in the streets and squares, bars, clubs and all other venues, taking over the whole city of Rio and culminating in the Rio Carnival Parade also known as the Samba Parade.

The roots of Carnival trace back to the ancient Romans and Greeks who celebrated the rites of spring. Across Europe, including France, Spain and Portugal, people annually gave thanks by throwing parties, wearing masks and dancing in the streets. Such traditions were carried over to the New World.

The Portuguese first brought the concept of "celebration or carnival" to Rio around 1850. The practice of holding balls and masquerade parties was imported by the city’s bourgeoisie from Paris. However, in Brazil, the traditions soon became different. Over time, they acquired unique elements deriving from African and American - Indian cultures.

Groups of people would parade through the streets playing music and dancing. It was usual that during Carnival aristocrats would dress up as commoners, men would cross-dress as women and the poor dress up as princes and princesses - social roles and class differences were expected to be forgotten once a year but only for the duration of the festival.

By the end of the 18 century the festivities were enriched by competitions. People would not just dress up in costumes but also perform a parade accompanied by an orchestra of strings, drums and other instruments. These ever more organized competitions became the main attractions of the Carnival in Rio de Janeiro.

Coming to Rio Carnival means a bit of preparation. You should not only book ahead your flight, accommodation, and always buy your Rio Carnival tickets in advance. Study the Rio Carnival 2010 event calendar and pick the parades you intend to attend.

The so-called Zona Sul (the South End i.e. South Rio) is by far the most pleasant place to stay in Rio. It is by the sea and is the most civilized part of the city. Copacabana and Ipanema together form a big stage offering a carnival happening at every corner. Leblon, being a bit more upscale is also an excellent location.

• 5 Days Hotel 3,4,5 Star Copacabana
• Parade Ticket for Feb 14 2010
• Transfers Airport return FD - Tour Sugar Loaf Corcovado bbq
• Packages starting from $1699.00 usd La only, per person, based on double.

For more information contact Daniel Rae at Vacanza Destinations at 1-866-370-2277 or 250-764-3039 or http://vacanzadestinations.com/index.html

Oh, by the way if your are looking for an idea on how to save the money for your trip this year? Why not use part of your tax refund from your RSP contribution? Add to your life experience and your retirement savings at the same time!

Thanks again to Daniel for some great vacation ideas!

Mike Hassard Primerica Kelowna

Real People Real Solutions Real Life Success

Protecting Families with Term Insurance, Eliminating Debt and Building Savings with Mutual Funds

The Price of Pre-Paid Credit Cards

Recently I had a family member come to me asking what I thought of pre-paid credit cards as a method of purchasing things on the internet. They did not have a credit card and figured if they put their money on a prepaid card they could control their spending and use it only when they needed it.

I suggested they read the "fine print" and if they liked what they found out to try it out and let me know how it went.

I didn't receive a call in a week so I called them back and you guessed it ... they were very unhappy. The 25 dollars they put on the card amounted to less than 17 dollars is actual spending money after set up and transaction fees.

The New York Times in conjunction with the PBS Frontline website has a great series on "Hidden Price Of Pre-Paid Debt". Make sure to check video link half way down the page.

THE CARD GAME

Prepaid, but Not Prepared for Debit Card Fees

By ANDREW MARTIN

Published: October 6, 2009Prepaid debit cards are among the consumer banking industry’s fastest-growing products, but often their convenience comes with hidden fees.

The complete series on Banking and the American Consumer - "A Card Game" is coming to PBS Frontline on November 24th.

I will keep you posted.

Mike Hassard Primerica Kelowna

Real People Real Solutions Real Life Success

Protecting Families with Term Insurance, Eliminating Debt, Building Savings with Mutual Funds

Debt in Kelowna - Have we been here before?

According to the Bank of Canada ... household debt is emerging as the greatest risk to Canada's financial system and the financial lives of Canadian and Okanagan families.

The Amazing part of all this ... the personal credit crunch and rise credit card debt is nothing new ... check out these two video excerpts from the CBC archives from December 1978 and the second from November 2008.

As Canadians rush off to buy Christmas gifts in the last weeks of 1978, a sobering new statistic might give some shoppers pause. Consumer debt in Canada has now reached a record $32 billion and there are no signs of a slowdown. Banks are competing to offer more mortgages, loans and credit, giving the average consumer more rope to hang themselves with. Debt counsellors are seeing more customers than ever before and one offers his view on where the blame for our collective debt lies. Check the video below

Courtesy of CBC archives

Now compare the video to a current story from the CBC in November 2008

Forty years after the credit card was introduced, Canadians have had plenty of time to learn about the perils of credit and reckless spending. But consumer debt remains staggeringly high, and a recent report from CIBC World Markets shows that our personal debt continues to outgrow our income by an alarming rate. Not only is the global economy hurting, but many Canadians are finding their own households sliding deeper into the red. In this 2008 report,CBC News: Sunday asks: how did things get this bad? Check Video below

Courtesy of CBC archives

If you are facing a personal credit crunch give our office at Primerica Kelowna a call. We can help you create a written game plan to optimize and eliminate your debt.

For more information contact Mike Hassard Primerica Kelowna 250-861-1465 or email mikehassard@gmail.com or stop by our office 209-1511 Sutherland Ave.

Mike Hassard Primerica Kelowna

Protect Your Family with Term Insurance, Eliminating Debt and Build Savings with Mutual Funds