Baby Boomers High Debt Low Saving Very Wealthy

I watched this great documentary the other day that explains what I have been seeing over the last 10 years. Baby Boomer's are caring high personal debt, saving less, and yet are more wealthy than they were a decade ago.

How is this possible?

(And make sure to check out the video link on the bottom of this post "Boomer Revolution" from CBC Doc Zone)

Retirement Income - Not All Income is Created Equal 2/3

When planning for retirement, not all income is created equal. Some income is guaranteed some is not. Some income is flexible some is less flexible. 

The key to creating a balanced income in retirement is to diversify your financial assets and income streams. 

This is the focus of the second part of my series on Retirement Income - Not All Income is Created Equal.

Retirement Income - How much is Enough Part 1/3

The image of retirement is one of luxury vacations, golfing with your friends 3 days a week and spending time with/and spoiling the grand children.

The reality for many is pinching pennies, limited travel and maybe dinner out once a month.

Many baby boomer's are finding the costs of their lifestyle are too much to manage in retirement.

As credit card bills start to mount, downsizing has more to do with eliminating debt and expenses. For many the first 5 years of retirement can be an eye opener!

Caring For Aging Family

The reality for many of us in North America ... we will be dealing with the care issues of a parent/family member for 10-15 years.

These issues did not exsist a generation ago. Life expectancy was  only the late 60's for men and early 70's for women. Today more people are living beyond 90-100 and care in one shape or another can last 20 to 25 years.

This can be both emotionally draining and can severly impact the financial resources for care givers and their families. But there are some things that can be done to simplify this process and take some of the burden from family so the transition to care can run more smoothly.

Retirement Around the World

Canadians are for the most part hard working,  living longer and enjoy a better standard of living than many retirees in other countries.

But have you wondered how we compare?

Check out this infographic from Cheezburger.com comparing the average retirement ages from around the world.

New Retirement

In Kelowna I meet at least 2 people a week that have relocated to the valley to prepare for an early retirement. 


They have left the high paying jobs in Vancouver, Calgary or Edmonton sold the family home and moved to the Okanagan Valley to be closer to aging parents.


Their plan is to work another 5-7 years, and with out a mortgage they hope to top up their retirement accounts and be well in position for a comfortable retirement. 


The world of retirement is changing in Okanagan.

Retirement Can Be Funny

The topic of financial management and retirement is a serious financial issue for many. Will you have enough to live with dignity, how do you deal with your investments when the financial markets are down, and what if you live too long? 


The answer for most financial companies is to scare their customers in to making hard decisions.


Nationwide Insurance in the UK has come up with a lighter approach in a series of commercials under the banner "Life comes At You Faster than you think".


Check out these videos -- very funny!

Canada's Pension Benefits Changing

The financial turmoil of current economic events has effected the possibility of early retirement for many baby boomers. 


Investments are down, company pension plans are coming under pressure and now government benefits are changing to adapt to less revenue.

Governments in France are pushing retirement age ahead from 60 to 62 1 to save money, the United Kingdom has scraped the mandatory retirement age of 65 to allowing for longer working years to collect premiums 2 , now Canada has announced a plan to increase contributions, to drop benefits for early retirees and to allow contributions after 65 to support the Canada Pension Plan.

Financial Review for 2011

2011 is over now and your annual statement is soon to arrive. Is your account up or down? Are you closer to retirement? What a great time to review your financial game plan. 


Even after being in the investment industry for more than 15 years nothing can be more depressing than reviewing your investment returns after a decade and only seeing a average return of only 3 or 4 percent.  


If this is you, you are not alone.


So now the question is should you change what you are doing and give up investing altogether? If this question is weighing on your mind here are some questions you should ask yourself and check out the infographic on investor behaviour below.

Retirement Study

When was the last time you reviewed your financial game plan to see how your plans for retirement are coming along? 


If you are like most Canadians your main focus is holding on to your job, paying your monthly bills and maybe planning a winter vacation.  Retirement is the last thing on your mind.


In a November the Gandalf Group issued the Cosumerology Report, for Bensimon Bryne, interviewing 1,500 Canadians from the age of 50+ on their key financial and lifestyle issues facing them as they planned for retirement.  


Then they compared their responses with other Canadians that where retired, and the results were enlightening.

Retirement Reality Time to Downsize

The retirement reality is hitting baby boomers much harder than expected. For many the family home (or should I say the equity in your home)  has become the hope of retirees, and downsizing is the buzz word in the financial community.

The idea is a good one. Sell your large 2,000 - 3,000 square foot home to buy a less expensive smaller home, town home or condominium and invest the difference to create income at retirement. 

Add to this many baby boomers are dealing with downsizing their parents, downsizing is an issue that many families will be dealing with for next 10 to 15 years. So the question is downsizing sounds is such an easy solution ... why is so hard to do?

Downsizing in 3 Easy Steps

As a financial professional most of time I only get calls when someone is in a financial transition (that is financial speak for a change that has not been planned for).


The loss of a job, forced retirement, dealing with aging parents and the dreaded sale of family home or now referred to as "downsizing".


The idea of downsizing is a good one. Your new smaller home is cheaper, easier to maintain and if properly located can save money on transportation. More money in your pocket the better your retirement ... but is it worth the pain of change?

Retire in Style 3 Unique Home Designs

There has been much discussion about Kelowna's downtown community plan. The big issues are the same as always density, where the building should be done, how high the buildings should be in downtown core.

The retiring baby boomers are looking to their future retirement and the impact of their lifestyle will have on the environment, and many are looking for change.

Using Tax Deferral to help Your Retirement

2009 is over and 2010 is here. As we enter the new year we are all recovering from our Christmas financial misadventures, and making new years resolutions for better financial plans for the coming year. The question this time of year is do you contribute to your RRSP?

It is hard to believe The RRSP was created by government in 1957 to encourage individuals to save for their own retirement. Even after more than 50 years many still are unsure of the tax benefits of investing using an RRSP.

To better answer this quest let me introduce you to guest contributor to mikehassard.blogspot.com Gary Schlenker, Manager with Grant Thornton LLP Kelowna on the tax benefits of an RRSP.

Tax Tip - How to make the most effective use of your RRSP.

1. If you make regular contributions to an RRSP, consider applying to have your income tax withholdings reduced on your paycheque, which will improve your monthly cash flow. To do this, simply submit Form 1213 to the Canada Revenue Agency for authorization. Once authorized, your employer will be able to reduce the amount of taxes withheld from your pay.
2. Even though your RRSP administration fee is not tax deductible, you should consider paying it directly, instead of from inside your RRSP – this helps maintain capital in your plan, allowing it to grow on a tax-deferred basis.
3. You don’t need to deduct your contribution in the year it is made, If you are expecting to be in a higher tax bracket in the future, consider delaying your deduction until that time – you will receive a larger tax saving if the deduction is taken when you’re in a higher tax bracket.
4. Considering filing tax returns for children or other low-income earners to creat contribution room that can be used in the future.

For more tax tips, visit our website at www.GrantThornton.ca or contact Gary Schlenker at our Kelowna office at the addresses below.

Grant Thornton

Telephone: 250-712-6892

E-mail: gschlenker@GrantThornton.ca

Thanks again to Gary from Grant Thornton Kelowna.

Mike Hassard Kelowna

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.

Change your life ... if it isn't working!

Kelowna is at its best this time of the year. Summer sunshine, time with family and of course cooking on the barbeque.

Amongst the fun and the sun there are those that have lost their job, or had their hours cut back and watch their incomes decrease. Many are looking to the fall with a state of fear and disbelief.

Many I have talked to over the summer were with their former employer for more than 15 years and have never lost a job before!

How will they pay their hydro bill, credit cards, what will they tell their kids if they have to cancel the family vacation or can they pay their mortgage?

What can you do to change your life if things aren't working for you? Check out this new interview from Anthony Robbin"s training blog. See the Introduction and Video below.

In this interview I meet with two very successful students, Frank Kern and John Reese.

Both of them are self-made multi millionaires who made their fortunes by selling products on the Internet. What’s particularly interesting about both of them is that neither had any “real” education. Neither one finished college and they both went from being broke to becoming wealthy.And they still continue to thrive in today’s economy.

So the purpose of this interview is to uncover the traits that successful people have in common. Specifically, the traits that cause them to take massive action and follow through.

As you’ll see, the solution is really quite simple and available to us all.

Make to share this with others. Also check Tony's blog for more great ideas to put your mind and body in the right state to improve you life!

Mike Hassard Kelowna