You’ll hear about it on the golf course, at the Legion, on the dance floor at line dancing, or over coffee – seniors like talking about their investments, and worry about how they are doing.

Save with SPP decided to look into what sorts of things seniors should be thinking about when it comes to investing.

Over at the Retire Happy blog, Grant Hicks notes that older seniors, say 75 plus, want their investments to be “safe, short term, and no risk.” He says folks tend to get more cautious as they get older, even when we are talking from age 65 to age 75.

He cites the example of “Mr. and Mrs. Jones” of Qualicum, B.C. (real names are not used) who were debt-free, mortgage-free, and had about $200,000 to invest.

“They were looking for tax efficient income. They were not looking to keep it short term in case of something happened to one of them because the other person would still require the income,” he writes.

“Here’s what they decided on. First, we put aside 20 per cent short term for emergencies. This was invested into a cashable term deposit at the highest interest we could find. Then we built an income portfolio that consisted of bonds and guaranteed investment certificates (GICs) (20 per cent) preferred shares (20 per cent), common dividend paying shares (20 per cent) and income trusts and income securities (20 per cent). The portfolio focus was to pay out approximately four to five per cent monthly on a tax efficient basis, meaning the income was not all interest, but dividends, business income and capital gains.”

In an article in MoneySense magazine, investment counsellor and author Patrick McKeough “pounds the table for a conservative portfolio of quality dividend-paying stocks spread among the five major economic sectors.” Those sectors, the article advises, include manufacturing and industry, resources, finance, utilities and consumer.

In the article, McKeough discusses “pre-retirement financial stress syndrome,” which occurs when older investors begin to realize they may not have saved enough to fund “the stream of income they had been counting on.” He warns older investors of the urge they may have to make “one last desperate `Hail Mary’ gamble” on a breakout stock to try and play catch up. Instead, they should do the opposite, and look for safer investments, the article notes.

An older, but still wise article in Canadian Living also says older investors should focus on bonds (chiefly government bonds, with a smattering of corporate bonds that pay higher interest), GICs and dividend stocks, but adds the idea of annuities.

“Insurance companies offer annuities, which are investments that, in retirement, pay set monthly payments for life. It’s a great option for people who are worried about their cash flow, but it can be an expensive one. Fees are typically higher than what you’d pay on a mutual fund, and your money won’t get as great of a return as it would if you invested in the market yourself. But your cash is protected and you do get a regular cheque in retirement, which, to many people, is worth the extra costs,” the article notes.

At the time this article was written, interest rates were at record lows – today, higher rates mean the cost of an annuity has gone down – you get more income than you would have got with lower rates.

The Canadian Living article takes a different look at riskier common stocks.

“While you’re supposed to become a more conservative investor in retirement, you should also own some plain old stocks. Your portfolio still has to grow or you could run out of cash as you get older. That’s not to say you should invest in risky start-ups, but some solid brand-name growth stocks should help increase your savings,” the article notes.

There used to be an industry “rule of thumb” we heard around the pension plan office, specifically, that your present age should be the percentage of your holdings that are in fixed income. So if you were, say, 64, then 64 per cent should be in fixed income, with the rest in equities and other investments. This rule sort of got set aside during the decades-long low interest period, but may live on in some people’s financial plans.

Did you know that members of the Saskatchewan Pension Plan have a couple of great retirement income options? They could choose to convert their SPP savings into a lifetime annuity – a monthly payment arriving on the first of every month for the rest of their lives. Or, they could choose SPP’s Variable Benefit, which allows you to decide how much money you want to withdraw when you retire – more if you need, less if you don’t – with the option to annuitize at some future date.

Check out SPP today!

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Retirement saving should be a priority for women, U.S. study says

Writing for Yahoo! Finance, Emily Oster reports that despite the fact that women generally live longer than men, they don’t tend to put a priority on retirement saving.

“Women generally live longer than men. This means women need to prepare for their financial future and conserve their savings for a longer amount of time. And yet, there is a 30 per cent gender gap in retirement savings—meaning for every dollar saved by men, women save 70 cents,” she writes.

The article says that means that women are starting the retirement savings race in second place, but things are worse for moms.

Citing new research from TIAA in the U.S., Oster notes that “while there are many drivers behind the gender retirement gap, ranging from women receiving lower earnings than men to differences in expectations about payment for childcare, there are easy and accessible ways to get the retirement income you deserve.”

While more than half of women focus on childcare costs, just 33 per cent see retirement saving as a priority, the article reports.

For moms, there is a double whammy, Oster writes.

“Leaving the workforce when children are young does not only result in a loss of income, it also means a loss of retirement savings and potentially lowers earning potential later, even if you do eventually return to the workforce. That doesn’t necessarily mean it isn’t the right choice for your family, but if the decision is purely financial, there is more to factor than just immediate income loss,” she explains.

We can add another consequence – you may not be able to afford to contribute to a retirement savings program while you are off work on a parental leave, earning less.

Oster uses this example to illustrate the impact of time away from paid employment:

“Consider a 30-year-old making $60,000 a year who manages to save just three per cent of their income, or $1,800 a year. Taking two years off of work at this stage results in over $38,000 less in retirement savings by age 65 when compounded with seven per cent interest. If that same person took five years off of work, the difference in savings would be nearly $100,000,” she explains.

There’s another problem for American women, Oster writes, and that’s the fact that many of them are not saving much for retirement.

“Only 26 per cent of women are saving for retirement and are comfortable with the amount they are saving; 47 per cent have no retirement savings at all; and the remaining 27 per cent are saving but not to the level that they want,” the article reports.

Oster cites the power of compound investment growth as a reason to start saving early in life, even if you start small.

“It’s important to specify what women with no retirement savings at all could be missing out on. If someone who is currently 30 years old put just $20 a month into a retirement savings account at seven per cent interest, they would have approximately $34,000 in savings by age 65. This $20 a month is the equivalent of five lattes or one streaming service subscription,” she writes.

Oster concludes by noting that it is never to late to start saving for retirement, urging readers to track earnings and spending in order to free up money for saving, and to open a retirement savings account now, and start small, ramping up when possible.

Did you know that one of the founding purposes of the Saskatchewan Pension Plan was to provide a way for folks who didn’t have pension plans at work, or who didn’t work, to save for retirement? SPP still delivers on that purpose.

If you don’t have a plan through work, and are relying on yourself to save for retirement, why not enlist the expertise of SPP? This do it yourself pension plan will invest your hard-saved dollars in a low-cost, professionally managed pooled fund. When it’s time to collect income, SPP’s options include the Variable Benefit (now available to all Canadians) or the possibility of a lifetime annuity.

Check out SPP today!

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We first heard about pickleball from one of our line dancing friends who is a tennis player. This was a few years ago. There was something new, she said, sort of like tennis mixed with ping-pong, played on a half-tennis court with a hard bat and a sort of wiffle ball.

Huh, we said to each other.

It was more recently that we began to hear that pickleball, perhaps like The Macarena dance of decades ago, had become a craze (as well as a recreational sport) not just for seniors but for players of all ages. Save with SPP took a look around to see what’s causing all the excitement.

“There is a sport that has taken off in Canada,” writes Shireen Ahmed for CBC Sports. “Neighbourhood parks are full of enthusiastic athletes, but the sport’s popularity has become polarizing on many courts: the centre of said drama is pickleball.”

The game has become so popular that it is crowding out other activities, she explains.

“There are noise complaints, annoyances to local residents and also a movement to reduce it because it is pushing children away from playgrounds. Is pickleball really threatening the suburban happiness of Canadians? Is it a sport or a leisure activity? Why are people so mad about it,” she asks.

It’s not an all-new sport, she writes – it was first played in this country in the 1970s and the first pickleball courts in Canada were built in Vancouver in 1984. But the sport has taken off, Ahmed reports, and there are now 1.37 million players – known as “picklers” – in Canada. There is even a pro league that has attracted Canadian tennis star Eugenie Bouchard, she writes.

While it is a bit noisy (the plastic ball hitting the ground and bats) Ahmed concludes that it was easy to pick up, and fun.

Down in the U.S.A., reports Inc., pickleball is now more popular than tennis.

The article expands on the idea that pickleball is easy to pick up.

“Pickleball’s triumph stems from its careful blend of novelty and familiarity. Despite introducing a new and exciting activity, the sport cleverly utilizes the existing infrastructure of tennis courts and incorporates rules reminiscent of its well-established counterpart. This lesson for brands underscores the idea that innovation need not be revolutionary. Offering a fresh twist on a familiar experience can captivate consumers without alienating them, creating a perfect balance. Draw people in with something new, but don’t scare them away,” the article tells us.

“The low barrier to entry–affordable equipment, ordinary athleticism, existing courts, and the simplicity of the game–make it easy for individuals of varying ages and skill levels to embrace the sport,” the article adds.

Reminds us of when soccer began to really take off decades ago – equipment costs, compared to sports like football or hockey, were much lower.

The game’s popularity is taking off so fast that the sports industry is struggling to keep pace, reports Yahoo! Sports.

“The industry is still struggling to keep pace with pickleball’s surging participation numbers. But small businesses and large corporations alike are catching up, while municipalities and private clubs race to build courts across the country,” the article reports. A November pickleball championship was expected to draw 50,000 fans, 4,000 amateur players and 200 pros, the article continues.

“You’re going to see pickleball everywhere next year,” Adam Franklin, president of Franklin Sports, the 77-year-old sporting goods company, tells Yahoo! Sports. “I still think we’re really in the early days of how this is going to look in the U.S. landscape.”

Maybe we’ll have to give this a try!

Perhaps some of the money saved on sporting equipment by the relatively low-priced activity/sport of pickleball can be directed towards your retirement savings program. If you don’t have a program through work, and are saving on your own, a great partner is waiting to help you – the Saskatchewan Pension Plan. All the dollars you contribute to your SPP account will be professionally invested in a low-cost, pooled fund. At retirement, you can choose such options as a lifetime annuity, or SPP’s Variable Benefit, now available to all members.

Check out SPP today!

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Working folks would prefer better pensions to a raise – but do employers get that?

An interesting schism has been discovered between employers and employees when it comes to pensions.

A study prepared for the Healthcare of Ontario Pension Plan (HOOPP) by the Angus Reid Group found that employers who think pay raises are a better way to attract and retain talent than offering or improving pension benefits may “be at odds with what Canadian workers want.”

The research is summarized in a recent HOOPP media release.

There was some good news, the release notes – some employers seem to be getting the message about workplace retirement programs. “A growing number of employers are turning to benefits, including pensions, to address a challenging labour market and improve employee retention and productivity,” the release points out.

So, what was the key finding of this research?

“The annual survey of 754 Canadian business owners and senior leaders with 20+ employees found employers who don’t offer retirement benefits may not be fully aware of their employees’ views on pensions, as 77 per cent believe their employees would choose a higher salary over a pension. In fact, previous HOOPP research has found that almost two-thirds (61 per cent) of Canadian workers would prefer a pension over a pay hike,” the release reports.

Let’s run that one by a second time. More than three quarters of employers think their teams want higher salaries versus pensions. But 61 per cent of employees prefer pensions over wage hikes!

“Workers may want pensions even more than their employers know,” said Ivana Zanardo, Head of Plan Services, HOOPP, states in the release. “Employers want to remain competitive in a difficult labour market and it’s easier to stay ahead if you understand, and can offer, what the workers you’re trying to attract and retain are looking for in terms of compensation.”

Attracting new employees and keeping them after they are hired is tougher these days, with unemployment running relatively low, the study notes.

“A significant majority of employers expressed concern about the negative impact of greater competition for hiring (77 per cent), a labour shortage (75 per cent) and employee burnout (73 per cent) on their organizations,” the release explains.

But those who offer retirement programs to their teams report different findings, the release continues:

• “58 per cent of employers who added or improved retirement benefits in the last year report higher than usual productivity, compared to just 34 per cent of employers who don’t offer them.”
• “Employers offering retirement benefits are two times more likely to say their employees can retire at or by age 65 (80 per cent) than those who don’t offer them (42 per cent).”
• “Employers who offer retirement benefits consistently rank retention (64 per cent) and recruitment (59 per cent) as the top benefits of doing so.”

Zanardo concludes the release by noting “the hope is that dialogue between businesses, government, the retirement industry and workers will help employers overcome obstacles to offering retirement benefits.”

We know that the Saskatchewan Pension Plan offers individual retirement savers the chance to have their hard-saved dollars professionally invested at a low cost. But a growing number of employers have found that they can set up a workplace pension plan easily using SPP, with the vast majority of administration work (statements, tax slips, and so on) handled by the team in Kindersley. If you’re interested in offering SPP as a benefit to your employees, contact SPP today!

SPP’s Variable Benefit option is now available to all members – it’s borderless! Find out how this flexible retirement income option can work for you.

Join the Wealthcare Revolution – follow SPP on Facebook!

Money, writes author Liz Davidson, quoting from the lyrics of an old song by the O’Jays, “can drive some people out of their minds.”

But her book, Money Strong, provides a step-by-step way to put you in control of not only your money, but your life.

“When you gain control over your finances, you can ultimately spend your time doing what provides you with the most joy and fulfillment and make what Steve Jobs called `your own dent in the universe,’” she writes.

She runs through the “money stories” of her family. Her personal money axioms include an effort to “spend wisely and on things that really matter to you, ideally things that grow in value over time or that you feel are really important to your quality of life.”

Money, she adds, “is something you have to earn, and it really only counts if your own efforts generate it.”

She has developed what she brands as the START framework:

• Set yourself up for success
• Tackle your stress
• Advance towards the life you want
• Role model good financial habits
• Thrive by living your purpose

OK, so how do we START?

The book is set up in modules to explain (using examples and worksheets) how to put all the principles of START in place.

Davidson says we need to establish “your financial identity” first. Are you an investor-type, “future oriented,” focused on the big picture? Or a bargain hunter who gets “a rush out of getting a deal” and have “both a love and a skill for negotiating?” Could you be a “minimalist” who cherishes “the moments with those you love above all else?” Or a planner who loves to-do lists, and to “arrange, communicate and follow plans?” Other financial identities covered off in the book include givers (who think of other people’s needs first) and automaters, who “set money aside for (their) future.”

You should commit to one of these identities and then plan accordingly, she advises.

An interesting chapter looks at the use of “bright spots” to move forward towards financial freedom. This is basically figuring out what’s gone right for you in the past for other things, and then “taking what worked for them to achieve success in other areas of… life and applying it to their finances.”

Examples of the use of a bright spot – “some people discovered they were at their best when they found ways to get perspective, remind themselves of their end goals, and find a way to track progress,” Davidson explains. Other “created a mantra they could keep front and centre of their mind to focus on the things they could control, and let go of those they couldn’t, sharing their mantra with their families and friends for accountability and reinforcement.”

So, figuring out what has worked for you in life, and then integrating it into your life and money plan. Interesting!

In a module on how to “tackle your financial stress,” Davidson advises us to “let go of shame and fully accept that you cannot change the past” when it comes to money. Become aware of what stresses you the most about finances, and develop a recovery plan that “is realistic… (and) trackable, so that you can see your progress and feel a sense of both accomplishment and relief, which will keep you motivated to continue the plan.”

High interest debt needs to be eliminated systematically. She suggests breaking up debt repayment into small, “to-do” list steps that can be celebrated as they are completed. Once you have cleared up your debt, build an emergency fund (start small) and avoid going back into debt. “If possible, use your credit cards sparingly… and use a debit card instead for all purchases you make at stores,” she suggests.

It’s hard to do justice to a book this detailed in a short review, but the short-form takeaway is that you can leverage things that work for you in other facets of life to develop a plan to regain control of your money – and with that control, you will be able to focus on what you want to do rather than on the struggle of staying afloat.

We particularly liked the example of replacing bad habits with good ones – she cites the example of replacing drinking after a hard day at the office with dancing, something she loves to do. Change a bad spending habit for a good one, and things will look after themselves.

It’s a good habit to put away money for your future – a time when you may not be able to work as hard. If you don’t have a pension program at work, the Saskatchewan Pension Plan may be just the partner you’ve been looking for. Let SPP invest your savings in a low-cost, professionally managed pooled fund, and at the end of work, SPP will provide you with retirement income options, including a stable of annuities and the flexible Variable Benefit option.

Check out SPP today!

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Will rising healthcare costs kill the retirement buzz for Boomers?

New research carried out for Sun Life by Ipsos has found that while Boomers are looking forward to enjoying “the gift of time” in their retirement, “many overlook the impact health issues will have on both their plans and their wallets.

The survey was covered in a recent media release and noted that nearly one third of Boomers (fully or partially retired, ages 58 to 77) “cite healthcare costs as a factor causing their cost of living to be more expensive than anticipated in retirement.”

Healthcare was the second top concern of the surveyed group, with inflation coming in far ahead at 83 per cent, the survey found. Healthcare was at 32 per cent, followed by housing costs (31 per cent) and market volatility (23 per cent).

“Many retirees are not prepared or aware of the out-of-pocket medical expenses in retirement,” states Jacques Goulet, President, Sun Life Canada, in the media release. “These costs can have a significant effect on retirement, especially for those living with a chronic physical or mental health condition that requires ongoing treatment. With the cost-of-living climbing, a holistic plan that meets your health and financial security needs can help prevent this financial burden later in life,” he states.

It seems that the older you get, the more likely it is that you’ll have one or more chronic health problems that require testing, scanning, measuring, and treating.

“Nearly half (49 per cent) of Boomers surveyed shared that they have a chronic physical or mental health condition that requires medication or treatment. Of those living with a chronic condition, nearly a third (32 per cent) have or have considered changing their retirement plans to pay for health-related costs,” the release continues.

Even Millennials are starting to enter the chronic health problem universe.

“Nearly a third (31 per cent) of Millennials (aged 27-42) have a chronic physical or mental health condition requiring medication or treatment. Yet, over half (52 per cent) of Millennials with a chronic health condition have not factored the cost of managing their chronic condition into their retirement plan. When broken down by gender, 61 per cent of women and 43 per cent of men have not factored in these costs,” the release notes.

Sun Life recommends that people factor in future healthcare costs in their retirement planning.

Advisors, the release concludes, can help clients “develop a creative strategy to help them understand the costs of aging, grow their wealth, and ensure all aspects of life are supported. These critical conversations with a trusted professional will enable Canadians to enjoy their retirement.”

There’s a lot of truth here. Your provincial health plan and even your post-retirement benefit plans may not cover all the costs of drugs, dentistry, vision and health. So, $50 here and $100 there. Plus, if you have chronic health problems, the cost of out-of-country health coverage is much steeper than it was when you were healthy and young.

So, for sure, factor into your planning the fact that you may face healthcare costs.

Did you know that the Saskatchewan Pension Plan is open to any Canadian with registered retirement savings plan room? Why have a do-it-yourself retirement when you can sign up with SPP and have experts manage your retirement savings in a low-cost, pooled fund?

News flash: SPP’s Variable Benefit option is now borderless – any member can choose this benefit regardless of where they live in Canada. Find out how this flexible retirement option can work for you.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

SPP: one of Canada’s largest multi-employer DC pension plans

Writing in Benefits Canada, Jennifer Paterson remarks on how the Saskatchewan Pension Plan has become one of Canada’s largest multi-employer pension plans.

She notes that defined contribution (DC) pension plans, such as SPP, have been evolving over the years.

“When my parents began their working lives in the early 1970s, they both had defined benefit (DB) plans, though the outcome for each was quite different. Since my mom retired, she’s been drawing down an income from the Ontario Teachers’ Pension Plan, while my dad spent the first decade of his retirement fighting for his pension after his employer Nortel Networks Corp. entered insolvency,” she explains.

(The difference between a DC plan and a DB plan is basically what’s defined. With DC, the contributions going into the plan are usually pre-determined, a set percentage of your pay sometimes matched by the employer. With DB, the pension coming out of the plan is what’s defined – contributions made by your and your employer can vary in order to deliver the “defined” benefit.)

Paterson writes that DB plans are “few and far between” in the private sector these days. Apart from a brief time belonging to a DB plan, she has “spent my career saving into either a DC plan or a group registered retirement savings plan.”

As boomers with DB plans retire, writes Paterson, “membership in Canada will continue to shift” to DC. “DC plan account balances are growing and the industry has to figure out how to improve both the accumulation and decumulation phases to meet this reality,” she explains.

While large public sector pension plans – she mentions the Healthcare of Ontario Pension Plan – tend to be “multi-employer” pension plans (MEPPs), meaning you can change jobs among participating employers and still keep the same pension plan, it’s rarer to see that in the DC sector, writes Paterson. “DC plans have traditionally been single-employer plans,” she continues.

But there is a DC plan that is also multi-employer, Paterson writes – the SPP.

“Consider MEPPs’ various benefits: economy of scale, pooled assets, reduced costs and shared risks. These benefits drew me to one of Canada’s largest MEPPs, the Saskatchewan Pension Plan, which is No. 21 in the 2023 Top DC Plans Report,” she writes.

Even if you change jobs, you don’t have to stop contributing to SPP – it travels with you as you move through your career.

“Since I knew it was unlikely I’d ever have the security of a public sector DB plan, I opted for the next best thing when I started building my family a couple of years ago. Through my workplace, I only have a group RRSP with a very low employer match, so I looked into saving in the SPP, which had recently expanded beyond Saskatchewan to open up to all Canadians,” she continues.

“Since I typically prefer to have some level of control over my finances, I’m still a bit surprised how comfortable I am as an SPP member, where I’ve set my investment choices, picked a monthly contribution that comes straight out of my bank account and basically stepped away. But there are many unknowns in the world and so much to manage, I appreciate that the SPP team takes the reins and I trust the work they’ve put into their investment options,” writes Paterson.

In addition to letting SPP handle the investment side, Paterson likes the options the plan offers on the trickier “decumulation” side, where retirement savings are converted into retirement income.

“The SPP’s focus on decumulation was another big reason I joined. For years now, I’ve been hearing about the Canadian pension industry’s very slow approach to solving this problem — and also saw how the SPP has been leading the way,” she writes.

“When I eventually retire, I want the comfort of keeping my savings in the same plan and the same investments, benefiting from the same pooling and risk-sharing I did in the accumulation phase. I’m not interested in the isolation and exorbitant fees of the retail environment — and I don’t think anyone near retirement who knows anything about finances should be comfortable with that transition,” writes Paterson.

She notes that members can now transfer all of their other savings – “my group RRSP, for example” – into SPP when they retire, in order to have all their assets in one account.

“Since I joined the SPP, I’ve been an advocate, promoting plan membership to all of my friends who either don’t have a workplace plan or have an inferior one like I do,” she concludes.

We can add one personal bit of SPP information – the “decumulation” options also include a lifetime monthly annuity pension that you can get within the plan. Here at our house, one of us is already receiving an SPP annuity, and we will both be doing so once this writer hits the big 6-5.

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

There are two kinds of saving – the kind where you put away a little money before you spend it, and the kind when you spend a little less (and thus, create a few extra bucks to save).

Groceries remain expensive here in the fall of 2023, so Save with SPP took a look around the Interweb to find out if people have any suggestions on how we all can save at the checkout.

According to the Narcity blog, the art of “couponing” is one way to go about it.

Narcity spoke to “well-known couponer” Kathleen Cassidy for her top tips. She tells the blog that it is important to “shop the flyers,” and find out “what is on sale this week… what is a great stock-up price.”

If there’s a great deal on something like sausages, then “buy a couple of packs… throw them in the freezer. The next time they’re not on sale, you’re prepared for that.”

Shop with a list, she advises. “I feel like a lot of Canadians just kind of blindly go into the grocery store every week,” she tells Narcity. “Especially if you go when hungry, you’re just throwing stuff into your cart.”

Other tips include price matching – if you know an item is on sale elsewhere, the store you’re shopping at will no doubt match it, the article explains. Finally, the article advises grocery shoppers to take advantage of any loyalty programs or points offered by the grocer.

The CBC offers up a few more ideas.

“Reconsider beef,” the broadcaster advises. Currently, beef “has seen some of the biggest price increases in the grocery store.” Chicken and pork cost less these days, so consider switching some meals to these other sources of protein, the article suggests.

The article says that some fresh items have had little price impact from inflation – you can get good prices on grapes, cantaloupes, avocadoes and potatoes, and in fact all of these items have dropped in price of late, the article adds.

By comparison, canned goods are up “by double digits” in the last year, the CBC notes.

On the salad side, while lettuce is up in price, “cabbage remains a bargain,” and cucumbers are not going up either. Consider “switching up” your salads by adding cukes and tomatoes, which also have not shot up in cost.

Bulk shopping is always a way to cut costs, reports The Daily Hive. Toiletries, and “pantry items” such as “pasta, canned products, granola bars and cereal” can be bought in bulk and store well, the article notes.

Meat, milk, cheese and butter can be bought in bulk when on sale, and they all freeze well, the article notes.

And of course, the article adds, be sure to watch for coupons, save them, and have them handy at the grocery store.

Another article from The Daily Hive provides a list of the best types of credit cards to buy groceries with.

Some cash-back credit cards, the article notes, will pay you two per cent in cash for every dollar you spend on groceries. We have friends who have credit and banking cards that award them points every time they buy groceries – and the points can be redeemed for, what else, free groceries. Check to see if your credit cards offer any such deals.

By leaving a few loonies in your purse via any or all of these methods, you are not only spending less on groceries, but creating a little pool of money that could go elsewhere.

Why not to your retirement piggy bank? If you are saving on your own for retirement, take a look at the Saskatchewan Pension Plan which has been building retirement security for Canadians for over 35 years. SPP will invest the grocery money you save for you in a pooled fund that is professionally managed at a low cost. And when life after work begins, SPP can turn those saved and invested dollars into retirement income, including the chance of a lifetime monthly annuity payment. After all, who knows what groceries will cost 10, 20 or 30 years from now?

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

SPP: a provincial plan that supplements CPP, rather than replacing it

Writing in the Edmonton Journal, Matthew Black notes that Alberta – interested in setting up its own provincial pension plan – can learn from plans other provinces have set up, or proposed.

The article looks at how Quebec, Ontario and Saskatchewan handled the idea.

In Quebec, the article notes, a decision was taken in 1965 not to join the then-new Canada Pension Plan (CPP), “instead establishing its own Quebec Pension Plan.”

Pension scholar Patrik Marier tells the Journal that Quebec’s decision to set up its own, new parallel plan on day one “is significantly easier than disentangling hundreds of billions of in assets from an existing plan, as Alberta would have to do.”

While Quebec argued in 1965, as Alberta argues today, that it has a younger population, things can change, Marier points out in the article.

“After the baby boom, there was a baby bust,” he tells the Journal. He notes that “Quebec’s fertility rate fell by half by the start of the 1970s following the Quiet Revolution,” and that contributions made by members of the Quebec plan are now higher than those made by members of the Canadian plan.

When Ontario unveiled plans, almost a decade ago, to roll out its own plan, the idea was for the Ontario Retirement Pension Plan to have “complemented, not replaced” the CPP, the article notes.

The plan was criticized by the then-Opposition provincial Progressive Conservatives as being a “job-killing payroll tax.” The federal government of the day also refused to cooperate with Ontario on the plan, the article notes.

“Ottawa’s refusal saddled Ontario with extra costs and administrative headaches, including collection of contributions, tax issues and integration with existing retirement savings programs,” the article explains.

The plan fizzled out, the article notes, after the Liberals won the federal election in 2015 and promised to expand the CPP.

In Saskatchewan, the article notes, the idea of creating the Saskatchewan Pension Plan (www.saskpension.com) was to “provide a voluntary provincial pension to supplement the CPP.”

“In the 1980s, Saskatchewan wanted to see homemakers, and others who lacked access to private plans, included in the CPP as part of a series of reforms led by the Mulroney Progressive Conservative government,” the article explains.

“The idea wasn’t popular among other provinces, but nonetheless became one of the founding principles of the Saskatchewan Pension Plan when it was created in 1986 without the complex negotiations involved with leaving the CPP,” the article reports.

“You could put in contributions which would actually provide some sort of a pension,” Marier tells the Journal, adding that “it would lessen the penalty of raising children at the time if you were leaving the labour market.”

“Over its lifetime, SPP claims to have an average return of 8.1 per cent to members, of which there are currently around 33,000,” the article concludes.

Why would supplementing the CPP – as SPP does, and as ORPP was intended to do – make sense? According to the federal government’s own figures, the average CPP payment for “new beneficiaries” at age 65 is $772.71. The maximum is $1306.57. Those figures are gross amounts (no tax factored in), so you can see that it is a modest benefit.

And while many Canadians also will get Old Age Security (OAS), the maximum amount, again according to the feds is “up to $707.68,” for those under age 75, with the possibility of a clawback of some or all of that for higher-income earners.

So, with a maximum benefit of $2,000 and change from both CPP and OAS, the need to supplement government benefits with other income – perhaps from a workplace pension or private savings – becomes clear. And that’s where the SPP comes in.

Any Canadian with registered retirement savings plan (RRSP) room can join SPP. The money you contribute is invested in a low-cost, professionally managed pooled fund. When it’s time to retire, you can collect some or all of your SPP retirement savings as a lifetime monthly annuity payment.

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

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When a younger golf buddy sat us down to explain cryptocurrencies and fintech investing, a sort of grey mist seemed to form in our mind, and we strained at an imaginary leash to get back to golfing.

But The Canadian’s Guide to Modern Investing by Kiana Daniel and others clearly explains the pros and cons of these and other newer investments and approaches in a clear, easy to follow, mist-free way.

The book starts out by explaining that any investor, no matter what they choose to invest in, should be a saver first.

“One thing online investing can’t do is make something out of nothing,” the book explains. To invest, you must save money first, the book continues, adding “don’t get frustrated, though, because you don’t need as much to get started as you might fear. If you have a job or source of income, building up ample seed money isn’t too hard.”

The book says automatic withdrawals, workplace retirement plans, and making sure you put any left-over money “to work for you” (and not lying around) are ways to build savings.

In a section on figuring out how much risk you, as an investor, are prepared to take, the book recommends asset allocation. “Instead of tossing all sorts of ingredients into your portfolio pot and guessing what it will taste like, it’s best to know what needs to go into the pot to get what you want. In investing, this is called an asset allocation.”

Asset allocation’s advantages include the safety of diversification (not all eggs are in one basket), rebalancing (sticking with an asset mix and adjusting things when an asset gains or loses’), and discipline – sticking with your asset allocation choice, such as 70 per cent equity and 30 per cent stock, for example.

After talking about passive investing (index funds and mutual funds) versus active investing (doing research yourself and picking specific stocks, exchange-traded funds, bonds, and other investments), we learn about the importance of fees.

ETFs and index funds generally have far lower fees than mutual funds, the book states.

“In the world of index funds, the expenses are much lower…. Many of the more traditional ETFs cost no more than 0.06 per cent a year in management fees.” In the U.S. at least, the book says, some ETFs have no fees.

In a look at cryptocurrency investing, we learn that crypto is not an “everyday government-based currency” but one that relies “on a technology called blockchain, which is decentralized (meaning no single entity is in charge of it). Instead, every computer in the network confirms the transactions.”

A chief advantage crypto has, the book states, is that “with traditional money, every time you make a transfer, a middleman like your bank or a digital payment service takes a cut. With cryptocurrencies, all the network members in the blockchain are that middleman; their compensation is formulated differently from that of fit money middlemen’s and therefore, is minimal in comparison.”

The book warns that crypto can be very volatile, noting that in 2017, the value of crypto “skyrocketed above 1,000 per cent and then came crashing down.”

The book then takes a look at “fintech,” defined as “all parts of technology that help provide financial services and products to customers… individuals, companies, or government.”

Broadly speaking, the category consists of “capital markets tech,” where newer tech like artificial intelligence, machine learnings and blockchain is involved in investing; “wealthtech” which involves the use of digital tools for personal and professional wealth management and investing, “insurtech” which is insurance technology and “regtech” where regulatory challenges are addressed through automation.

While all of the new firms in these categories are definitely new and exciting, investors should use caution, the book advises.

“No matter how `new’ or `innovative’ any technology or offering (fintech or otherwise), always pay attention to the fundamentals of the company,” the book warns. “This means focusing on the company’s sales and net profits and a solid balance sheet…. If the company is profitable year after year, that’s the hallmark of a strong investment.”

A chapter on cannabis investing says that this relatively new category does offer investors the chance “to invest in a new industry.” But, the book warns, do your homework. There has been a lot of money flowing into the new industry which means that “even legitimate cannabis stocks are overvalued,” and growth in the sector could lead to the “commoditization” of cannabis, where the product “becomes indistinguishable from other similar products” and prices drop, as is the case with most agricultural crops.

The book concludes on more familiar ground, comparing “value investing,” where you buy stocks in companies that appear undervalued “and worth more than their share price indicates,” as well as growth investing (buying small companies in the hopes they grow larger), income investing (focusing on holdings that pay interest and dividends) and “investing in what you know.” There’s a chapter on ESG (environmental, social and governance) investing, where the goal is to invest in companies that respect the environment, do good for society, and are well run for their people.

Phew. There’s a lot here in this relatively tiny book!

The takeaway we had from reading it was this – there are many different things you can invest in. Some are risky, others, less so. Before you invest in anything, it is important to do your homework and know if the thing you’re buying into is well run and has a solid track record. Develop an approach and stick to it – be patient.

Alternatively, if you are investing for retirement and would rather focus on something else, perhaps golf, the Saskatchewan Pension Plan may be worth checking out. SPP’s investment professionals will grow your savings for you, with a diversified, pooled fund that is run at a very low cost. When work is in the rear-view mirror, SPP will help you convert your savings into retirement income, including the option of receiving a lifetime monthly annuity payment based on some or all of your savings.

Great news! SPP’s flexible Variable Benefit option is no longer limited to those members living within the borders of Saskatchewan. Now all retiring SPP members across the country can take advantage of this provision, which puts you in control of how much income you want to withdraw, and when you want to withdraw it. You can also transfer in additional savings from other unlocked registered sources. For full details see SaskPension.com.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!