How spending declines with age

September 8, 2016

By Sheryl Smolkin

A recently retired actuary I once met at a conference told me that retirees worry primarily about their health and their money. Even retirement savings that seemed perfectly adequate when you hand in your office keycard for the last time seem to be eroded by the unrelenting drip, drip of inflation.

That’s why the lucky few who have indexed or partially indexed defined benefit pensions (most common in the public sector) are the subject of “pension envy” by the 80%-85% Canadians who do not have access to any form of workplace pension.

But according to a new C.D. Howe research paper by actuary Fred Vettese, retirees actually spend less on personal consumption as they age. He says, “This decline in real spending, which typically starts at about age 70 and accelerates at later ages, cannot be attributed to insufficient financial resources because older retirees save a high percentage of their income and, in fact, save more than people who are still working.”

Vettese cites evidence showing that compared to a household where the head is age 54, the average Canadian household headed by a 77-year-old spends 40% less. None of this drop in spending is attributable to the elimination of mortgage payments because they are not considered consumption. Much of the fall in spending at older ages was traced to reduced spending on non-essential items such as eating out, recreation and holidays.

The author focuses on public sector pension plans, which are fully indexed to inflation. His findings show that these plans could move to partial indexation, generating significant savings. “Given that more than 3.1 million active members are contributing to public-sector pension plans, the total annual savings could add up to billions of dollars, he says.” At the individual level, he suggests these savings would allow public-sector employees to increase current consumption or to reduce debt.

Given this phenomenon, cost-of-living indexation of workplace pension benefits could be reduced without sacrificing consumption later in life, Vettese concludes. He also notes that, “Reduced pension contributions would free up money to be spent today when families struggle to raise children and pay down mortgages on houses, thereby raising plan members’ collective economic welfare over their lifetimes.”

The average resulting reduction in required total employer/employee contributions to public-sector plans is of the order of $2,000 a year per active member. There are over three million active members in Canada’s public-sector DB pension plans, most of which provide full inflation protection or strive to do so to the extent that funding is available.

Nevertheless, Vettese says Pillar 1 (OAS/GIS) and 2 (CPP) pensions should not be subject to any reduction in benefits or contributions because these plans are generally designed to cover basic necessities, such as food and shelter. In the absence of evidence to the contrary, he believes it is reasonable to assume that spending on such necessities does not decline very much, if at all.

I have heard the three phases of retirement described as “go-go”, “slow-go” and “no-go.” My mother at 88 no longer drives a car and can’t to get out to shop very often anymore, so I am prepared to concede that many of her expenses have been reduced. However, her memory isn’t what it used to be and she has had several bad falls, so paying for 24-hour care in her own condo is a huge drain on her assets. Also taxis to multiple doctor’s appointments and medical supplies are expensive.

While Vettese suggests partially eliminated or reducing inflation-protection for indexed pension plans could allow public-sector employees to enhance current consumption and reduce debt, I’m not sure that’s necessarily a laudable or desirable objective. Mom saved and scrimped all her life and because my Dad was a disabled WW2 veteran she gets a tax-free, indexed pension for life. She also collects CPP and OAS.

I’m glad she has the additional disposable income so she can stay in her own apartment with the necessary support system as long as possible. Even though older retirees may no longer go on extended vacations or eat in fancy restaurants, they still have other equally compelling expenses in order to live out their remaining days in dignity and comfort.

Now if we could only figure out a way to help raise the bar for all seniors to be able to afford the same well-earned privilege.


How will your kids pay for higher education?

September 1, 2016

By Sheryl Smolkin

Going to school after high school can be costly.

A student attending trade school, college, CEGEP or university full-time today can expect to pay between $2,500 and $6,500 per year—or more—in tuition. Books, supplies, student fees, transportation, housing and other expenses will only add to that total.

In fact, full-time students in Canada paid an average of $16,600 for post-secondary schooling in 2014–2015. That is more than $66,000 for a four-year program.

If you are saving for your children’s post-secondary education, give yourself a pat on the back. Canadian parents are ahead of their counterparts in other Western nations in saving for their children’s post-secondary education.

Close to three-quarters (72%) of Canadian parents are saving for their children’s post-secondary education, putting them ahead of parents in the U.S. (65%), Australia (53%) and the U.K. (46%), according to The value of education: foundations for the future report, which includes responses from parents in 15 countries and territories.

However, only 30% of Canadian parents are funding their children’s university or college education through a savings plan specifically for education. Almost one-quarter (22%) are taking that funding from general savings, investments or insurance policies and 66% are using their day-to-day income to get their kids through school.

RESP
That’s a shame because by saving in a registered educational savings plan you are eligible for the Canada Education Savings Grant and the growth in the fund can be tax-sheltered until the student eventually withdraws money for school expenses when he/she is likely to be earning less than you are now.

Employment and Social Development Canada pays a basic CESG of 20% of annual contributions you make to all eligible RESPs for a qualifying child to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year), and a lifetime limit of $7,200.

ESDC will also pay an additional CESG amount for each qualifying beneficiary. The additional amount is based on net family income and can change over time as net family income changes.

For 2015, the additional CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:

  • 40% (extra 20% on the first $500), if the child’s family has qualifying net income for the year of $44,701 or less; or
  • 30% (extra 10% on the first $500), if the child’s family has qualifying net income for the year that is more than $44,701 but is less than $89,401.

Unused CESG contribution room is carried forward and used when RESP contributions are made in future years provided that the specific contribution requirements for beneficiaries who attain 16 or 17 years of age are met.

Impact on your retirement
Given the increasing cost of post-secondary education it is not surprising that many Canadian parents are also concerned about how their children’s educational costs will affect their own finances, with 43% worrying about the cost and 31% concerned about how paying that expense will affect their other financial commitments. If their financial situation becomes difficult, many parents’ long-term savings and retirement plans may be in jeopardy.

Exactly half of Canadian parents believe funding their children’s schooling is more important than contributing to long-term savings and investments and 43% state that they prioritize their children’s post-secondary educational expenses over saving for retirement. More than half (54%) said they would be willing to go into debt in order to afford university or college expenses.

In addition, survey results reveal that Canadian parents are thinking about these expenses early in their children’s lives as 28% of parents start planning ways to fund these expenses when the child is born; 9% before the child is born; and 24% look at these issues before their child begins primary school.

Even so, half of Canadian parents expect their child to contribute financially toward those educational expenses and 39% say their university-aged children are helping to fund their own education, which is one of the largest proportions of all of the markets surveyed, the study notes.

To estimate your child’s future education costs and see how your planned RESP including contributions and grants will cover those costs, plug some numbers into the GetSmarterAboutMoney.ca RESP Savings Calculator.


Aug 29: Best from the Blogosphere

August 29, 2016

By Sheryl Smolkin

Late August is one of the most expensive times of the year for families with young children. Kids seem to grow like weeds in the summer and often have to be outfitted from head to toe. And expensive computers, tablets, smart phones and sports equipment are now on many back-to-school lists list along with low tech supplies like pencils, pens, binders and post-it notes.

Here are some ideas I have gleaned from other bloggers to help save you money:

  1. Check with the school: Find out from your child’s school what exactly you are expected to provide. There is no sense buying all sorts of notebooks, binders and pens if the basics are already handed out to students.  And teachers often have strong preferences about how they want students to complete and organize their work.
  2. Make a list: Before heading out on a shopping trip for school supplies, check what items from previous years are unused and which binders and back packs can be re-used because they are still in good condition. Then make a list and stick to it.
  3. Take inventory: Try on coats, boots and other clothing items to see if anything still fits. Where you have several children close in age, determine what can be handed down. Consider a clothing swap of gently used items with friends and neighbours.
  4. Spread it out: While you may feel pressured to buy everything at once before school starts, you won’t need snowsuits and boots until November. Spreading out necessary purchases over the next few months until you see great sales will take the pressure off your budget.
  5. Online deals: Major retailers with bricks and mortar stores often offer deals online. In addition to using coupon sites, like RetailMeNot, there are a number of price comparison sites, including shopbot.ca and ShopToIt.ca, that list how much an item costs at various retailers. When shopping online, choose retailers that offer deals such as free shipping, promo codes and discounts.
  6. Buy generic: Pre-teens and teens in particular may be into “name brands” that can cost hundreds of dollars more than generic equivalents of similar quality. Giving your children a limited clothing budget or telling them they have to earn the money to buy trendy items will help them to better understand the value of a dollar and keep your overall costs down.
  7. Shop alone: This may or may not work depending on the age of your child and what you are shopping for. However, the easiest way to avoid arguments about buying more expensive school supplies and clothes with the latest Disney characters may be to shop without your kids so they won’t distract you from your mission of finding and buying items that are the best value.
  8. Used sports equipment: Children grow out of skates and skis every year. Outfitting a minor hockey player can cost hundreds or even thousands of dollars a year. Some sports stores sell hockey equipment starter kits for better prices than if you buy each item individually. You may find gently used equipment on sites like Kijiji. Craigslist, Ebay or a local classified website. Some arenas have sports exchanges or you can talk to parents of older hockey players.
  9. Last year’s model: Contrary to what your kids may tell you, they don’t need the latest iPhone or iPad. The odds of mobile devices being lost or broken are very high. Earlier models may be offered by carriers for under $100 and you can often share minutes on a family plan. Also, kids typically text as opposed to sending emails so a costly data plan may be unnecessary.
  10. Extra-curricular activities: Extra-curricular activities like dancing, swimming, sports and music lessons are an important part of every child’s education but they can add up. Don’t fall in to the trap of signing your children up for more activities than the family schedule can mange for more money than you can afford. Go over the brochure for the local community centre with each child and pick one or two convenient activities that are offered at a price that fits within your budget.

Also see:

Back-To-School Costs: How To Avoid Blowing Your Budget
How to Save Money on School Supplies
Back-To-School Shopping: Five Money Saving Tips
Back-to-School Shopping on a Budget | MintLife Blog
Back to School Tips – How to Balance Your Budget with Needs and Wants

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Canadians unrealistic about retirement health, finances

August 25, 2016

By Sheryl Smolkin

My husband and I are both looking at age 65 in the rear view mirror and we are helping to manage my elderly mother’s affairs. I think we have a pretty good grasp of what retirement costs and how easy it would be to eat through our nest egg if we are not careful.

That’s why I can’t help but be surprised by the results of the recently released Morneau Shepell study Forgotten Decisions: the disconnect between the plan and reality of Canadians regarding health and finances in retirement. The survey discovered many people make unrealistic plans based on the amount of income they are actually contributing to a retirement fund versus their expected annual withdrawal.

Expected withdrawal rate unreasonable

More than one-third (35%) of employee respondents report they are saving 10% or less of their current salary for retirement. Even more concerning is that, on average, employee respondents plan to withdraw 15% of their total savings a year following retirement – four times the rate that is typically recommended.

“More than 70% of respondents are planning to withdraw more than the recommended amount annually,” says Paula Allen, Vice President, Research and Integrative Solutions, Morneau Shepell. “There is an evident disconnect between how long retirement income typically needs to last, the savings pattern of many, and the withdrawal plans of most.”

The survey also found that responsibilities in retirement may include the need to support dependants. Seventeen percent of respondents indicated that supporting dependants was among the most important financial issues. Thirteen percent indicated concern regarding their support of dependent children and 14% indicated concern about the support of elderly parents.

Under-planning for health costs

The survey found that nearly two-thirds of employees age 50 and over (61%) are currently suffering from one or more chronic health conditions. Despite this, 97$ of survey respondents described their current level of health as being good, very good, or excellent and a large number of employees (86%) are expecting to retire in good health.

“Chronic health issues are so commonplace that sometimes they are accepted as the norm. Unfortunately, this can lead to complacency and lack of investment in one’s own health and lack of preparation for health costs,” said Allen. “The cost of chronic health issues, which often increase with age, can be a big shock during retirement, as employer health benefits may no longer be available for medication and other health-related support. As well, the public drug plan covers much fewer medications than most employer-sponsored plans.”

The most common chronic conditions affecting survey respondents include hypertension (25%), arthritis (24%), high cholesterol (18%), diabetes (12%), and depression, anxiety or other mental health problems (9%).

“Health is one of the most important factors to consider when preparing for retirement,” noted Allen. The majority of respondents (59% ) indicated they will not have access to an employer-sponsored health benefits plan after they retire. Two-thirds indicated health costs as one of their top concerns in retirement.

Employer/employee perceptions differ

Of the employees surveyed, one in four (24%) indicated that when they choose to retire, they will not be financially prepared. Twenty three percent of employee respondents plan to rely on government pension programs as a primary source of retirement income.

On average, however, more than half (51%) of employer respondents indicate that their employees will not be financially prepared when they retire. Furthermore, employers believe that one-third of their employees will not be financially prepared to deal with a health crisis when they retire.

Almost all employer respondents (96 %) indicated that it is important for employees to know that health costs will impact retirement income. Despite this, a large proportion of employers (29%) reported that they do not provide retirement-related financial information.

“Employers clearly see risk in the retirement preparedness of employees, but often do not have the systems in place to offer the necessary support and education,” said Allen. “Providing employees with more knowledge on the facts and options for personal financial management and health cost issues in retirement is crucial to adequately prepare employees for their transition to retirement.”


Aug 22: Best from the Blogosphere

August 22, 2016

By Sheryl Smolkin

This week we have a pot pourri of stories from some of our favourite bloggers who have continued to write compelling copy through the now waning, long hot days of summer.

Are you a techno-phobe or an early adopter? Alan Whitton aka Bigcajunman writes about how old financial technology habits die hard on the Canadian Personal Finance Blog. Despite some lingering security paranoia, he now deposits cheques by photographing them with his cell phone.

One of the primary changes personal finance advisors suggest that clients make to save money is to put away their credit cards and start spending cash. On Money We Have, Barry Choi explores what happens if you decide to use cash and debit more. He says that depending on your personal situation, this may affect your credit score, you will forgo travel reward points and you also can lose out on other standard benefits like travel insurance and auto insurance covering car rentals.

Mark Seed on My Own Advisor answers a reader’s question, How would you manage a $1 million portfolio? His bias is to own stocks indirectly via passively managed Exchange Traded Funds for the foreseeable future to get exposure to U.S. and international equity markets.  However, he says his selection of investments will likely differ after age 65 and in future he might hire a fee-only financial advisor or use a robo-advisor to manage his portfolio.

I recently helped my son find an apartment in Toronto so I thought Kendra Mangione’s article From a house to a bedroom: What $1,000 a month can rent across Canada was particularly interesting. She says you will pay $950 for a single bedroom with an ensuite bathroom in a Vancouver suburb but $950 will get you a two-bedroom, 864 sq. ft. townhouse close to downtown Regina and the university.

And whether you have children who are new graduates or you are only beginning to help pay for your kids’ post-secondary education, check out Parents Deserve a College Graduation Present, Too in the New York Times. This piece explores a Korean-American tradition for former students to give parents sometimes lavish gifts, once they have their diplomas in hand.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


How to build up an emergency fund

August 18, 2016

By Sheryl Smolkin

You have an accident and your car is totaled. A parent or close friend is very ill and you need to fly to her side. You lose your job. Your furnace conks out in the middle of a Canadian winter. These are genuine emergencies when a little spare cash will go a long way to making your life easier.

That’s why along with paying yourself first and paying off debt, having an emergency fund of three to six months pay is part of the “holy trinity” of personal financial advice.  But if you are like almost half of Canadians polled late last year who said they are living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week, where are you going to find the money to build up an emergency fund?

Here are some ideas:

  1. Take baby steps: Set low initial targets like $500 or $1000 and save $50 from each paycheck. You will have over $2,500 in a year.
  2. Automatic withdrawal: Have the savings you commit to automatically transferred into a separate account. You’ll never miss it.
  3. Extra money: If you have a good month and there are still a few dollars in the bank before your next pay cheque is deposited, transfer it to your emergency account.
  4. Review your budget: Few of us have cut all the fat out of our budgets or our spending habits. Whether it is forgoing your morning latte or packing a lunch a few days a week there are always ways to reduce expenses. Where feasible walking instead of driving is good for your health and your wallet.
  5. Better rates: When is the last time you checked to see if the amounts you are paying for car or house insurance are competitive? Can you live with higher deductibles? If you don’t do the research you could be leaving hundreds of dollars that belong in your emergency fund on the table.
  6. Quit smoking: If the average cost of a package of cigarettes is $12 and you smoke a pack a day you are burning up $4,380 a year. Save your health and save your money by quitting – not an easy task, but a worthwhile challenge.
  7. Save loonies and toonies: If you get one and two dollar coins in change when you break a larger bill, don’t spend them. When you get home put the money in an envelope and take it to the bank at regular intervals.
  8. Freelance: What are you good at? What do you enjoy doing? Think about how you can boost your emergency savings by doing something you love after work.
  9. Sell stuff: Clean out your closets. Have a garage sale or sell your oldies but goodies online. You will have less clutter and more money in the bank.
  10. Rent a room: Do you live near a university or college campus? If you are an empty nester, consider renting out a to a student room to help generate savings to top up your emergency account.

Whatever it takes to reach your goal of three to six months net pay in the bank, remember it is for a true emergency. That probably doesn’t include a new dress for an upcoming wedding when you have a close full of clothes or upgrading to the latest and greatest iPhone. When disaster hits, you will be glad you did.


Aug 15: Best from the Blogosphere

August 15, 2016

By Sheryl Smolkin

The Olympics may be highly politicized but when the rubber hits the road, the most important thing is the fantastic performances put on by athletes at their peak who are fulfilling the dream of a lifetime. As I write this, Canada has been awarded 12 medals, but by the time you read it, there will no doubt be lots more (see current medal count here).

A first for many of us will be how we follow this Olympics on multiple devices. Although I have watched video replays online for years and monitored results on my smart phone, as we were visiting my daughter in Ottawa and she no longer has cable, for the first time this year we watched the opening ceremonies streamed live and projected on a big TV screen.

Here are 30 Canadian athletes to watch for, led by Rosie MacLennan, our flag bearer in the opening ceremonies. In 2013 Rosie won Canada’s only gold medal in London for her 10-bounce trampoline routine and she won a second gold medal just last week.

But in many cases it’s the narrative behind the people that engages us. In the first week 16-year old swimmer Penny Oleksiak collected a gold, a silver and two bronze medals, capturing hearts from coast to coast.

And certainly the refugee athletes who cannot represent their homeland but are competing under the Olympic flag are a heartwarming story that everyone is following.

Here are some of the other dramatic Olympic story lines that Sam Laird on Mashable predicted will be “utterly irresistible.”

  1. Jamaican sprinter Usain Bolt is aiming to sweep the 100-meter, 200-meter and 4×100 meter relay for the third Olympics in a row, although he has had some injuries this year.
  2. Men’s soccer is not usually a big deal at the Olympics, but soccer is red hot in Brazil and after being defeated in the 2014 World Cup the team wants to redeem itself on home ground.
  3. A mother and son target-shooting team (Tsotne Machavariani and Nino Salukvadze) from Georgia (the former Soviet territory), are an Olympic first.
  4. Triplets Leila, Liina, and Lily Luik are 30-year-old sisters from Estonia. They are all scheduled to run in the women’s marathon. It’s believed to be the first time triplets have qualified for the same Olympics.
  5. Michael Phelps has come out of retirement and  has won 23 gold medals over the five Olympic Games he’s been part of.

You may opt to watch whole events or simply check out summaries on the evening news. But keep an eye out for little known favourites, who by next week may be the latest medalists and media darlings!

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


10 things you need to know about enhanced CPP benefits

August 11, 2016

By Sheryl Smolkin

Well, the earth moved and in late June at a meeting of provincial/federal finance ministers, Bill Morneau got the consensus he needed from eight provinces including Saskatchewan for the phase in of modest enhancements to the Canada Pension Plan. As a result Ontario has agreed to shelve its plans for a home-grown Ontario Registered Pension Plan.

The feds plan to start collecting higher premiums beginning January 1, 2019. Many details still have to be ironed out, but here are 10 things you need to know about how enhanced CPP benefits will impact both employers and employees.

  1. The Canada Pension Plan Act says that once a sufficient number of provincial governments have indicated support, the federal government can move forward and lock in the reform with an Order in Council—no new Parliamentary debate or legislation is required. From that point forward, the expansion will be fixed in place unless amended through a subsequent agreement of two-thirds of provinces to reverse the expansion—which is very unlikely.
  2. If you are already retired or close to retirement you will not benefit from the changes. Someone retiring in 2020 who made one year of the increased contribution would get a tiny amount. Someone retiring in 2030 would have 10 years of extra contributions.
  3. Canadians who work a full 40 years will see their benefits increase (in 2016 dollars) to a maximum of $17,478 instead of $13,000. Therefore the replacement rate will inch up from 25% of the Year’s Maximum Pensionable Earnings (YMPE) to one-third.
  4. The maximum amount of income subject to CPP will increase 14%  from $54,900 this year to $82,700.
  5. Increased premiums of one percent will be phased in over seven years beginning in 2019. That means depending on the income levels of individual Canadians, up to $408 will come off their pay cheques.
  6. The refundable tax credit known as the federal working income tax credit will be expanded to help low-income Canadians offset the increase in premiums.
  7. Changes will not impact RRSP (and SPP) contribution room.
  8. To avoid increasing the after-tax cost of the added premiums, Ottawa will provide a tax deduction for the additional contributions rather than a tax credit.
  9. Company pension plans are not always offered – particularly Defined Benefit plans. Therefore it makes sense that young people and mid-career employees will benefit.
  10. Participation is mandatory and from the limited information released to date, it appears that even companies that do have a pension plan will have to make additional contributions and their employees will not be exempt.

We are making a change!

August 9, 2016

Hello Readers,

We are changing  our webhost for savewithspp.com on Wednesday, August 10, 2016.  It shouldn’t be a big change, however we wanted to let you know.

Why are we doing this?

To make security enhancements and allow us to have a more mobile friendly layout.

What will change?

Not much, other than the layout. We will still be posting blogs on Monday and Thursday, Saskatchewan Pension Plan will still be managing the blog and Sheryl Smolkin will still be our writer.

What does this mean for you?

Nothing! We hope…. You won’t need to follow us again to keep up with this blog and you can still access our blog at http://savewithspp.com.

If you have any questions please email us at so*********@sa*********.com.

And, as always, thanks for reading.

Thanks
Stephen Neiszner
Network Technician
Tel: 1-800-667-7153
Fax: (306) 463-3500
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Aug 8: Best from the Blogosphere

August 8, 2016

By Sheryl Smolkin

And just like that, it’s August! The days are getting shorter and families are starting to think about getting the kids back to school and getting serious about the upcoming round of fall activities.

Those of you sending your kids off to college or university will be interested in The Business of University Fees by Big Cajun Man aka Alan Whitton on the Canadian Personal Finance blog. Did you know if your child is still in school he/she is probably still covered under your group medical plan at work and most universities will allow you to opt out of the university’s plan?

If you have received your first child benefit cheques and haven’t already spent them on back-to-school supplies, here are 3 Great Ways to Use Your Canada Child Benefit Payment  by Craig Sebastiano on RateHub. RESP contributions, TFSA deposits or charitable donations, anyone?

And talking about TFSAs, take a look at Robb Engen’s TFSA Dilemma and Solution on Boomer & Echo. Like many of us Robb has a ton of TFSA contribution room ($50,500) He plans to turn his $825 monthly car payment – which ends in October – into future TFSA contributions, starting in January 2017. That’s $10,000 per year to stash in his TFSA, which at that rate would catch-up all of his unused room by 2027.

Have you reviewed your life insurance lately? Are you and your partner adequately covered so if one of you dies, the other can continue to pay the family bills? Bridget Eastgaard from Money after Graduation says Cash-Value Life Insurance Is For Suckers, Buy Term Instead.

And finally, Should you work part-time in retirement? by Jonathan Chevreau on moneysense.ca includes an analysis commissioned by Larry Berman, host of BNN’s Berman Call and Chief Investment Officer of ETF Capital Management. It illustrates the powerful impact of earning just $1,000 in part-time income each month between the age of 65 and 75; or in the case of couples $2,000 a month between them.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.