Tag Archives: Canadian Living

Why some people don’t retire

 

We were chatting about retirement with a salesman at the local car dealership when he rolled out a bombshell – in his early 70s, he had no plans for retirement. He loved what he does and wants to keep on doing it for as long as he can. Maybe in his mid- to late 80s he might get a cottage, he says.

That made Save with SPP wonder if others aren’t retiring – and why.

The Wise Bread blog says there are five types of people who don’t retire – the “broke non-retiree, the workaholic, the successful investor, the life re-inventor and the mega-successful lifers.”

The article notes that “a startling 47 per cent” of Americans “now plan to retire “at a later age than they expected when they were 40.” The reason why – 24 per cent of Americans 50 and older have saved less than $10,000 for retirement.

For workaholics, the article notes, “it can be devastating to face retirement,” with many fighting it “tooth and nail.” Successful investors, the article notes, may have bought real estate, gold, or stocks early and now have enough money that they don’t need to work. Life re-inventors retire from one job and take on a new, totally different one, and the “mega-successful” tend to be CEOs, actors, star athletes, folks who have sufficient wealth to not worry about a formal retirement.

The New York Times reports that there are 1.5 million Americans over the age of 75 who are still working. Judge Jack Weinstein, age 96, still gets up for work every day at 5:30 a.m., the newspaper reports. “I’ve never thought of retiring,” he tells the newspaper. “If you are doing interesting work, you want to continue.” The paper says that those who are employed in jobs “in which skill and brainpower matter more than brawn and endurance” often keep going past usual retirement age, as do the self-employed and industry stars, like Warren Buffett.

An article in Market Watch picks up on another point – there are many people who don’t like the sound of retirement. “The idea of a retirement where a person has little responsibility, and, worst of all, interacts with very few people, just isn’t appealing to the current crop of pre-retirees,” the article notes.

A more Canuck-friendly view comes from Canadian Living, which lists the main reasons for not retiring as “you need the money, you like working, you hate retirement,” and significantly, “you’ll collect bigger benefits” and “you’ll lose your RRSP later.”

“If you collect your CPP at age 70,” the article points out, “you’ll get 42 per cent more than if you retired at 65.” Similarly, if you collect CPP at 60, you get 36 per cent less than if you collected at 65, the article states.

On the RRSP front, since you must convert your RRSP to a RRIF (or buy an annuity) by age 71, delaying retirement means you will have more money in retirement, the magazine notes.

These are all good points. Save with SPP notes that there are many folks who simply live in the now and won’t think about retirement until they must. The idea that we can all keep working forever is a nice one but tends to be an exception, rather than a rule.

We may not want to retire, but the vast majority of us probably will. Even if you’re in the group that has saved very little up until age 50, there is still time to augment your life after work with some retirement savings. The Saskatchewan Pension Plan is quite unique in that it is open to all Canadians and provides an end-to-end retirement vehicle – your savings are invested and turned into a lifetime pension at retirement time. It’s a wise choice, even for those who don’t want to retire.

 

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Sept 21: Best from the blogosphere

By Sheryl Smolkin

Saving for retirement is important, but working for 35 years with only a few weeks of vacation a year is a daunting thought for many people. However, some companies allow employees to take one or more extended leaves during their career and in some cases establish income deferral programs to help them finance a career break.

Here are some of the things you need to know about taking a sabbatical in Canada.

In the Globe and Mail, columnist Tim Cestnick offers Tax and other tips for planning a work sabbatical. He discusses the little known privilege in our tax law that permits your employer to set up a deferred salary leave plan (DSLP). The plan allows you to set aside a portion of your pay each year for a certain period of time and to then take a leave of absence. The money you set aside under the plan is used to pay you during your time off. If the DSLP is set up properly, you won’t face tax on the amounts you set aside until you make withdrawals later during your leave.

In The Sabbatical, a 2009 blog on Canadian Dream: Free at 45, Tim Stobbs explores the pros and cons of taking a sabbatical. He says taking three months off will allow you to take a major trip, build your own cabin or take courses to further your education. But the downside is you may not be able to afford the loss of income or benefits, and there could be career fallout with your boss or co-workers.

If the sabbatical bug has bitten, talk to your manager or human resources department; you may be pleasantly surprised at your options. How to take a break from work by Diana Swift in Canadian Living gives you tips for negotiating time off. She says pick your time, suggest how your workload will be handled in your absence, and tell your boss why you believe you are an asset worth keeping.

Should I Consider Taking a Teaching Sabbatical? Teacher Man asks on Young and Thrifty. His union contract allows him to take a year off at one-third pay after two years in the school division and one-half pay after five years of teaching. He concludes that if he completes his Masters degree during his time off and improves his future earning potential (he is only in his 20s), the investment in time and money could definitely be worthwhile.

Sabbatical Financial Planning 101: How to travel and not get into debt on Aspire Canada has lots of great ideas like: start planning early; continue contributing to your benefits if you can; sell stuff to raise money; draw up a budget; plan to stay with friends/relative where possible during your travels; and, pursue opportunities to work while you are abroad on your sabbatical.

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jun 1: Best from the blogosphere

By Sheryl Smolkin

I’m back at my desk, after a super 4-day weekend visiting my daughter’s family in Ottawa. Although we just missed the end of the tulip festival, all the lilacs were in bloom and residents of Canada’s capital were running, biking, having picnics and eating on patios. There is no doubt that summer is the time when Canadians take advantage of the longer days and beautiful weather to move both their social life and their fitness routines outdoors.

Sarah Snowden blogging on Canadian Living identifies five inspirational blogs that deliver a demonstrated authority and passion for a healthy, active lifestyle. We reproduce her top picks below.

  1. BC Runner
    Vancouver-based freelance writer and running advocate Usha Krishnan dishes up tips on everything from jogging, sprinting, and breathing techniques to running in the rain. It has a user-friendly design with useful diagrams and inspiring photos.
  2. Bicycling Blogger
    Cycling enthusiast Kevin Rokosh drives home tips on all things cycle including nutrition, racing, recovery, training, equipment — even “bikertainment”. For those looking to take their cycling up a notch, you will find this site takes a not-so-serious yet informative approach to cover all the bases.
  3. Gluten-Free Guidebook
    Travel journalist Hilary Davidson serves up reviews of restaurants, shops, hotels and products targeted at travelers with celiac disease (in which gluten, a protein found in wheat, rye and barley, damages the small intestine), and gluten intolerance. Avid travelers seeking a gluten-free experience will love this well-written account of Canadian and international destinations – you’ll be surprised by the number of establishments that are gluten-free.
  4. Cyclemania
    Founded in 2004 by Les and Helen Faber of Ottawa, Cyclemania features the pair’s exploration of scenic routes and provides a broad overview of cycle related issues. The blog imparts invaluable information on community, equipment, racing, safety, cycle experiences abroad and at home, and even spinning through posts, forums, videos and vibrant photos.
  5. Teaching Kids Yoga
    Toronto yoga teacher Aruna Humphrys spreads good karma with tips on helping kids to relax, be healthy, and enhance relationships through the practice of yoga. Posts inform readers about the latest yoga-related DVDs, books, and teaching techniques for teachers and parents alike.

And finally, Breaking barriers: Canadian-Muslim women and fitness is an interesting discussion of how barriers that have kept some Muslim women from participating in organized sports are finally crumbling in Canada. Shireen Ahmed who played on the University of Toronto’s varsity soccer squad is featured.

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Dec 1: Best from the blogosphere

By Sheryl Smolkin

Black Friday (imported from the U.S.) will have come and gone when you read this, but if you haven’t already started your holiday shopping, the beginning of December means the pressure is on to get it done without breaking the bank.

Kerry K. Taylor says on Squawkfox that using the Flipp app on your Android, BlackBerry or IPhone is the easiest way to browse flyers/weekly ads and save money. With more than 80 of your favorite Canadian stores at your fingertips, you can quickly search for the items you need, highlight the best deals and clip items straight to your shopping list.  Some retail stores found on Flipp include: Target, Walmart, Best Buy, IKEA, Macy’s, Sports Authority, Big Lots, Kroger, Sears and many more.

In Easy ways to save money this holiday season Jill Buchner from Canadian Living suggests creating a photo book through a site like picaboo.com, where albums start at about $10. Or, enlarge a special photograph for just a few dollars and frame it to make a personal piece of art.

Mike Collins on Debtroundup also discusses several  Simple Holiday Shopping Tips to Save You Money. Agreeing to a spending cap with friends and family and setting a gift budget and sticking to it are two valuable pieces of advice.

The Christmas break is prime time for Canadians to travel near and far, particularly if you have teachers or students in the family. On Moneyning, David Ning offers 50 Budget Travel Tips and Ways to Save Money on Vacations. For example, taking a train at night can save you the cost of accommodation and tons of prime daytime hours when you would rather be doing anything else except traveling from A to B.

And finally, Christmas is not just a time to give gifts but to give the gift of your time to those who are less fortunate. Brighter Life blogger Joanna Marie Nicholson writes about Giving back: How to find time to be a volunteer.

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Aug 25: Best from the blogosphere

By Sheryl Smolkin

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Welcome to the back to school issue of Best from the blogosphere. Regardless of what part of the country you live in, days are getting shorter, nights are cooler and there is a touch of colour on the few leaves that are already drifting to the ground.

That can only mean that soon the kids will be back in school and your “to do list” includes school supplies and provisions for school lunches.

In the Toronto Star, Dana Flavelle reports on a survey that says back to school shopping is going to be more expensive this year. Just over half of Canadians polled said they will spend more $200 on their sons and daughters (at 54% and 56% respectively), while 12% will fork over more than $400 for clothing and school supplies. To help stay on budget you may want to re-visit Back to school shopping: A teachable moment posted on savewithspp.com last year.

On Brighter Life, Diana Mancuso writes about preparing your child for back-to-school. Whether this is the first time youa re sending your child to school or you are a seasoned pro, preparation is always key to ensuring a smooth transition from summer vacation to the classroom.  For example, easing into back-to-school bedtime and morning routines plays a crucial role at this time of year.

If your child is heading off to college, you may be interested in Tori Flood’s article on Yahoo!NEWS discussing the dorm gadgets you don’t want to forget when heading back to school. Some of these like a smart TV and a wireless router may seem pretty over-the-top, particularly for students on a beer budget. But I really like the hot pot that can boil water like an electric kettle and also cook food directly so hungry students can avoid having to use the hotplate in the communal kitchen. A white noise machine might also be useful in noisy dorms.

Should your child have a smart phone or a dumb phone or any phone at all? Yahoo tech columnist Dan Tynan says give younger kids a dumb phone. A simplified feature phone that lets you talk to them and get their location is more than enough for most pre-tweens. Like training wheels on a bike, dumb phones are an excellent way to teach kids how to communicate through technology.

And going back to school isn’t just for kids. If you have been thinking about taking courses to upgrade or change careers, take a look at 10 ways you can afford to go back to school on Canadian Living. For example, you can use the federal government’s lifelong learning plan to take money out of your RRSP – without paying a penalty – to help pay for your post-secondary studies. Also, you don’t have to be a kid to have a registered educational savings plan (although the government will not augment your contributions),

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Krystal Yee blogs her way to financial independence

By Sheryl Smolkin

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Click here to listen

Hi,

Today we are continuing with the 2014 savewithSPP.com series of podcast interviews with personal finance bloggers. I’m talking to Krystal Yee who blogs on “Give me back my five bucks” and the “Frugal Wanderer.”

With over eight years of professional experience in marketing, communications, and writing, her career has spanned a variety of different industries. From ghost writing in the provincial government, event coordinating for a professional hockey team, to marketing cold water survival gear – she’s done just about everything.

In 2012 Krystal lived in Stuttgart, Germany. There, she worked remotely for clients such as the Toronto Star (moneyville.ca), Canadian Living, and Flare Magazine. In her spare time, she loves travelling, hiking, tweeting, and analyzing baseball statistics.

Hi Krystal. Thanks for joining me today.

Thanks for having me.

Q: When and why did you start your blog “givemebackmyfivebucks”?
A: Well, I started that blog back in February 2007, because I was finding it hard to relate to my friends in real life about the money issues I was having. I was uncomfortable bringing up a topic that, at the time, seemed really personal.

So once I found that personal finance blogs existed, I became really inspired and motivated, knowing there are other people out there like me who wanted to change their lives. That was the reason why I started my own blog.

Q: Seven years ago you had over $20,000 in student debt and no money. Now, you are a debt free homeowner. How did you do it?
A: It was a lot of hard work and sacrifice, but I knew that I needed a life change. And I decided not to hide from my debt any longer, and that was really, really scary. The first thing I did was calculate how much I owed. I gave myself one year to get out of debt. So I started building budgets, saving money any way I could, and increasing my income. And actually attacking my debt from all of those angles helped to speed up the process.

Q: What are some of the mistakes you think that you made along the way before you got on your debt repayment plan, and what would you do differently if you had it to just do all over again?
A: I think one of my biggest mistakes was not creating a realistic budget. I wanted to get where I wanted to be as fast as possible, but I didn’t take into account how unsustainable that would be. After taking that year to get out of debt, I thought I could keep up with this bare bones budget to save money faster but I started to get really tired of what I perceived as constant deprivation.

As a result I found that I was rebelling against myself and my goals, and that was a really strange feeling. It actually took me a few months to realize what was actually realistic in the long term. And even today, I really have to question the budgets I make for myself and the goals I’m settings, just to make sure they satisfy the saver in me, but it also lets me live the kind of lifestyle that I want.

Q: Now, in “givemebackmyfivebucks,” you discuss your financial goals, your successes and failures. You put up weekly and monthly budgets. That’s really baring your soul. What reaction have you had from family and friends and your readers?
A: Well, for the first few years I started my blog, I was actually anonymous, so I felt safe. I was scared of what my family and friends would say about how much I was sharing on the internet, but once I actually started writing for The Toronto Star’s website moneyville.ca, I realized that speaking frankly and opening myself up, was really empowering.

Q: In 2012, you moved to a very small apartment in Stuttgart and worked remote. What were some of the challenges you faced and how did you overcome them?
A: It was really liberating moving to Germany and working for myself. You know, everyone dreams about quitting the 9-to-5 routine and becoming your own boss. I imagined sitting in European cafes all day long people watching and writing for clients. While I did that almost every day, because of the time zone difference, I also had to work a lot of late nights since my clients were all in North America. It was a really big adjustment for me.

But I think the biggest challenge was the isolation. Not only was I in a country where everyone spoke a different language, but working for myself. So when I moved back to Vancouver, I went back to a corporate job because I needed that daily interaction with other people.

Q: You love to travel and you manage to travel economically. You write about your experiences on the “frugalwanderer.” What has been your favorite trip to date?
A: Oh, my favorite trip was the one I took in November 2013 to Morocco. It was a mix of the people and the landscape and the food that made it so exciting. And I never thought I’d get the opportunity to travel to Africa, sleep under the stars in the Sahara, drink tea in Marrakesh or go hiking in the mountains. It was fantastic. And once I took the time to budget out how much everything costs and how I could save money on the trip, it quickly became a reality.

Q: How many hits do you typically get when you post a blog?
A: Well, it really varies depending what the content is and whether other websites pick up the blog posts. If it’s just my traffic on a daily basis, you know, it can be anywhere from 2,000 to 5,000 visitors a day. When I get picked up by another website, it can go up to 10,000 visitors a day or higher.

Q: What have some of the most popular blogs been?
A: Surprisingly, over the last seven years, my most popular posts have been about how to upgrade ramen soup to make it taste better and how much you’ll need to save up in order to move out of your parents’ house the first time.

Q: Oh, that’s interesting.
A: Other popular posts have been a comparison of prices at Target Canada to Target USA; what your net worth should be by the time you’re 30; and a post about the myth of having to travel when you’re young.

Q: What have some of the spin-offs from blogging been for you?
A: Having my blog has opened up a lot of doors for me that I never would have thought possible. What started out, essentially as an online diary to help me stay accountable for my goals has turned into this vehicle that I can actually use to make money and help people at the same time.

You know, through blogging, I’ve been offered writing contracts with moneyville.ca, The Toronto Star, Canadian Living, Flare Magazine, Metro News and other publications. I’ve spoken to the media on different topics and I get to partner with really fun companies at the same time. Recently I finished a campaign with H&R Block and I’m a regular Twitter contributor for RBC.

So I think that those kinds of partnerships make blogging fun and make it more interesting. In the future, I hope to continue blogging about my journey towards financial independence. And I really love how my hobby and what I’m passionate about has turned into a part-time job for me

Q: If you had one piece of advice for Canadians trying to get their finances in order, what would it be?
A: Oh wow, just one piece of advice. If you’ve never taken a good look at your finances, my advice would be to create a budget and stick to it. I mean, it’s fun to spend money. So we convince ourselves that it’s okay, because we have a better job around the corner, a bonus that will cover the shortfall, or because we think we deserve it.

But the truth is no matter how much money you make, there’s always going to be something you can’t afford. When I first started budgeting, I saw it as a restriction. It was a way to stop me from having fun. I didn’t understand that it was helping me manage my money, so that I could have even more fun with my life.

And by choosing where my money went and how I spent it, and by living below my means, I was creating a really stress-free lifestyle which I never had before, and a better future. So I think budgeting is the number one thing that I would tell people to do.

Thank you very much Krystal. It was a pleasure talking to you today.

My pleasure. Thank you.

This is an edited transcript of the podcast you can listen to by clicking on the graphic under the picture above. If you don’t already follow Give Me Back My Five Bucks and Frugal Wanderer, you can find them here and here. Subscribe to receive blog posts by e:mail as soon as they’re available.

Mar 3: Best from the blogosphere

By Sheryl Smolkin

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If you haven’t started to think about filing your 2013 income tax return, this week is as good a time as any. You’ve made your 2013 Saskatchewan Pension Plan and RRSP contributions and T4s are in the mail.

Last April, on Million Dollar Journey, the Frugal Trader wrote a great blog to help readers prepare for filing their 2012 income taxes. It is equally relevant this year – a great checklist to get all your paperwork in order before you sit down to complete your return.

If this is the first year your home was your principal place of business, you’ll want to read what Canadian Finance Blog’s Tom Drake has to say about how you can reduce your taxes with business-use-of-home expenses.

On a similar note, in Canadian Living, blogger Krystal Yee offers income tax tips for freelancers so those of you in that category you can get all of the deductions that you qualify for. She also warns the self-employed to put money away for taxes on a regular basis so there are no surprises at the end of the year.

Media-savvy accountant and author Evelyn Jacks writes about claiming employment expenses. Even employees may claim certain specific expenses, depending on whether their employer will verify that this was a necessary condition of employment. Allowable expenses may include travel costs, the cost of using an automobile to earn income, supplies used up in the course of employment, the cost of an assistant, and home office costs.

Retire Happy blogger Jim Yih reminds us to take advantage of the Pension Income Tax Credit. He says if you are age 65 and do not receive a pension (other than a government benefit) you should open a Registered Retirement Income Fund and transfer $12,000 from your RRSP. If you draw down $2,000/year until age 71 you will be entitled to the pension tax credit and effectively receive the money tax-free. An unused pension tax credit can also be transferred to your spouse.

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Sept 9: Best from the blogosphere

By Sheryl Smolkin

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Most of us are aware that saving for retirement is a must even if our savings currently fall short of what we will need. But many people have not thought much about estate planning and don’t even have a will. So this week we focus on blogs and websites that will help you and your family with end-of-life planning.

Secrets to writing a will is an article in Canadian Living that draws on the expertise of Janet Sim, past chair of the Canadian Bar Association’s National Wills, Estates and Trusts Section.

The Investor Education Fund’s blog GetSmarterAboutMoney.ca has a section on death and dying with links to blogs about a variety of related topics such as wills, reducing your estate costs and what happens to your life insurance when you die.

Acting as an executor can be very challenging. On retirehappy.ca Jim Yih provides a helpful checklist for executors.

Estate Law Canada is a valuable collection of blogs by Newfoundland lawyer and author Lynne Butler. Her most recent blog discusses what happens to the share of someone who dies before receiving her inheritance.

Widowed.ca is a free online resource for widows, widowers and their families, providing an easy way to locate a wide variety of information and services needed after the loss of a loved one. Check out the Q and As and Janet Baccarani and Jennifer Black’s book Managing Alone.

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 with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.