@@ThisIsOurRetirement Think about this: parents have capital, which they would like to invest in real estate and child who also would like to buy a home, but doesn't have the money. Giving money would have tax consequences. But loaning money to the child for buying a home and using that as loan guarantee, would give the possibility to gradually over the years give smaller gift sums without tax consequences. The child would benefit from the possible increase in the value while parents could get some interest to their capital and perhaps also payments of the capital. Parents often, because of their more stable economic situation, can have access to cheaper loans as their children. If you plan to give money to your children as gifts and/or inheritance, loans can be a tool to make it more cheaply. But of course this is like any financial arrangement, where you need to be aware of the counter party risks. And relationship with own family can be too complicated and difficult to make such arrangements, I can understand that. But you have to remember there are family businesses and other situations, where such situations are unavoidable.
My parents "gave" one of my siblings a "loan." It was never paid back. It grated on my parents for years that no payment was forthcoming. One day a nice sum of money appeared in my bank account. Asked my Mom what is this? She said she discussed it with my Dad and they agreed it wasn't fair to all of us (5 kids); once they could afford it, they gave the other 4 kids the same amount. That sibling never got another dime out of my parents.
Watching your videos about 10-15 years before retirement makes me feel as if I am at a HUGE advantage as we approach your phase of life. Thank you for the thoughtfulness you put into your content.
I am so grateful to own a house in the downtown area of a small quaint town 30 minutes south of Atlanta. It has a separate two bedroom apartment with it’s own garage and a separate entrance. The income from the apartment pays for the upkeep of the main house where I reside.
Tina and Norm, I remember when I was even a teenager my grandmother would proudly announce, "I'm on a senior's pension," when dealing even with business people and often she got a bargain and rightfully so.
Some people out there might not like what you're saying, but you are spot on accurate. I've seen families tear themselves apart because of loans, co-signing, inheritance, etc. As usual, great points. I'm glad your channel is gaining popularity. It's well deserved.
Another great video; you are not afraid to address the elephant in the room. A few years ago I lost a friend when I said no to her request for a loan. I felt that the friend was very unreasonable for asking; and I said no because I saw her as irresponsible with money. There is a saying “ a bird in the hand is worth two in the bush” so I took my CPP ten years ago at the age of 60. I wasn’t going to wait 10 more years for a bigger cheque. I did the math, and considered other factors, like my neighbour who died on the day he was eligible to collect his first CPP cheque. Ten years later, I am still satisfied with the decision I made back then.
Thank you so much for your wonderful comment, we feel if we can share ideas it might help one person who would be unaware of a point or give strength to someone who is facing a decision like you had to. We feel the same as you about CPP. Have a nice weekend.
Your comment about inheritances is so right on. I've seen multiple situations where people didn't get expected inheritances. In one case, the person did no retirement money planning because of an anticipated inheritance and now she is in a terrible financial situation. Always view an inheritance as a possible bonus not a sure thing.
I would not leave an inheritance to a someone who didn't plan for her own retirement. It shows great irresponsibility, and immaturity. I would rather leave it to a charity.
So much easier listening to a couple talk about retirement than a financial advisor. You put it in simplistic terms that people can understand and relate to. Keep the good work! I am 55 next year and shall be watching closely! Cheers!
Good point about your house owning you! Once I adopted that “millionaire next-door“ mindset of not defining myself by my possessions or achievements, it made a huge difference! I don’t care if my house is much smaller than my friends or if we drive an old car or if I don’t have the latest fashions. I know I have a lot more net worth than all my friends who have those things 🤑
It's so much better to be able to sleep at night without worries. And have the money to pay for necessities ahead. For example, hubby has to have dental implants and that cost 6k in NYC. He became deaf in 1 ear last week, after years of wearing hearing aids. We probably have a huge copay or deductible for the cochlear implant ahead. So glad we have the money saved.
Great advice! We expect to have a quite comfortable retirement. It’s all of the reasons why we are not going to divulge to anyone how well we’re doing 🤫 we keep a low profile anyway. We plan on traveling often and like you’ve said, we’ve earned it!!! Thanks again for your sound, practical advice
Its amazing to see how like minded you two are. My wife and I diverge on many subjects. I hope we can close ranks like you two have. Thank you for the inspiration.
I hit the lottery years ago. Not the mega amounts that make the news but a nice chunk. It wasn't long until I was hearing from distant family members I've not seen in 30 years calling for loans. Some weren't politely asking some were demanding, some almost threatening. It was quite upsetting and for a bit I was sorry I won the money. I focused on what I could do to make this a totally positive experience for me and it came to me it's finally time I grew up and learned to say 'no' without guilt. the first was a cousin I've not seen in decades and didn't really like even back then, I told her 'no' and then declined to continue the conversation with her why I should owe her a loan/gift. I discovered if I didn't continue to engage in her tirade she had no power to continue to try to manipulate it. It was quite a freeing experience. I did it, I could say 'no' without guilt and learned to not carry on a conversation that didn't serve me emotionally. The win did turn into a totally beneficial experience. I invested, saved, donated sleep peacefully I served the money in my own way.
Wow what a story thanks for sharing and we are so glad it worked out in the end for you , sometimes it’s hard but you do have to learn to say no in life . Have a great week Cheers 🍷🌺🙂
We don’t have kids but we have friends that do and many are seemingly incapable of ever saying no to them, even to the point of putting themselves in financial distress at an age they can’t possibly ever recoup losses. We know so many retirees raising their grandchildren so any “me” time has gone out the window. Every single thing you said here is so true and I hope this might help parents and grandparents to have the courage to say “no”
These are very great suggestions, spot on. However, in my case I live in a market where rents have escalated quickly and are now seriously out of reach for many working people, never mind a retired single person on social security. The lucky thing for me: 11 years ago I bought/moved into a centrally-located low-priced condo. I front-loaded the loan payments in the beginning while I was working, then refinanced such that now I can pay the small remaining mortgage and the HOA, and all my other monthly expenses entirely with social security. It's not easy, and as you say I've had to pay special assessments once in awhile, but it's a fraction of the rents in my area. Great walkability near a park and on the bus line. If buying choose your location, try to find a building that doesn't display deferred maintenance, and take the very smallest unit you can live with because the HOAs (which always go up) are based on the percentage your unit's square footage is of the total.
Your last tip about not relying on an inheritance was probably the best point. You never know what will happen or if a person's Will will be changed at the last minute, etc.
You two are so sweet together. My cousin weaseled his way into my parents life and the farm was given to him rather than my bother and I. This type of thing happens way more often than people think. Thank God I am not relying on inheritance for my retirement. All of your points are much appreciated.
"Inheriting farms and cottages" - there's so much family drama surrounding those topics that someone could probably do a TH-cam channel on each or both of them !
Steve I had a problem with my brother.... I asked all my customers back when I worked and almost everyone said yes they had a different situations, but some said that it was smooth because there was no money to spilt
Thanks for sharing so sorry to hear , we had a sibling rivalry that destroyed our parents plan so absolutely we know how you feel 🤗 have a wonderful weekend Cheers 🍷🌻🍺
Great video. My husband and I have been through many permutations of these pitfalls but we were able to manage them successfully. My son moved in while he took a course (we charged him rent); my stepson required his father to co-sign his mortgage (that was discharged after three years) and I have helped my children on occasion with small loans (all paid back). I guess it all depends on the integrity of the parties involved. As we get older I don't think we will be doing any of these things again but at the time we were able to do it. And great advice about expecting an inheritance or getting tempted by investments schemes. If it sounds too good to be true, it probably is! Take care!
Hi Guys, We have helped our children too and you are right about integrity. These points are probably more relevant when we become elderly. Have a great weekend and enjoy your wine! 🍷
Cool T-shirt Norm ;) Renting not an option for me, there are way too many 'renovictions' going on and the idea that anyone can kick you out at anytime scares the $hit out of me. Downsize, execute major repairs while you are still working(roof/hvac/windows) in the last 5 years of your career and make sure you have $ set aside for maintenance and future repairs.
Another one is helping adult children with starting a small business. So many fail, especially food or restaurants. My parents helped a sibling with a restaurant startup, a sure thing. They cashed out retirement funds to “buy in” and be part owners. It was profitable only after 5 years, and I’m sure they put additional capital into operations. 7 years in it folded, in debt. It hurt parent’s retirement. They also said it would come out of her share of inheritance, but that was not the case when the last parent passed. If you really do want to leave something to children, consider these things along the way, it does impact the future and relationships. Btw, my daughter wants me to spend every dime having fun in retirement ❤😆
Three pronged plan intact. 1. S.S. begins in 18 months; start collecting then. 2. House converted to rental provides cash flow after expenses. 3. Inheritance is clearly written into parent’s will to divide exactly evenly between siblings with assets already embedded in a family trust including me as a legally named beneficiary. This third aspect offsets the early job downsizing, divorce, university costs which caused me to spend my 401k and IRA during my 50s inadvertently. Live overseas as long as health and energy and desire dictate - where rent, utilities, groceries and local transportation is under $1500 (less than my”fixed” S.S. alone). Have loads of experiences, maintain flexibility. Cheers, your videos are truly assisting me !
Another very interesting and "to-the-point" video ! The "gifts and loans to children and grandchildren" section particularly resonated with me. My grandparents were put in that position years ago by an "ambitious" cousin. The whole attempt to get a loan fell apart after other family members learned about it but it caused a rift in the family that was never completely healed. How to avoid that ? I guess the only way is to let the family know you're "not made of money" and discourage them from thinking that you're "The Bank of Dad" ?
Great video! I can relate to so many of your points and have been guilty of them. Being a single woman with adult children who are not in financially great positions (one moved back in with me) I realize I need to be so much more careful with my money now. Thank you for reminding me!!
A great video! Don’t let anyone “guilt” you into co-signing, loaning, making your home a free B&B, etc. if you are feeling guilty for not wanting to help, that is a huge danger sign. Helping because you have the funds and the desire to do so ON OCCASION is a blessing to the giver. Putting your own financial health in jeopardy is unwise.
You brought up a lot of great points in the video. I agree with you on your CPP decision. I plan on having us take our Social Security at 62 even though we don't need it. My reason is that we can use that money for expenses and let our investments continue to compound. I ran the numbers and I project that the compounding will pay us more over the rest of our lives than waiting for the bigger payments later on.
My wife and I were the ones to always pick up the bill before retirement and we were happy to do it. 2 sons in university that we funded and we knew this was a short period of time and we were both working. Now, both sons working full time we have no problem saying NO to them. Still love to help out with babysitting etc. but it’s our time now! Took a bit of time for them to understand our relationship changed but they get it now after a bit of resistance!
Excellent tips! I'm three years away from retirement, if my company doesn't get rid of me sooner! I'm so looking forward to this next chapter in my life.
You’ll love retirement! I know I have for past 3 years! I’d been working since I was 15, thought I’d never retire…what would I do? But it’s been awesome!
It sounds like a terrible thing to say, but in my experience never trust anybody with money not even your own family. This is from personal experience. Thanks very good advice.
Excellent advice. Regarding a loan/gift to family members, also be aware if you loan/ gift one grandchild, the other ones will be expecting you to be open to helping them as well when they ask. This should be considered when making your decision. Talk about ruining relationships- money issues will do it!
I think it is extremely important to communicate with your children regarding finances and expectations. Also, to be fair and treat each child equally. We never know the future, just because 1 child said she will study pharmacy, doesn't mean she will actually go into the profession. People do change. The child who didn't have a college major in mind, might turn out to be the one who makes the money. 😊I should know 😊. The resentment from treating children unequally will last forever and destroy relationships way past the parent's lifetime.
Yes, my friend co-signed on a new cart for her niece. She really gotten taken by that act when her niece stopped paying the loan fee. I LOVE living in our condo. Our condo fee is a reasonable $295.00 a month. We would spend much more than that to pay for law moving, leaf pick-up, snow removal and other maintenance. I ran a Pro's and cons of HOA's as part of my decision...MT LIST: 1) Yes, A HOA does cost money, but it also saves ME money, time and my precious/limited energy. 2) IF I was to add up all the fee’s I would likely have to pay a contractor and/or seasonal workers to handle the outside maintenance for a home it would probably cost me as much if not more than my $295.00 HOA fee. 3) WINTER: Cover snow plowing of driveway and shoveling walkways. Putting down salt/sand when icy. And dog safe driveway salt for walkways; DRIVEWAY: Resurface driveway as needed. ROOF: Repair or re-roof as needed. LAWN CARE: Cost of mower and tune-ups, gas and spark plugs, repairs. Fertilize, weed killer etc. TREES: Trim branches and fertilize trees. When tree branch falls into slider screens and rips it the condo board-pays to replace the screen. Cuts down ivy that is choking the tree’s along Ottawa Beach Rd. GARDEN: Mow lawn weekly. Edge beds in spring. Trim shrubs in fall. Planting annuals and bulbs. FALL LEAVES: Blow and pick up and haul away fall leaves and spring/summer branches that have fallen. BUILDING: Cost to scrape and paint every two years or to power wash siding. (And/or the initial cost to buy siding and put it on the building.) WINDOWS: HOA will replace all condo windows and sunporch sliders as needed. They will wash condo windows each spring. DECKS/WALKWAYS: Power wash decks prior to painting and power wash walkways every two years. WATER & SEWER: HOA pays all related fees. COMMON HALLWAY: Monthly hallway vacuuming, window washing of front door window areas. At some point they will pay for new carpet and wall coverings when needed. UPDATING SECURITY: The HOA updated the new door buzzer unit in 2020 and the key locks in 2021. OVERALL MANAGEMENT: HOA sources the companies/the workers, get quotes, re-negotiates when they want to increase costs, overseeing the workers, following up on any issues. Pays the bill/writes the check, GARAGE DOORS: Replace garage doors if they crack, break or wear out.
I took my Cpp at 62 and get my first OAS one month after my 65th birthday. Anything can happen accident, illness… I want to enjoy it now when I can still travel.
Soooooo true what you say about home expenses.... there's always something to fix! I recently had to deal with a broken garage door. And hate to say it but the floor there also needs an expensive repair 😞 Good topic.... thanks again. Have a great week 🇨🇦♥️🇺🇦
Another great video. Thanks. We did a few of your no-nos over our 14 years of retirement, but one in reverse. We recently moved in with our divorced son, 2 grandchildren aged 6 & 11 and took in a puppy (11 months ago now). It makes for an interesting "retirement", especially now that I've had ALS for the past 2 1/2 years. My son thought he could take better care of us in Kelowna rather than Calgary.
All situations are different 🌺 we think it’s wonderful that your son has taken you in and sounds like it works for everyone, we wish you all the best take care and enjoy your weekend Cheers 🍷🌻
Definition of love Pete & my three kids are the same. I have lent them money & it has always been returned with gratitude. I couldn’t help them with university but they self financed with scholarships & work. We all know we can count on each other.
Hi Tina and Norm, we recently retired bought a condo and sold the family home. Looking forward to the east coast for the summer and Portugal in the winter. No more landscape and snow shoveling. I'm thinking of an indoor vertical vegetable garden. Thank you for the great info. P.S. maybe an in site to the grandparents scams, bail money is a cashier's cheque not cash. Ty cheers
Congrats 🥳 on your retirement Samuel thanks for mentioning the Grandparents scams that are all in the news at the moment , maybe we might meet next Winter 🥶 in Portugal 🇵🇹 Cheers 🍷🌻🍺
I totally agree with your point about relying on an inheritance being risky. You may think that you will get a big chunk of change when your parents die, but it's quite possible that they may encounter big expenses late in life, such as assisted living costs, which could significantly deplete the inheritance you're expecting. Amazingly, some people actually factor in possible lottery winnings into their retirement planning, too.
Thanks, Tina and Norm for another very informative video. You guys remind us of things can that cause us pain in our retirement, if we don’t pay attention. Based on your advice, I aspire to one day sell my house and rent an apartment. I don’t won’t want deal with house repairs forever. Thanks again.
Thanks for yet another very informative video! These are a few points I had not thought of, but make good sense. I recently retired (January 28th) and my bride retired last year. There’s still the uncertainty of the financial markets at the present, but we’re looking forward to our next chapter in life, and the travelling we intend to do. Cheers!
These are all very valid points. We own an apartment in Dublin. We downsized about 8 years ago. We pay fairly hefty Management Fees and we were hit with a bill of over 12,000 euro to fix a fire problem! We even had to vacate the Apt for 2 weeks while work was being done. So the expense of a hotel! We did not go abroad as we wanted to keep an eye on the place. We now realise there will be more expenses like a new roof! We do not have children but we have nieces and nephews. Unfortunately there was a costly marriage break up. Very sad and also very expensive. We now know especially in Ireland you have to keep some money aside for medical care even if you have private insurance! It might not cover all! Thanks for this video and everything you said is so true. Have a great weekend!
Yikes 😱 that’s a pretty hefty bill Mary Rose your management fees sound like the Condo fees in Canada 🇨🇦. (sorry we aren’t a fan we have had family members had bad expensive shocks so we decided to rent ) . The only thing we need is to pay for dental 🦷 as we get older , all other medical expenses is covered in 🇨🇦 Canada . Have a wonderful weekend in Dublin Cheers 🇮🇪 🍷🇨🇦🍺
I just read a story about seasonal campers at a recently sold to new owners campground in Door County Wisconsin getting a 71% increase in year to year rate fees. And if they didn't like the fee increase they have 3 weeks to vacate the property . Being notified this late into the booking season most campgrounds are already booked for seasonal use, so they're kinda stuck paying the increase .. They'd have 2 choices: 1 pay the increase while probably seeking alternative seasonal spaces for next year or 2 if possible move their campers into storage and seek alternative camping spots for future years. I'd imagine after years of camping in one location, getting used to having the same neighbors season after season etc.. having a huge increase in rent must derail quite of few campers/retirees who are just barely covering their month to month expenses.
That is a very sad story Mark thanks for sharing we have heard of a similar situation, there is really no answer we don’t know why they do it . We hope that doesn’t happen to us 😱have a great weekend Cheers 🍷🌻🍺
A friend here in the US just purchased a camper in a seasonal campsite mountain area in the Southeast... but he plans to live there fulltime 12 months annually, he bragged how low the monthly rental fee of $250 (excluding other expenses) is currently... I'm sure he never figured the possibility of the fee increases... he would be shocked if that happened, his low-retired-fixed-income is why he bought the used camper outright that was already established at the campsite... guess he'll adjust if that happens, perhaps less golf.
A couple years ago we informed our kids they are adults now and would be removed from our cell phone accounts, AAA membership, Amazon Prime access, etc. They were a bit surprised as they had paid us their share of the cell phone plan each month as well as movies on Prime, etc. We told them we would no longer be a bill collector and they were adults who would take responsibility for their phones, AAA, etc. It all adds up. They took the news better than we thought!
Very good point, as we get older is nice to simplify your life, stream the boring bill paying stuff. Good for you making these decisions, we always think people will take things negatively but mostly they don’t. Thanks for sharing your experience with us!
I have a part time volunteer “job” in which I help job seekers with job search skills. Working with the job seekers every day I have encountered many people who are in their late 60s or 70s and have lost their retirement savings. It is heartbreaking! My mothers 2nd husband in his 90s was very mentally sharp EXCEPT he got suckered into so many scams!!! It was so sad to see him lose money time and again 😩
Great video, so many great points. I was always thinking I should pay for dinner at a restaurant and it was actually my kids that said "no you got it last time" I also sold my house and purchased a condo, fortunately my condo fees are low as I bought in a brand new building. I had thought I would stay here until they took me out in a box. However after watching your videos and seeing the value of the condo almost double (lucky me) I am thinking I will probably sell and rent an apartment in the next few years. I had only looked at keeping my cost of living down I had not even thought of the interest from the money paying my rent. This is why videos like yours are so wonderful as it gets you to think about the alternatives to how you are managing.
Thanks for sharing Maureen those Condo fees do rise even in new buildings, we are pleased you are finding our videos helpful have a wonderful weekend Cheers 🍷🌻🍺
Tina and Norm, you guys are Terrific together. You complement each other Extremely well ! I am so glad you are straight up and honest and do not try to "sugar coat" things like so many Vloggers do. Thank you !
I agree with not getting into a condominium, at least not the type run by a board. Some people want to keep the maintenance fees at a minimum and don't support spending money on regular maintenance. When the parking lot needs to be worked, on the lack of maintenance may mean ripping it all up and then replacing it, rather than simply patching it. Some folks can't see beyond their nose! If a condominium is in your plans, get one in which you own both the building and lot and you can control having necessary maintenance done instead of others not wanting to spend money at all.
This is so good. We have helped our children here and there, however, we do not volunteer help. We always talk about it as a couple and then go back to them with the answer. We make them do the homework on their financial issue before helping. We’ve told our six young adult children that when we retire we will have a drop in income so they need to figure it out. I believe I will plan on taking Social Security at 62 because my husband is 12 years older. Also in America if I take SS it helps my son who is autistic & on disability get a higher benefit. Since I help him now this will offset those cost. Excellent video.
Thanks so much Courtney for sharing your thoughts, it sounds like a wonderful thing that you can help your son. It is important to secure your own retirement as this is it, it’s what we have worked towards. Thanks for watching and sharing your thoughts.
Fun comments. We went out with our mom for her birthday. We were all prepared to pay separately and her bill and she turned around and paid the bill. Super strange but that's my mom.
Hi Tina and Norm , we have been renting our place for over 10 years , we have been given notice as you are aware rents everywhere have almost doubled 😱 this will be huge … it will work out but a huge chunk of disposable income will go to rent . I took my CPP at 60 and enjoyed it for 12 years like you just in case. Yes always make a gift , I learned that one , have a great weekend:)
So sorry to hear that Liedy, are they selling the place ? glad you have found somewhere but sorry it will cost more . We too are glad we took our CPP early, yes we all learn from the past 🤔hope you can still have a drink 🍷and enjoy your weekend Cheers 🍷🌻🍺
@@ThisIsOurRetirement it’s a hot market double what these Condos were selling for 14 years ago new ? And as you mentioned the maintenance and assessments can become very costly! Our investors is selling all of their investments, before the government starts to implement new capital gains on investment properties..it’s talk right now but enough to get investors to rethink their portfolio’s:)
That's the risk of renting. Yes, there are costs to owning even a fully paid home but those can be mitigated by maintaining an emergency fund. Owning a condo is another matter since one cannot predict nor prevent maintenance fee increases but I suppose there will always be pros and cons to any choice.
We have planned our retirement with out an inheritance (we are retiring at 56 and 55 ) we have told the children we can’t help you with loans etc but they will share any inheritance we will receive as both our parents have nice houses but are still very well and active The only issue I would disagree with is renting we paid our mortgage off this is why we can retire as we save £650 per month that we were paying on a mortgage (that’s our holiday fund)
We are all different David we too had no mortgage 💸, but selling the home investing the money gave us freedom no unexpected maintenance and expenses and the stress of home ownership. By the way doing that gave us the holiday fund for travelling 🌍✈️🚢 Cheers 🍷🌻🍺
I learned at a young age that I needed to be 100% responsible for myself financially. My parents divorced when I was a teenager and my mom was just able to pay for essentials so I never grew up used to having a parent who could co-sign or lend money. I learned to be self reliant and responsible.
That’s a tough lesson your learned but sounds like you did just great we have always done the same stood on our own two feet 👣. Have a great weekend Cheers 🍷🌸🍺
@@ThisIsOurRetirement actually it was not tough at all. My whole family operates this way, even with great financial resources. Delayed gratification is great and something I have passed on to my daughter. Her dad and I have the means to buy her anything, but we did not. She is driving a 28 year old car she brought from my mom. When she finishes college, she may decide to buy something else but she actually doesn't care for fancy things. Love your channel!
Thank you, Tina and Norm. Much appreciated information as even sometimes nephews and nieces and even friends ask for a cosigner. If they try with me, I'll run to the hills.
Hi Tina and Norm, you guys are awesome, I always learn something new! Great, great advice on family. A lot of parents think that showing love to their kids and grandkids is giving them money, but it's not, it's teaches them nothing. Hope your day is going well!
My wife and I didn't have issues co-signing a mortgage with our daughter. It all worked out in the end as she started with a condo and now owns a house after moving up the property ladder. Our contribution was an interest free downpayment which we got back after four years
We are glad in your case that it worked it so many cases it doesn’t, you have to be very careful lending family money especially if you can’t afford to loose it ! Cheers 🍷💰🍺
Houses do need a lot of maintenance, but with the current rent rates; and the crooks running the HOA committees for these condos, keeping your house may not seem like bad option, and overall it does have lower your expense ratio in current stream of things. In the US, rents have gone up 20 to 50 percent; but wages, our social security payments which are stagnant and pensions, do not. Thus, it can make renting a very expensive and perilous situation. In the US, we do not have rent control, so you are at the mercy of the landlord when it comes to renting on a fixed income, as we call it, if you are retired and/or working, because employees do not give $400 to 500 dollars raises each year to help curtail daily expenses. Ms. L. Churchill
We are fortunate Les to have rent control in Ontario this year our increase was 1.2% and we rent from a large corporation that has over 90 buildings renting is their business. Thanks for watching have a wonderful week Cheers 🍷🇺🇸🌻🇨🇦🍺
I did have a niece try to borrow some money just a few years ago but I politely declined the opportunity. She had some very serious problems and unfortunately is not with us any longer. Good video. Nice chat with friends.
Hi all. An elderly family member couple moved from one province to another when retirement came. They moved from a mid-sized house with a grassed yard to a smaller house with a gravelled yard. No grass to cut. No tractors to buy. No weekly yard maintenance workers. In sum, our relatives bought a small lot home with fewer ongoing operational costs. Ongoing operational costs will hurt your bottom line. We all need to be careful of the leaky retirement bucket. In his mid-90's, the widower told me that he lives very simply and was glad he was able to stay in his own home. I hope I have not offended anyone.
Thanks for sharing your storey, there are many solutions but taking some action rather than no action is the key to making retirement work. Thanks so much!
Oh and I forgot to mention how nice your Blue background lighting is. Very soothing and comfortable. I really like the blue color. In fact I have Blue nightlights throughout my apartment, it’s very relaxing and I can navigate at night without turning on the bright room lights. I thought Red lights would be better but I quickly turned to Blue because my vision was better and much more peaceful. [Seattle Washington]
Love your channel and advice Tina and Norm. Always enjoy and appreciate your well thought out advice. However there is one point you made that I disagree with and that is when to take Social Security. If you take it at 62 (for example) instead of waiting til 70, you have your Health and a smaller amount. If you wait until 70, your Health may have deteriorated and you’ll never make up the difference in money before you die. So I’d recommend taking retirement early because you never know how many years you have left. Thank you. [Seattle, Washington]
Another great commonsensible video! I appreciate that your advice is from a Canadian perspective. A lot of retirement advice out there comes from the United States and much of it doesn’t pertain to Canada. Your advice about not co-signing or being a guarantor is universally applicable though. We avoided this situation but the story is a bit reversed. My husband and I are both still working. Several years ago an older retired relative wished to relocate and asked my husband to co-sign on a mortgage in order to secure a desirable property. They wanted to have the luxury of moving into the new home without having the pressure to first sell their current home. Assurances were made that it was only temporary and there would be no risk to us as my husband would be named on the title. My husband heard him out but we later discussed it together and decided to decline. That relative doesn’t have a great financial track record and previous dealings with him had ended up costing us several thousand dollars. Once bitten, twice shy. The relative did not take my husband’s refusal well, to put it mildly. Sadly, it caused a rift in the family that remains to this day even though those relatives were eventually able to work things out on their own.
When travelling I often stay at AirBnB. And I see so many retired people - very often ladies - who offer a room on AirBnb. Great hosts. Often Single or widowed. They know a lot about their region. They enjoy the conversations with guests plus extra income. Perhaps you could do a video. Not every retiree is in a couple situation. Many travel solo. In that regards Portugal has a lot to offer in terms of reasonnable priced hostels and AirBnb. Thanks for your great videos. I never miss one!
Definitely agree on making or guaranteeing loans. I have done both and I have also refused to loan but given as a gift instead. You have to be very clear with yourself that you might not get it back and that you can cope with that financially and emotionally. Even the most trustworthy person can fall ill/lose their job.
Agree with everything you said. We are in the process of getting our house ready to sell. Downsizing - its too big and too much maintenance. Very good advice on all counts!!!!
I guess I'll always have a home. My small farm is paid off, and I save a mortgage payment every month not having to pay for board for my horses. Of course, when I didn't have a farm, I only kept one horse. As long as I can manage to do the work on my farm, I'll be here. The woman who owned it before me died at home at 100 years old. I'm hoping to do the same. When our parents died, I, the youngest, had been appointed executor of their estate. I made sure my siblings and the grandchildren understood that once the estate was distributed, that was the end of the bank of mom & dad, and I wasn't going to step into that role. My siblings haven't asked it of me, because I set expectations up front. I think it wouldn't be a bad thing to have a family meeting or group chat at the time you're getting ready to retire to spell out to the next generation(s) that you no longer intend to finance their lives. Christmas and birthday presents, fine; but no major cash outlays. Get them to understand this before that embarrassing dinner table conversation. My step-father is 90 and his younger brother (in his 80's) still expects the older sibling to foot the bill for everything when the younger brother comes to visit. His children also expect him to pay their way. When he lived near me, we would have dinner out every other week and would take turns paying the bill.
My goodness, you guys are so wise as usual!!! What an excellent job you're doing. I look forward to your videos and I always learn loads. Thanks for your advice and your common sense approach to life in retirement. I've already been tapped a couple of times by friends and family but it's worked out so far. I'm learning never to discuss my financial situation with ANYONE! Stay safe and have a great week.
Hi Norm & Tina - great video! We feel the same way you do about condominiums. I know two former condo owners who had to sell their condos due to those hefty bills you spoke of and a raise in the monthly condo fee. We haven’t downsized yet but one thing we will consider for our next home, whether it’s an apartment or a house, is that it’s fully accessible. We don’t want to move from our current home and then have to move again. We hope to age in place so having a walk in shower, wider doorways to accommodate a wheelchair or walker, etc will be important for us. All those retrofits can be tough on the budget when on a fixed income. Thanks for an informative video - keep up the great work!
@@ThisIsOurRetirement Thanks Norm & Tina - the challenge now is to find an apartment or a bungalow. You made your move at the right time! Enjoy your morning tea and coffee. Have a lovely Sunday.
@@libbyannstew8775 Hi Libby. Yes, retrofits can be though on the budget, but please research the internet and look at programs that your province, territory or state may have to offer to help. Terms like "Retrofit" "Canadian Government" "Grants for seniors" "Age in place" etc. Sometimes there are incentives to help people age in place. Best of luck 😊.
@@rustykatt3870 Thanks Rusty. All great suggestions. My husband has a contracting business so fortunately we’re well tapped in to the support programs as many of his clients are downsizers or seniors who need retrofits. The other thing we are seeing in our area (which is just east of Toronto) but probably happening elsewhere, is small homes are being torn down, larger ones built in their place, which is resulting in property taxes rising over time to the point where seniors are priced out of their own homes. So that loops back to what Norm & Tina said about “our homes owning us…”. My husband has had 2 clients who’ve been forced out of the homes they’ve raised their families in because they can no longer afford the property taxes. That gets me going on another tangent but I won’t clog up N & T’s channel with my thoughts on that.
Good morning ☕️ our last home which we sold was a bungalow, that made us see the beauty of the apartment we are now in as it’s just like our bungalow but without all the unexpected maintenance and expenses of home ownership, have a lovely Sunday 🌻☕️
Love the part of, "Does your house own you" selling our home will be the hardest part, so many memories, etc. We were going to downsize but now will look into renting, especially here in Austin with the crazy high properly taxes, renting might end up being cheaper
When I sold my house 5 years ago it was a young couple buying it. I asked the real estate agent how a young couple affords to buy such an expensive first home. He said the bank of mom and dad, I laughed and said this mom does not have that kind of bank.
I discovered you both a little while ago and you are two delightful people. I'm getting ready to retire in about a year and you've been very helpful. Thank you for your wonderful, helpful videos.
Many of these points have a lot of emotions and feelings around them, we thought for some of our viewers maybe take time to develop a response before one of them happens. Thanks so much Tameka for your comment.
Loved this video, all points are so true. It really mad3 me smile regarding paying for the family meals and our kids expecting us to carry on paying and also when they come to us and say “can I just borrow …” as you know you will never see that money repaid 😀
With regards to co-signing... I did sign an apartment lease for one of my daughters, essentially the lease is mine and she is listed as a resident. At the time, due to some challenges, her credit score was non-existent and she was living in an illegal, and I would say unsafe, basement apartment with several community college students much younger than her. I felt she had her life back on track and was worth the risk. That was 10 years ago and she is still in that GTA rent controlled apartment (and it's still my lease to keep the rent control in place), she has built up her credit score and paid her own way from the beginning, sometimes with a roommate to make it work. On occasion it really can be a hand-up rather than a hand-out. One thing I would advise is to stay married if you can. "Grey divorce" seems to be a thing these days but divorce is a nuclear meltdown when it comes to retirement finances.
Great summary. One skill many adults lack is the ability to say "no" because they want to nice to everyone. That's just setting themselves up for failure later. Setting expectations early (as in the examples of buying a meal for family, co-signing, loan to family members) could go a long way
Hello Tina and Norm ✋Tina I like your hair ! Thanks for sharing this info. Never have or ever will co sign . Just found this out in Indiana if your retired you get a break on property taxes and if you are disabled or veteran you pay zero. Have a great week from small town in USA 🇺🇸
Lots of interesting comments from this presentation! 💯One that was needed to raise awareness. There were quite a few of your "traps" that sounded familiar as I watched my parents deal with my older brother and his financial issues, and my older cousin who never married was being pursued by one of our cousins who had 3 children. The wife worked but he was a stay at home dad, but once the youngest was well on his way in school, the cousin didn't get back into the work force from having been removed for decades. ⁉️😳 Anyway, my dear older cousin asked me to be sole executrix, and as life has it he unexpectedly passed away in 2015. Well! I had to deal with the cousin who had 3 children, and with another couple who were friends of my older cousin with a C0-sign for their vehicle!! It took years to deal with the disorganized bank to let them know my older cousin had passed. Then the fear that because I was sole executrix I was on the hook for the balance should the couple forfeit their payments. Well...guess what! Yup! They did forfeit their payments so copious amounts of my time and mental energy to connect with the right bank/loaning person to let them know my older cousin had passed away 4 years ago, after I had already notified the bank person who's signature was on the "you own money" letter. Which by the way, was just a photo copy of his signature! By the time I got through the WALL of road blocks to finally talk with this bank/loaning man in person on his cell phone, he had ZERO idea of what was going on and felt very embarrassed I was getting these "you owe money" letters. He said he would take care of it. 6 months later I received the same "you own money" letter. The cycle restarted....finally got to a new cell number and by that time the bank/loaning man himself was retired! He was embarrassed again. He led me to another bank/loaning person who replaced him and .... here we go again! What I did at that point was repeated calls to the retired bank/loaning man to harass him to stop this nonsense! So, yes, Norm and Tina....give any "loaning money" as a gift and for gosh sake...never co- sign a loan! If I am ever asked again to be an executrix, it would be my 3rd time, I have 3 criteria before I consider to accept the responsibility....I give this as a gift to any of you who are listening; 1) insist that the will ,or there is a note in the will, that clearly states how much the executrix will be paid. Why? Because if the will states beneficiaries get a percentage of the remaining funds left, they have to hang around for a while until the Estate business dealings, involving the CRA, is done and by that time, months from the death, they are anxious to get their inheritance and will not be willing to give you the maximum allowed 5% but will dwindle it down to 2% or less which is ridiculous considering all the moving parts, and worry, one generally has to deal with (if there are properties to sell and co sign loans to deal with and managing lots of money and homes to sell, lawyers, accountants and communicating with the beneficiaries...who all have no idea of the time consuming liability and responsibilities of an executrix. 2) Ask that there be no beneficiaries that are to receive a "percentage" of the remaining funds but ask if a set amount of money can be awarded instead, or a specific item(s). Why? Because if a set amount of money is allotted, and there are enough funds, once the CRA and lawyers have done their duty, and charities have received their donations, then once you get the set amount of money and items to the beneficiaries they "sign off" and you can proceed as executrix with less emotional hassle from the beneficiaries. They would have got what was assigned to them, good bye and leave the Executrix alone to continue with the time consuming tasks of dealing with lawyers, accountants and the "friendly neighbourhood CRA!"🥴 3) Every couple of years have a private conversation with the person about where things stand in their estate so to keep updated. I actually keep my Executor updated every 2 yrs and leave notes in a special binder designated for the Executor. Leaving notes is handy because I write down Estate related issues so that I don't have to contact the Executor frequently. Also, ask the person if there are any co-sign loans or debts they have when you have your update private meetings. Make super sure you know where their social insurance number is, and birth certificate. You will need these as important documents for estate trust income tax preparation and year of death income tax reporting. All necessary info to get the taxes sorted. The first 6 months after a person passes is very hectic and you go through a consuming learning curve. You might ask, so Meg would you do it again? I would, if all of the above, 1, 2, 3, are part of the Estate planning. Whoosh! Looks like your presentation raises some poignant points and brought me down memory lane eh! Hope my story might help even just one person....it was a 5 year journey dealing with my older cousins Estate. He died unexpectedly at a young 64 yrs of age. He was like the brother I never had. I miss him dearly. Stay safe everyone as restrictions from Pandemic protocols are lifted.😷😑🇨🇦🍁
Thank you for the advice. When our daughter went to college we signed the parent loan for her. She graduated in 2014. She chose not to go into her field of degree. Then We discovered she was not repaying the parent loans and it was damaging our credit. So, I took over the loans and have paid more than $24,000. I’m retiring in May and will continue paying that loan for at least another year. I have to look at it as a gift or I’d be resentful. Looking back, I wish we would have thought more about our future and less about her university.
@kamids -- terrible of your daughter to do such as thing, but you're wonderful to consider the studen-loan a gift to keep the peace, hopefully she'll repay you later on in her life when she's in a better place financially. My daughter also incurred student loan debt during her study for a Masters degree here in the US... but I would never sign-on for her or with her involving loans I told her it must be fully in her name only. Thank goodness I did that, she had no choice but to pay her own debt after graduating from college... thankfully she stuck with her degree choice and still lives at home while working in her field she also helps pay household bills plus part of my mortgage (I raised her alone as I'm divorced, her father help pay undergraduate degree-college-expenses) it's working out fine for the both of us currently, but I taught her early to stand on her own from the start while in college as well as the value of a dollar to include how to manage financial risk and debt.
Now I know why my wife and I are retiring from the practice of law on March 31, 2022, with 30 and 43 years of work experience. Given your explanations of traps, pitfalls , etc, and if people follow your advice, you would be cutting into our sources of income in straightening out the financial dilemmas people get themselves in.
Not everyone is well planned and financed for retirement having to make compromises when they retire. Congratulations on you having made a good retirement.
I find your advice quite sound. Would you be able to create a video on funeral expenses as in I have planned for my own funeral but my parents haven’t. That added expense and pressure could truly derail budget in retirement. I have watched your video on funeral planning and found it full of helpful information.
I have loaned money to my son, because he gave me money once probably about 5 years prior. So when it was time for him to pay me back I reduced the amount by how much he had "given" me. It all worked out. But I do admit while he still owed me a little he would go here and there on little trips and I would think, why is he doing this when his debt is not paid. My dad taught me, family helps family, so I would probably do it again:)
Interesting comment Pam although we absolutely agree with your dad family helps family , you pointed out that while your son still owed you money he was still going on trips ! that is where the resentment and friction causing a rift comes in thanks for sharing . Have a wonderful week Cheers 🍷🌻🍺
Really appreciate your perspectives on retirement. Valuable information and very well presented. I’m 53 and just finishing up a divorce. Not what I wanted, but it is what it is. Looking to retire around 62, would like to go sooner, but I’m working on planning right now.
Sorry to hear about your divorce, all we can say is we took early retirement at 58 and 60 and so glad we did, if you can plan to do it sooner and enjoy it we wish you well Cheers 🍷🌺🙂
Only co-sign if it's money you don't care losing. Which, for most people, isn't very much! Some other good points. My only concern with renting is the number of hobbies that I have that take up a fair amount of space. I know I could get storage but I think that's defeating the purpose.
Thank you, really enjoy watching your weekly videos. It is nice to be reminded of all the pitfalls that we have to navigate in our retirements, I thought it was going to be a great time to look forward to, but along came the pandemic and children seem to take so much longer to grow up these days. Your conversation reminds us that we are not alone in this life of constant dilemas. Stay safe and Cheers.
Hi Tina and Norm. Lovely to hear your great video advice whilst enjoying my safe trip to Portugal. So happy I risked it, it's been a delightful change to my solo existence in Ontario: café culture abounds! Totally agre with all your comments about derailing retirement although the part about loans. My grown up 'child' at 28 has been a slow learner in budgeting., with other mental health issues. With a short term loan he has begun to learn the reality of needing to 'pay it back'. He didn't recognise this with larger institutions like banks, indifferent to 'red statements'! So have successfully taught him how to learn about budgeting and responsibility to pay back loans before another expenditure. The bank of mum is now closed and he is now competent to seek other venues to buy what he wants. I'm grateful for being brought up in UK during the 50's/60's when money was really short!
So glad to hear from you Jane and that you are having a good time in Portugal, the coffee in Portugal is great, the cafe’s are so good. It’s great you were able to help your child with an important life skill. Yes growing up in England during the 50/60’s did in-still a sense of frugality. Stay safe and enjoy your time in Portugal we are envious lol.
@@ThisIsOurRetirement thanks for your reply. Because of my subscription to your channel, I can share and vicariously enjoy all your comments about retirement in Canada for a fellow Brit., despite being now single. Very much appreciate your insights and enjoyable discussions. Keep up the good work, it was essential when living in isolation in Ontario these past long months before escape to a more 'alive' environment here. Next winter you must come over, you'll be embraced by a life loving culture.
I love your videos! You always give sound advice to consider. I agree that, whether you are lending money or a book, lend it as though it is a gift as it is never guaranteed to be returned.
Couldn’t agree more! Excellent points. My husband and I are in our mid-fifty’s and will be retiring in 2 years. Love all your videos. Learning lots from you two. Thank you 🙂.
may be a good idea for you to do a video on the Reverse Mortgage. I know someone who was going to lose her house until I said look at a reverse mortgage in Canada. There are pros and cons but in the end she went for it and it took a huge load off her mind. Making a will is crucial as well to avoid issues if one is not made, another video?
This video was a God send for me. My brother just asked my 79 year old widowed mother to co-sign for a car loan to refinance it into her name and out of his now ex-girlfriend's name. I had to talk her out of doing it so instead she goes and borrows 10,000 from her credit union to help him pay off the car instead. I have tried to explain that this option is a mistake as well. She has not given him the money yet, I will show her this video in hopes that ahe will return the money to the bank and let my brother find his way by himself.
Thanks for sharing your story, it is hard as it puts the parent in a very difficult situation in saying yes puts them at risk and saying no can cause friction 🤔 Hope our video might help her decide. Have a great weekend Cheers 🍷🌻🍺
@@ThisIsOurRetirement Great advice. It's tough and necessary to set boundaries and limits, and it can be an uncomfortable conversation but you explain it so plainly and sincerely which will help your listeners take this important stance. Thank you.
Always enjoy your broadcasts and generally agree with your wise counsel. However just a small story from me. A neighbour of mine with two young children and 5 grown up children all working was devastated when her husband walked out. After all the legal bits she agreed to take over the mortgage of the family home but as she is on a small salary was unable to obtain a mortgage without a guarantor. Her plan was to obtain a mortgage and all her working children would contribute. If she could not find a guarantor she would lose the family home and along with her two younger children have to move to rented accommodation much to her distress. There is no way I could see this happen and cause such distress to her family. I have agreed to be the guarantor (she did not ask me, I offered). Sometimes in life you just have to do the right thing. I have been retired three years, do a bit of voluntary work and my wife retired this summer after 40 years teaching. Life is great. Take care from a sunny Scotland
Thank you both for the video. I wanted to comment on two of your points, to give additional food for thought to your viewers. The first is your comment about inheritance. Many, many, financial planners will tell you to consider a likely inheritance as part of your financial plan for retirement. As the two of you correctly point out, this is not prudent planning, as there are no guarantees. In the final years, a falling out can happen and a change to the Will might find you on the outside looking in. I agree whole heartedly with you on this point; don't count on the money coming in, and you won't be in peril later on if you don't participate in the estate. The point I really want to have people focus on is the downside of taking CPP early. Unless the cash flow is truly needed, put off taking the payment as long as possible. The break-even age is 74, meaning if that if you die before 74, you will have benefited more by starting to draw CPP at 60, but if you live past 74, you will earn far more money in the long run. Given that the average life expectancy in Canada is 82.66 years, MOST retirees benefit by putting off collecting CPP until at least 65. Using the average CPP payouts to look at the overall amount collected by age 84, a person who starts collecting at age 60 will receive $192k, someone who starts at age 65 will collect $240k and someone who starts at age 70 will collect $255,600. While the difference between 65 and 70 is not huge, the difference between 60 and 65 is pretty significant... $48k! This last point is often lost on people. I have a good friend who still works full time at age 62, but he started collecting his CPP at age 60, because his brother-in-law told him it was a good idea and he trusted the wisdom of his brother-in-law, who has no financial background. As a result, he is collecting funds now that he will have to pay tax on in a higher tax bracket, because of the money he earns in his regular job. When the money is most needed, when he retires, the monthly payout will be about 40% less than it would have been if he had waited to start at age 65. So the extra little bit of money now will help them take an annual week long trip to Mexico, but they will struggle in retirement, as they will not have a lot of sources for revenue. This truly is a scenario of short term gain for long term pain.
Thank you James for your interesting comment, we are still happy we took CPP early as we don’t have a crystal ball 🔮 for the future, have a wonderful weekend Cheers 🍷🌻🍺
I think your friend could stop drawing CPP now if he wants to and resume later; there is paperwork on the Canada Revenue Agency (CRA) website. Apologies for suggesting this if I’m misinformed.
At 8:30, taking your CPP (Canada) or Social Security (US) later than age 70 would be a mistake. The amount you can receive maxes out at age 70. Anything after that is completely lost money.
I very much agree with gifting rather doing a loan. Do you want to be that person's banker or their parent or grandparent? Can't have it both ways.
Great comment Mary we agree, hope you are having a wonderful weekend Cheers 🍷🌻🍺🙂
@@ThisIsOurRetirement Think about this: parents have capital, which they would like to invest in real estate and child who also would like to buy a home, but doesn't have the money. Giving money would have tax consequences. But loaning money to the child for buying a home and using that as loan guarantee, would give the possibility to gradually over the years give smaller gift sums without tax consequences. The child would benefit from the possible increase in the value while parents could get some interest to their capital and perhaps also payments of the capital.
Parents often, because of their more stable economic situation, can have access to cheaper loans as their children.
If you plan to give money to your children as gifts and/or inheritance, loans can be a tool to make it more cheaply.
But of course this is like any financial arrangement, where you need to be aware of the counter party risks. And relationship with own family can be too complicated and difficult to make such arrangements, I can understand that.
But you have to remember there are family businesses and other situations, where such situations are unavoidable.
Thanks for your comment Cheers 🍷🌻🍺
It’s Friday night, Nooohm. You’d better be editing up a storm.
@@elterrifico9522 You bet El it’s not a storm Norms doing but a Tornado 🌪 coming see you Tomorrow 🍷🍺
My parents "gave" one of my siblings a "loan." It was never paid back. It grated on my parents for years that no payment was forthcoming. One day a nice sum of money appeared in my bank account. Asked my Mom what is this? She said she discussed it with my Dad and they agreed it wasn't fair to all of us (5 kids); once they could afford it, they gave the other 4 kids the same amount. That sibling never got another dime out of my parents.
Wow that story is very close to home thanks for sharing Cheers 🍷🌻🍺
Watching your videos about 10-15 years before retirement makes me feel as if I am at a HUGE advantage as we approach your phase of life. Thank you for the thoughtfulness you put into your content.
Wow, thank you! glad you are enjoying them have a nice weekend Cheers 🍷🌻🍺
Same! This just popped up on my feed today. God wants me to be prepared! 🙂
Me too! Such great advice!
I am so grateful to own a house in the downtown area of a small quaint town 30 minutes south of Atlanta. It has a separate two bedroom apartment with it’s own garage and a separate entrance. The income from the apartment pays for the upkeep of the main house where I reside.
Sounds like a great plan in place Pam have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺🙂
Extremely smart investment!
Tina and Norm, I remember when I was even a teenager my grandmother would proudly announce, "I'm on a senior's pension," when dealing even with business people and often she got a bargain and rightfully so.
David your Grandmother sounded like an awesome women, nothing wrong with what she said.
Some people out there might not like what you're saying, but you are spot on accurate. I've seen families tear themselves apart because of loans, co-signing, inheritance, etc. As usual, great points. I'm glad your channel is gaining popularity. It's well deserved.
Thanks Mark, the truth can be painful but being informed is half the battle. Thanks for watching and making a great comment.
Another great video; you are not afraid to address the elephant in the room.
A few years ago I lost a friend when I said no to her request for a loan. I felt that the friend was very unreasonable for asking; and I said no because I saw her as irresponsible with money.
There is a saying “ a bird in the hand is worth two in the bush” so I took my CPP ten years ago at the age of 60. I wasn’t going to wait 10 more years for a bigger cheque. I did the math, and considered other factors, like my neighbour who died on the day he was eligible to collect his first CPP cheque. Ten years later, I am still satisfied with the decision I made back then.
Thank you so much for your wonderful comment, we feel if we can share ideas it might help one person who would be unaware of a point or give strength to someone who is facing a decision like you had to. We feel the same as you about CPP. Have a nice weekend.
Your comment about inheritances is so right on. I've seen multiple situations where people didn't get expected inheritances. In one case, the person did no retirement money planning because of an anticipated inheritance and now she is in a terrible financial situation. Always view an inheritance as a possible bonus not a sure thing.
Great comment Jenny and so true , have a wonderful weekend Cheers 🍷🌻🍺
I would not leave an inheritance to a someone who didn't plan for her own retirement. It shows great irresponsibility, and immaturity. I would rather leave it to a charity.
So much easier listening to a couple talk about retirement than a financial advisor. You put it in simplistic terms that people can understand and relate to. Keep the good work! I am 55 next year and shall be watching closely! Cheers!
Our pleasure! glad you are enjoying our videos Peter our stories are real as it’s our life we are just sharing with others Cheers 🍷🌻🍺
Good point about your house owning you! Once I adopted that “millionaire next-door“ mindset of not defining myself by my possessions or achievements, it made a huge difference! I don’t care if my house is much smaller than my friends or if we drive an old car or if I don’t have the latest fashions. I know I have a lot more net worth than all my friends who have those things 🤑
Love that! thanks for sharing have a wonderful weekend Cheers 🍷🌻🍺
It's so much better to be able to sleep at night without worries. And have the money to pay for necessities ahead. For example, hubby has to have dental implants and that cost 6k in NYC. He became deaf in 1 ear last week, after years of wearing hearing aids. We probably have a huge copay or deductible for the cochlear implant ahead. So glad we have the money saved.
@@sct4040 absolutely! I totally agree. I hope everything goes well with that procedure!🙏
Great advice! We expect to have a quite comfortable retirement. It’s all of the reasons why we are not going to divulge to anyone how well we’re doing 🤫 we keep a low profile anyway. We plan on traveling often and like you’ve said, we’ve earned it!!! Thanks again for your sound, practical advice
Sounds like a great plan Darcell fly under the radar, thanks so much for watching. 😀😀
Its amazing to see how like minded you two are. My wife and I diverge on many subjects. I hope we can close ranks like you two have. Thank you for the inspiration.
You are welcome Tom have a wonderful weekend Cheers 🍷🌻🍺
I hit the lottery years ago. Not the mega amounts that make the news but a nice chunk. It wasn't long until I was hearing from distant family members I've not seen in 30 years calling for loans. Some weren't politely asking some were demanding, some almost threatening. It was quite upsetting and for a bit I was sorry I won the money. I focused on what I could do to make this a totally positive experience for me and it came to me it's finally time I grew up and learned to say 'no' without guilt. the first was a cousin I've not seen in decades and didn't really like even back then, I told her 'no' and then declined to continue the conversation with her why I should owe her a loan/gift. I discovered if I didn't continue to engage in her tirade she had no power to continue to try to manipulate it. It was quite a freeing experience. I did it, I could say 'no' without guilt and learned to not carry on a conversation that didn't serve me emotionally. The win did turn into a totally beneficial experience. I invested, saved, donated sleep peacefully I served the money in my own way.
Wow what a story thanks for sharing and we are so glad it worked out in the end for you , sometimes it’s hard but you do have to learn to say no in life . Have a great week Cheers 🍷🌺🙂
We don’t have kids but we have friends that do and many are seemingly incapable of ever saying no to them, even to the point of putting themselves in financial distress at an age they can’t possibly ever recoup losses. We know so many retirees raising their grandchildren so any “me” time has gone out the window. Every single thing you said here is so true and I hope this might help parents and grandparents to have the courage to say “no”
Thanks so much for your so true comment Cheers 🍷🌻🍺
These are very great suggestions, spot on. However, in my case I live in a market where rents have escalated quickly and are now seriously out of reach for many working people, never mind a retired single person on social security. The lucky thing for me: 11 years ago I bought/moved into a centrally-located low-priced condo. I front-loaded the loan payments in the beginning while I was working, then refinanced such that now I can pay the small remaining mortgage and the HOA, and all my other monthly expenses entirely with social security. It's not easy, and as you say I've had to pay special assessments once in awhile, but it's a fraction of the rents in my area. Great walkability near a park and on the bus line. If buying choose your location, try to find a building that doesn't display deferred maintenance, and take the very smallest unit you can live with because the HOAs (which always go up) are based on the percentage your unit's square footage is of the total.
Thanks for sharing we are glad your plan has worked out for you have a wonderful weekend Cheers 🍷🌻🍺
Your last tip about not relying on an inheritance was probably the best point. You never know what will happen or if a person's Will will be changed at the last minute, etc.
We think so, thanks for watching.
You two are so sweet together. My cousin weaseled his way into my parents life and the farm was given to him rather than my bother and I. This type of thing happens way more often than people think. Thank God I am not relying on inheritance for my retirement. All of your points are much appreciated.
"Inheriting farms and cottages" - there's so much family drama surrounding those topics that someone could probably do a TH-cam channel on each or both of them !
Steve
I had a problem with my brother....
I asked all my customers back when I worked and almost everyone said yes they had a different situations, but some said that it was smooth because there was no money to spilt
I'm very sorry to hear of this terrible situation. Unbelievable what some people will do.
Thanks for sharing so sorry to hear , we had a sibling rivalry that destroyed our parents plan so absolutely we know how you feel 🤗 have a wonderful weekend Cheers 🍷🌻🍺
Interesting idea Steve , it also destroys families too Cheers 🍷🌻🍺
Great video. My husband and I have been through many permutations of these pitfalls but we were able to manage them successfully. My son moved in while he took a course (we charged him rent); my stepson required his father to co-sign his mortgage (that was discharged after three years) and I have helped my children on occasion with small loans (all paid back). I guess it all depends on the integrity of the parties involved. As we get older I don't think we will be doing any of these things again but at the time we were able to do it. And great advice about expecting an inheritance or getting tempted by investments schemes. If it sounds too good to be true, it probably is! Take care!
Hi Guys, We have helped our children too and you are right about integrity. These points are probably more relevant when we become elderly. Have a great weekend and enjoy your wine! 🍷
Cool T-shirt Norm ;) Renting not an option for me, there are way too many 'renovictions' going on and the idea that anyone can kick you out at anytime scares the $hit out of me. Downsize, execute major repairs while you are still working(roof/hvac/windows) in the last 5 years of your career and make sure you have $ set aside for maintenance and future repairs.
We are all different for us it worked out perfect , renting with rent control and from a large corporation Cheers 🍷🌻🍺
Another one is helping adult children with starting a small business. So many fail, especially food or restaurants. My parents helped a sibling with a restaurant startup, a sure thing. They cashed out retirement funds to “buy in” and be part owners. It was profitable only after 5 years, and I’m sure they put additional capital into operations. 7 years in it folded, in debt. It hurt parent’s retirement. They also said it would come out of her share of inheritance, but that was not the case when the last parent passed. If you really do want to leave something to children, consider these things along the way, it does impact the future and relationships. Btw, my daughter wants me to spend every dime having fun in retirement ❤😆
Thanks for sharing Janet very sad when something like that happens Cheers 🍷🙂🌺
Three pronged plan intact.
1. S.S. begins in 18 months; start collecting then.
2. House converted to rental provides cash flow after expenses.
3. Inheritance is clearly written into parent’s will to divide exactly evenly between siblings with assets already embedded in a family trust including me as a legally named beneficiary. This third aspect offsets the early job downsizing, divorce, university costs which caused me to spend my 401k and IRA during my 50s inadvertently.
Live overseas as long as health and energy and desire dictate - where rent, utilities, groceries and local transportation is under $1500 (less than my”fixed” S.S. alone). Have loads of experiences, maintain flexibility.
Cheers, your videos are truly assisting me !
Thanks for your kind words
Another very interesting and "to-the-point" video ! The "gifts and loans to children and grandchildren" section particularly resonated with me. My grandparents were put in that position years ago by an "ambitious" cousin. The whole attempt to get a loan fell apart after other family members learned about it but it caused a rift in the family that was never completely healed. How to avoid that ? I guess the only way is to let the family know you're "not made of money" and discourage them from thinking that you're "The Bank of Dad" ?
Thanks for sharing your story Steve sometimes it’s hard to say No , but in the long run it probably is helping Cheers 🍷🌻🍺
How to lose friends and family ... loan them money; don't do it is the answer.
@@ThisIsOurRetirement gfs
@@ScubaSteveCanada You got it Stephen 🍺🌺
@@daisy_naples Thanks for watching 🌺
Great video! I can relate to so many of your points and have been guilty of them. Being a single woman with adult children who are not in financially great positions (one moved back in with me) I realize I need to be so much more careful with my money now. Thank you for reminding me!!
You never stop being a parent and caring Karen , have a wonderful weekend Cheers 🍷🌻🍺
A great video! Don’t let anyone “guilt” you into co-signing, loaning, making your home a free B&B, etc. if you are feeling guilty for not wanting to help, that is a huge danger sign. Helping because you have the funds and the desire to do so ON OCCASION is a blessing to the giver. Putting your own financial health in jeopardy is unwise.
Thanks for your comment Dell have a great weekend Cheers 🍷🌻🍺
You brought up a lot of great points in the video. I agree with you on your CPP decision. I plan on having us take our Social Security at 62 even though we don't need it. My reason is that we can use that money for expenses and let our investments continue to compound. I ran the numbers and I project that the compounding will pay us more over the rest of our lives than waiting for the bigger payments later on.
We sound very alike Ron that’s exactly what we thought take it and enjoy it even though we didn’t need it either Cheers 🍷🌻🍺
My wife and I were the ones to always pick up the bill before retirement and we were happy to do it. 2 sons in university that we funded and we knew this was a short period of time and we were both working. Now, both sons working full time we have no problem saying NO to them. Still love to help out with babysitting etc. but it’s our time now! Took a bit of time for them to understand our relationship changed but they get it now after a bit of resistance!
Thanks for sharing your story have a great weekend Cheers 🍷🌻🍺
Excellent tips!
I'm three years away from retirement, if my company doesn't get rid of me sooner! I'm so looking forward to this next chapter in my life.
You got this! all we can say Ann it’s awesome grasp with both hands Cheers 🍷🌻🍺
You’ll love retirement! I know I have for past 3 years! I’d been working since I was 15, thought I’d never retire…what would I do? But it’s been awesome!
@@missygilly9917 We are so glad you are enjoying your retirement you have earned it cheers 🍷🌻🙂
wow so honest about loans to close family members!
Thanks for watching glad you liked it Cheers 🍷🌺🙂
It sounds like a terrible thing to say, but in my experience never trust anybody with money not even your own family.
This is from personal experience. Thanks very good advice.
We agree it pays to be cautious or ruthless take your own course
Excellent advice. Regarding a loan/gift to family members, also be aware if you loan/ gift one grandchild, the other ones will be expecting you to be open to helping them as well when they ask. This should be considered when making your decision. Talk about ruining relationships- money issues will do it!
Great comment Colleen thanks for sharing Cheers 🍷🌸🙂
I think it is extremely important to communicate with your children regarding finances and expectations. Also, to be fair and treat each child equally. We never know the future, just because 1 child said she will study pharmacy, doesn't mean she will actually go into the profession. People do change. The child who didn't have a college major in mind, might turn out to be the one who makes the money. 😊I should know 😊.
The resentment from treating children unequally will last forever and destroy relationships way past the parent's lifetime.
Thanks for your comment we have and always will treat both our children equally hoping you have a wonderful week Cheers 🍷🌻🍺
Yes, my friend co-signed on a new cart for her niece. She really gotten taken by that act when her niece stopped paying the loan fee. I LOVE living in our condo. Our condo fee is a reasonable $295.00 a month. We would spend much more than that to pay for law moving, leaf pick-up, snow removal and other maintenance. I ran a Pro's and cons of HOA's as part of my decision...MT LIST: 1) Yes, A HOA does cost money, but it also saves ME money, time and my precious/limited energy.
2) IF I was to add up all the fee’s I would likely have to pay a contractor and/or seasonal workers to handle the outside maintenance for a home it would probably cost me as much if not more than my $295.00 HOA fee.
3)
WINTER: Cover snow plowing of driveway and shoveling walkways. Putting down salt/sand when icy. And dog safe driveway salt for walkways;
DRIVEWAY: Resurface driveway as needed.
ROOF: Repair or re-roof as needed.
LAWN CARE: Cost of mower and tune-ups, gas and spark plugs, repairs. Fertilize, weed killer etc.
TREES: Trim branches and fertilize trees. When tree branch falls into slider screens and rips it the condo board-pays to replace the screen. Cuts down ivy that is choking the tree’s along Ottawa Beach Rd.
GARDEN: Mow lawn weekly. Edge beds in spring. Trim shrubs in fall. Planting annuals and bulbs.
FALL LEAVES: Blow and pick up and haul away fall leaves and spring/summer branches that have fallen.
BUILDING: Cost to scrape and paint every two years or to power wash siding. (And/or the initial cost to buy siding and put it on the building.)
WINDOWS: HOA will replace all condo windows and sunporch sliders as needed. They will wash condo windows each spring.
DECKS/WALKWAYS: Power wash decks prior to painting and power wash walkways every two years.
WATER & SEWER: HOA pays all related fees.
COMMON HALLWAY: Monthly hallway vacuuming, window washing of front door window areas. At some point they will pay for new carpet and wall coverings when needed.
UPDATING SECURITY: The HOA updated the new door buzzer unit in 2020 and the key locks in 2021.
OVERALL MANAGEMENT: HOA sources the companies/the workers, get quotes, re-negotiates when they want to increase costs, overseeing the workers, following up on any issues. Pays the bill/writes the check,
GARAGE DOORS: Replace garage doors if they crack, break or wear out.
I took my Cpp at 62 and get my first OAS one month after my 65th birthday. Anything can happen accident, illness… I want to enjoy it now when I can still travel.
We so agree Amelia we both took CPP at 60 and OAS at 65 and loved spending it on travel 🌍Cheers 🍷🚢✈️🌺
Soooooo true what you say about home expenses.... there's always something to fix! I recently had to deal with a broken garage door.
And hate to say it but the floor there also needs an expensive repair 😞 Good topic.... thanks again. Have a great week 🇨🇦♥️🇺🇦
We hear you we remember those moments when we had the house LOL 😂that’s why we now rent!! thanks for watching have a wonderful week Cheers 🍷🇨🇦🌻🇺🇦🍺
You are so, so right! You are reiterating what my late husband used to say, and what he told his adult children. That didn't stop them from asking.
Thanks for sharing Roberta , hope you are enjoying a nice weekend Cheers 🍷🌻🍺
Another great video. Thanks. We did a few of your no-nos over our 14 years of retirement, but one in reverse. We recently moved in with our divorced son, 2 grandchildren aged 6 & 11 and took in a puppy (11 months ago now). It makes for an interesting "retirement", especially now that I've had ALS for the past 2 1/2 years. My son thought he could take better care of us in Kelowna rather than Calgary.
All situations are different 🌺 we think it’s wonderful that your son has taken you in and sounds like it works for everyone, we wish you all the best take care and enjoy your weekend Cheers 🍷🌻
Definition of love Pete & my three kids are the same. I have lent them money & it has always been returned with gratitude. I couldn’t help them with university but they self financed with scholarships & work. We all know we can count on each other.
Hi Tina and Norm, we recently retired bought a condo and sold the family home. Looking forward to the east coast for the summer and Portugal in the winter. No more landscape and snow shoveling. I'm thinking of an indoor vertical vegetable garden. Thank you for the great info. P.S. maybe an in site to the grandparents scams, bail money is a cashier's cheque not cash. Ty cheers
Congrats 🥳 on your retirement Samuel thanks for mentioning the Grandparents scams that are all in the news at the moment , maybe we might meet next Winter 🥶 in Portugal 🇵🇹 Cheers 🍷🌻🍺
Incredible video guys!! Having been a banker and a CPA, everything you said is right on the money!!
Thanks for a wonderful compliment Cheers 🍷🌻🍺
I totally agree with your point about relying on an inheritance being risky. You may think that you will get a big chunk of change when your parents die, but it's quite possible that they may encounter big expenses late in life, such as assisted living costs, which could significantly deplete the inheritance you're expecting. Amazingly, some people actually factor in possible lottery winnings into their retirement planning, too.
Thanks Doug for sharing , think if you factor in lottery winnings for your retirement you really are off track LOL 😂have a great week Cheers 🍷🌻🍺
Thanks, Tina and Norm for another very informative video. You guys remind us of things can that cause us pain in our retirement, if we don’t pay attention. Based on your advice, I aspire to one day sell my house and rent an apartment. I don’t won’t want deal with house repairs forever. Thanks again.
Thanks so much Carolyn we really appreciate your support, have a nice weekend.
Thanks for yet another very informative video! These are a few points I had not thought of, but make good sense.
I recently retired (January 28th) and my bride retired last year. There’s still the uncertainty of the financial markets at the present, but we’re looking forward to our next chapter in life, and the travelling we intend to do.
Cheers!
Congratulations 🥳 on your retirement, and your wife’s last year 🥂we hope you enjoy travelling together and creating lovely memories Cheers 🍷🌻🍺
These are all very valid points. We own an apartment in Dublin. We downsized about 8 years ago. We pay fairly hefty Management Fees and we were hit with a bill of over 12,000 euro to fix a fire problem! We even had to vacate the Apt for 2 weeks while work was being done. So the expense of a hotel! We did not go abroad as we wanted to keep an eye on the place. We now realise there will be more expenses like a new roof! We do not have children but we have nieces and nephews. Unfortunately there was a costly marriage break up. Very sad and also very expensive. We now know especially in Ireland you have to keep some money aside for medical care even if you have private insurance! It might not cover all!
Thanks for this video and everything you said is so true. Have a great weekend!
Yikes 😱 that’s a pretty hefty bill Mary Rose your management fees sound like the Condo fees in Canada 🇨🇦. (sorry we aren’t a fan we have had family members had bad expensive shocks so we decided to rent ) . The only thing we need is to pay for dental 🦷 as we get older , all other medical expenses is covered in 🇨🇦 Canada .
Have a wonderful weekend in Dublin Cheers 🇮🇪 🍷🇨🇦🍺
I just read a story about seasonal campers at a recently sold to new owners campground in Door County Wisconsin getting a 71% increase in year to year rate fees. And if they didn't like the fee increase they have 3 weeks to vacate the property . Being notified this late into the booking season most campgrounds are already booked for seasonal use, so they're kinda stuck paying the increase .. They'd have 2 choices: 1 pay the increase while probably seeking alternative seasonal spaces for next year or 2 if possible move their campers into storage and seek alternative camping spots for future years. I'd imagine after years of camping in one location, getting used to having the same neighbors season after season etc.. having a huge increase in rent must derail quite of few campers/retirees who are just barely covering their month to month expenses.
That is a very sad story Mark thanks for sharing we have heard of a similar situation, there is really no answer we don’t know why they do it . We hope that doesn’t happen to us 😱have a great weekend Cheers 🍷🌻🍺
A friend here in the US just purchased a camper in a seasonal campsite mountain area in the Southeast... but he plans to live there fulltime 12 months annually, he bragged how low the monthly rental fee of $250 (excluding other expenses) is currently... I'm sure he never figured the possibility of the fee increases... he would be shocked if that happened, his low-retired-fixed-income is why he bought the used camper outright that was already established at the campsite... guess he'll adjust if that happens, perhaps less golf.
A couple years ago we informed our kids they are adults now and would be removed from our cell phone accounts, AAA membership, Amazon Prime access, etc. They were a bit surprised as they had paid us their share of the cell phone plan each month as well as movies on Prime, etc. We told them we would no longer be a bill collector and they were adults who would take responsibility for their phones, AAA, etc. It all adds up. They took the news better than we thought!
Very good point, as we get older is nice to simplify your life, stream the boring bill paying stuff. Good for you making these decisions, we always think people will take things negatively but mostly they don’t. Thanks for sharing your experience with us!
I have a part time volunteer “job” in which I help job seekers with job search skills. Working with the job seekers every day I have encountered many people who are in their late 60s or 70s and have lost their retirement savings. It is heartbreaking! My mothers 2nd husband in his 90s was very mentally sharp EXCEPT he got suckered into so many scams!!! It was so sad to see him lose money time and again 😩
That is so sad 🥲 thanks for sharing have a wonderful weekend Cheers 🍷🇺🇸🌻🇨🇦🍺
Great video, so many great points. I was always thinking I should pay for dinner at a restaurant and it was actually my kids that said "no you got it last time" I also sold my house and purchased a condo, fortunately my condo fees are low as I bought in a brand new building. I had thought I would stay here until they took me out in a box. However after watching your videos and seeing the value of the condo almost double (lucky me) I am thinking I will probably sell and rent an apartment in the next few years. I had only looked at keeping my cost of living down I had not even thought of the interest from the money paying my rent. This is why videos like yours are so wonderful as it gets you to think about the alternatives to how you are managing.
Thanks for sharing Maureen those Condo fees do rise even in new buildings, we are pleased you are finding our videos helpful have a wonderful weekend Cheers 🍷🌻🍺
Tina and Norm, you guys are Terrific together. You complement each other Extremely well ! I am so glad you are straight up and honest and do not try to "sugar coat" things like so many Vloggers do. Thank you !
Thanks Phil that’s great to hear have a wonderful weekend Cheers 🍺🌻🍷
I agree with not getting into a condominium, at least not the type run by a board. Some people want to keep the maintenance fees at a minimum and don't support spending money on regular maintenance. When the parking lot needs to be worked, on the lack of maintenance may mean ripping it all up and then replacing it, rather than simply patching it. Some folks can't see beyond their nose! If a condominium is in your plans, get one in which you own both the building and lot and you can control having necessary maintenance done instead of others not wanting to spend money at all.
Thanks for sharing your thoughts we appreciate it Gord Cheers 🍷🌻🍺
This is so good. We have helped our children here and there, however, we do not volunteer help. We always talk about it as a couple and then go back to them with the answer. We make them do the homework on their financial issue before helping. We’ve told our six young adult children that when we retire we will have a drop in income so they need to figure it out.
I believe I will plan on taking Social Security at 62 because my husband is 12 years older. Also in America if I take SS it helps my son who is autistic & on disability get a higher benefit. Since I help him now this will offset those cost.
Excellent video.
Thanks so much Courtney for sharing your thoughts, it sounds like a wonderful thing that you can help your son. It is important to secure your own retirement as this is it, it’s what we have worked towards. Thanks for watching and sharing your thoughts.
Wow! Very good Tips. Appreciate it. Excellent; a) Grown kid moving home after divorce, I was not aware of this trend. b) Condo fees creeping up.
Thanks for watching Ben glad you enjoyed it have a wonderful weekend Cheers 🍷🌻🍺
Tina I love your hair. I am retiring in two years. I was nervous but you and Norm have eased my mind and I am looking forward to it
Thanks Jackie, we are glad you found some value from our videos. Good luck with your retirement, just keep planning.
Fun comments. We went out with our mom for her birthday. We were all prepared to pay separately and her bill and she turned around and paid the bill. Super strange but that's my mom.
Sounds really nice 🌺🙂
Hi Tina and Norm , we have been renting our place for over 10 years , we have been given notice as you are aware rents everywhere have almost doubled 😱 this will be huge … it will work out but a huge chunk of disposable income will go to rent .
I took my CPP at 60 and enjoyed it for 12 years like you just in case.
Yes always make a gift , I learned that one , have a great weekend:)
So sorry to hear that Liedy, are they selling the place ? glad you have found somewhere but sorry it will cost more . We too are glad we took our CPP early, yes we all learn from the past 🤔hope you can still have a drink 🍷and enjoy your weekend Cheers 🍷🌻🍺
@@ThisIsOurRetirement it’s a hot market double what these Condos were selling for 14 years ago new ? And as you mentioned the maintenance and assessments can become very costly! Our investors is selling all of their investments, before the government starts to implement new capital gains on investment properties..it’s talk right now but enough to get investors to rethink their portfolio’s:)
That's the risk of renting. Yes, there are costs to owning even a fully paid home but those can be mitigated by maintaining an emergency fund. Owning a condo is another matter since one cannot predict nor prevent maintenance fee increases but I suppose there will always be pros and cons to any choice.
@@ThisIsOurRetirement In the US, you have to make three times the rent to get into an apartment or home.
We have planned our retirement with out an inheritance (we are retiring at 56 and 55 ) we have told the children we can’t help you with loans etc but they will share any inheritance we will receive as both our parents have nice houses but are still very well and active The only issue I would disagree with is renting we paid our mortgage off this is why we can retire as we save £650 per month that we were paying on a mortgage (that’s our holiday fund)
We are all different David we too had no mortgage 💸, but selling the home investing the money gave us freedom no unexpected maintenance and expenses and the stress of home ownership.
By the way doing that gave us the holiday fund for travelling 🌍✈️🚢 Cheers 🍷🌻🍺
I learned at a young age that I needed to be 100% responsible for myself financially. My parents divorced when I was a teenager and my mom was just able to pay for essentials so I never grew up used to having a parent who could co-sign or lend money. I learned to be self reliant and responsible.
That’s a tough lesson your learned but sounds like you did just great we have always done the same stood on our own two feet 👣. Have a great weekend Cheers 🍷🌸🍺
@@ThisIsOurRetirement actually it was not tough at all. My whole family operates this way, even with great financial resources. Delayed gratification is great and something I have passed on to my daughter. Her dad and I have the means to buy her anything, but we did not. She is driving a 28 year old car she brought from my mom. When she finishes college, she may decide to buy something else but she actually doesn't care for fancy things. Love your channel!
@@tamick2000 Thanks so much we appreciate your support 🌻
Thank you, Tina and Norm. Much appreciated information as even sometimes nephews and nieces and even friends ask for a cosigner. If they try with me, I'll run to the hills.
Glad to hear your learning in class David LOL 😂enjoy your weekend Cheers 🍷🌻🍺
Hi Tina and Norm, you guys are awesome, I always learn something new! Great, great advice on family. A lot of parents think that showing love to their kids and grandkids is giving them money, but it's not, it's teaches them nothing. Hope your day is going well!
Hello Rosa, You have summed it up beautifully, we really appreciate your support, have a great weekend.
@@ThisIsOurRetirement Thank you so much!
Your welcome 🤗
My wife and I didn't have issues co-signing a mortgage with our daughter. It all worked out in the end as she started with a condo and now owns a house after moving up the property ladder. Our contribution was an interest free downpayment which we got back after four years
We are glad in your case that it worked it so many cases it doesn’t, you have to be very careful lending family money especially if you can’t afford to loose it ! Cheers 🍷💰🍺
Houses do need a lot of maintenance, but with the current rent rates; and the crooks running the HOA committees for these condos, keeping your house may not seem like bad option, and overall it does have lower your expense ratio in current stream of things. In the US, rents have gone up 20 to 50 percent; but wages, our social security payments which are stagnant and pensions, do not. Thus, it can make renting a very expensive and perilous situation.
In the US, we do not have rent control, so you are at the mercy of the landlord when it comes to renting on a fixed income, as we call it, if you are retired and/or working, because employees do not give $400 to 500 dollars raises each year to help curtail daily expenses.
Ms. L. Churchill
We are fortunate Les to have rent control in Ontario this year our increase was 1.2% and we rent from a large corporation that has over 90 buildings renting is their business. Thanks for watching have a wonderful week Cheers 🍷🇺🇸🌻🇨🇦🍺
I did have a niece try to borrow some money just a few years ago but I politely declined the opportunity. She had some very serious problems and unfortunately is not with us any longer. Good video. Nice chat with friends.
Thanks for your story have a great weekend Cheers 🍷🌻
Hi all. An elderly family member couple moved from one province to another when retirement came. They moved from a mid-sized house with a grassed yard to a smaller house with a gravelled yard. No grass to cut. No tractors to buy. No weekly yard maintenance workers. In sum, our relatives bought a small lot home with fewer ongoing operational costs. Ongoing operational costs will hurt your bottom line. We all need to be careful of the leaky retirement bucket. In his mid-90's, the widower told me that he lives very simply and was glad he was able to stay in his own home. I hope I have not offended anyone.
Thanks for sharing your storey, there are many solutions but taking some action rather than no action is the key to making retirement work. Thanks so much!
@@ThisIsOurRetirement 🥰🤗 Yes, agreed. Thanks! Have a wonderful week 😊!
Oh and I forgot to mention how nice your Blue background lighting is. Very soothing and comfortable. I really like the blue color. In fact I have Blue nightlights throughout my apartment, it’s very relaxing and I can navigate at night without turning on the bright room lights. I thought Red lights would be better but I quickly turned to Blue because my vision was better and much more peaceful. [Seattle Washington]
Thanks so much!
Love your channel and advice Tina and Norm. Always enjoy and appreciate your well thought out advice. However there is one point you made that I disagree with and that is when to take Social Security. If you take it at 62 (for example) instead of waiting til 70, you have your Health and a smaller amount. If you wait until 70, your Health may have deteriorated and you’ll never make up the difference in money before you die. So I’d recommend taking retirement early because you never know how many years you have left. Thank you. [Seattle, Washington]
It’s all about how long you are to live…..endless piece of string. Don’t overestimate your thoughts.
Another great commonsensible video! I appreciate that your advice is from a Canadian perspective. A lot of retirement advice out there comes from the United States and much of it doesn’t pertain to Canada.
Your advice about not co-signing or being a guarantor is universally applicable though. We avoided this situation but the story is a bit reversed. My husband and I are both still working. Several years ago an older retired relative wished to relocate and asked my husband to co-sign on a mortgage in order to secure a desirable property. They wanted to have the luxury of moving into the new home without having the pressure to first sell their current home. Assurances were made that it was only temporary and there would be no risk to us as my husband would be named on the title. My husband heard him out but we later discussed it together and decided to decline. That relative doesn’t have a great financial track record and previous dealings with him had ended up costing us several thousand dollars. Once bitten, twice shy. The relative did not take my husband’s refusal well, to put it mildly. Sadly, it caused a rift in the family that remains to this day even though those relatives were eventually able to work things out on their own.
That is a sad story and thankfully you were able to say no, and prevent future financial headaches and stress. Thank you so much for watching.
When travelling I often stay at AirBnB. And I see so many retired people - very often ladies - who offer a room on AirBnb. Great hosts. Often Single or widowed. They know a lot about their region. They enjoy the conversations with guests plus extra income. Perhaps you could do a video. Not every retiree is in a couple situation. Many travel solo. In that regards Portugal has a lot to offer in terms of reasonnable priced hostels and AirBnb. Thanks for your great videos. I never miss one!
It is difficult for us to talk about solo travelers as we are a country and have not travelled solo.
Definitely agree on making or guaranteeing loans. I have done both and I have also refused to loan but given as a gift instead. You have to be very clear with yourself that you might not get it back and that you can cope with that financially and emotionally. Even the most trustworthy person can fall ill/lose their job.
Absolutely we agree Caroline there can be genuine cases in life , hope you have a wonderful weekend Cheers 🍷🌻🍺
Agree with everything you said. We are in the process of getting our house ready to sell. Downsizing - its too big and too much maintenance. Very good advice on all counts!!!!
Thanks so much Erin, we wish you well with your downsizing!
I guess I'll always have a home. My small farm is paid off, and I save a mortgage payment every month not having to pay for board for my horses. Of course, when I didn't have a farm, I only kept one horse. As long as I can manage to do the work on my farm, I'll be here. The woman who owned it before me died at home at 100 years old. I'm hoping to do the same.
When our parents died, I, the youngest, had been appointed executor of their estate. I made sure my siblings and the grandchildren understood that once the estate was distributed, that was the end of the bank of mom & dad, and I wasn't going to step into that role. My siblings haven't asked it of me, because I set expectations up front. I think it wouldn't be a bad thing to have a family meeting or group chat at the time you're getting ready to retire to spell out to the next generation(s) that you no longer intend to finance their lives. Christmas and birthday presents, fine; but no major cash outlays. Get them to understand this before that embarrassing dinner table conversation. My step-father is 90 and his younger brother (in his 80's) still expects the older sibling to foot the bill for everything when the younger brother comes to visit. His children also expect him to pay their way. When he lived near me, we would have dinner out every other week and would take turns paying the bill.
Thanks for sharing your story you sound very well organized have a wonderful week and we appreciate you watching our videos Cheers 🍷🌻🍺
My goodness, you guys are so wise as usual!!! What an excellent job you're doing. I look forward to your videos and I always learn loads. Thanks for your advice and your common sense approach to life in retirement. I've already been tapped a couple of times by friends and family but it's worked out so far. I'm learning never to discuss my financial situation with ANYONE! Stay safe and have a great week.
Thank you so much! glad you are enjoying our videos we hope you have a wonderful week Cheers 🍷🌻🍺
Hi Norm & Tina - great video! We feel the same way you do about condominiums. I know two former condo owners who had to sell their condos due to those hefty bills you spoke of and a raise in the monthly condo fee. We haven’t downsized yet but one thing we will consider for our next home, whether it’s an apartment or a house, is that it’s fully accessible. We don’t want to move from our current home and then have to move again. We hope to age in place so having a walk in shower, wider doorways to accommodate a wheelchair or walker, etc will be important for us. All those retrofits can be tough on the budget when on a fixed income. Thanks for an informative video - keep up the great work!
You make a great point Libbyann and it’s great that you are thinking ahead, thanks so much for sharing your thoughts.
@@ThisIsOurRetirement Thanks Norm & Tina - the challenge now is to find an apartment or a bungalow. You made your move at the right time! Enjoy your morning tea and coffee. Have a lovely Sunday.
@@libbyannstew8775 Hi Libby. Yes, retrofits can be though on the budget, but please research the internet and look at programs that your province, territory or state may have to offer to help. Terms like "Retrofit" "Canadian Government" "Grants for seniors" "Age in place" etc. Sometimes there are incentives to help people age in place. Best of luck 😊.
@@rustykatt3870 Thanks Rusty. All great suggestions. My husband has a contracting business so fortunately we’re well tapped in to the support programs as many of his clients are downsizers or seniors who need retrofits. The other thing we are seeing in our area (which is just east of Toronto) but probably happening elsewhere, is small homes are being torn down, larger ones built in their place, which is resulting in property taxes rising over time to the point where seniors are priced out of their own homes. So that loops back to what Norm & Tina said about “our homes owning us…”. My husband has had 2 clients who’ve been forced out of the homes they’ve raised their families in because they can no longer afford the property taxes. That gets me going on another tangent but I won’t clog up N & T’s channel with my thoughts on that.
Good morning ☕️ our last home which we sold was a bungalow, that made us see the beauty of the apartment we are now in as it’s just like our bungalow but without all the unexpected maintenance and expenses of home ownership, have a lovely Sunday 🌻☕️
I like the way you talk. Gentle and pleasant.
Thanks so much Chris we appreciate your kind comment.
You both are so realistic and helpful. Thanks for building up our confidence as we are in or close to retirement.
You are very welcome 🍷🌺
Love the part of, "Does your house own you" selling our home will be the hardest part, so many memories, etc. We were going to downsize but now will look into renting, especially here in Austin with the crazy high properly taxes, renting might end up being cheaper
Glad you enjoyed the video we do enjoy renting Cheers 🍷🇺🇸🇨🇦🍺
Yes I did that for my daughters first house and was very stressful. She eventually sold and bought her next one she bought on her own.
When I sold my house 5 years ago it was a young couple buying it. I asked the real estate agent how a young couple affords to buy such an expensive first home. He said the bank of mom and dad, I laughed and said this mom does not have that kind of bank.
Thanks for sharing Pat , have a wonderful weekend Cheers 🍷🌻🍺
Great story Maureen thanks for sharing Cheers 🌺
i will watching for all of these money traps . thanks so much for posting
Your welcome Stephen glad you enjoyed it Cheers 🍷🌺😎
I discovered you both a little while ago and you are two delightful people. I'm getting ready to retire in about a year and you've been very helpful. Thank you for your wonderful, helpful videos.
Welcome aboard! glad you enjoy our videos Tom have a great weekend Cheers 🍷🌻🙂
All very good points know friends who’ve been affected by one or more of these - people should take heed.
Many of these points have a lot of emotions and feelings around them, we thought for some of our viewers maybe take time to develop a response before one of them happens. Thanks so much Tameka for your comment.
A loan can be a “gift” with a loan document which can be applied by the estate executor can apply once they lender has passed away.
Good to know
Loved this video, all points are so true. It really mad3 me smile regarding paying for the family meals and our kids expecting us to carry on paying and also when they come to us and say “can I just borrow …” as you know you will never see that money repaid 😀
Absolutely!! guess they always get used to us being the parents Jacqui , have a wonderful weekend Cheers 🍷🌻🍺
With regards to co-signing... I did sign an apartment lease for one of my daughters, essentially the lease is mine and she is listed as a resident. At the time, due to some challenges, her credit score was non-existent and she was living in an illegal, and I would say unsafe, basement apartment with several community college students much younger than her. I felt she had her life back on track and was worth the risk. That was 10 years ago and she is still in that GTA rent controlled apartment (and it's still my lease to keep the rent control in place), she has built up her credit score and paid her own way from the beginning, sometimes with a roommate to make it work. On occasion it really can be a hand-up rather than a hand-out.
One thing I would advise is to stay married if you can. "Grey divorce" seems to be a thing these days but divorce is a nuclear meltdown when it comes to retirement finances.
Your story with you daughter sounds a wonderful one thanks for sharing sometimes we all need a bit of help have a wonderful weekend Cheers 🍷🌻🍺
Great summary. One skill many adults lack is the ability to say "no" because they want to nice to everyone. That's just setting themselves up for failure later. Setting expectations early (as in the examples of buying a meal for family, co-signing, loan to family members) could go a long way
So very true thanks for watching have a wonderful weekend Cheers 🍷🌻🍺
Hello Tina and Norm ✋Tina I like your hair ! Thanks for sharing this info. Never have or ever will co sign . Just found this out in Indiana if your retired you get a break on property taxes and if you are disabled or veteran you pay zero. Have a great week from small town in USA 🇺🇸
Thanks Tina had just been to her hair dresser, sounds great from the different states and property taxes thanks for sharing 👍
Lots of interesting comments from this presentation! 💯One that was needed to raise awareness. There were quite a few of your "traps" that sounded familiar as I watched my parents deal with my older brother and his financial issues, and my older cousin who never married was being pursued by one of our cousins who had 3 children. The wife worked but he was a stay at home dad, but once the youngest was well on his way in school, the cousin didn't get back into the work force from having been removed for decades. ⁉️😳 Anyway, my dear older cousin asked me to be sole executrix, and as life has it he unexpectedly passed away in 2015. Well! I had to deal with the cousin who had 3 children, and with another couple who were friends of my older cousin with a C0-sign for their vehicle!! It took years to deal with the disorganized bank to let them know my older cousin had passed. Then the fear that because I was sole executrix I was on the hook for the balance should the couple forfeit their payments. Well...guess what! Yup! They did forfeit their payments so copious amounts of my time and mental energy to connect with the right bank/loaning person to let them know my older cousin had passed away 4 years ago, after I had already notified the bank person who's signature was on the "you own money" letter. Which by the way, was just a photo copy of his signature! By the time I got through the WALL of road blocks to finally talk with this bank/loaning man in person on his cell phone, he had ZERO idea of what was going on and felt very embarrassed I was getting these "you owe money" letters. He said he would take care of it. 6 months later I received the same "you own money" letter. The cycle restarted....finally got to a new cell number and by that time the bank/loaning man himself was retired! He was embarrassed again. He led me to another bank/loaning person who replaced him and .... here we go again! What I did at that point was repeated calls to the retired bank/loaning man to harass him to stop this nonsense! So, yes, Norm and Tina....give any "loaning money" as a gift and for gosh sake...never co- sign a loan! If I am ever asked again to be an executrix, it would be my 3rd time, I have 3 criteria before I consider to accept the responsibility....I give this as a gift to any of you who are listening; 1) insist that the will ,or there is a note in the will, that clearly states how much the executrix will be paid. Why? Because if the will states beneficiaries get a percentage of the remaining funds left, they have to hang around for a while until the Estate business dealings, involving the CRA, is done and by that time, months from the death, they are anxious to get their inheritance and will not be willing to give you the maximum allowed 5% but will dwindle it down to 2% or less which is ridiculous considering all the moving parts, and worry, one generally has to deal with (if there are properties to sell and co sign loans to deal with and managing lots of money and homes to sell, lawyers, accountants and communicating with the beneficiaries...who all have no idea of the time consuming liability and responsibilities of an executrix. 2) Ask that there be no beneficiaries that are to receive a "percentage" of the remaining funds but ask if a set amount of money can be awarded instead, or a specific item(s). Why? Because if a set amount of money is allotted, and there are enough funds, once the CRA and lawyers have done their duty, and charities have received their donations, then once you get the set amount of money and items to the beneficiaries they "sign off" and you can proceed as executrix with less emotional hassle from the beneficiaries. They would have got what was assigned to them, good bye and leave the Executrix alone to continue with the time consuming tasks of dealing with lawyers, accountants and the "friendly neighbourhood CRA!"🥴
3) Every couple of years have a private conversation with the person about where things stand in their estate so to keep updated. I actually keep my Executor updated every 2 yrs and leave notes in a special binder designated for the Executor. Leaving notes is handy because I write down Estate related issues so that I don't have to contact the Executor frequently. Also, ask the person if there are any co-sign loans or debts they have when you have your update private meetings. Make super sure you know where their social insurance number is, and birth certificate. You will need these as important documents for estate trust income tax preparation and year of death income tax reporting. All necessary info to get the taxes sorted. The first 6 months after a person passes is very hectic and you go through a consuming learning curve.
You might ask, so Meg would you do it again? I would, if all of the above, 1, 2, 3, are part of the Estate planning. Whoosh! Looks like your presentation raises some poignant points and brought me down memory lane eh! Hope my story might help even just one person....it was a 5 year journey dealing with my older cousins Estate. He died unexpectedly at a young 64 yrs of age. He was like the brother I never had. I miss him dearly. Stay safe everyone as restrictions from Pandemic protocols are lifted.😷😑🇨🇦🍁
Wow Meg thanks for sharing it will hopefully help others if in the same situation, enjoy your weekend Cheers 🍷🌻🍺
Thank you for the advice. When our daughter went to college we signed the parent loan for her. She graduated in 2014. She chose not to go into her field of degree. Then We discovered she was not repaying the parent loans and it was damaging our credit. So, I took over the loans and have paid more than $24,000. I’m retiring in May and will continue paying that loan for at least another year. I have to look at it as a gift or I’d be resentful. Looking back, I wish we would have thought more about our future and less about her university.
@kamids -- terrible of your daughter to do such as thing, but you're wonderful to consider the studen-loan a gift to keep the peace, hopefully she'll repay you later on in her life when she's in a better place financially. My daughter also incurred student loan debt during her study for a Masters degree here in the US... but I would never sign-on for her or with her involving loans I told her it must be fully in her name only. Thank goodness I did that, she had no choice but to pay her own debt after graduating from college... thankfully she stuck with her degree choice and still lives at home while working in her field she also helps pay household bills plus part of my mortgage (I raised her alone as I'm divorced, her father help pay undergraduate degree-college-expenses) it's working out fine for the both of us currently, but I taught her early to stand on her own from the start while in college as well as the value of a dollar to include how to manage financial risk and debt.
Wow Kamids thanks for sharing your story , in the end it has to become a gift and then just forget about it ,have a wonderful weekend Cheers 🍷🌻🍺
Thanks for sharing your story you should feel very proud have a wonderful weekend Cheers 🍷🌻🍺
Now I know why my wife and I are retiring from the practice of law on March 31, 2022, with 30 and 43 years of work experience. Given your explanations of traps, pitfalls , etc, and if people follow your advice, you would be cutting into our sources of income in straightening out the financial dilemmas people get themselves in.
Not everyone is well planned and financed for retirement having to make compromises when they retire. Congratulations on you having made a good retirement.
I find your advice quite sound. Would you be able to create a video on funeral expenses as in I have planned for my own funeral but my parents haven’t. That added expense and pressure could truly derail budget in retirement. I have watched your video on funeral planning and found it full of helpful information.
Thanks so much for watching and giving a suggestion!
I have loaned money to my son, because he gave me money once probably about 5 years prior. So when it was time for him to pay me back I reduced the amount by how much he had "given" me. It all worked out. But I do admit while he still owed me a little he would go here and there on little trips and I would think, why is he doing this when his debt is not paid. My dad taught me, family helps family, so I would probably do it again:)
Interesting comment Pam although we absolutely agree with your dad family helps family , you pointed out that while your son still owed you money he was still going on trips ! that is where the resentment and friction causing a rift comes in thanks for sharing . Have a wonderful week Cheers 🍷🌻🍺
Really appreciate your perspectives on retirement. Valuable information and very well presented. I’m 53 and just finishing up a divorce. Not what I wanted, but it is what it is. Looking to retire around 62, would like to go sooner, but I’m working on planning right now.
Sorry to hear about your divorce, all we can say is we took early retirement at 58 and 60 and so glad we did, if you can plan to do it sooner and enjoy it we wish you well Cheers 🍷🌺🙂
Only co-sign if it's money you don't care losing. Which, for most people, isn't very much! Some other good points. My only concern with renting is the number of hobbies that I have that take up a fair amount of space. I know I could get storage but I think that's defeating the purpose.
We aren’t saying it works for everyone , we have our second bedroom as an office / TH-cam studio and it works great 🌺🍷🙂
Thank you, really enjoy watching your weekly videos. It is nice to be reminded of all the pitfalls that we have to navigate in our retirements, I thought it was going to be a great time to look forward to, but along came the pandemic and children seem to take so much longer to grow up these days. Your conversation reminds us that we are not alone in this life of constant dilemas. Stay safe and Cheers.
Hi Nair We never stop being parents, yes the pandemic has taken a big bite out of our travel plans. Stay safe too.
Hi Tina and Norm. Lovely to hear your great video advice whilst enjoying my safe trip to Portugal. So happy I risked it, it's been a delightful change to my solo existence in Ontario: café culture abounds! Totally agre with all your comments about derailing retirement although the part about loans. My grown up 'child' at 28 has been a slow learner in budgeting., with other mental health issues. With a short term loan he has begun to learn the reality of needing to 'pay it back'. He didn't recognise this with larger institutions like banks, indifferent to 'red statements'! So have successfully taught him how to learn about budgeting and responsibility to pay back loans before another expenditure. The bank of mum is now closed and he is now competent to seek other venues to buy what he wants. I'm grateful for being brought up in UK during the 50's/60's when money was really short!
So glad to hear from you Jane and that you are having a good time in Portugal, the coffee in Portugal is great, the cafe’s are so good. It’s great you were able to help your child with an important life skill. Yes growing up in England during the 50/60’s did in-still a sense of frugality. Stay safe and enjoy your time in Portugal we are envious lol.
@@ThisIsOurRetirement thanks for your reply. Because of my subscription to your channel, I can share and vicariously enjoy all your comments about retirement in Canada for a fellow Brit., despite being now single. Very much appreciate your insights and enjoyable discussions. Keep up the good work, it was essential when living in isolation in Ontario these past long months before escape to a more 'alive' environment here. Next winter you must come over, you'll be embraced by a life loving culture.
Thank you for sharing another thoughtful and interesting topic. I always learn so much from you two ⭐
Our pleasure! have a great weekend Cheers 🍷🌻🍺
I love your videos! You always give sound advice to consider. I agree that, whether you are lending money or a book, lend it as though it is a gift as it is never guaranteed to be returned.
Lovely comment and so true thanks for sharing enjoy your weekend Cheers 🍷🌻🍺
Couldn’t agree more! Excellent points. My husband and I are in our mid-fifty’s and will be retiring in 2 years. Love all your videos. Learning lots from you two. Thank you 🙂.
So glad you are enjoying and finding our videos helpful Suzie ,have a wonderful weekend Cheers 🍷🌻🍺
may be a good idea for you to do a video on the Reverse Mortgage. I know someone who was going to lose her house until I said look at a reverse mortgage in Canada. There are pros and cons but in the end she went for it and it took a huge load off her mind.
Making a will is crucial as well to avoid issues if one is not made, another video?
Great idea Mike thanks for the suggestion, yes a will is so imprortant.
I would like to see this as well!
This video was a God send for me. My brother just asked my 79 year old widowed mother to co-sign for a car loan to refinance it into her name and out of his now ex-girlfriend's name. I had to talk her out of doing it so instead she goes and borrows 10,000 from her credit union to help him pay off the car instead. I have tried to explain that this option is a mistake as well. She has not given him the money yet, I will show her this video in hopes that ahe will return the money to the bank and let my brother find his way by himself.
Thanks for sharing your story, it is hard as it puts the parent in a very difficult situation in saying yes puts them at risk and saying no can cause friction 🤔 Hope our video might help her decide. Have a great weekend Cheers 🍷🌻🍺
People often think their elder relatives are doing better than they really are. Life is complex and expensive.
Interesting point, thank you!
@@ThisIsOurRetirement
Great advice. It's tough and necessary to set boundaries and limits, and it can be an uncomfortable conversation but you explain it so plainly and sincerely which will help your listeners take this important stance. Thank you.
@@Pops2 Your very welcome have a wonderful weekend Cheers 🍷🌺😎
Always enjoy your broadcasts and generally agree with your wise counsel.
However just a small story from me. A neighbour of mine with two young children and 5 grown up children all working was devastated when her husband walked out. After all the legal bits she agreed to take over the mortgage of the family home but as she is on a small salary was unable to obtain a mortgage without a guarantor. Her plan was to obtain a mortgage and all her working children would contribute. If she could not find a guarantor she would lose the family home and along with her two younger children have to move to rented accommodation much to her distress.
There is no way I could see this happen and cause such distress to her family. I have agreed to be the guarantor (she did not ask me, I offered).
Sometimes in life you just have to do the right thing.
I have been retired three years, do a bit of voluntary work and my wife retired this summer after 40 years teaching.
Life is great.
Take care from a sunny Scotland
Thanks for sharing your story have a great weekend in Scotland 🏴 Cheers 🍷🌻🍺🙂
Thank you both for the video. I wanted to comment on two of your points, to give additional food for thought to your viewers. The first is your comment about inheritance. Many, many, financial planners will tell you to consider a likely inheritance as part of your financial plan for retirement. As the two of you correctly point out, this is not prudent planning, as there are no guarantees. In the final years, a falling out can happen and a change to the Will might find you on the outside looking in. I agree whole heartedly with you on this point; don't count on the money coming in, and you won't be in peril later on if you don't participate in the estate.
The point I really want to have people focus on is the downside of taking CPP early. Unless the cash flow is truly needed, put off taking the payment as long as possible. The break-even age is 74, meaning if that if you die before 74, you will have benefited more by starting to draw CPP at 60, but if you live past 74, you will earn far more money in the long run. Given that the average life expectancy in Canada is 82.66 years, MOST retirees benefit by putting off collecting CPP until at least 65. Using the average CPP payouts to look at the overall amount collected by age 84, a person who starts collecting at age 60 will receive $192k, someone who starts at age 65 will collect $240k and someone who starts at age 70 will collect $255,600. While the difference between 65 and 70 is not huge, the difference between 60 and 65 is pretty significant... $48k!
This last point is often lost on people. I have a good friend who still works full time at age 62, but he started collecting his CPP at age 60, because his brother-in-law told him it was a good idea and he trusted the wisdom of his brother-in-law, who has no financial background. As a result, he is collecting funds now that he will have to pay tax on in a higher tax bracket, because of the money he earns in his regular job. When the money is most needed, when he retires, the monthly payout will be about 40% less than it would have been if he had waited to start at age 65. So the extra little bit of money now will help them take an annual week long trip to Mexico, but they will struggle in retirement, as they will not have a lot of sources for revenue. This truly is a scenario of short term gain for long term pain.
Thank you James for your interesting comment, we are still happy we took CPP early as we don’t have a crystal ball 🔮 for the future, have a wonderful weekend Cheers 🍷🌻🍺
I think your friend could stop drawing CPP now if he wants to and resume later; there is paperwork on the Canada Revenue Agency (CRA) website. Apologies for suggesting this if I’m misinformed.
At 8:30, taking your CPP (Canada) or Social Security (US) later than age 70 would be a mistake. The amount you can receive maxes out at age 70. Anything after that is completely lost money.
Thanks